What are we to make of the financial markets right now? The currents have been pushing and pulling every which way, making it difficult to chart a course toward investment profits. Inflation remains stubbornly high and the Federal Reserve is moving quickly to raise interest rates and tighten monetary policy in response; all of that tends to push down on the markets, by weakening the dollar and making credit more expensive.
Despite the ongoing economic turbulence, Oppenheimer’s chief investment strategist John Stoltzfus believes that patience will pay off.
“Periods like these for those of us who have experienced past cycles of Fed tightening typically are known to come with ‘three steps forward two steps back’ patterns of halting progress that tries investor patience and conviction. This is a ‘workout’ period for the economy with uncertainty ever-present even as things begin to improve. In our experience, the trick is to practice patience, discipline and diversification,” Stoltzfus wrote.
Keeping that in mind, let’s see what stocks Wall Street’s analysts are picking out the hat. We’ll focus on tickers that, according to the TipRanks database, have a Strong Buy rating from the experts. Not to mention each offers up substantial upside potential, as some analysts see them surging over 70%.
FiscalNote Holdings (NOTE)
Let’s kick it off with a look at a tech company, FiscalNote, which provides a platform to enable policy analyses and market intelligence. FiscalNote uses a combination of AI, actionable data, and peer insights to power wide-ranging data insights and give customers the mission-critical info they need to feed their decision process.
FiscalNote got its start back in 2013, but only entered the public markets in July of this year, on completion of SPAC business combination with Duddell Street Acquisition Corporation. The combo brought $175 million in new capital to the company, a sum that formed a significant portion of the $425 million raised toward a long-term growth plan. The two companies completed their merger on July 29, and the NOTE ticker started trading on August 1.
Since entering the public markets, FiscalNote has announced its own acquisition, of Korea’s Aicel. The move brings Aicel’s tech to FiscalNote’s AI data products, and strengthens FiscalNote’s growth policy. The companies did not disclose the financial details of the move – but Aicel has doubled its revenues in the past year.
FiscalNote has also recently released its 2Q22 results. The company listed revenues of $27.2 million, for a 41% year-over-year gain, and annual recurring revenue (ARR) of $103 million, which was up 16% y/y. The company’s full-year guidance for 2022 anticipates revenues of $173 million.
FiscalNote’s strong position has attracted the attention of BTIG analyst Matt VanVliet, who initiated his coverage of the stock with a Buy rating and a $14 price target, suggesting ~72% one-year upside potential. (To watch VanVliet’s track record, click here)
Backing his bullish stance, VanVliet writes: “FiscalNote has been a pioneer in the space since its inception in 2013… FiscalNote is in the unique position of having more capital than many early stage growth companies, which will allow mgmt. to pursue bolt-on M&A opportunities and bring additional scale to the platform and the financial model. We expect the company to deliver 20%-plus organic growth and improving EBITDA margins for the next several years. Additionally, we expect FiscalNote to successfully execute on its M&A strategy and achieve double-digit q/q revenue growth, and become a dominant player in the space.”
Overall, it’s clear that the Street likes this new stock; NOTE has picked up 4 analyst reviews already, and they are all positive, for a Strong Buy consensus rating. The shares are priced at $8.16 and have an average price target of $11.88, indicating potential for ~46% upside this coming year. (See FiscalNote stock forecast on TipRanks)
Ascendis Pharma (ASND)
Next up is Ascendis Pharma, a clinical and commercial stage biopharmaceutical company working on new endocrinological treatments for severe conditions – mainly growth hormone deficiency, hypoparathyroidism, and achondroplasia – that have high unmet medical needs. The company uses its proprietary TransCon development platform to create its drug candidates.
The company’s platform uses transient conjugation, a unique capability of temporarily attaching an inert carrier agent to the drug candidate – and using that inert agent to transport the therapeutic drug directly to the targeted location in the patient’s body.
The company’s clinical pipeline includes TransCon PTH which is entering the regulatory submission process with the FDA, TransCon hGH at late stages of clinical trial process, while TransCon CNP is still at Phase 2. In addition, the company has two newer drug candidates that recently entered Phase 1 testing in an oncology program.
TransCon PTH is a parathyroid hormone replacement therapy that has recently completed late-stage testing – and the NDA was submitted for regulatory approval today. European submission is planned to follow in Q4.
On the second leading program, TransCon hGH, a treatment for human growth hormone deficiency, the company has also reported regulatory advances. In June of this year, Ascendis sent its trial protocol to the FDA for an evaluation of the drug candidate in the treatment of Turner Syndrome, and a Phase 3 clinical trial in pediatric GHD is scheduled for completion by year’s end. Ascendis is currently planning a commercial launch of this product in Europe for the middle of next year.
