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Guggenheim said: ‘The bear market rally has more room to run. Here are 2 stocks to bet on


October inflation figures were released last week and produced solid gains in the market. Investors were buoyed by better-than-expected price data as the Bureau of Labor Statistics’ Consumer Price Index hit 7.7% year-over-year. The figure is below the 7.9% forecast and half a point below September’s figure – and it is widely seen as evidence that persistently high inflation of the last year or so may be starting to ease. reduce.

Scott Minerd, chief investment officer from Guggenheim, doesn’t believe we’re starting a new bull market. However, Minerd notes that the post-CPI market rally could act as a floor for further short-term gains – and he sees the S&P 500 as high as 4,100 over the next month or so. And, if this rally plays out as Minerd predicts, it will open up a number of opportunities for investors.

“I think we’re going to keep going up at the start of the year, and then we’ll have a chance to look back on things… I’ll continue to invest fully at this point, as I’ve encouraged everyone people a month or so ago, and let the data tell us whether the bear market will continue or things are really at a turning point,” said Minerd.

In this context, we have dived into TipRanks database to get details on two stocks that Guggenheim has selected as potential near-term winners. According to the data, both are rated as Strong Buy by analyst consensus and are expected to deliver gains of more than 50% in the coming months.

Arcelx, Inc. (ACLX)

The first Guggenheim option we were looking at was Arcelx, an early-stage biopharmaceutical company focused on developing new treatments in the field of cancer. Arcelx is working on a proprietary technology, the D-domain, which is a stable, small, and complete synthetic binder with a hydrophobic core – and has the potential to improve target specificity in therapeutics. anti-cancer CAR-T cells.

The small biopharmaceutical company is relatively new to the mass market, having just held an IPO this past February. At the time, Arcelx offered 8.25 million shares at $15 per share; At the end of the IPO, the company sold 9,487,500 shares and raised $142.3 million in total capital. Since entering the public market on February 4 this year, the stock has outperformed the broader markets and is up 31%.

Arcelx has four preclinical studies, along with several clinical phased programs. The leading clinical program, CART-ddBCMA, is a novel treatment for patients with recurrent or refractory multiple myeloma. Clinical data released over the summer, from the expanded Phase 1 trial, showed ‘deep and sustained response in patients with poor prognostic factors.’ The company reported clinically significant positive effects of the drug candidate in 71% (22 out of 31) of the patients.

Consider Arcelx for Guggenheim as an expert in biology Kelsey Goodwinwho agreed that ddBCMA is an important catalyst for this company going forward.

“The initial phase I clinical data from the main program CART-ddBCMA (anti-BCMA CAR-T autologous therapy) in multiple myeloma in our view demonstrate the potential of ACLX technology to generate Clinical data is highly competitive against approved therapies…. We see an opportunity for CART-ddBCMA as a potential best-in-class fast-tracker to capture meaningful share in the major multiple myeloma market if promising early data is confirmed in the set. trial allowing larger subscriptions initiated by YE22, “Choose Goodwin.

“We think additional, more mature CART-ddBCMA Phase I data later this year could gradually increase the risk profile for ACLX program and technology, if positive,” said the general analyst. conclude.

Going forward, Goodwin rates ACLX stock Buy, with a $36 price target to suggest a one-year upside potential of 65%. (To see Goodwin’s achievements, click here)

Overall, Arcelx has selected 5 short-term analyst reviews as a public company to date, and all are positive for the Strong Buy consensus rating. Shares are selling for $21.93 and a median price target of $34.25 suggests a ~56% gain over the next year. (View ACLX stock forecast on TipRanks)

Biography 2 years (TSVT)

We will now turn to the biography of 2seventy, a company that entered the public sphere last year after splitting from its established parent company. 2seventy inherits parent company BlueBird’s investigative approach to cancer drugs, an approach that has new cell therapies in the pipeline – and Abecma, a cell-based gene therapy was launched in mid-2021 after receiving FDA approval as a treatment for multiple myeloma.

Having an approved drug is a ‘Holy Grail’ for a clinical biotech company, and 2seventy’s recent 3Q22 results show why. Abecma generated $75 million in commercial sales in the United States alone and is well on its way to the top of its previously published $250 to $300 million revenue guide for the full year. It’s a solid achievement for a relatively new drug in a crowded field.

Also on the financial front, July 2 ended the third quarter with more than $324 million in cash and other liquid assets, and management estimates that the company has a sufficient cash fund to operate by 2025. .

Moving to the clinical field, October 270 signed a strategic partnership with JW Therapeutics. This move will establish a transnational and clinical cell therapy development platform to explore T-cell-based immunotherapy drug candidates.

As for Guggenheim’s view of the stock, we’ll check back with analyst Kelsey Goodwin, who writes in the 2seventy biography: “We don’t think TSVT’s current valuation fully reflects its potential. Abecma’s trade as investors are concerned about its competitive positioning relative to. The recently approved Carvykti (LEGN/JNJ) and other potential anti-BCMA treatments…”

“We think patient demand for anti-BCMA CAR-T cell therapies exceeds current availability in the market, providing room for several commercial competitors and first place TSVT/BMY’s market share could prove to be a potential advantage.As such, we see a favorable risk/reward for TSVT,” Goodwin added.

These comments provide solid support for Goodwin’s Buy rating on TSVT stock, and his $30 price target implies a ~78% upside next year. (To see Goodwin’s achievements, click here)

All in all, there are only 6 recent analyst reviews of this small-cap biotech stock, and they all agree the stock is a good buy – leading to a unanimous Strong Buy consensus rating. The stock is priced at $16.86 and their average price target of $31.20 represents a strong 85% gain from current levels. (View TSVT stock forecast on TipRanks)

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

Disclaimer: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important to do your own analysis before making any investments.

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