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Raymond James Predicts Over 60% Rally for These 2 Stocks

Bouncing again with unbelievable drive, the S&P 500 has gained 50% over the previous 12 months, with the index now touchdown simply shy of its 52-week excessive. This spectacular cost ahead has come as investors shrug off COVID-19’s devastating impression on the economic system. Going forward, Raymond James strategist Tavis McCourt believes we’re taking a look at a extended interval of upper rates of interest, greater taxes, and considerable financial progress. “[It] seems very likely the puck is going to be in a very strong economy, low unemployment, with higher long term rates, and likely higher tax rates in the next 6-12 months. The bias for EPS this year is likely higher as re-openings occur, as any EPS misses are likely to be driven by supply issues or inflation, not lack of demand,” McCourt famous. Sustained enchancment within the financial indicators paint a rosy image, and McCourt believes that among the potential negatives (the Biden Administration’s coverage desire towards greater tax charges, for instance) are already priced in. As the tide rises, we keep in mind certainly one of JFK’s well-known traces: “A rising tide lifts all boats.” We’ll take a have a look at a piece of that rising tide, by the inventory picks by a few of McCourt’s Raymond James colleagues. They’ve identified equities with upwards of 60% good points in retailer for the 12 months forward. After working the tickers by TipRanks’ database, it’s clear the remainder of the Street is in settlement, with every incomes a “Strong Buy” consensus score. Pioneer Natural Resources (PXD) We’ll begin in Texas, within the oil patch of the Permian Basin, the place Pioneer Natural Resources is a main landholder and hydrocarbon exploration and extraction firm. Pioneer has over 1.27 billion barrels of oil equal in confirmed reserves on its holdings; that quantity consists of 357 million barrels added by exploration in 2020. Operations on its holdings yielded This autumn earnings of $1.07 per share, beating consensus estimates of $0.69 per share. For the full-year 2020, Pioneer reported a internet lack of $1.21 per share; this quantity was closely impacted by disruptions because of the COVID pandemic disaster. Furthermore, 2020 noticed working money move attain $2.1 billion, with a free money move of $689 million. The firm used that free money move to fund a capital return program totaling $521 million. A big a part of the capital return is made by the corporate dividend, which within the final declaration was raised one penny to 56 cents per frequent share, paid quarterly. The firm has constructed on its stable place by buying, efficient this month, competitor DoublePoint Energy. The acquisition price Pioneer the equal of $6.four billion – divided up as 21.2 million shares of PXD frequent shares, $1 billion in money, and the rest, $900 million, within the assumption of debt and liabilities. Covering PXD for Raymond James, analyst John Freeman writes of the acquisition: “We anticipate meaningful efficiency improvements from longer laterals on the acquired acreage in addition to the typical G&A and interest synergies. The 97,000 net acre acquisition increases PXD’s Permian leasehold to >1M net acres.” The analyst added, “With the acquisition of DoublePoint Energy, Pioneer further establishes itself as the leading Permian Basin pure-play E&P with top-tier acreage position and balance sheet. The company’s ability to generate meaningful FCF should be more than sufficient to fulfill its intentions to return meaningful returns to shareholders…” In line along with his feedback, the analyst charges PXD a Strong Buy, with a goal worth of $245 to point a one-year upside of 67%. (To watch Freeman’s monitor file, click on right here) Overall, the phrase of the Street is an overwhelmingly bullish one for this oil inventory, as TipRanks analytics exhibit PXD as a Strong Buy. Out of 24 analysts polled within the final three months, 19 are bullish, and 5 stay sidelined. With a return potential of ~29%, the inventory’s consensus goal worth stands at $190.57. (See PXD inventory evaluation on TipRanks) NexImmune (NEXI) Shifting gears, we’ll transfer from the vitality business to the biotech discipline, the place NexImmune is an early-stage biotechnology firm in oncology, growing T-cell immunotherapies. In quick, the corporate researches methods to stimulate the affected person’s personal immune system to combat most cancers. The firm has a improvement pipeline that includes two lead drug candidates, NEXI-001 and NEXI-002, that are in Phase half scientific trials as therapies for acute myeloid leukemia (AML), relapsed after allogeneic stem cell transplant or a number of myeloma refractory to >three prior traces of remedy, respectively. The firm has one other 4 applications in varied levels of early preclinical improvement. In the fourth quarter final 12 months, NexImmune introduced that the primary affected person has been dosed within the Phase half trial for NEXI-002. Also in 4Q20, preliminary outcomes on the primary 5 sufferers handled with NEXI-001 confirmed ‘early signs’ that the drug candidate is secure and prompts a strong immune response. NexImmune anticipates extra information on these trials in 2Q21, and a extra full set of outcomes by the top of this 12 months. In a transfer to lift capital, NexImmune in February of 2021 held an preliminary public providing (IPO) on the US inventory change NASDAQ. The firm put 7.441 million shares up, at a worth of $17 per share. The sale, earlier than bills, grossed $126.5 million for the corporate. NexImmune’s transfer to the NASDAQ prompted Raymond James analyst Steven Seedhouse to provoke protection on the inventory. The analyst charges NEXI an Outperform (i.e. Buy) together with a $30 worth goal, which means a 64% upside over the approaching 12 months. (To watch Seedhouse’s monitor file, click on right here) “Individually, we view NexImmune’s programs as high risk/high reward (i.e. low PoS but high unadjusted revenue potential), plus in aggregate we view the platform as likely to yield a successful therapeutic with guidance by an experienced management team,” Seedhouse opined. The analyst added, “NexImmune’s AIM ACT technology is related to a cell therapy called tumor infiltrating lymphocytes (TILs) and [rival] Iovance has shown promising data in Phase 2 study of TIL lifileucel in metastatic melanoma. Unlike the more targeted NEXI-001, lifileucel consists of a highly variable mix of T cell clonotypes. We think Iovance’s market cap north of $4B is an aspirational target for NexImmune.” This firm has solely had time to choose up three analyst evaluations because it began buying and selling on the US markets – however all three are to Buy, making the analyst consensus on the inventory a Strong Buy. The shares are at present priced at $18.28 and have a mean goal of $33.33, which suggests an upside of ~82% this 12 months. (See NEXI inventory evaluation on TipRanks) To discover good concepts for shares buying and selling at enticing valuations, go to TipRanks’ Best Stocks to Buy, a newly launched instrument that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is supposed for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.



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