Oppenheimer: 3 stocks that could increase by over 100% compared to the current level
September has been a wild up and down so far. Following the recent volatility, stocks have risen again. But how is the market doing from here, given the uncertainty about another bailout and the presidential election? John Stoltzfus, chief investment strategist for Oppenheimer, argues that market dips appear “relatively cautious and orderly”
; and offer longer-term investors the chance to “find babies who have been thrown away with the bathwater”. He noted, “For nervous investors, the recent downtrend has created an opportunity to make profits without FOMO (fear of missing out).” As for the tech heavyweights driving the market’s five-month boost, the strategist believes ” Technology is currently expected Stocks will remain under pressure for some time, seem excessive. “Stoltzfus adds that” the core of technology stocks did not seem particularly price-intensive given that developments in technology and innovation in the current cycle are not yet showing any signs of plateauing. ” Given the prospects for Stoltzfus, we focused on stocks, the Oppenheim analysts are optimistic. The company’s professionals see a three-digit upside potential for three tickers in particular. With the names in TipRanks’ database, we wanted to find out what makes each one so compelling. MediWound Ltd. (MDWD) MediWound develops innovative products and aims to meet unmet needs in the areas of severe burns and chronic wound management. After an important government contract was signed, Oppenheimer has high hopes for this name. Back in January, MDWD announced that the U.S. Biomedical Research and Development Agency (BARDA) had signed a contract to source NexoBrid for $ 16.5 million in adult scabs with deep partial and total thermal burns (a process called debridement) for an emergency supply. According to the management, the first delivery is planned for the third quarter of 2020. In addition, in June the company filed with the FDA the NexoBrid Biologics License Application (BLA) for scab removal in adults with partial and full thickness deep thermal burns. MDWD’s US trading partner, Vericel, is preparing for an immediate launch upon approval. Five-star analyst Kevin DeGeeter, who represents Oppenheimer, points out that, “Given the filing, it involved three parties – MDWD, US trading partner Vericel and funding partners at BARDA – and we were made against the backdrop of Work -from home public sector mandates completed. We consider meeting the deadlines set to be a major milestone and a de-icing event for MDWD shares. We believe NexoBrid is on its way to the 1H21 launch. “Should therapy ultimately be MDWD is eligible for a milestone payment of $ 7.5 million from Vericel.” “We believe the combination of cash in hand and VCEL’s $ 7.5 million milestone payment after NexoBrid approval should fund operations through at least 2H23,” added DeGeeter. DeGeeter also points out that MDWD plans to open 25-30 locations in the US and Israel in support of the Phase 2 study of EscharEx, its chronic wound product. Although COVID-19 caused a delay, the analyst believes that “the current schedule is attainable for 1H21”. For this purpose, DeGeeter rates MDWD with an outperformance and a price target of USD 7. Should his thesis prevail, a potential twelve-month gain of 117% could be in sight. (To view DeGeeter’s track record, click here.) Overall, other analysts agree with DeGeeter’s view. 4 buys and no holds or sells results in a strong buy consensus rating. With an average target price of USD 6.63, the upside potential is 106%. (See MDWD stock analysis on TipRanks) UroGen Pharma (URGN) UroGen Pharma is primarily focused on uro-oncology, developing advanced non-surgical treatments to improve patient lives. With the launch of one of its products progressing well, Oppenheimer believes that now is the time to step on board. Analyst Leland Gershell, who writes for the company, points to UGN-101 as a key component of his bullish thesis. UGN-101, now officially launched in the US under the tradename Jelmyto, was developed for the treatment of low-grade urothelial cancer of the upper tract (LG UTUC). The analyst highlights that Jelmyto’s launch is already off to a solid start, with eight patients receiving 20 doses of the drug in June. “Jelmyto’s sales were $ 371,000 for the first month of launch, but more importantly, management’s comment that over 100 urology practices have been performed, the sites are treatment ready for the product, and patient demand has not been reduced by COVID-19 visibly influenced, ”explained Gershell. In addition to the good news, permanent C and J codes expected in October and January 2021 could increase sales, Gershell believes. The label could also be updated to reflect the full OLYMPUS data. It should be noted