With earnings coming full throttle again this week, and investors battening down the hatches for the final few weeks of what has been a torturous presidential campaign, top firms on Wall Street now have the benefit of at least about half of the third-quarter results, and for the most part, things look pretty good. While worries about interest rates increases remain, it looks as though growth stocks still are the best avenue heading into the final two months of the year.
A new Jefferies research report focuses on growth companies that have some very solid upside potential in the tech and biotech sector. These stocks are rated Buy and make sense for more aggressive accounts.
Advanced Micro Devices
This chip stock has been on a roll, and some on Wall Street think the company is a buyout candidate. Advanced Micro Devices Inc. (NYSE: AMD) is one of the largest suppliers of PC microprocessors and graphics processors worldwide to computing original equipment manufacturers. The company’s main product lines include desktop, notebook and server processors and chipsets.
The company also offers microprocessors for server platforms under the AMD Opteron brand; embedded processor solutions for interactive digital signage, casino gaming and medical imaging under the AMD Opteron, AMD Athlon, AMD Sempron, AMD Geode, AMD R-Series and G-Series brands; and semi-custom System-on-Chip products that power the Sony PlayStation 4 and Microsoft Xbox One game consoles.
The analysts noted this in the report:
The company announced a partnership with Alibaba which would use AMD GPUs in Alibaba’s cloud offering, the third such deal with a China-based company. We expect the company is focused on the region and expect more announcements over the next 6-12 months. Our checks indicate that the Zen server MPU has been gaining traction with China hyperscale players such as Alibaba and Baidu.
The Jefferies price target for the stock is $9, and the Wall Street consensus price objective is $6.41. The shares closed Monday at $7.
This is a top name in health care that many on Wall Street for years have thought to be an acquisition target. Alkermes PLC (NASDAQ: ALKS) is a fully integrated, global biopharmaceutical company developing innovative medicines for the treatment of central nervous system diseases. It has a diversified commercial product portfolio and a substantial clinical pipeline of product candidates for chronic diseases that include schizophrenia, depression, addiction and multiple sclerosis.
The stock was up big late last week, and Jefferies noted this in its research comments:
The company announced last week that the ALKS 5461 FORWARD-5 study for depression met its primary endpoint. The full analysis of the Phase 3 study will be presented at an upcoming medical meeting. While we note the scrutiny of the data is far from over, this de-risks 5461 enough that we raise our risk discount to 50%.
Jefferies raised its price target to $70, while the consensus target is at $52.82, but that should be going higher as well. The shares closed Monday at $56.69.