Kinross Gold Corp. (NYSE: KGC) was one of four top gold stocks to buy this week in a Merrill Lynch report. This internationally focused company also produces and sells silver and operates in some countries other gold miners might shy away from due to political risk and turmoil. The stock could see severe upside if the company gets back on track. Merrill Lynch’s $6.50 price objective at the time was against a consensus target of $5.78, and the prior pre-call close of $3.90 compared to a share price of $4.11 (down 2.4%) on Friday’s close. Investors might want to know that Kinross was a $10 stock as recently as 2012, and gold being back at $1,300 per ounce is making investors reconsider some of the gold names that have pulled back from their highs.
Sunrun Inc. (NASDAQ: RUN) was started as Outperform at Credit Suisse on October 3. What stood out here was that the firm’s target was calling for exponential upside with a $18 projection. Sunrun closed down 4.7% at $4.63 on Wednesday but was indicated up almost 8% at $5.00 on Thursday after the call. Unfortunately, even a 1.3% gain on Friday gave only a $4.71 closing price.
Sunrun has a 52-week range of $4.59 to $7.34 and consensus analyst price target from Thomson Reuters that is now closer to $11.00 after this call. Sunrun’s market cap is $485 million.
Two Harbors Investment (NYSE: TWO) beat earnings expectations last week, and it is one of the mortgage REITs with a whopping 11% current dividend yield. It was raised to Outperform from Market Perform at Wells Fargo on October 4. More importantly, the firm’s valuation range rose to $9.00 to $9.50 from a prior range of $8.50 to $9.00. The firm pointed out expected dividend coverage and saw that book value per share rose to $10.01 from $9.83 from the prior quarter. Two Harbors shares were up 1% at $8.38 late on Friday, in a 52-week range of $6.91 to $9.18. Its market cap is $2.9 billion, and the consensus analyst target is $9.40.
Here is a look at last weekend’s six analyst picks under $10 with 30% to 200% implied upside.
24/7 Wall St. wanted to offer an update in the analyst stocks under $10 the week of November 4. There have been many things that need to be considered by investors, and that goes far beyond the election and an expected interest rate hike in December.
Brocade Communications Systems Inc. (NASDAQ: BRCD) has made many appearances in the under-$10 reports, but now it is being acquired by Broadcom. Analysts downgraded the stock to reflect the buyout ending their upside theses.
Ladenburg Thalmann started Kindred Biosciencs Inc. (NASDAQ: KIN) as Buy on November 1, and the firm’s $7.50 price target compared with a prior $5.40 close. Shares were trading at $5.00 late on Friday afternoon, and it has a mere $99 million market cap.
Since announcing the acquisition of Alcatel-Lucent, Nokia Corp. (NYSE: NOK) has been a dismally performing stock. It hit a 52-week low on Friday, but Nokia said that it can now formally pursue the much deeper integrations of its facilities and workforces spread out in Finland, France and elsewhere. Nokia’s $4.31 American depositary share price is in a 52-week range of $4.30 to $7.55.
While Rite Aid Corp. (NYSE: RAD) is still in the pending merger by Walgreen Boots Alliance, the deal is officially delayed. Frankly, this deal has been so delayed that 24/7 Wall St. refuses to even consider that the old buyout price is relevant. That can change of course, but the regulatory climate is rough for mergers now, and there are reports that the stores being divested are becoming of less and less interest to the buyer. Rite Aid closed up two cents at $6.45 on Friday, but it hit a 52-week low of $6.41. It seems very possible that Rite Aid will remain an independent company, or that what may get acquired is smaller company at a lower price. Just remember, in M&A and the markets anything can happen.