This drug is currently approved in the US for children with growth failure, and has been launched under the trade name Skytrofa. Skytrofa generated 4.4 million Euros in revenues for Q2, and has a cumulative total of 1,707 prescriptions written.
TransCon CNP, the third leading candidate, is undergoing Phase 2 trials, with completion and data release expected in 4Q22. This drug candidate is focused on the treatment of younger patients, suffering from pediatric achondroplasia.
According to Berenberg analyst Caroline Palomeque, the commercialization of SKYTROFA will be the main event for this company. She writes, “In Q421, Ascendis launched SKYTROFA (TransCon hGH), a human growth hormone for children with growth failure, in the U.S. As launch metrics read out, we see that its once weekly dosing regimen is preferable and is translating to greater market adoption. In our view, we see a buy opportunity in front of the EU launch of SKYTROFA in mid-2023…”
Palomeque’s statements back up her Buy rating on the stock, while her $166 price target implies a 12-month upside of ~89%. (To watch Palomeque’s track record, click here)
The unanimous Strong Buy consensus rating on ASND shares is based on 6 recent analyst reviews, all positive. The shares are selling for $86.10 and their $150.50 average price target suggests a one-year gain of ~71% lies ahead for the stock. (See Ascendis stock forecast on TipRanks)
CinCor Pharma (CINC)
We all know, by now, the dangers of high blood pressure. This is the area that CinCor, a clinical stage biopharma company, is addressing. The firm is looking for new treatments in the realm of cardio-renal diseases, conditions of the heart and kidneys – two organs that are highly sensitive to blood pressure. CinCor’s leading drug candidate, CIN-107, or baxdrostat, is currently undergoing several human clinical trials in the control of hypertension, with various causes, that has resisted previous treatments.
In the pipeline, CinCor has four Phase 2 trials ongoing, for the treatment of the following hypertensive conditions: treatment-resistant hypertension, uncontrolled hypertension, chronic kidney disease (CKD) due to hypertension, and primary aldosteronism, a hypertensive condition caused by overproduction of hormones in the adrenal glands.
Earlier this month, the company released positive topline data from the BrigHtn Trial, its ongoing Phase 2 study of CIN-107 against treatment-resistant hypertension. The data showed that the drug met the primary endpoint, and demonstrated a ‘compelling’ safety and tolerability profile. Also this month, CinCor announced that its HALO trial, testing its drug candidate against uncontrolled hypertension, remains on track with data scheduled for release during 2H22.
There is also an Open Label Extension trial underway, for patients who have gone through the HALO trial. This trial will evaluate CIN-107 in patients for 52 weeks, and data is expected to become available during 2H23. Finally, CinCor has dosed the first patients in its figHTN-CKD, testing the new drug in the treatment of high blood pressure and chronic kidney disease. Again, the data from this trail is expected for release in 2H23.
CinCor reported a solid cash position of $294.3 million at the end of 2Q22, more than double the liquid assets it held at the end of last year. The increase reflects the proceeds from the IPO, which was held in January of this year. The IPO raised a total of $193.6 million in net proceeds.
Analyst Yasmeen Rahimi, chiming in from Piper Sandler, advises investors not to ‘miss the boat’ on this stock.
“In the past 12 months, CINC shares have been up 118%, so investors are wondering if they already missed out on CINC without realizing that there is a significant opportunity remaining for the coming year… HTN has a large addressable market with ~116M adults in the US, 35% of which are not controlled on ≥1 antihypertensive drug. Specifically, CINC is focusing on subpopulations of HTN that are hard to treat, which encompasses ~30-35M uHTN patients (not at BP goal of <130/80 mmHg with 2L of therapy) and ~13-15M rHTN patients (defined as lack of BP response with 3L+). Moreover, note that there are ~5-11M PA patients in the US,” Rahimi noted.
“Overall,” the analyst summed up, “considering the healthcare costs (~$131B/year in the US) and associated CV and mortality risks of elevated BP, we see a substantial opportunity to capitalize in the hard-to-treat HTN population.”
In line with these bullish comments, Rahimi gives this stock an Overweight (i.e. Buy) rating, and her $73 price target implies a robust one-year upside of 133%. (To watch Rahimi’s track record, click here)
All in all, this stock gets a unanimous Strong Buy consensus rating, based on 4 recent positive analyst reviews. The shares are priced at $31.41, reflecting the strength of the clinical program and the company’s cash position, while the $57 average price target suggests that gains of ~82% are possible in the next 12 months. (See CinCor stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Source: https://finance.yahoo.com/news/analysts-pound-table-3-strong-151255313.html