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2 JP Morgan ‘Strong Buy’ Stocks Expected To Rise Over 50%


The group of doom and gloom has been in full force lately, repeatedly warning that the economy is in precariousness and that a recession next year is almost inevitable.

Maybe so, but that doesn’t necessarily mean the stock market will follow suit. In fact, JP Morgan’s Wealth Management team expects 2023 to be “a bad year for the economy, a better year for the market”.

Head of Wealth Management Karen Ward added: “Our core scenario is for advanced economies to slip into a mild recession by 2023. “However, both stocks and bonds have picked up. The macro troubles are going to play out in 2023 and look increasingly attractive.”

So with a timeline of 2023, which specific stocks offer opportunities? That’s a job for analysts to figure out, and the folks at JP Morgan have pinpointed two names that look very attractive right now – they see both adding more than 50% in value over the next year. . Based on TipRanks databaseThe rest of the Street is of the same opinion, with each stock receiving a consensus rating of “Strong Buy”.

Rallybio Corporation (RLYB)

We’ll start in the biotech sector – a segment that exemplifies the high risk/high return model. Rallybio is a clinical stage biotechnology focused on the development of drugs for the treatment of serious and rare diseases.

The company’s leading candidate, RLYB212 – an anti-HPA-1a monoclonal antibody – is being developed for the prevention of fetal and neonatal allogeneic immune thrombocytopenia (FNAIT) and is currently under development. phase 1b POC (proof of concept) trial in healthy volunteers.

FNAIT is a rare condition defined by the mother’s immune system attacking the fetal platelets, resulting in neurological defects, miscarriage/stillbirth, and/or death. Preliminary results from the RLYB212 phase 1b study were published in late September and there is a short-term catalyst from the publication of the phase 1b POC results in Q1 2023.

Rallybio is also developing RLYB116, a subcutaneously administered C5 inhibitor, indicated for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH) and generalized myasthenia gravis (gMG). A phase 1 study with multiple incremental doses of the drug will also begin in the first quarter of 2023.

For analyst JP Morgan Anupam Ramathat’s the RLYB212’s most eye-catching potential.

“Longer term, we see RLYB212 providing plenty of long-term bullish leverage for RLYB stock based on upside probability (read pending data) and market drivers (increasing diagnostic rate). prediction/perception, penetration rate and price),” explained the analyst.

“Importantly,” the analyst continued, adding, “we are taking a more conservative approach to the model in terms of peak sales for the RLYB212, located at the lower end of the range. Highest Street consensus for both sales and probability of success (WW Peak Sales – JPMe ~$1.2B; Street range ~$1-1.7B). Even with this approach, we still see meaningful upside potential for RLYB stock relative to current levels.”

Finally, Rama rates Rallybio stock at Overweight (i.e. Buy), which is no surprise considering his comment and setting a $21 price target suggests the stock will rise 350% in one year. five. (To see Rama’s achievements, click here)

Overall, Rallybio has the full support of the Street; all 6 recorded reviews are positive, giving the stock a strong Buy consensus rating. The average price target is an optimistic one; at $27, the number suggests the stock will deliver a 478% return over the next 12 months. (View Rallybio stock forecast on TipRanks)

reincarnation Inc. (IODINE)

For the next stock backed by JP Morgan, the ticker takes the game away. Samsara’s area of ​​expertise lies in the area of ​​digital connectivity, more specifically – the Internet of Things.

The company operates a connected operations platform designed to track fleets of vehicles and other devices; it enables real-time connection between physical assets and people. The result of this process is automation, which in turn prolongs the life of assets, improves productivity and worker safety, and improves company-wide operational efficiency.

Based on the latest set of quarterly results, you can tell that the platform is gaining traction. In the fiscal third quarter (October quarter), revenue increased 49 percent year-over-year to $169.8 million, beating Street expectations of $14.4 million. The non-GAAP EPS of $0.02 is not only a significant improvement from the $0.12 loss in the same quarter a year ago, but also far exceeds the $0.06 that analysts had predicted.

Even better, for a Q4 outlook, the company expects revenue of $170 million – $172 million versus consensus of just $161.38 million.

However, stocks are by no means immune to the market woes of 2022; Despite the upbeat response to the latest financial report, the stock is still down 51% year-to-date.

Print review, analyst at JP Morgan Noah R Herman I see a lot of optimism – both in terms of immediate and future results.

“For the first time, the company achieved the ‘Rule of 40’, which includes revenue growth and adjustment. FCF amplitude,” noted Herman. “Adjective. FCF margin guidance for fiscal year 2023 improved slightly, as Samsara recorded better operating efficiency and optimized working capital. On the macro side, the company is seeing a stellar performance.” saw a solid sales cycle transformation and overall sales process unchanged from Q2. We continue to believe that Samsara is attractive to long-term investors, as the company is growing. at the beginning of the digital transformation of physical operations.”

In Herman’s view, this justifies his Overweight (i.e. Buy) rating and his $21 price target shows his confidence in one-year upside potential of 53%. (To see Herman’s achievements, click here)

Most analysts agree with Herman’s view. Except for one skeptic, all 5 other recent reviews are positive, making the consensus here a Strong Buy. Going by the $20.5 average target, the stock should go up ~50% over the next 12 months. (View Samsara stock forecast on TipRanks)

To find great ideas for trading stocks at attractive valuations, visit TipRanks’ Best stocks to buya newly launched tool that consolidates all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are those of the featured analyst only. Content is used for informational purposes only. It is very important that you do your own analysis before making any investment.

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