Is anyone feeling dizzy from recent market fluctuations? Volatility is back on the menu. The past week has seen strong moves in both directions, with the bears ultimately in control and culminating in Friday’s defeat. After the major indices caught up for most of the year, the major indices have been on the decline recently as the market became nervous on fears of the Omicron variant and the restrictive turn of the Fed. The apparently disappointing job report on Friday further fueled doubts.
Nevertheless, even in the midst of uncertainty, there are always opportunities for investors who are willing to seek them out.
Raymond James analysts have picked 2 stocks that they believe will jump higher on the order of 60% or better. We used the TipRanks platform to look up the latest data on these tips; It turns out that the road has many advantages too.
Cushman & Wakefield (CWK)
So let’s start with a real estate company. Cushman & Wakefield is a global player in commercial real estate services and one of the largest of its kind in the world, with total revenues of $ 7.8 billion last year. The company’s revenue is backed by a large portion of its annual recurring fees, but is also exposed to market cyclicality. As a result, the stock is more likely to gain during bull runs than more stable investments like real estate funds.
Since the beginning of the year, C&W shares have gained 27%, outperforming S & P’s 21% growth. The stock gains have come as sales have risen steadily over the year. Sales in the first quarter were reported with 1.9 billion US dollars; Third quarter revenue was $ 2.3 billion, also up 20% year over year. Fees accounted for $ 1.7 billion of total quarterly revenue, 28% more than last year. EPS for the third quarter was 34 cents, down from 50 cents in the second quarter, but increased dramatically from the 4 cents reported in 3Q20.
Cushman & Wakefield is always on the lookout for creative expansion opportunities and in October this year announced a partnership with WeWork, the flexible shared workspace company. The partnership includes a $ 150 million investment from C&W and Cushman will be able to leverage leasing and project management to generate new revenue streams.
Also in October, Cushman entered into a joint venture with commercial real estate financier Greystone. The company plans to invest $ 500 million in Greystone’s agency, FHA and servicing businesses for a 40% stake.
On CWK for Raymond James, 5-star analyst Patrick O’Shaughnessy writes: “We find Cushman’s current valuation extremely attractive on both an absolute and relative basis and are looking for an upcoming investment in and partnership with the multi-family company Greystone WeWork as potential catalysts. “
O’Shaughnessy adds: “… despite an unclear medium-term outlook for office demand, a recovering global economy is driving brokerage up and pointing to a further upward trend in 2022 and beyond.”
In line with these comments, the analyst upgraded his view of the stock from Outperform to Strong Buy with a target price of $ 31, up 64% for the year ahead. (To see O’Shaughnessy’s track record, Click here.)
This stock has a moderate buy rating in the consensus view of the street based on 3 recent ratings that include 2 buys and 1 hold. The average target price of USD 25.92 indicates a growth potential of 38% compared to the current share price of USD 18.83. (See Cushman & Wakefield’s stock analysis at TipRanks.)
ADR sponsored by LianBio (LIAN)
The second stock we’ll look at is a Chinese biotech company, LianBio. Unlike many other clinical-stage biotech researchers, this company researches a diverse portfolio of new drugs in a variety of areas. LianBio is currently conducting clinical studies in the areas of respiratory, inflammatory and cardiovascular diseases, as well as in oncology and ophthalmology. The programs are run in partnerships with other world-class biopharmaceutical companies.
The top three programs in LianBio’s pipeline are in oncology, cardiovascular disease and ophthalmology. The premier cardiovascular program is for Mavacamten, which was first developed by Myokardia / Bristol Myers. Mavacamten has completed a successful phase 3 study for the treatment of obstructive hypertrophic cardiomyopathy (HCM) in the United States, and a Chinese phase 3 study is expected to begin in Q1 22.
Infigratinib leads the oncology program indicated as a new treatment for gastric cancer and other solid tumor malignancies. LianBio is partnering with BridgeBio Pharma on the clinical studies and has three studies ongoing. The drug is already approved in the United States for the treatment of second-choice cholangiocarcinoma
The company’s most advanced program in ophthalmology is TP-03, developed by Tarsus Pharmaceuticals for the eye disease Demodex blepharitis. Lian-Bio has reached an agreement with Tarsus on the development and marketing rights for the drug in China.
LianBio entered the US markets on November 1st of this year through an IPO. The shares opened at $ 16 each, right in the middle of the expected range, and the company raised $ 325 million through the sale of 20.31 million American Depositary Shares. Shares got off to a bad start, falling 26% since the closing price on the first day.
However, Raymond James analyst Dane Leone sees the three leading research programs – and in particular the Mavacamten program – as important keys to LianBio’s future prospects. He outlines three points for investors to consider: “1) LianBio has a tiered collection of assets with three essentially reduced risk drug candidates including Mavacamten, TP-03 and Infigratinib; 2) the company will grow sales rapidly starting in 2025 with the expected approval of mavacamten, our projected leading sales driver; and 3) the company has a diversified group of licensing partners that gives it the flexibility to achieve positive clinical outcomes without relying too heavily on one indication or drug class. “
Regarding Mavacamten, Leone is optimistic about the company’s commercialization potential and writes: “[LianBio] will generate revenues of $ 45 million from 2024, with a step up to $ 320 million in 2025. “
These comments back Leone’s outperform (buy) rating for the stock, and his target price of $ 27 indicates a huge 168% increase from the current share price of $ 15.57. Leones is the premier rating for this biotech stock. (To see Leone’s track record, Click here.)
Other analysts also see a lot of upside potential; With the average target of $ 24.4, the stock is expected to rise 142% over the coming months. With 2 additional buys vs. 1 hold, the stock has a consensus rating of a strong buy. (See LianBio’s stock analysis at TipRanks.)
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Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is provided for informational purposes only. It is very important that you do your own analysis before making any investment.