Goldman Sachs: these 3 stocks are about to climb more than 100%
Markets are in the throes of volatility, with unpredictable swings making recent sessions a roller coaster of sorts. Major indexes fell sharply at the end of last week, but Friday’s release of economic data showing strong manufacturing activity gave a boost that reduced the market’s losses somewhat. The recent earnings season has also sparked optimism – S&P listed companies, collectively, posted 46% year-over-year gains in the first quarter, up from 20% expected. Goldman Sachs strategist David Kostin believes that generally positive macro data is supporting stocks in an uncertain market environment. “The combination of a global reopening, high consumer savings and strong corporate operating leverage will lead to strong recoveries in economic growth and earnings … US equities will continue to appreciate, although at a slower pace than that which has characterized the past 12 months … will remain attractive relative to cash and bonds, ”Kostin noted. In light of that, our attention turned to three stocks that Goldman Sachs says have outsized growth prospects, with company analysts predicting greater than 100% upside potential for each. Using the TipRanks database, we discovered that the rest of the street is on board as well, as each has a ‘Strong Buy’ consensus rating. Rain Therapeutics (RAIN) We will start with a new public biopharmaceutical company Rain Therapeutics. The company is developing a non-tumor treatment strategy that selects patients based on underlying genetics rather than disease histology. Rain has two drug candidates in the pipeline, RAIN-32, which is in multiple clinical trials, and RAD52, which is still in preclinical testing. Taking a closer look at the pipeline, we find that RAIN-32, an MDM2 inhibitor called milademetan, has a Phase 3 trial for WD / DD liposarcoma scheduled to begin in the second half of this year. At the same time, a phase 2 trial, an MDM2 basket study, is also scheduled for 2S21. Beyond the WD / DD Phase 3 study and the Phase 2 Basket study, the company also plans to launch another phase 2 study in intimal sarcoma by early 2022. RAD52, the company’s second candidate , is a new approach to the treatment of breast, prostate, pancreatic and ovarian cancers. The drug is still in the early stages of research, but the selection of lead candidates for clinical studies is expected to begin next year. As mentioned above, Rain is a newly opened company; it held its IPO in April of this year. The company has put 7,352,941 shares on the US public markets, at $ 17 each. The IPO raised gross proceeds of approximately $ 125 million. Opening this stock’s coverage for Goldman Sachs, analyst Graig Suvannavejh writes: “While we are bullish on the outlook for RAIN-32 in LPS, the income opportunity appears modest, as we project a peak in risk. -unadj./adj. sales of $ 612 million / $ 428 million (assuming 70% POS), for only about $ 3,000 annual incidence in the United States. That said, our enthusiasm for RAIN is also based on the potential of RAIN-32 beyond LPS, including intimal sarcoma (an ultra-orphan cancer), as well as solid tumors amplified by MDM2, which we consider a substantial market opportunity. Out of those three, we are projecting $ 2.2 billion / $ 859 million unadj./adj peak risk. sales in the US / EU5, with further future indications for RAIN-32 (trials will begin in 2022) and also a preclinical RAD52 program (a synthetic lethality game) showing upside potential compared to our expectations. In line with his bullish stance, Suvannavejh is pricing RAIN a Buy, and his price target of $ 56 portends an impressive upside potential of 252% over the next 12 months. (To see Suvannavejh’s track record, click here) Turning now to the rest of the street, other analysts echo Suvannavejh’s sentiment. As only Buy recommendations have been released in the past three months, RAIN is getting consensus from Strong Buy analysts. With an average price target of $ 33.75, stocks could climb 112% from current levels. (See RAIN stock market analysis on TipRanks) Relmada Therapeutics (RLMD) The next headline on Goldman Sachs’ radar, Relmada Therapeutics, is a clinical-stage pharmaceutical company that focuses on issues with the central nervous system. REL-1017, the Company’s lead candidate, is a novel NMDA receptor channel blocker in development for the treatment of major depressive disorder. Mental health is a major segment of the pharmaceutical industry, and antidepressants’ share of the mental health pie is expected to exceed $ 18.5 billion by 2027. Relmada has launched RELIANCE I, the first pivotal trial of REL- 1017, in December of last year, tests the drug as an adjunct treatment for major depression. Last April, two additional studies, RELIANCE II and RELIANCE-OPS were underway. All three are currently underway and a fourth Phase 1 study of REL-1017 monotherapy is expected to begin in the first half of this year. The main data from the two pivotal studies are expected to be published in 1H22. Goldman Sachs analyst Andrea Tan covers this stock and gives it a buy rating as well as a price target of $ 78 which implies a 103% rise over the next 12 months. (To see Tan’s track record, click here) “We are noting a series of key events in 2021+ that could result in a value shift: (1) Human Abuse Potential (HAP) study against oxycodone from 2Q21 positive control and 2H21 ketamine, where we see the market as priced too high for a negative outcome (see scenario analysis below); (2) headline data for REL-1017 monotherapy at 4T21; and (3) high-level pivotal data in the booster private label (peak GSe sales of $ 2.5 billion in 2033) in 1H22 with an NDA submission to follow thereafter, which we are all on constructive given the differentiated profile demonstrating rapid onset of action, increased efficacy and good tolerance to date, ”said Tan. What does the rest of the street say? 3 purchases and no withholding or selling add up to a strong consensual purchase rating. Given the average price target of $ 67.67, stocks could climb 76% in the coming year. (See RLMD Stock Analysis on TipRanks) Agiliti (AGTI) We will complete our review of high potential Goldman selections with Agiliti. The company is a supplier of medical equipment, providing hospitals and healthcare systems with a range of bariatric products, beds, therapeutic mattresses, fall prevention devices, ventilators, breast pumps, patient monitors. , medical grade adjustable chairs and surgical equipment – as well as technical equipment. support, clinical engineering and on-site management to properly operate, maintain and adjust the myriad of devices. By the numbers, Agiliti has more than 90 service centers in the 48 lower states, supporting more than 800,000 medical devices in more than 7,000 acute care hospitals and alternative medical sites. On April 23 of this year, Agility debuted on the New York Stock Exchange in an initial public offering of $ 14. The company has put more than 26.3 million shares on the market and raised gross proceeds of around $ 431.5 million on the first day of the IPO. Last week Agiliti published its first quarterly financial report as a public company. Revenue revenue, at $ 235 million, was 31% higher than in the first quarter of last year. Net income was $ 9.6 million, up $ 22.2 million from the first quarter net loss last year, and EPS was 9 cents per share. Looking at the way forward for the company, Goldman Sachs analyst Amit Hazan said, “While this was not reflected in the Q1 closing balance sheet, management gave visibility to the effect. of approximately 3.3x post-IPO leverage on a pro-forma basis. While somewhat constrained from a managerial standpoint given Northfield’s demands, management expects the financial and managerial flexibility to pursue opportunistic mergers and acquisitions later this year. Hazan summed up: “We see AGTI’s end-to-end service model as differentiated and perfectly suited to the hospital’s current operating environment; we see the current valuation as an attractive entry point … ”To this end, Hazan gives AGTI shares a buy rating. , and its price target of $ 43 implies a 151% hike for the coming year. (To view Hazan’s track record, click here) In its first few weeks on public markets, AGTI shares received 9 notices, of which 8 bought and only 1 Hold. The stock is selling for $ 17.12 and the average price target of $ 21.39 suggests there is room for upside potential of around 25% year on year. (See AGTI Stock Analysis on TipRanks) “Best Stocks to Buy, a newly launched tool that brings together all information about TipRank 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.