9 Analyst Stocks Under $10 With Massive Upside Calls

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CareDx

Janney reiterated CareDx Inc. (NASDAQ: CDNA) as Buy with a fair value estimate of $11 on June 14. The firm sees positive kidney transplant clinical results potentially increasing its available market tenfold.

The pre-report closing price of $4.70 was after a 20% drop, but the stock closed the week at $5.12. This call implied upside of more than 130%, if the call is correct. It only has a $71 million market cap and a 52-week range of $3.70 to $8.00.

GigPeak

Needham started GigPeak Inc. (NYSEMKT: GIG) with a Buy rating and a $3.50 price target (versus a $2.11 prior close). It was also started as Outperform with a $3.50 price target at Raymond James. Investors might want to keep in mind that this is the week after GigPeak sold 13.19 million shares for $2 per share.

The stock ended the week at $2.15, and it has a 52-week range of $1.48 to $3.42. The company provides integrated circuits and software solutions for high-speed connectivity and video compression, and it has a market cap of only $140 million.

Huntington Bancshares

Huntington Bancshares Inc. (NASDAQ: HBAN) stood out as an unusual winner this week, because without any Federal Reserve rate hikes, there is just no excitement for the banking sector. It was reiterated as Buy with a $12 price objective at Merrill Lynch on June 17. The firm is more confident about the future execution on the First Merit integration and organic opportunities in its footprint.

After meeting with the Chairman/CEO the Merrill Lynch team after investor meetings, they said:

We came away more confident about the future execution on the FirstMerit integration and organic opportunities in their footprint. Given the macro uncertainty, we believe banks that are in better control of their returns like Huntington Bancorp are best positioned… Our price objective of $12 suggests 30% potential upside, the highest in our regional bank coverage…. Mr. Steinour allayed any concerns regarding the timing of the deal close (third quarter 2016) and Huntington Bancorp’s ability to extract 40% cost synergies.

The stock closed the week at $9.30, versus a consensus price target of $11.16 and a 52-week range of $7.83 to $11.90.

RadiSys

On June 17, RadiSys Corp. (NASDAQ: RSYS) was reiterated as Buy, and the price target was raised to $7.25 to $6.00 (versus a $4.80 close) at Jefferies. The firm called RadiSys a growth engine and a play on the SDN/NFV market in that call. The report said:

We hosted investor meetings with Jon Wilson, CFO of Radisys. We believe RSYS is poised to be a significant beneficiary of a tsunami of change to carrier architectures as they increasingly move away from traditional central office equipment to a software-defined data center architecture.

Still, RadiSys shares closed down 4% at $4.61 on Friday, in a 52-week range of $2.25 to $5.31. It has a consensus analyst target of $6.04.

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Synergy Resources

Perhaps Synergy Resources Corp. (NYSEMKT: SYRG) should have been in the oil and gas section, but that was packed already this week, and the price is after all under $10. The stock was started with a Strong Buy rating and was given a $9.50 price target (versus a $6.78 prior close) at Raymond James on June 17.

The company is into exploration and production of oil and gas properties, primarily located in Colorado. Synergy shares closed out the week with a 5.75% gain to $7.17, in a 52-week range of $5.01 to $12.74.

Vonage

On June 14, Vonage Holdings Corp. (NYSE: VG) received a highly positive note from Citigroup, raising its rating to Buy from Neutral. The firm also raised its price target to $8.00 from $4.75. Despite a bad week for stocks, Vonage shares were up 11% at $5.29 as analyst Michael Rollins upgraded Vonage, after seeing good risk and reward trade-offs as the company pursues an opportunity to improve business revenue growth, grow consumer cash flow and generate a favorable free cash flow yield of more than 10% on the firm’s 2017 estimate.

By the close of Friday, Vonage shares traded at $5.53, within a 52-week range of $3.82 to $7.42.