Canaccord Genuity’s call on Synergy Pharmaceuticals represents more than 130% upside from the most recent $8.20 share price. A less bullish call was made by Cantor Fitzgerald, taking its Buy rating target up from $8.50 to $14.00. Synergy has a 52-week trading range of $2.45 to $9.52.
Oculus Innovative Sciences
Oculus Innovative Sciences Inc. (NASDAQ: OCLS) makes prescription and OTC products based on its Microcyn platform. It is truly a micro-cap stock, worth just over $20 million. The company recently raised $4.5 million by selling shares of a company called Ruthigen. Maxim Group issued a new Buy rating on Oculus on June 26, but what stood out was its $3.00 price target. The prior closing price was $1.38, and the latest price was right around $1.43.
One thing to consider about the size of Oculus is that only one other analyst target exists, but that call is even higher at $4.00. Oculus has a 52-week range of $0.65 to $3.22, and shares were just under $1.00 one month prior to this call.
ExOne Co. (NASDAQ: XONE) was reiterated as Outperform with a $26.00 price target by Oppenheimer on June 23. This call is after remodeling the valuation after earnings were reported earlier in June. That implies that shares are worth over 100% more than the current share price of $11.50.
ExOne is in 3D printing and investors have been burned by betting on the 3D printing boom that never came on as fast as many had hoped. One word of caution here is that Oppenheimer is the most positive of all analysts. The target is over $10.00 higher than the consensus, and the call is also for a very back-end loaded recovery that is later in 2015 or even into 2016. This leaves a lot of execution risk, and what if the company keeps stumbling?
ExOne has a market cap of only $181 million and a 52-week range of $11.45 to $48.66. If investors wonder if an analyst is making a Hail Mary pass, this ExOne may be it. Still, some Hail Mary passes can win a game.
New Media Investment
New Media Investment Group Inc. (NYSE: NEWM), which is made up of GateHouse Media in community and weekly newspapers, reaches roughly 14 million people per week. This old media player with a new media twist was started as Buy at Citigroup with a $37.00 price target on June 8. The driving force is a press to redesign, and the company is now going to redesign its sites for mobile and desktop.
The company’s shares were closer to $19.00 around the call, but the more recent price of $17.95 leaves an implied upside of almost 110%. New Media’s consensus analyst price target is $33.80, and it comes with a 52-week range of $12.89 to $25.77.
Again, do not forget that there is a much higher degree of risk when an analyst sees the potentiality of the stock to more than double. It generally requires a lot of great things to happen for a stock to double. In most cases, those great things are more than just a continuation of the bull market. As a reminder, not all analyst calls work out as expected — and some crash and burn.