Oppenheimer: 3 stocks that can rise above 100% from current levels
So far, September has been a wild ride with ups and downs. Following the recent period of volatility, equities have ticked higher again. But as the uncertainty about another rescue program and the presidential election continues to linger, where does the market go from here? Considering Oppenheimer, Chief Investment Strategist John Stoltzfus claims that any market slump appears to be “relatively contained and orderly”
; and gives long-term investors the chance to find “babies thrown out with the bathwater.” He noted, “For nervous investors, the recent downturn has presented the opportunity to take some profits without FOMO (fear of missing out).” As for the technical heavyweights that steered the market’s five-month fee forward, the strategist believes “current expectations for technology stocks will remain under pressure for some time to seem excessive.” Stoltzfus adds that “the core of technology stocks did not appear to be very rich in prices given that developments in technology and innovation have not yet shown signs of plateauing in the current cycle. “Taking into account Stoltzfus’ prospects, our focus turned to equities that Oppenheimer analysts are bullish on. The company’s professionals see double-digit upward potential waiting for three tickers.By running the names through TipRanks’ database, we wanted to find out what makes each one so compelling.MediaWound Ltd. (MDWD) MediWound develops advanced products and wants to meet unmet needs in heavy combustion and chronic wound management.With an important government contract secured, Oppenheimer has high hopes for this name. In January, MDWD announced that the U.S. Advanced Biomedical Research and Development Agency (BARDA) had contracted to provide $ 16.5 million of NexoBrid, its drug designed to remove eschar in adults with deep partial and full thickness thermal burns. (a process called debridement) to an emergency warehouse. According to management, the first delivery is scheduled for Q3 2020. In addition, the company filed the NexoBrid Biologics License Application (BLA) with the FDA for the removal of eschar in adults with deep partial thicknesses and full-thickness thermal burns in June. MDWD’s US commercial partner, Vericel, is preparing for an immediate launch after approval. Representative Oppenheimer, 5-star analyst Kevin DeGeeter points out that “Given the filing, it involved the participation of three parties – MDWD, US commercial partner Vericel and BARDA financing partners – and was terminated on the basis of mandates from public sector work from home, we see on meeting the stated timelines as a significant milestone and derisking event for MDWD stocks … we believe NexoBrid is on track to launch 1H21. “If the treatment is ultimately approved, MDWD is entitled to a $ 7.5 million milestone payment from Vericel. “We believe that the combination of existing cash and the $ 7.5 million milestone payment from VCEL upon NexoBrid approval should fund operations at least in 2H23,” DeGeeter added. DeGeeter also points out that MDWD plans to open 25-30 locations in the United States and Israel to support the Phase 2 study of EscharEx, its product for chronic wounds. Although COVID-19 resulted in a delay, the analyst believes that “the current timeline for 1H21 is achievable.” To this end, DeGeeter rates MDWD as a better performer along with a price target of $ 7. Should his dissertation play out, a potential twelve-month gain of 117% could be in the cards. (To view DeGeeter’s track record, click here) All in all, other analysts repeat DeGeeter’s sentiment. 4 Buy and no holdings or sales sell for a strong buy consensus assessment. With an average price target of $ 6.63, the upward potential comes in at 106%. (See MDWD stock analysis on TipRanks) UroGen Pharma (URGN) UroGen Pharma is primarily focused on uro-oncology and develops advanced non-surgical treatments to improve patients’ lives. As the launch of one of its products is progressing well, Oppenheimer believes it is now time to get on board. Writing for the firm, analyst Leland Gershell points to UGN-101 as a key component of his bullish thesis. UGN-101, now formally launched in the United States under the commercial name Jelmyto, was designed as a treatment for low-grade upper-channel urothelial carcinoma (LG UTUC). The analyst highlights that Jelmyto’s launch has already started solidly, as eight patients had received 20 doses of the drug in June. “Jelmyto’s sales were $ 371,000 in the first launch month, but more important was management’s comment that over 100 urology practice sites are treatment-ready for the product and that patient demand has not been visibly impacted by COVID-19,” Gershell explained. By adding to the good news, permanent C and J codes, which are expected in October and January 2021, are expected to strengthen sales in Gershell’s view, respectively. The label could also be updated to reflect completed OLYMPUS data. It should be noted that patient and physician involvement may remain diminished