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3 Shares traded at very low prices; Analysts say ‘buy’
A new year, a new addition to the equity portfolio – what can make more sense than that? The right time to buy, of course, is when stock prices are valued low. Buying low and selling high might be a bit old-fashioned, but it’s true, and the truth has power, but the markets are up. The NASDAQ rose 43% in 2020 and the S&P 500 posted a gain of 16%. In a market environment like this, finding stocks that are caught in the doldrums is harder than it looks. This is where the pros on Wall Street can lend a hand.We used TipRanks’ database to identify three stocks that fit a profile: a stock price that has fallen more than 30% over price. past 12 months, but with at least double-digit upside potential, analysts said. Not to mention that each has achieved a moderate or strong purchase consensus rating.Esperion (ESPR) We’ll start with Esperion, a company specializing in therapies for the treatment of high low density lipoprotein cholesterol – a major contributing factor heart disease. The company’s main product, bempedoic acid, is now available in tablet form under the brand names Nexletol and Nexlizet. In February 2020, Nexletol and Nexlizet were approved as oral treatments to lower LDL-C. Bempedoic acid remains in clinical trials for its effectiveness in reducing the risk of cardiovascular disease. The trial, called CLEAR Outcomes, is a large-scale, long-term study that follows more than 14,000 patients with first-order data expected in the second half of 2022. The study covers 1,400 sites in 32 countries across the world. peaked last February, after FDA approvals, but since then the stock has been declining. Shares are down 65% since their peak. Along with the decline in the stock’s value, the company saw a decline in revenue from Q2 to Q3, with revenue falling from $ 212 million to $ 3.8 million. As of the third quarter report, Esperion announced the price of an offer of $ 250 million of 4% senior subordinated notes due 2025. The offer gives the company an increase in capital available to continue. work on its development pipeline and marketing efforts for bempedoic acid. Chad Messer, covering ESPR for Needham, sees the ticket offer as a net positive for Esperion. “We believe this cash position will be sufficient to support Esperion until 2021 and for profitability in 2022… We believe this funding should help allay concerns about Esperion’s balance sheet. Despite a difficult launch for NEXLETOL and NEXLIZET, product growth continued in the third quarter in a context of contraction in the LDL-C market. This growth trajectory suggests potential for rapid acceleration when conditions improve, “Messer wrote. To that end, Messer rates ESPR shares a strong buy, and its price target, at $ 158, suggests the stock. has huge room for growth this year – up to 481% from current levels. (To look at Messer’s track record, click here) Overall, Esperion has had 6 recent ratings, with a breakdown of 5 purchases and 1 expectation to give the stock a strong buy rating from analysts’ consensus, trading at $ 27.16, have an average price target of $ 63.33, implying a one-year rise of 133%. (See ESPR stock market analysis on TipRanks) Intercept Pharma (ICPT) Liver disease is a serious health threat, and Intercept Pharma is focused on developing treatments for some of the most dangerous chronic liver conditions, including non-alcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC). Intercept has a research pipeline based on FXR, a regulator of bile acid pathways in the hepatic system. affects not only bile acid metabolism, but also glucose and lipid metabolism, as well as inflammation and fibrosis around the liver. The main compound, obeticholic acid (OCA), is a bile acid analogue of CDCA and, as such, may play a role in the FXR pathways and receptors involved in chronic liver disease. Treatment of liver disease through FXR biology has direct applications for PBC and shows promise in treating complications of NASH. ICPT shares fell sharply last summer, when the FDA denied the company’s request to approve OCA for the treatment of NASH-related liver fibrosis. This delays the drug’s potential entry into a lucrative market; there is no current cure for NASH, and the first drug to gain approval will have the lead to reach an estimated market of between $ 2 billion and $ 5 billion in potential annual sales. The effect on the action is still being felt and ICPT remains at its lowest level of 52 weeks. In response, in December 2020, Intercept announced major changes in high-level management, as CEO and chairman Mark Pruzanski has announced that he is stepping down effective January 1 of this year. He is replaced by Jérôme Durso, former COO of the company, who will also occupy a position on the board of directors. Pruzanski will remain as an advisor and serve as a director on the company’s board of directors.Piper Sandler analyst Yasmeen Rahimi takes a deep look at Intercept’s continued efforts to expand OCA applications and to resubmit its new drug application to the FDA. She sees leadership transition as part of these efforts and writes:[We] believe that Dr. Pruzanski’s dedication to transforming the liver space is still strong and that he will continue to guide the progress of the ICPT as an advisor and board member. Additionally, we have had the pleasure of working closely with Jerry Durso and believe he will transform the business and lead ICPT’s success in growing the PBC market and the path to potential approval and commercial launch. of OCA in NASH. Rahimi takes a long time. eventually a bullish position in ICPT, giving the stock an overweight (ie buy) rating and a price target of $ 82. This figure indicates an impressive increase of 220% for the next 12 months. (To watch Rahimi’s record, click here) Wall Street is a little more divided on the drugmaker. ICPT’s moderate purchase consensus rating is based on 17 reviews, including 8 purchases and 9 outlets. The shares are priced at $ 25.82, and the average price target of $ 59.19 suggests upside potential of 132% for the next 12 months. (See ICPT stock market analysis on TipRanks) Gilead Sciences (GILD) Gilead has had a year of fireworks – quick and fast. The gains came in 1H20, when it emerged that remdesivir, an antiviral drug from the company, would become a top-notch treatment for COVID-19. In November, however, even though remdesivir had been approved, the World Health Organization (WHO) recommended not to use it, and COVID vaccines currently on the market made remdesivir inoperative for the pandemic, which was just one of Gilead’s recent headwinds. The company is working in collaboration with Galapagos (GLPG) on the development of filgotinib as a treatment for rheumatoid arthritis. While the drug received EU and Japanese approval in September 2020, the FDA denied approval, and Gilead announced in December that it was suspending U.S. development efforts on the drug. thus, Gilead maintains a diverse and active research pipeline, with more than 70 research applicants. at different stages of the development and approval process for a wide range of diseases and conditions, including HIV / AIDS, inflammatory and respiratory disease, cardiovascular disease and hematology / oncology. On a positive note, Gilead posted better-than-estimated third-quarter profit, with revenue of $ 6.58 billion, beating guidance by 6% and increasing 17% year-over-year. The company has updated its forecast for the year 2020 of product sales of $ 23 billion to $ 23.5 billion. Among the bulls is Oppenheimer analyst Hartaj Singh, who credits the GILD shares an outperformance rating (i.e. Buy) and a price target of $ 100. Investors are expected to pocket a gain of 69% if the analyst’s thesis comes to fruition. (To view Singh’s track record, click here) Supporting his position, Singh writes, “We continue to believe in our thesis (1) of a reliable company for remdesivir / other drugs against SARS-CoV flare-ups, (2) of a core business (HIV / oncology / HCV) growing in single digits over the next two years, (3) operating leverage for greater profit growth and (4) a dividend yield of 3 to 4%. What does the rest of the street think? Looking at the breakdown of consensus, the opinions of other analysts are more dispersed. 10 buys, 12 takes and 1 sell add up to a moderate buying consensus. In addition, the average price target of $ 73.94 indicates a potential upside of 25% from current levels. (See GILD Stock Analysis on TipRanks) To find great ideas for battered stocks at attractive valuations, visit TipRanks Best Stocks To Buy, a newly launched tool that brings together all the information about TipRanks stocks. article are only those of 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.
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