For investors who have watched the staggering moves in bitcoin and somehow feel that they missed the bus, they were reminded last week when the cryptocurrency dropped back almost 35% just how insanely volatile the trade can be. While it may yet to prove to be the new standard for payment in the future, that sure won’t be the case anytime soon.
At 24/7 Wall St. we comb through reams of analyst reports looking for potential home runs, and what better time of year than right now to look for potential moon shots for 2018. We screened our extensive research database and found four companies rated Buy at various Wall Street firms with price targets that projected as much 100% upside from current levels.
While only suited for extremely aggressive accounts, these four stocks could provide investors with some much needed alpha for their portfolios.
This stock looks to be breaking out through a triple top formation. Array BioPharma Inc. (NASDAQ: ARRY) is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer. Its programs include these three cancer drugs: binimetinib, encorafenib and selumetinib (partnered with AstraZeneca).
Binimetinib and encorafenib are in Phase 3 trials in advanced cancer patients, including the COLUMBUS trial studying encorafenib in combination with binimetinib in patients with BRAF-mutant melanoma and has initiated BEACON CRC trial to study encorafenib in combination with binimetinib and cetuximab in patients with BRAF V600E-mutant colorectal cancer.
The analysts at SunTrust are bullish on the company’s recent spin-off and noted this in a research report:
While expected, it is positive to see that Array is spinning out ARRY-797. Yarra Therapeutics (private), an initially wholly owned subsidiary, will be focused on orphan diseases. This allows Array to remain focused on oncology. We view the news as incrementally positive, highlighted by the stock rising 11% this morning. We believe the spin could help Array realize the value of ‘797, yet allow the company to remain focused on becoming an oncology pure-play, better positioning Array as a potential M&A target, in our view.
The SunTrust and Wall Street consensus price target are both $16, and the shares closed trading Tuesday at $12.51.
La Jolla Pharmaceuticals
This biotech company has been mentioned recently as a possible takeover candidate. La Jolla Pharmaceuticals (NASDAQ: LJPC) is a biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies intended to significantly improve outcomes in patients suffering from life-threatening diseases.
The company’s LJPC-501 is its formulation of angiotensin II for the potential treatment of catecholamine-resistant hypotension (CRH). It has initiated a Phase 3 trial of LJPC-501 for the treatment of CRH, called the Angiotensin II for the Treatment of High-Output Shock 3 (ATHOS) Phase 3 trial. LJPC-401 is its formulation of synthetic human hepcidin for the potential treatment of conditions characterized by iron overload, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease and myelodysplastic syndrome.
A recent FDA approval is a huge plus, and the SunTrust analyst said this:
The company provided a corporate update on Giapreza (a novel formulation of angiotensin II), which received FDA approval 2 months ahead of schedule for the treatment of septic or other distributive shock. Given Giapreza’s broader than expected label, and the high levels of awareness among healthcare providers for a new drug in a setting with significant unmet needs, we believe the Street is likely underestimating the market opportunity, which we now estimate at ~$700 million in the U.S.
The SunTrust price target was raised to a staggering $65 from $57. The consensus target is $51.67, and shares closed Tuesday at $32.79.