that patient and doctor engagement could remain diminished through the year 20 and the restrictions on elective surgery could remain, Gershell said. Nonetheless, he argues that “LG UTUC’s lack of surgical urgency could postpone treatment for several months, while Jelmyto’s ability to be administered on an outpatient basis could expedite treatment and facilitate adoption.” If that wasn’t enough, UGN-102, the mitomycin gel targeting non-muscle-invasive low-risk and medium-risk bladder cancer (LG IR-NMIBC), is slated to enter the crucial test before the end of 2020. Based on previously published data, the therapy achieved a complete response of 65% (CR) rate three months after starting treatment. “To offset the potential registry impact of COVID-19, URGN has increased the number of clinical trial sites outside of the US in those countries that have not experienced virus-related clinical delays,” added Gershell. Gershell sums it all up, commenting, “We believe stocks will trade at a discount to the value of Jelmyto and UGN-102 and that sales growth will support the upward movement of stocks over the next 12 months.” To that end, Gershell stands with the Bulls and reiterated an outperform rating. At USD 48, his price target brings the upside to 123%. (To see Gershell’s track record, click here.) What does the rest of the street have to say? In the last three months 3 buy ratings and 1 hold were given. As a result, URGN has a strong buy consensus rating. Additionally, the average target price of $ 44 suggests upside potential of 104%. (See URGN stock analysis on TipRanks) Ayala Pharmaceuticals Inc. (AYLA) Lastly, we have Ayala Pharmaceuticals which is focused on developing targeted therapies for cancers where Notch activation is a known tumor driver. Oppenheimer sees big gains due to the advances in the development pipeline. Oppenheim analyst Jay Olson believes that AYLA’s technology makes the company an outstanding product. The two candidates, AL101 and AL102, which are licensed from Bristol Myers, are gamma-secretase inhibitors that target aberrant activation of the Notch signal in cancer cells. The notch signal plays an important role in normal cell development, and interference can cause malignant transformation. “We believe that targeted notch therapies show promise in meeting unmet clinical needs,” commented Olson. The analyst added, “The Notch mutation landscape is diverse and the science behind it is evolving. AYLA is building a bioinformatics database around Notch to better characterize and identify Notch-activating mutations. In addition, AYLA is working with partners to develop diagnostic tests for Notch activating mutations at both the DNA and RNA levels. We believe these initiatives will benefit AYLA in the long term by identifying responders and expanding the addressable patient population. ”Despite the challenges posed by COVID -19, Critical Catalysts Stay On Track The Company is expected to provide new interim data from the Phase 2 ACCURACY open-label study of AL101 in R / M ACC at ESMO’s Mini Oral Head and Neck Cancer Unit. Taking into account the available data, a recent interim analysis in a cohort found 69% DCR . For the second cohort, a weekly dose of 6 mg AL101 is assessed. “We consider the efficacy and safety data for the 6 mg dose cohort to be important to the registrable studies and expect a similar preliminary data read in 1H21,” said Olson. In addition to the good news, AYLA is on track to start patient dosing in Phase 2 TENACITY trial of AL101 in R / M-TNBC by YE20 after the IND was approved by the FDA in April. In 2021, AYLA plans to initiate two more Phase 2 studies, including AL102 for desmoid tumors and AL101 for R / RT-ALL. “Springworks Therapeutics recently announced the completion of patient enrollment for the Phase 3 DeFi trial of nirogacestat in topline desmoid tumors, the data is expected in mid-2021 and should provide an overview of AYLA’s AL102 program. “Olson said,” We are encouraged by the benefits of AYLA in multiple dimensions, including its drug candidates and cancer indication selection, and are focused on identifying Notch-activating mutations during the development of the diagnostic. AYLA Notch’s targeted approach should address the unmet clinical needs of patients with rare but aggressive cancers. “So it should come as no surprise that Olson stayed with the cops. To that end, he kept an outperform rating and a target price of $ 23 on the stock, implying an upside of 123%. (To see Olson’s track record, click here.) In terms of the consensus breakdown, 2 buys and 1 hold have been released in the past three months. Therefore, AYLA receives a consensus rating for moderate purchase. Based on the average target price of $ 19.83, stocks could rise 92% over the next year. (See AYLA stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.