Oppenheimer said that Stratasys was working through problems tied to an acquisition and that it should resume growth ahead. Oppenheimer even said that it offered a far better value scenario than rival 3D Systems. The consensus price target is now closer to $46.00. Investors just need to remember how volatile this sector is (and how painful it has been to be a 3D printing investor). Stratasys has a 52-week range of $33.85 to $130.83.
Mobileye N.V. (NYSE: MBLY) is currently believed to be the king of technology for camera-based advanced driver assistance systems. Citigroup came out on May 21 and reiterated its Buy rating. What stood out was that the price target was raised to $70 from $62. This was versus a $46.10 prior close and versus a $47.08 close on the last day of May. If Citigroup turns out to be right, then Mobileye shares could be worth right at 50% more than they are now. Part of the driving force here was a positive earnings report.
When we looked at the other firms covering Mobileye, it turns out that the consensus price target is closer to $59.00. Also, we would point out that the Citigroup target of $70 is the most optimistic of all analyst target prices tracked by Thomson Reuters. The driver here is that Mobileye’s competitive advantage against competition seemed to be getting wider rather than narrower, a potential massive win for this $10 billion Israel-based auto-tech leader.
Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) was started as Buy at Canaccord Genuity in the last week of May. What stood out was its price target of $11, versus a pre-call closing price of $4.29 and that May-end price of $4.30. The firm admitted that it has never been shy about taking swings in front of binary outcomes, and the firm went on to say that this one qualified as one of the biggest examples it has seen in a while. This feels like a “swing for the fences” call, but if things work out then Canaccord Genuity’s implied upside is over 150%. The lowest target of the five analysts covering it is $5.75, and $8.50 is the median target price.
The driver here is four Phase 3 trials maturing over the next 12 months: in chronic idiopathic constipation and constipation-predominant irritable bowel syndrome, with a high likelihood of success and a large total market opportunity (that Actavis/Ironwood is still developing with Linzess). Canaccord further said that it would be an attractive buyout candidate if successful in Phase 3 trials since it owns full worldwide rights on plecanatide. The market cap for Synergy Pharma is $430 million and the 52-week range is $2.45 to $4.68.
Telenav Inc. (NASDAQ: TNAV) is into personalized mobile navigation services. While many of us just get that from our smartphone now, Northland Securities sees huge upside here. The firm started Telenav as Outperform and it assigned a $15 price target. That compared to a pre-call closing price of $8.86 and a May-end close of $9.03.
What Northland Securities sees actually makes it the highest analyst target of the three analysts that follow Telenav. The other two targets are $6.00 and $11.00 for this small cap stock. Telenav has a 52-week range of $4.70 to $9.83, and if the firm is right then there is still some 66% upside remaining in the stock. Just keep in mind that revenue declined for the past two years to $150 million in 2014, and it may decline again this year (June fiscal year-end). Its market cap is also only $364 million.
Again, investors need to understand that it is not normal to see massive upside calls of 50%, 100%, or more. This implies much more risk than the 8% to 20% upside calls seen in Dow and S&P 500 stocks.