Jefferies derived its $43 Williams Companies price target from the $23 per unit Energy Transfer Equity target price and based on an average of the all-stock and partial stock and cash deal consideration options. Upcoming catalysts are the merger completion, cost synergy realizations, and articulation of 2016/2017 distribution growth strategy.
And the Rest
Other key analyst calls with close to 50% upside and as much as 100% were seen in the following companies this past week.
Amplify Snack Brands Inc. (NYSE: BETR) was started as Buy with an $18.00 price target at Jefferies on Wednesday. The prior close was $11.51, but a 3% drop on Friday and a weak market took shares down to $10.40 on Friday. This was already above 50% in implied upside, and the lower share price would generate roughly 73% upside if Jefferies is correct here. Amplify was said to have an expected compound annual growth rate (CAGR) of at least 15% to 20% on sales and roughly 20% on earnings through 2020. Jefferies also sees the company able to generate $320 million in cumulative free cash flow over the next 5 years.
Chimerix Inc. (NASDAQ: CMRX) was started as Buy with a $55.00 price target at UBS on Thursday. This was versus a prior $35.21 close, and shares went out at $35.91 on Friday. That target implies some 53% upside if UBS is right. Interestingly enough, Chimerix has a higher consensus price target ($61.27), and its 52-week range of $33.02 to $58.04 would imply that this is simply revisiting highs rather than calling for a new breakout.
Hewlett Packard Enterprise Co. (NYSE: HPE) was raised to Outperform from Neutral by Credit Suisse on Monday. The firm’s price target was raised to $21.00 from $19.00, implying right around 50% upside to the prior $14.18 close and Friday’s $14.16 close, if you include its dividend yield.
Marinus Pharmaceutical Inc. (NASDAQ: MRNS) was started as Outperform with a $14.00 price target at RBC Capital Markets on Thursday. That implied more than 100% from the prior $6.14 close if RBC is proven right, but another 12.5% gain to $7.64 on Friday puts the current implied upside at just under 100%. Marinus has a consensus analyst price target of $16.40 and a 52-week range of $4.52 to $20.72.
Puma Biotechnology Inc. (NASDAQ: PBYI) was raised to Buy from Neutral with a $107 price target at Citigroup on Monday. This compared to a prior $67.94 close and to Friday’s close of $72.97. That leaves almost 47% upside from Friday’s close, or over 50% from when the analyst upgrade took place. Puma Biotech’s consensus analyst target has now fallen sharply to $134.25; it was closer to $190 at the time of the call. Its 52-week range is $56.11 to $252.92, but that 52-week low was on the prior Friday on almost 10-times volume.
Relypsa Inc. (NASDAQ: RLYP) was started as Buy with a $63.00 price target at H.C. Wainwright on Thursday. This was versus a prior $28.31 close, and shares went out at $27.92 on Friday. This still implies more than 100% in upside if the firm is correct in its views. Relypsa has a consensus price target of $45.44 and a 52-week range of $10.26 to $42.26. This stock has been so volatile that anything seems possible, maybe even the buyout rumors that had been floated in prior weeks.
Rubicon Project Inc. (NYSE: RUBI) was started as Buy with a $24.00 price target at Jefferies on Thursday. The prior close was $15.29, and the $15.94 close on Friday still leaves just over 50% implied upside, if Jefferies is correct. This one has a consensus price target of $24.20 and a 52-week range of $13.08 to $20.59. Rubicon is a slowing high-growth story with huge potential upside in the automated real-time online advertising market.
Sangamo BioSciences Inc. (NASDAQ: SGMO) was started as Buy at Janney Capital Markets on Thursday. The firm’s fair value estimate was set at $15.00, which implies more than 50% upside from the prior $9.33 close and Friday’s close of $9.63. The firm said that Sangamo Bio is a leader in genome editing with a long-term perspective. Sangamo has a consensus price target of $18.40 and a 52-week range of $5.30 to $19.25.
WPX Energy Inc. (NYSE: WPX) was started as Buy with a $10.00 price target at SunTrust Robinson Humphrey on Tuesday. The prior close was at$5.84, but WPX closed south with the market on Friday for a 4.5% drop to $5.44. This leaves more than 80% implied upside, if SunTrust’s analysis pans out. WPX even has a consensus price target of $11.11 and a 52-week range of $5.24 to $14.65. Being a speculative natural gas and oil player still comes with a lot of risk.
Again, these 50% to 100% implied upside picks from analysts are generally coming with far more risk than traditional Dow stocks, even if many of these are large cap stocks.