through YE20, and restrictions on elective surgeries may continue, according to Gershell. That said, he argues that “LG UTUC’s lack of surgical urgency may suggest postponing treatment for several months, while Jelmyto’s ability to be administered in an outpatient setting could speed up treatment and favor adoption.” If that was not enough, UGN-102, its mitomycin gel targeted at low-grade, non-muscle invasive bladder cancer (LG IR-NMIBC), is set to be included in pivotal testing by the end of 2020. Looking at previously released data, the therapy achieved a complete response at 65% (CR) rate three months after starting treatment. “To offset any potential COVID-19 impact on enrollment, URGN has increased the number of clinical trial sites outside the United States in countries where virus-related clinical delays have not occurred,” Gershell added. Summary of it all, Gershell commented, “We believe that shares are traded at a discount to the value of Jelmyto and UGN-102, and that revenue growth will support the share capital over the next 12 months.” To this end, Gershell stands with the bulls and repeats an Outperform rating. At $ 48, his price target brings upward potential to 123%. (To see Gershell’s track record, click here) What does the rest of the street have to say? 3 Buy ratings and 1 Team have been issued in the last three months. As a result, URGN receives a strong purchasing consensus assessment. In addition, the average price target of $ 44 suggests a 104% upward potential. (See URGN stock analysis on TipRanks) Ayala Pharmaceuticals Inc. (AYLA) Last but not least, we have Ayala Pharmaceuticals, which is focused on developing targeted therapies for cancer, where Notch activation is a known tumor driver. Based on the progress across its development pipeline, Oppenheimer sees great gains in store. Oppenheimer’s analyst Jay Olson believes that AYLA’s technology makes it stand out. Its two candidates, AL101 and AL102, which are licensed from Bristol Myers, are gamma-secretase inhibitors targeted at aberrant activation of Notch signaling in cancer cells. Notch signaling plays an important role in normal cell development, and disturbances can cause malignant transformation. “We believe that Notch-targeted therapies promise to meet unmet clinical needs,” Olson commented. The analyst added, “The notch mutation landscape is diverse and the underlying science is evolving. AYLA is building a bioinformatics database around Notch to better characterize and identify Notch-activating mutations. In addition, AYLA collaborates with partners developing diagnostic tests for Notch-activating mutations, at both the DNA and RNA levels. We believe that these long-term initiatives benefit AYLA by identifying respondents and expanding the addressable patient population. “Despite the challenges presented by COVID-19, critical catalysts remain on track. The company is set to present new preliminary data from Phase 2 ACCURACY open-label study of AL101 in R / M ACC at the mini oral oral head and neck cancer section of ESMO. Looking at the available data, a recent temporary analysis in a cohort showed 69% DCR. For the second cohort, a 6 mg dose of AL101 is evaluated once weekly. “We see efficacy and safety data from the 6 mg dosing cohort as important for the enabling studies, and we expect similar preliminary data readings in 1H21,” Olson said. In addition to the good news, AYLA is about to start patient dosing in the Phase 2 TENACITY study of AL101 in the R / M TNBC of YE20 after IND was cleared by the FDA in April. In 2021, AYLA plans to initiate two additional phase 2 studies, including AL102 for desmoid tumors and AL101 for r / r T-ALL. “Springworks Therapeutics recently announced the completion of Phase 3 patient enrollment of DeFi trials with nirogacestat in desmoid tumors with topline expected data by mid-2021, which should provide a review of AYLA’s AL102 program,” Olson noted. all of the above, Olson said, “We are encouraged by AYLA’s benefits in several dimensions, including its drug candidates, choice of cancer indication, and focus on identifying Notch-activating mutations while developing diagnostics. AYLA’s Notch-targeted approach aims to meet the unmet clinical needs of patients with rare but aggressive cancers. “It should therefore come as no surprise that Olson stayed with the bulls. To that end, he held an Outperform rating and $ 23 price target on the stock, indicating 123% upward potential. (To see Olson’s track record, click here) Looking at the consensus breakdown, 2 Buys and 1 Team have been published in the last three months. Therefore, AYLA receives a consensus assessment of moderate purchases. Based on the average price target of $ 19.83, the stock could rise 92% higher in the next year. (See AYLA stock analysis on TipRanks) To find great ideas for stocks that trade at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ stock insights. Disclaimer: The statements in this article are solely those of the featured analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making an investment.