Remember in February when we were worried about a market correction? When NASDAQ fell 10% from its peak … Yeah, never mind. Markets have been on the rise lately. A strong job report last Friday helped, with 916,000 new jobs in March, the best print since August last year, and nearly a quarter of a million higher than expected.
Rising markets make it a good time to look at the "top picks" of Wall Street equity analysts. The three stocks we are looking at are an interesting lot, and they have certain similarities: a Strong Buy consensus rating, tangible upside for investors, a & # 39; Top Pick & # 39; review and a & # 39; Perfect 10 & # 39; smart score from the Platform Investing Insights .
The platform gives each stock a one-digit score, based on the sum of 6 separate factors. The factors used are known to correlate with future overperformance; when they line up, this is a strong indicator for buyers to be aware of. Let's take a closer look.
Ascendis Pharma ( ASND )
First, Ascendis Pharma (NASDAQ 🙂 is an "emerging" biotechnology company with a primary focus on rare diseases in endocrinology. The company has an active pipeline of three drug candidates in clinical trials for endocrine diseases, including growth hormone deficiency in children and adults, hypoparathyroidism in adults and achondroplasia. The company develops its drugs using its TransCon technology, which allows proteins, peptides and small molecules to be delivered directly to parts of the body via a carrier drug with known biological action. In addition to the primary pipeline, Ascendis also has two drug candidates for oncology in preclinical development.
The company's pediatric growth hormone deficiency (GHD) drug, TransCon HGH (lonapegsomatropin), has completed a Phase 3 trial and the company is preparing for the PDUFA date in late June – with the drug expected to be commercially available on the to market US market in 3Q21. Ascendis expects a decision from the European Commission on the use of lonapegsomatropin during 4Q21. There is an ongoing Phase 3 global study for adults with GHD, with full enrollment expected early next year, and Ascendis has submitted its notification of the clinical trial to initiate a Phase 3 trial for pediatric patients in Japan.
In addition, the company is preparing for Phase 3 clinical trials for TransCon PTH, a treatment for adult hypoparathyroidism. The company expects topline results in 4Q21. As above, the company is also continuing to file clinical trials in Japan for 2Q21.
With all that in the background, Wedbush analyst Liana Moussatos listed ASND as one of her top picks for 2021
“In 2021 we look forward to 1) TC-hGH / pediatric growth hormone deficiency (GHD; lonapegsomatropin) June 25, 2021, PDUFA date; 2) potential TC-hGH / GHD MAA approval in Q4: 21; and 3) topline results of the pivotal phase 3 PaTHway for TCPTH in adult hypoparathyroidism (HP) in Q4: 21. We see these events as potential tipping points for the stock. We expect 2021 to be a transformative year for Ascendis ahead of several potential value creation events, ”noted Moussatos.
In line with these comments, Moussatos ASND stock is fostering an Outperform (i.e. Buy), and sets a price target of $ 209, indicating upward potential of 60% over a year.
Moussatos is no outlier on Ascendis; this stock has 6 recent reviews, 5 of which are for sale and 1 to keep. The stock is priced at $ 130.63 and their average price target of $ 191.25 suggests 46% growth over the next 12 months. (See ASND Stock Analysis)
AlloVir ( ALVR )
The next company on our list, Allovir (NASDAQ :), is another cutting-edge biotech company. AlloVir's focus is on the development of allogeneic, ready-to-use virus-specific T cell candidates. These are drugs specifically designed to prevent or treat viral infections in immunocompromised patients with T cell deficiencies – and limited treatment options. The company's pipeline includes five drug candidates to treat 12 "devastating" viruses, including HHV-6, EBV, PIV, HBV and even COVID-19.
The most advanced drug candidate in the pipeline, ALVR105, also referred to as Viralym-M, is undergoing trials for a variety of applications, including the treatment of virus-associated hemorrhagic cystitis, cytomegalovirus (CMV) and adenovirus (AdV). In addition, there are clinical studies of the drug candidate as a preventive agent for BKV, CMV, AdV, EBV, HHV-6 and other viral diseases. The clinical studies range from phase 1b / 2 to phase 3.
