Hot Tech and Biotech Companies Highlight Jefferies Stocks to Buy

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Kite Pharma

This company had a hot 2014 initial public offering and has done outstanding since the debut. Kite Pharma Inc. (NASDAQ: KITE) is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of novel cancer immunotherapy products.

The company is developing a pipeline of engineered autologous cell therapy-based product candidates for the treatment of solid and hematological malignancies. Its lead product candidate is KTE-C19, a chimeric antigen receptors (CAR)-based therapy that is in Phase 2 clinical trials for the treatment of patients with refractory diffuse large B cell lymphoma, including primary mediastinal B cell lymphoma and transformed follicular lymphoma.

The company is also conducting a Phase 2 clinical trial of KTE-C19 on patients with relapsed/refractory mantle cell lymphoma; a Phase 1-2 clinical trial of KTE-C19 on adult patients with relapsed/refractory acute lymphoblastic leukemia; and a Phase 1-2 clinical trial of KTE-C19 in pediatric patients with relapsed/refractory. In addition, it engages in developing T cell receptors-based therapies, which targets self-antigens, viral antigens, and neo-antigens. The company has a research collaboration and license agreement with Amgen to develop and commercialize various CAR-based product candidates.

The Jefferies team noted:

Following the release of the ZUMA-1 data, we attended an analyst day during which management shared its commercial for the launch of KTE-C19. They have spoken to seven payers with positive feedback. Final ZUMA-1 data are on track for release during first quarter of 2017.

The $72 Jefferies price target is less than the consensus target of $74.33. Shares closed on Monday at $46.21.

PayPal

This company was spun-off from eBay last year and many on Wall Street think the real growth is in the payment sector. PayPal Holdings Inc. (NASDAQ: PYPL) operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide.

PayPal enables businesses of various sizes to accept payments from merchant websites, mobile devices and applications, as well as at offline retail locations through a range of payment solutions across company’s payments platform, including PayPal, PayPal Credit, Venmo and Braintree products. Its platform allows customers to pay and get paid, withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies.

The research report noted:

The Company reported last week. Revenues were ahead and earnings-per-share were in line. The most notable takeaway was management’s post 2016 guidance, with the outlook through 2019 calling for 16-17% commercial credit revenue growth, an increase from the 15% prior, with stable to growing operating margins, which we view as an incremental positive as it mitigates concern for margin degradation from the Visa/Mastercard partnership.

Jefferies has a $48 price objective, and the consensus target is $44.94. The shares closed Monday at $43.87.

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These four top growth stock have serious potential. While not suited for accounts without a high risk tolerance, they all make solid additions at current levels and have a solid base from which to move higher.