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Wells Fargo: 2 compelling stocks with upside potential of over 70%
Wells Fargo analysts have scrutinized the market, or more specifically, scrutinized the winners and losers of current market conditions. In a recently released note, senior equity analyst Chris Harvey writes, “The outperformance of risk and small caps has made this stock market a haven for stock pickers.” Clearly, therefore, Harvey sees small cap stocks doing well right now, with plenty of options for investors to choose from. While small caps are generally a riskier investment, a distinct advantage they hold over big names is the potential for higher returns. This is where the risk / reward paradigm comes in. Following on from Harvey’s rating, the company made a series of recommendations, finding small-cap stocks on the verge of growth and those that promise returns of. 70% or more in the coming year. We scanned two of them in the TipRanks database to see what other Wall Street analysts have in mind. Ping Identity Holding (PING) Starting with the tech industry, Wells Fargo’s top pick that we’re looking at is Ping Identity Holding Corp, which specializes in identity management. The company offers a range of products that allow customers to control connection and access to networks and databases. Although it has been in business for almost 20 years, Ping Identity has only been a public company for a year and a half. In the company’s latest quarterly report, for 4Q20, Ping reported mixed results and saw its shares drop 20% immediately after. EPS was a net loss of 4 cents per share. Premium income, at $ 63.2 million, declined 7% year-over-year but increased 5.5% sequentially and marked the second quarterly revenue on higher than the company has seen since going public. For the full year, total revenue reached $ 243.6 million, a result of a 15% year-over-year increase in annual recurring revenue (ARR), which reached 259.1 millions of dollars. The company reported a 34% increase in the number of customers with over $ 1 million in ARRs, a solid gain to a significant extent. Covering Wells Fargo stock, analyst Philip Winslow was particularly impressed with the ARR gain. “Ping reported strong fourth quarter results with an ARR ahead of expectations. The 15% year-over-year ARR growth was higher than the consensus estimate of $ 256.1 million, thanks to continued adoption of SaaS solutions that accelerated more than expected and represents + 15% of total ARR, ”wrote the 5-star analyst. Winslow added, “The company is seeing persistent signs of pent-up demand as customers move forward with purchasing as projects previously suspended due to COVID-related budget pressures emerge in the pipeline as companies modernize existing systems with shortcomings. were exhibited. last year. ”To that end, Winslow rates PING an overweight (ie buy) and has a price target of $ 40 which indicates upside potential of 76% over the next 12 months. (To look at Winslow’s track record, click here) Winslow is not an outlier in its bullish stance, but there is some division on Wall Street regarding Ping. The analysts’ consensus view is a moderate buy, based out of a dozen reviews split into 7 buys and 5 takes. The shares are priced at $ 22.59 and their average price target of $ 33.71 suggests a one-year hike of 49%. (See the PING stock market analysis on TipRanks) Sangamo Therapeutics (SGMO) Let’s shift gears and look at the bioscience industry Sangamo is a biotechnology company focused on creating genomic medicine therapies in the treatment of genetic diseases. includes 17 different programs to different stages of development, targeting a range of conditions, including IBD, beta thalassemia, sickle cell anemia and hemophilia A. In December, the company reported on an update of its ongoing collaboration with Pfizer on the giroctocogene fitelparvovec. It is a gene therapy product in development for the treatment of hemophilia A, and follow-up data from the phase 1/2 Alta study showed the drug to be well tolerated and safe in the small cohort of patients tested. Giroctocogene fitelparvovec is now entering the patient dosing phase of the AFFINE phase 3 trial. In February, Sangamo announced that it had started a global collaboration with Biogen on the development and commercialization of novel gene regulation therapies. The proposed therapies will target Alzheimer’s disease, Parkinson’s disease and other neurological diseases. Among the bulls is Wells Fargo analyst Yanan Zhu, who writes of the big picture: “Overall, we continue to see significant upside potential in drug pipeline programs and platforms. genomics, in particular the T cell therapy (Treg) regulatory platform, which can address a wide range of autoimmune diseases, and the ZFP-TF gene regulatory platform, which may respond to certain neurological indications hard to target… ”In light of these comments, Zhu reiterates the firm’s overweight (ie buy) rating on the stock, and set the price target at $ 29, suggesting a sharp rise of 158% (To view Zhu’s track record, click here) Overall, SGMO drew mixed optimism with caution regarding consensus opinion among analysts for the sell. Out of 5 analysts surveyed over the past 3 months, 2 are optimistic about the title, while 3 remain on the sidelines. Still, the bulls have the advantage as the average price target stands at $ 19.40 and indicates a 72% rise. (See SGMO Stock Market Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.