Oppenheimer: these 2 stocks are set to rise by more than 100%
When it comes to the wild swings of the market, is the glass half empty or half full? Oppenheimer’s chief investment strategist John Stoltzfus has this opinion: Despite the volatility that has ruled the market in recent weeks, Stoltzfus likes what he is seeing in both the market and the economy. In particular, it points to US companies that outperformed most other markets around the world as exciting games, with innovation in the US reflecting a key component of its bullish contention. “The United States is outpacing most markets around the world ̵
1; be it developed markets or emerging markets … We’ve removed the foam that had entered the market in some [mega cap] names. It could be a good opportunity to pick up some really good, high-quality growth stories that are on sale right now, ”Stoltzfus noted. Additionally, the strategist believes the S&P 500 could be returning to its September 2 high point. based on the economic improvement data. Approval of a COVID-19 vaccine as well as an election result that is “favorable to the home economy, business, job growth and taxpayers” could also push the index higher. High. Turning Stoltzfus’ outlook into tangible recommendations, Oppenheimer analysts are hammering the table on two stocks, with these professionals seeing more than 100% upside potential in store. By scrolling the tickers through the TipRanks database, we wanted find out exactly what makes them so interesting.Brickell Biotech (BBI) Focused on developing innovative and differentiated therapies for treatment nto skin diseases, Brickell Biotech wants to improve the lives of patients everywhere. Given the potential of the company’s lead candidate and its share price of $ 0.82, Oppenheimer thinks now is the time to pull the trigger. Ilofpironio bromide (SB), a prescription treatment for axillary hyperhidrosis (AH, or excessive underarm sweating), is entering the U.S. Phase 3 trials. This program will consist of two identical six-week studies and will evaluate its ability to improve condition based on objective (gravimetric sweat production) and subjective (HDSM-Ax) co-primary endpoints. Each is expected to last 12 months and the first will start next quarter. About 10 million people in the United States suffer from AH, with the condition interfering with everyday social and professional activities. Currently, only 2.3 million receive prescription care, and some resort to invasive or permanent interventions such as Botox, MiraDry or surgery. Oppenheimer’s Leland Gershell argues that more conservative approaches could be used to meet these medical needs. He also believes that the recent entry of Eli Lilly’s competing product, Qbrexza, represents a significant step forward. That said, there is “room for improvement” with this anticholinergic approach. Looking at a Phase 2b study in the United States, the highest dose of SB BBI gel (15%) demonstrated a 46% greater reduction in sweat by gravimetric analysis compared to placebo, with significant reductions in a validated instrument in the results reported by the patient observed at all doses. Based on the study data, efficacy is more than 50% higher than Qbrexza per label, despite higher baseline severity. Furthermore, their safety profiles were relatively similar. It should be noted that BBI will market the drug to US dermatologists through a specialized sales force of 120 representatives. According to Gershell estimates, uptake by 110,000 patients per year (only 5% of the currently treated AH population) translates into $ 200 million in gross sales. The analyst adds that the granting of the patent could extend the market exclusivity until 2040, adding the good news, on September 25th, BBI announced that Kaken Pharmaceutical, its development partner, has gotten the green light to produce SB. in Japan for the treatment of AH. Japan is the first country to approve the candidate, with launch expected later this year. To summarize, Gershell said: “By virtue of its efficacy, tolerability and application similar to antiperspirants, we believe SB offers an attractive profile in a market that offers plenty of room for better solutions. We encourage risk-tolerant investors to build a position earlier. of the upcoming news stream “. To that end, Gershell values BBI to outperform (aka buy) along with a price target of $ 5. This target conveys analyst confidence in BBI’s ability to rise 502% from current levels. (To see Gershell’s track record, click here) Looking at the consensus breakdown, 2 purchases have been posted in the last three months and no suspension or sale. As a result, BBI gets a moderate purchase consensus rating. The $ 5 average price target is identical to Gershell’s. (See BBI stock analysis on TipRanks) Aldeyra Therapeutics (ALDX) As for Oppenheimer’s other choice, Aldeyra Therapeutics works to bring new treatment options for immune-related diseases to market. Based on solid progress in its pipeline, the company has high hopes for this healthcare name. Representing Oppenheimer, analyst Justin Kim points out that he came out of a recent conversation with the CEO even more confident in the long-term growth prospects of ALDX. Pivotal studies on reactive aldehyde species (RASP) are planned for the fourth quarter of 2020, evaluating the action of reproxalap, the main therapy of Aldeyra designed to suppress overactive inflammation, on tear levels of RASP over a period ranging from 1 -2 days to 28 days. “Based on the results from Phase 2a, we are confident that we will be able to replicate results in the fourth quarter of 2020,” said Kim. Given the short-term potential of dry eye disease (DED), the analyst expects investor attention will focus on the clinical execution of the trial (phase 3 RASP studies and safety study), which would support a potential filing of NDA by the end of 2021, according to Kim. “Despite some volatility in equities, we see a solid pattern emerge as the company initiates its Phase 3 RASP studies in dry eye disease (DED),” he said. Speaking of the potential of RASP as an accepted dry eye endpoint, ALDX experienced a “breakthrough moment”, which facilitated an accelerated path to registration (from traditional sign endpoints) and a greater chance of clinical trial success. based on the mechanism of action of reproxalap (MoA) as a RASP trap, according to Kim. , “Additionally, the RASP deal could have wider implications for a commercial launch in dry eye, a market that we believe will see segmentation as more targeted MoA therapies are incorporated into the armory.” “We continue to be impressed with advances in reaching a potential concomitant storage for dry eye and allergic conjunctivitis (AC), appreciating the importance of a differentiated agent for dry eye with action also in AC. Since the dry eye therapeutic landscape increases its options, we expect greater segmentation of the heterogeneous patient population which could start with the placement of reproxalap in “allergic dry eye”, “concluded the analyst. For the remainder of 2020, the focus is likely to remain on Phase 3 study projects (work / essay development), execution and potential reading in DED, which could set the stage for a commercial launch in DED and AC in 2022. Not enough, based on the broader pipeline of candidates targeting PVR, inflammatory conditions and COVID-19, Kim sees “a catalyst-rich environment for action over the next 12-18 months.” It shouldn’t come as a surprise, then, that Kim stayed with the bulls. To that end, it maintained an Outperform rating and a $ 15 price target on the stock. Investors could pocket a 110% gain if this target is met in the next twelve months. (To see Kim’s resume, click here) What does the rest of the way have to say? Over the past three months, only Buy ratings have been issued, 2 to be exact. Thus, the consent assessment is a moderate purchase. Additionally, the $ 23.50 median price target suggests upside potential of 227% from current levels. (See ALDX Stock Analysis on TipRanks) To find good ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buys, a newly launched tool that combines all of TipRanks’ equity insights. Disclaimer: The views expressed in this article are solely those of the analysts present. The content is to be used for informational purposes only. It is very important to do your own analysis before making any investments.