Peabody Energy Corp. (NYSE: BTU) also was given a 50% or 100% upside call in late March by Jefferies. This one is battered in coal just like its peers, but it is an industry leader and that makes the call interesting, even if it seems hard to believe under the current anti-coal administration. The firm’s price target was put at $40, for almost 100% implied upside, and the implied upside is still more than 50% to the current consensus price target of $31.50.
Rosetta Resources Inc. (NASDAQ: ROSE) was named a Focus Stock by energy analysts at Howard Weil. The firm gave a $70 price target on April 2, and that implies 49% upside to the price after its recent close of $46.79. The consensus target is closer to $60, but that is still substantial upside for an independent exploration and production company that is expected to be an Eagle Ford Shale winner.
Rubicon Technology Inc. (NASDAQ: RBCN) was raised to Buy in a very positive LED sector upgrade by Canaccord Genuity in late March. The firm doubled the price target to $10, and that implied about an 80% upside at the time. The $10 target still implies more than 50% upside from the $6.50 or so price as of now, if the firm is correct.
Ruby Tuesday Inc. (NYSE: RT) was listed in the latest Barron’s (March 30) edition as a turnaround under new management. An analyst at a firm called Cove Street Capital, one we have never heard of, was quoted as saying the stock could rise to $13 if the restaurant chain can close the gap by half from what it lost in margins going back to 2007. Our only comment here is that this aggressive price target and the implied 70% or so upside is way above the handful of analysts that cover the stock.
Sangamo Biosciences Inc. (NASDAQ: SGMO) is a speculative biotech play focused on zinc finger DNA-binding proteins for gene regulation and gene modification. On March 28, JMP Securities issued a new Market Outperform rating and a new street-high price target of $16 on the stock. At $9.40 now, this leaves an implied 70% upside. Be advised that only a handful of analysts cover this stock, and it is expected to have losses beyond 2014.
Sarepta Therapeutics Inc. (NASDAQ: SRPT) has had a couple of driving forces behind its stock. On April 3, R.W. Baird started coverage at Outperform with a $63 price target, implying a whopping 85% upside. A late March call from William Blair gave an Outperform rating with a $52 price target, which implies upside of “only” about 53% from the current $34 price. As a reminder, Barron’s published in its weekend print edition in late March that if the upside is seen then the stock could rise 65% or much more, even though the article labeled the risks as well.
Ultra Petroleum Corp. (NYSE: UPL) is either going to be an incredible call or a real disappointment. On April 2 it was raised to Buy at Brean Capital (Brean Murray) with a whopping $36 price target. That is implying upside of almost 100%, versus the $18.74 share price of now. We would caution that other analysts recently refreshed their price targets as well, but with target prices under $20 for this almost-$3 billion independent oil and gas company.
Warner Chilcott PLC (NASDAQ: WCRX) may be another bounce-back winner for investors, if UBS is correct in a recent list of aggressive stocks with big upside. It is down more than 40% since last May, and the UBS price target for the stock is $23. The consensus estimate is $19.50. With a current $13.40 share price, the UBS implied upside is more than 70%, and even the implied upside to the consensus price is 45% or so.