After a volatile August for the markets, we have now entered the last third of the year and the bad news is that, according to the history books, September marks the worst month of the year for the markets.
The good news, however, is that any anticipated calm will be short-lived, according to Ari Wald, head of technical analysis at Oppenheimer.
“The key takeaway in our work is that whether or not progress resumes soon should be only a matter of time,” Wald said recently. “The Russell 2000’s ability to hold its 200-day EMA, combined with risk-on leadership and bullish intra-market probing, reinforces our view that the seasonal correction should prove to be temporary and a mid-shift bullish cycle Should be an opportunity to buy in.”
So, what should investors buy before the bull market finally resumes? At Oppenheimer, stock analysts have some answers to that question, and they’ve tapped two equities with the potential to double in value over the next 12 months.
Are other Street analysts equally convinced? it looks like it. Both the stocks are rated as Strong Buys by the consensus of analysts, according to TipRanks database, who also see triple-digit gains on the horizon. So, let’s take a look at why financial forecasters are making the big jump on these stocks.
Zura Bio (Zura)
First up is Zura Bio, a clinical-stage biopharmaceutical firm researching and developing new drugs with a focus on immunology. More specifically, the company has a range of new drug candidates, each of which is in or entering Phase 2 clinical trials, that target a variety of autoimmune disorders. Each drug candidate is designed to walk a different path in tackling auto-immune disease, bringing relief to patients with these difficult conditions.
In June of this year, Zura made two announcements that should interest investors. The first, from June 6, relates to ZB-106 (tibulizumab), a drug candidate licensed earlier this year from Eli Lilly with dual action as anti-IL-17 and anti-BAFF antagonist. Has potential as a first class drug. , The company reported the completion of an $80 million private placement financing round, which guaranteed that the drug would advance to Phase 2 in the clinic. The drug candidate is scheduled to enter Phase 2 trials against systemic sclerosis and hidradenitis suppurativa during the second half of next year; It has already passed tolerability testing in healthy volunteers.
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Interestingly, on June 23, Zura joined both the Russell 3000 and Russell 2000 stock indexes. These indices aim to capture a broader, more accurate view of the US stock markets by including more small- and mid-sized public companies and reducing the market’s reliance on mega-cap stocks as a measure of performance.
Our focus continues to shift to Zura’s clinical pipeline, ZB-880, or torudokimab, emerging as a promising Phase 2 candidate for the treatment of asthma. The drug candidate is a high affinity monoclonal antibody that targets IL33 for inactivation; It has already shown an acceptable tolerability profile in Phase I clinical trials. As of the 2Q23 update, the company is preparing to initiate Phase 2 clinical trials next year.
Also in the clinic is ZB-168, a fully human, anti-IL7Rα monoclonal antibody, which is being studied as a treatment for several conditions, including ulcerative colitis and atopic dermatitis. The drug is active against the IL7 and TSLP immune pathways. Zura plans to start Phase 2 trials of this drug next year. The company holds an exclusive, worldwide license to develop and ultimately commercialize ZB-168 in all indications.
The ZB-106 track, in particular, caught the attention of Justin Kim of Oppenheimer. The 5-star analyst writes about this candidate and stock, “With a focus on the Phase 2-ready asset ZB-106, aka tibulizumab (an anti-BAFF/IL-17 dual-antagonist), We are intrigued by the potential of this asset to specifically address HS, where the market opportunity for next-generation IL-17 therapies is being better appreciated by the Street, and systemic sclerosis, where the drug’s anti-inflammatory properties are not well understood. -BAFF activity may provide clinical benefit where significant unmet need exists. We see that the story for Zura and ZB-106 is early stage, but we believe the upside benefits can match the long-term risk-reward. We are optimistic.”
Kim rates ZURA shares as Outperform (i.e. Buy), and he has set a 12-month price target of $147, which reflects his belief in a strong upside potential. (Click here to see Kim’s track record)
Kim is hardly the only Bullish analyst on Zura — the stock has a unanimous Strong Buy consensus rating based on 4 recent positive analyst reviews. Shares are trading at $6.87, and their $18.25 average price target represents one-year potential gains of ~166%. (Look zura stock forecast,
Krinetics Pharmaceuticals (CRNX)
The endocrine system is one of our most important bodily systems, consisting of glands and hormones that control the growth and functions of the body. Endocrine diseases can be some of the most dangerous, and some of the most difficult to treat. Krinetics Pharmaceuticals, the second stock we’ll look at here, focuses on these diseases, specifically the more rare endocrine diseases. The company is working on therapies to provide effective disease control to the patients.
To meet this objective, Krinetics has developed a diverse pipeline, which includes both clinical-stage drug candidates and pre-clinical research programs. The endocrine conditions targeted are equally diverse, and include well-known names such as diabetes and thyroid eye disease, as well as lesser known conditions such as acromegaly and carcinoid syndrome. The latter two are the subjects of Krinetics’ most advanced clinical trial studies.
These clinical trials focused on the drug candidate paltusotin (CRN00808). The company currently has three ongoing trials of paltusotin, including the Phase 3 PATHFNDR-1 and -2 trials of the drug in the treatment of acromegaly and the Phase 2 trial in the treatment of carcinoid syndrome. Paltusotin belongs to a new class of orally administered, selective, non-peptide somatostatin receptor type 2 (SST2) agonists and shows high promise in the treatment of acromegaly.
On the acromegaly track, Krinetics is expected to release topline data from the Phase 3 PATHFNDR-1 study this month. This study is a placebo-controlled trial of orally dosed paltusotin in patients switching from standard-care peptide depots.
During the second quarter of this year, Krinetics completed enrollment in the PATHFNDR-2 trial, another placebo-controlled Phase 3 study of oral pultusotin. Topline data from this study is forecast for 1Q24.
Following these studies, Krinetics plans to submit its new drug application (NDA) to the FDA regulatory agency next year. The company is seeking regulatory approval of the drug for both treatment of acromegaly and maintenance of therapy.
The acromegaly track and paltusotin’s high potential for success attracted Oppenheimer’s Leland Gerschel to the stock. “We anticipate positive upcoming news flow regarding the opportunity for pultusotin, the lead candidate for the treatment of acromegaly, which we view as a main price driver for the stock in the near term,” the analyst wrote in a recent note. We believe this indication that pultusotin is likely to be successful in both of its Phase 3 trials, with the first reporting in September and the second in 1Q24, which together will lead to US and EU approval and launch by CRNX in 2025 and 2026. Will pave the way. , respectively. We expect that its distinct advantages compared to standard of care will enable Paltusotin to capture substantial market share and anticipate peak revenues of $250M.”
Measuring his position on Kranetix, Gerschel has given the stock an Outperform (i.e. Buy) rating with a $40 price target, indicating a strong upside of 138% over the one-year horizon. (To see Gerschel’s track record, click here)
Once again, we’re looking at a stock with a strong Buy consensus rating, and once again where the bullish stance is unanimous – Krinetics has 7 recent positive analyst reviews on file. The stock’s trading price of $16.78 and average price target of $45.14 combine to indicate an upside of 169% for the coming year. (Look crnx stock forecast,
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Disclaimer: The views expressed in this article are solely those of the selected analysts. The content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Source: finance.yahoo.com
