We are nearing the end of 2022 and it is time to evaluate the stock market. Earlier this month, we got some good news on inflation – November data showed price growth falling to 7.1% year-on-year, from 7.7% the previous month. This was followed by the Federal Reserve’s seventh rate hike of the year, a 50 basis point increase, marking a slowdown from the previous quadruple 75 bp.
But comments from Fed Chairman Jerome Powell have made it clear that, while the central bank may slow the pace of rate hikes to match slowing inflation, it will maintain its policy of higher interest rates. and tighter monetary policy until inflation is beaten – and we should expect rates to rise above 5% and stay there through 2023.
That has investors increasingly worried about the risk of a recession. But just because the market is volatile doesn’t mean powerful opportunities can’t be found. Wall Street analysts are out there, studying the world of stocks, to find the right stocks to buy.
use TipRanks database, we’ve identified two stocks that have a ‘Strong Buy’ consensus rating from Street analysts and have triple-digit upside potential over the next year. Let’s find out why these stocks could double or more in the next year.
scPharmaceuticals, Inc. (SCPH)
scPharmaceuticals, the first stock we’re reviewing, has developed a new drug, Furoscix (furosemide injection), that has the potential to permanently change the treatment of chronic heart failure – by displacing drugs. intravenous infusion with self-injectable subcutaneous diuretics. . Furoscix is the first – and to date, only – drug candidate to gain FDA approval in this area.
That approval was announced this past October. The FDA has granted marketing authorization to Furoscix, and scPharmaceuticals has scheduled a commercial launch in Q1 2023. It’s the company’s biggest news and a major catalyst ahead.
The commercialization process requires capital and scPharmaceuticals has taken two steps in recent months to ensure sufficient capital is available. First, in October, the company announced a debt financing deal with Oaktree Capital Management, valued at up to $100 million. The company used a portion of that money to clear its outstanding debt, and the remainder was set aside to support upcoming Furoscix commercialization activities.
In addition to this agreement, scPharmaceuticals announced in November a public offering of shares. The offering saw 6.62 million shares hit the market, at $5.25 per share. The company received a total of about $50 million, to add to its cash.
Cover this stock for Cowen, analyst Ken Cacciatore see a lot of potential for investors to embrace. He writes, “We believe Furoscix’s value proposition will ensure early and broad coverage despite entering a generic market. Specifically, the average cost of a heart failure hospital admission can be around ~$20,000 and with an average treatment cost of Furoscix ~$3,000 (assuming an average of 4 doses x $825/ dose), Furoscix can save more than $17,000 per patient. In addition, with a concentrated prescriber base, we believe scPharma can address this opportunity with a thoughtful commercial strategy and a relatively lean sales force.”
“With a clear value proposition and unmet need in this broad market, we believe the stock is significantly undervalued,” the analyst summed up.
The analyst quantifies his bullish stance with an Outperform rating and $25 price target, implying an impressive 302% upside over the next 12 months. (To see Cacciatore’s achievements, click here)
Overall, there are 5 recent analyst reviews of this budding commercial biopharmaceutical, and they all agree that this is a buy, to achieve a consensus rating of Strong Buy analysis. The average price target of $16.4 shows a potential upside 163% above the current trading price of $6.23. (View SCPH stock forecast on TipRanks)
New Amsterdam Pharmaceutical Company (NAMS)
Let us now turn to New Amsterdam Pharma, a clinical-stage biotech company that is working on a new drug candidate to improve the treatment of metabolic diseases. The drug candidate, obicetrapib, works to lower LDL-C (“bad cholesterol”) levels by blocking cholesterol esterase transport protein (CETP) that would otherwise convert “good” HDL-C into LDL-C. Obicetrapib, if successful, would be a safe and convenient treatment option, available as low-dose, once-daily oral therapy.
The company is conducting multiple late-stage clinical trials, including the BROOKLYN Phase 3 study, looking at obicetrapib as a treatment for patients with heterozygous familial hypercholesterolemia. whose condition is not responding to current lipid-modifying therapies. This study shows that the first patient received the drug in July this year.
BROOKLYN is hardly the only study New Amsterdam has at this time. The company is evaluating obicetrapib in two other Phase 3 trials, the BROADWAY and PREVAIL trials, both of which are evaluating drug candidates in subgroups of patients with atherosclerotic cardiovascular disease. Furthermore, the phase 2b ROSE trial is looking at obicetrapib as an adjunct to high-intensity statin therapies.
These tests provide New Amsterdam with a host of catalysts coming up next year, but they won’t come cheap. The company raised the necessary capital through a business combination or SPAC transaction, which was completed this past November. The combination, with the Frazier Lifesciences Acquisition Corporation, brought New Amsterdam a total of $328 million.
Start covering New Amsterdam for Jefferies, analyst Ding Ding points to a ‘steady pace of late-stage indices over the next several years’ and goes on to add, “NAMS has a new LDL-lowering drug for hyperlipidemia and has been tested in multiple Phase Phase III in the next few years. We consider this program to be relatively risky with a strong LDL-lowering effect like PCSK9 and also with strong improvements in non-LDL biomarkers and possibly peak revenue from 3- $4 billion for NAMS, which is the opposite of the current valuation.”
Ding rates NAMS stock as such a big opportunity a Buy, while his price target of $24 implies that the company will post a 112% gain in one year. (To see Ding’s track record, click here)
Overall, this new public biopharmaceutical has received 3 analyst reviews since the token began trading – and all have been positive, making the Strong Buy consensus unanimous. The stock is selling for $11.3 and an average price target of $21.5 suggests a strong 90% gain by the end of next year. (View NAMS stock forecast on TipRanks)
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deny the responsibility: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important that you do your own analysis before making any investment.