The Company's lead candidate, Viralym-M, is in an ongoing Phase 3 trial for the treatment of virus-related haemorrhagic cystitis. The company is also testing Viralym-M in two proof-of-concept phase 2 studies. These include a clinical trial of the drug candidate as a first of its kind, multivirus preventative for HSCT recipients and a trial of the drug in the treatment of BK viraemia in renal transplant patients. These studies are ongoing and patients are actively recruiting.
In addition to ALVR105 / Viralym-M, the next two most advanced programs from the company are ALVR 109 and ALVR106. ALVR109 has entered the phase 1 proof-of-concept clinical trial as a treatment for COVID-19. Preclinical data released in December showed disease-specific antiviral activity. For ALVR 106, the application for a new investigational drug (IND) has been approved and may initiate clinical trials in the treatment of influenza, PIV and respiratory syncytial virus.
In his account of this share for Piper Sandler, five-star analyst Christopher Raymond writes, “[All] important timelines remain essentially on track. For us, the most critical of these are Phase 2 POC data for Viralym-M in the prevention environment for HSCT patients and for Phase 2 POC data for Viralym-M in the treatment of BK virus in renal transplant recipients. Those two events remain on track for 2H21. Although we do not model the contribution of ALVR109 (in high-risk patients with COVID-19), we note that POC data from that program is also expected in 2H21. "
The bottom line, Raymond says, "[We] continue to see ALVR as an emerging leader in virus-specific cell therapies … it remains a top choice in 2021."
To that end, Raymond gives ALVR an Overweight (i.e. Buy) rating, and his $ 55 price target implies robust upside potential of ~ 132% for the coming year.
Like Piper Sandler's analyst, the rest of Street is optimistic about ALVR. 3 Merchandise ratings compared to no held or sold items contribute to a strong buy consensus rating. At $ 49.33, the average price target implies ~ 108% upside potential. (See ALVR Stock Analysis)
Western Digital ( WDC )
From biotech to high tech, we're switching and looking at Western Digital Corporation (NASDAQ :). The company produces hard drives and other data storage, including SSDs and flash memory. Western Digital's products are used in the data center and cloud storage industry; Western Digital includes well-known brands such as WD and SanDisk.
As one can imagine, despite the COVID pandemic, Western Digital has seen steady business over the past 18 months. The shift to remote working and virtual offices put a premium on computer chips of all types, including memory and cloud storage. WDC's revenues have been stable over that period, at nearly $ 4 billion per quarter. For the past two years, the company has reported quarterly sales of between $ 3.67 billion and $ 4.29 billion; the most recent quarter, 2Q fiscal 21, showed $ 3.94 billion at the top, with non-GAAP earnings per share of 69 cents per share and free cash flow of $ 149 million. The company presented outlook for the third quarter, with revenue forecasting between $ 3.85 billion and $ 4.05 billion and non-GAAP EPS between 55 and 75 cents.
Investors love predictability, and Western Digital's performance is just that. The company's stock has benefited from this, and its stock is up 87% in the last 12 months. This is a modest outperformance compared to the NASDAQ index, which is 73% higher than the same period.
CJ Muse, five-star analyst at Evercore ISI, digs deep under the hood of Western Digital, summarizing, "While WDC stock is up 25% from revisions to pass EPS estimates … consensus estimates. going significantly higher with potential CY21 exit run rate of ~ $ 10 + (cons $ 7.60) and additional upward towards CY22 (we see a $ 15.00 stretch target vs. current downs of $ 7.44)…. With a view of at least 30% upward as the NAND industry emerges from a cyclical trough, WDC remains a top choice. "
Muse sets a price target of $ 100 on WDC for 38% upside potential for a year.
Tech companies typically get a lot of analyst attention, and Western Digital has 21 recent stock reviews. These are split into 17 Buys against just 4 Holds, giving the stock its Strong Buy consensus rating. The stock is priced at $ 72.22, and the $ 80.26 average target implies an 11% rise from that level. (See WDC Stock Analysis)
For more ideas for stocks trading at attractive valuations, visit Investing Insights .
