Investing

Five Analyst Stock Picks With 100% or More Implied Upside

Lee Jackson

Marin Software Inc. (NYSE: MRIN) is a top stock pick at Deutsche Bank and could bring home the bacon for investors. The company is a provider of a leading revenue acquisition management platform for advertisers and agencies. The company announced last week the acquisition of San Francisco-based Perfect Audience, a privately held display and social retargeting company. Perfect Audience offers advertisers a powerful, easy-to-use SaaS platform to retarget audiences across the Web, Facebook and Twitter. Deutsche Bank has a massive $20 price target, while the consensus is at $17. Marin was trading at $10.12 Friday afternoon.

Relypsa Inc. (NASDAQ: RLYP) is a small-cap name most have not heard of, but it ranks incredibly high with buy-side accounts. The company is focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases.

Relypsa’s two-part pivotal Phase 3 trial of its lead product candidate, patiromer, for the treatment of hyperkalemia, a life-threatening condition defined as abnormally elevated levels of potassium in the blood, has been completed and the primary and secondary endpoints were met. Stifel has a huge $45 price target, and Wedbush is even higher at an incredible $57. The consensus price target is a whopping $53. Relypsa shares were at $24.40 late on Friday.

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) may be another home run stock aggressive traders dream of. The Jefferies analysts point out that not only is the stock trading close to cash, with $2.33 per share on the balance sheet, the stock is down a staggering 24% just since the start of the second quarter.

Plain and simple, the Jefferies analysts see Rigel as perhaps one of the best small-cap opportunities for longer-term investors. They point out that with one of the most de-risked Phase 3 assets in biotech, a huge safety database from the prior rheumatoid arthritis development program, a validated $700 million or larger market opportunity, and growing at more than 20% year-over-year, everything may line up for an out-of-the-park stock. The Jefferies price target for the stock, which is rated as Buy, is a gigantic $10. The consensus on Wall Street is at $6. Rigel shares were at $3.70 in late Friday trading, implying close to a 200% gain if the call comes to fruition.

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In conclusion, these stocks are clearly not for the timid and should only be in aggressive, high-risk tolerant accounts. It should be understood that no widows and orphans funds would be appropriate here. With that caveat aside, hitting one of the five to their target could be a huge winner for investors with a trading bent. One thing goes along with good research, and that is patience. Sometimes it takes a while for the bandwagon on a hot stock to move. Sometimes the expectation does not pan out. But when it does, look out, the sky can be the limit.