3 Shares listed at minimum prices; Analysts say “Buy”
Investing is about profits and part of profit generation is knowing when to start the game. The old saying goes buy and sell high and while it’s only tempting to discount clichés like that, they’ve moved on to the common currency because they embody a fundamental truth. Buying little is always a good start to building a portfolio. The trick, however, is to recognize the right stocks to buy low. Prices go down for a reason and sometimes that reason is a fundamental insolence. Fortunately, Wall Streets analysts are busy separating wheat from straw between low-priced market stocks and some stock experts have scored several stocks to make big gains. We used the TipRanks database to get data and reviews of three stocks that are low priced now, but may be ready to make a profit. They have received positive reviews and, despite their depreciation of the shares, maintain Buy ratings and show a positive increase of 80%. Vapotherm, Inc. (VAPO) First of all, Vapotherm, is a manufacturer of medical devices specializing in heated, moist and high flow nasal cannulas. They are therapeutic respiratory aids, designed to administer oxygenated air directly to the patient’s nose. Heating and humidity reduce the hassle of supplying dry oxygen. As might be expected, during a respiratory illness pandemic, Vapotherm recorded high sales in recent months, but stock prices have fallen since early February. Paradoxically, the two events are related. First, from a positive point of view, Vapotherm’s financial results during the first quarter of the year were solid. The company’s revenue, at $ 32.3 million, rose 69% year-over-year and globally, Precision Flow base unit facilities increased 73% in the same period. The company’s net loss in the quarter, $ 5.2 million, was an improvement over the previous year’s $ 10.2 million loss. On the downside, VAPO shares have fallen from their peak in early February. The fall is substantial; shares have fallen 50% from their high, and are down 34% from the current date. The fall in the value of the shares reflects the concern that the company’s flagship product is oversold, that customers, fearing COVID-related respiratory emergencies, will buy more units that would be needed in the usual times. This is the case with Piper Sandler analyst Jason Bednar. “Shares have fallen significantly since early February, as many investors have questioned the dynamics of using the precision flow systems sold in hospitals last year … Here we understand the logic, especially for those investors with a shorter time horizon, but with this concern apparently already reflected in stocks at current levels, we believe the bullish opportunity significantly outweighs the risk of a further downside, ”Bednar noted. The analyst added: “We also believe that investors expecting utilization trends to fall to the bottom will lose a higher initial move that could come as HVT 2.0 begins to contribute a release later this year. and as HVT 2.0 market opportunities expand In 2022 it begins to take a more definite shape (particularly EMS and home care) ”. To that end, Bednar values VAPO as overweight (i.e., Buy), and its $ 32 price target implies a sharp 81% increase the following year. (To see Bednar’s history, click here) Overall, Strong Buy’s unanimous consensus rating on this stock, supported by 4 recent analyst reviews, makes it clear that Bednar is not alone in its bullish outlook. The average target price here, at $ 39, is even more optimistic, suggesting a ~ 122% rise over the current trading price of $ 17.65. (See VAPO stock analysis at TipRanks) Emergent Biosolutions (EBS) The next stock we are examining, Emergent, is a biopharmaceutical company. The company has several products on the market, including a NARCAN nasal spray for use in patients with opioid overdoses and vaccines against smallpox, anthrax and other diseases. The Emergent Development Pipeline includes a pediatric cholera vaccine, Vaxchora, currently in a phase III trial. Several programs, including an anthrax vaccine candidate, a Chikungunya vaccine, and a seasonal flu vaccine, have completed phase II and are in preparation for phase III. One of Emergent’s most important programs is its contract development and manufacturing service, a service that extends to other pharmaceutical companies to manufacture vaccines they have developed. According to a CDMO plan, Emergent is part of the Johnson & Johnson manufacturing chain for a COVID-19 vaccine. The latter is a key point. The J&J vaccine has been linked, at least in some reports, to serious adverse events, particularly blood clots in healthy receptors. This has led to a suspension in the manufacture of the vaccine and, consequently, a delay in the receipt of payments from J&J. Which, in turn, affected the company’s first-quarter financial data, resulting in lower-than-expected revenue and profits. Investors are worried and shares have fallen 33% from the previous year. Despite the setback, Benchmark benchmark analyst Robert Wasserman maintains a buy rating of EBS shares, along with a target price of $ 120. If correct, the analyst’s target could produce 101% one-year returns. (To see Wasserman’s track record, click here) “EBS remains solidly profitable and even with the lowest expectations for J&N and AZ vaccine contracts, solid revenue growth is expected for this year “These actions remain a bargain in our CDMO / bioprocessing group and could offer significant advancement to value – oriented investors if circumstances arise or new business can be obtained in the short term,” Wasserman said. Overall, the street currently has a cautiously optimistic outlook on stocks. Analyst consensus values EBS as a moderate buy based on 3 purchases and 2 withholdings. The shares are priced at $ 59.59 and the average target price of $ 89.67 suggests a bullish potential of ~ 50% over the next 12 months. (See EBS stock analysis at TipRanks) Haemonetics Corporation (HAE) To get the last value on our list, we will stick with the medical industry. Haemonetics produces a range of products for the collection and separation of blood and plasma, as well as software to run the machines and service agreements for maintenance. In short, Haemonetics is a one-stop shop for hospital blood donation centers and blood banks. Blood products is a $ 10.5 billion market in the U.S. alone, with plasma accounting for 80 percent, and Haemonetics has become an integral part of that business. Haemonetics had been steadily recovering from falling revenues at the height of the crown crisis, and its 2021 tax benefits during Q3 showed solid results: revenue per line above 240 million dollars and EPS of 62 cents. Although revenue fell 7.3% year-on-year, EPS rose 6.8%. Still, however, stocks fell sharply between April 15 and 20 and lost 42% of their value in that short period of time. The reason was simple. One of Haemonetics ’main customers, CSL Pharma, announced that it has no plans to renew its contract with HAE. This contract, for the supply, use and maintenance of Haemonetics ’PCS2 plasma collection system, was worth $ 117 million and accounted for approximately 12% of the company’s front line. The cancellation carries a one-time charge of $ 32 million in other related losses. Fortunately for HAE, the CSL contract does not expire until June 2022, giving the company time to plan and prepare. On the operation of JMP Securities, analyst David Turkaly noted: “Prior notice gives HAE time (~ 15 months) to prepare for expiration and we note that management has consistently strengthened its position. financial through levers such as reduced complexity and product optimization to achieve significant cost savings, and more of these will likely be used to help offset customer loss. ” The analyst continued, “While this disappointing decision could affect HAE’s plasma positioning with other fractionators, we continue to believe that offering customers the ability to collect more plasma in less time is a very compelling value proposition, and HAE it still has contracts and maintains a significant market share with many of the most relevant plasma players. ” Accordingly, Turkaly values HAE a higher return (i.e., Buy) and sets a target price of $ 110. This figure represents an increase of 86% over current levels. (To view Turkaly’s history, click here) All in all, HAE has a moderate purchase consensus score, based on 7 reviews that range from 5 to 2 in favor of purchases on withholdings. The shares are trading at $ 59.02 and have an average target price of $ 108.67, suggesting an 84% year-over-year rise. (See HAE stock analysis in TipRanks). To find good ideas for trading stocks with attractive valuations, visit TipRanks ’Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ equity knowledge. Disclaimer: The views expressed in this article are solely those of leading analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.