Analysts say bet on stocks like Anaplan and Repay

Frank Caldoni, CEO of Anaplan.

Adam Jeffery | Cnbc

In the final phase of 2020, the stock delivered a record-breaking rally. The Dow Jones Industrial Average recently closed above 30,000 for the first time, while other major stock indexes in the US are close to recording highs.

Encouraging updates on the advancement of the coronovirus vaccine prompted an investor to move into cyclical stocks that performed better during periods of economic recovery.

Chief Market Strategist for LPL Financial, “While 30,000 is no different than 29,999, there is something special about the number of those big milestones … it’s yet another reminder of the March deepening in stocks and the economy is.” , Commented Ryan Detrick.

However, near-term uncertainty suffers because the distribution of a vaccine presents a significant challenge, which would require global coordination. At the same time, coronovirus cases are on the rise in the US, with the highest number of single-day deaths reported earlier this week.

Against this backdrop, one way to find compelling plays is to follow the activity of analysts with proven stock picking capabilities. TipRanks Analyst Forecasting Service attempts to pinpoint the best performing analysts on Wall Street. This is determined by factoring in the number of ratings made by each analyst, success rate, and average return per rating.

Here are five favorite stocks of the best performing analysts right now:

Rape Holdings

Payment processing company Repay Holdings recently approved the approval of Northland Capital analyst Mike Grodahl. Following a call with members of the management team, the Five-Star analyst reiterated the Buy rating on November 24, with the analyst probing a 16% upside, as the price target is $ 28.

Grondahl acknowledges that coronoviruses have been an important headwind to space as a whole, but argues that “Raper has found ways to work through it.” This includes expanding its “TAM from the primary core B2B to its personal loans and primary loans, which is now significant, and into mortgage and receivable accounts.”

“We are excited by RPAY’s ability to continue its expansion into the new key vertical and drive strong financial results,” said the analyst.

Looking at these verticals more closely, the auto loan business is able to expand against the backdrop of the epidemic. According to Grondahl, there are positive macro tailwinds for this segment as people are starting to move out of urban areas and buy their first or second cars. With the decrease in public transport usage, there is strong demand for used car sales.

As a hostage, RAPR made its entry into space with the acquisition of Ventnex in February. Thanks to low interest rates and increased refinancing activity, Grondahl sees many positive tailwinds.

Private loans, however, have been “soft” until recently, as the surplus of cash in the system from incentive checks pointed to a decrease in origination during Q2 2020, with a decrease in Q3 2020 repayment volume over the period. Grondahl said the company does not lose any customers, and management believes this is only a temporary setback.

The Stellar track record of the # 147-ranked analyst is backed by a 63% success rate and a 21.7% average per return.

Autodesk

Shares of software company Autodesk rose nearly 5% on November 25, as it landed above the high end of management’s guidance range, in line with its prior announcement a few weeks ago. For Oppenheimer’s five-star analyst Koji Ikeda, the performance confirmed his booming thesis. To this end, he reiterated a Buy rating and a $ 300 price target (11% upside potential).

Total revenue for the quarter came to $ 952.4 million, yielding a 13% year-over-year gain and beating the consensus estimate of $ 9.8 million. Pro Format EPS exceeded Street’s call by $ 0.08.

Going forward, management guided revenue to $ 999 million- $ 1,014 million for fiscal Q4, surpassing the midpoint analysts’ $ 1,003 million forecast.

There were many positive avenues for Ikeda. These include a nine-figure multi-year renewal deal and the finalization of over eight $ 500,000 non-compliant user deals, generating an operating margin of 30.1%, the highest level since FY2015 and the use of APAC pre- The epidemic was above levels.

Even though FY2022 revenue and FCF guidance were below consensus, management trim the high end of FY2021 Billings and FCF guidance is roughly optimistic about the long-term prospects of Ikeda ADSK, by $ 40 million each.

The analyst says, “We believe Autodesk is well positioned to disrupt the opportunity for future digitization in the construction and manufacturing industries and disrupt the opportunity for post-financials.

Based on its impressive 93% success rate and 44.7% average return per rating, Ikeda ranked # 48 on TipRanks’ ranking.

Anaplan

As for 22nd The top pick of the best performing analyst, Scott Berg of Needham, is supporting Anaplan. In a sharp signal, the top analyst raised the Anaplan price target from $ 70 to $ 25 and reiterated the Buy rating on November 25. This new target puts the reverse potential at 21%.

In its third quarter, the company reported revenue and non-GAAP operating margins of $ 114.8 million and -5.3%, respectively, higher than Berg’s estimate of $ 109.6 million and -13%. Total revenue increased by 28.5% year-on-year, and membership revenue increased by 31.4% and represented 91.1% of total revenue.

Additionally, management guided total revenue of $ 550 million for the initial FY22, easily outperforming consensus.

That being said, the CRPO growth rate slowed from 28% to 20% quarter-on-quarter. “Based on the short history of this metric,” Berg believes that this decline “may be a sign of slower Q3 sales or simply reflects the timing of several major upcoming renovations.”

“Positively, we believe that partner investments by both Anaplan and partner remain on-track with our pre-COVID expectations, which could improve sales as the epidemic spreads. Note, Anaplan Historical There was a huge sales as well. The analyst said that the company could benefit greatly from travel / in-person meetings.

According to TipRanks, Berg is currently tracking a 72% success rate and a 27.2% average per rating.

Karyopharm Therapeutic

HC Whitewright’s top health care analyst, Edward White, takes a rapid stance on Karyopharm Therapeutics, which focuses on the development of therapies for patients with cancer and other serious diseases. They also reiterated a Buy rating as well as a $ 41 price target on November 25, with a 178% upside potential.

The call came in response to KPTI’s announcement that the ongoing Phase 3 SIENDO study passed its interim redundancy analysis, and the Data and Safety Monitoring Board (DSMB) suggested that the study should be employed without any modification.

SIENDO is a phase 3 study designed to bind and inhibit XPOVO (the company’s oral selective inhibitor and bind XPO1, a nuclear export protein) as frontline maintenance therapy in patients with advanced or recurrent endometrial cancer. . The top line data from the study will likely be in 2H21.

White states that the FDA has already approved therapy as a treatment for relapsed or refractory (r / r) multiple myeloma (MM) and r / r diffuse large B-cell lymphoma (DLBCL).

The potential of the drug extends beyond these indications, with the analyst last week stating that, “Positive Phase 3 SEAL data was presented at the Concept Tissue Oncology Society 2020 Annual Meeting (CTOS 2020). It was previously reported that the SEAL study , Evaluates single agent. Exopio in patients with advanced unexplained differential liposarcoma, found to be their primary endpoint of a statistically significant increase in medieval progression-free survival. “

With this in mind, White estimates that Exovio’s sales in defined liposarcoma may reach $ 3 million in 2022, which may increase to $ 26 million in 2026. When considering the potential for therapy in solid tumors other than deadinfied liposarcoma, the analyst expects a launch in 2023 with revenue of $ 39.9. That year increased to $ 199.5 million in 2026.

White is ranked # 113 on TipRank’s list of most outperforming analysts, with an average return per rating of 34.2%.


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