This week Cantor Fitzgerald released its inaugural list of “Conviction” equity ideas for 2013. Far from being a copycat list that mimics every other large bulge bracket firm on the street, the firm produced an eclectic list with some very intriguing names. We dissected the list and came up with five names that, based on current pricing and target projections, had the highest projected percentage gain possibilities.
Cree Inc. (NASDAQ: CREE). Cree develops and manufactures lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Cantor Fitzgerald target price is $42. The median target price from other firms is $33.88. Shares are trading at $31.86, and the $42 target represents a 24.14% increase.
Forest Laboratories Inc. (NYSE: FRX). Forest Laboratories develops, manufactures and sells branded forms of ethical drug products, primarily in the United States and Europe. The price target on the Conviction List is $48. The street consensus is $38. Trading at $37.30, it offers a potential 22.29% gain.
RF Micro Devices Inc. (NASDAQ: RFMD). The company designs, develops, manufactures and markets radio frequency (RF) components and compound semiconductor technologies, primarily in the United States and Asia. Shares are trading at $4.90, and the Cantor target is $8. The consensus target is $6. A correct call here could yield a gain of more than 60%.
Salix Pharmaceuticals Ltd. (NASDAQ: SLXP). Salix acquires, develops and markets prescription drugs and medical devices used in the treatment of various gastrointestinal diseases in the United States. With shares at $45.59, the street target for Salix is $54. The Cantor target of $60 represents almost a 39% gain.
Unilife Corp. (NASDAQ: UNIS). This one designs, develops, manufactures and commercializes injectable drug delivery systems in the United States and internationally. Here is the Cantor Fitzgerald potential home run pick. With shares trading at just $2.37, their target is $7.50. The street also likes this name and has a $6.65 consensus target. But a $7.50 handle would be an astonishing 223% gain.
It is good to remember when investing that the Wall St. price target and your price target may be two very different areas. Any time you are trading stocks, you might want to always make the old Wall St. adage “Nobody ever went broke taking a profit” part of your trading discipline.