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JPMorgan is betting on these 3 actions; Sees more than 50% upside potential

It is time to check the macroeconomic situation, to get an idea of ​​the direction the markets will take in the months to come. That’s what a global research team from JPMorgan, led by Joyce Chang, is doing. The JPM team begins by noting the massive sell-off of US Treasuries last week, pushing yields higher as investors reacted to inflation fears. However, the rise in bond yields stabilized on Friday, and Chang’s team doesn’t think inflation is the big bugaboo it claims to be; his team sees a combination of economic growth and fiscal stimulus creating a virtuous cycle of consumer spending fueling more growth. They write: “Our global economic team now predicts that nominal U.S. GDP is expected to grow on average by around 7% this year and next, as targeted measures have been successful in tackling COVID-19 and economic activity does not. is not compromised. Global growth will exceed 5% … ”This means, according to JPM, that the coming year should be good for stocks. According to the company’s estimates, interest rates are likely to stay low, while inflation is expected to slow as the economy returns to normal. JPM’s stock analysts have been following the strategy team and researching which stocks they see as winning over the next 12 months. Three of their recent picks make for an interesting batch, with Strong Buy ratings from the analyst community and upside potential of over 50%. We used the TipRanks database to extract the details. We will take a look. On24 (ONTF) The top JPM choice sought here is On24, the online streaming service that provides third-party access for networked scaled and personalized events. In other words, On24 makes its streaming service available to other businesses for use in setting up interactive features, including webinars, virtual events, and multimedia experiences. The San Francisco-based company has more than 1,900 business users. On24 customers interact online with more than 4 million professionals each month, for more than 42 million hours each year. As one can imagine, On24 has seen an increase in customer and business interest over the past year as virtual offices and telecommuting situations have grown – and the company has now used this as basis for going public. On24 held its IPO last month and entered the NYSE on February 3. The opening was a success; 8.56 million shares went on the market at $ 77 each, well above the original price of $ 50. However, stocks have since taken a beating and have fallen 36%. Still, JPM’s Sterling Auty believes the company is well positioned to capitalize on current trends. “The COVID-19 pandemic, we believe, has changed the face of B2B marketing and sales forever. This has forced companies to shift most of their sales lead generation to the digital world where On24 is widely regarded as the best webinar / webcast provider. Wrote the 5-star analyst. “Even after the pandemic, we expect the marketing movement to be hybrid, with digital and in person being just as important. This should lead to further adoption of solutions similar to On24, and we expect On24 to seize a significant portion of this opportunity. In line with these upbeat comments, Auty initiated a hedge of the stock with an overweight rating (i.e., Buy), and its price target of $ 85 suggests it has margin upside. 73% over the next 12 months. (To see Aty’s track record, click here.) Sometimes a company is so strong and successful that Wall Street analysts fall right behind – and they are here. The consensus rating from Strong Buy analysts is unanimous, based on 8 Buy-side reviews published since the stock went public a little over a month ago. The shares are currently trading at $ 49.25 and their average price target of $ 74 implies a 50% rise from that level. (See On24’s market analysis on TipRanks.) Plug Power, Inc. (PLUG) And moving on to the reusable energy sector, we’re going to take a look at a JPM “green power” choice. Plug Power designs and manufactures hydrogen power cells, a technology with high potential to replace traditional batteries. Hydrogen fuel cells have potential applications in the automotive sector, as power supplies for alternative fuel cars, but also in almost any application involving energy storage – home heating, portable electronics and heating systems. emergency power supply, to name a few. . Over the past year, PLUG shares have seen a huge increase, growing by over 800%. The action received an extra boost after Joe Biden’s presidential victory – and his platform promises to encourage “green energy.” But the stock has fallen sharply recently, as have many overstretched growth names. The poor 4Q20 results also help explain the recent sell-off. Plug reported a deep loss of $ 1.12 per share, much worse than the expected 8-cent loss, or the 7-cent loss reported in the last year’s quarter. In fact, PLUG never reported any positive gains. This company is supported by the quality of its technology and its potential for adoption as the industry moves towards renewable energy sources – but we are not there yet, despite progress in this direction. The fall in the share price makes PLUG an attractive proposition, according to JPM analyst Paul Coster. “Against the backdrop of the company’s many long-term growth opportunities, we believe the share price is currently attractive, ahead of potential positive catalysts, which include additional client wins, partnerships and JVs that allow the company to penetrate new geographic areas. and end-market applications quickly and with a modest capital commitment, ”the analyst said. “Right now, PLUG is a story stock, attracting thematic investors as well as generalists looking for exposure to the growth of renewable energies, and hydrogen in particular.” Coster’s upbeat comments come with a PLUG rating upgrade – from a neutral (i.e., Hold) to Overweight (Buy) – and a price target of $ 65 which indicates a rise. possible 55%. (To see Coster’s track record, click here.) Plug Power also enjoys wide support among Coster’s colleagues. 13 recent analyst reviews break down into 11 buy and 1 hold and sell, each aggregated into a Strong Buy consensus rating. PLUG shares are selling for $ 39.3 and have an average price target of $ 62.85, which suggests upside potential of 60% year on year. (See Plug’s stock market analysis on TipRanks.) Orchard Therapeutics, PLC (ORTX) The final choice of JPM stocks we’ll be looking at is Orchard Therapeutics, a biopharmaceutical research company focused on developing gene therapies for the treatment of disease. rare. The company’s goal is to create curative treatments from the genetic modification of blood stem cells – treatments that can reverse the causative factors of the target disease with just one dosage. The company’s pipeline includes two drug candidates that have been approved in the EU. The first, OTL-200, is a treatment for metachromatic leukodystrophy (MLD), a serious metabolic disease resulting in loss of sensory, motor and cognitive functioning. Strimvelis, the second drug approved, is a gene therapy based on gamma-retroviral vectors, and the first such ex vivo autologous gene therapy to receive approval from the European Medicines Agency. This is a treatment for adenosine deaminase deficiency (ADA-SCID), when the patient does not have a related stem cell donor available. In addition to these two EU-approved drugs, Orchard has ten other drug candidates at different stages of the pipeline process, from preclinical research to early phase trials. Another 5-star JPM analyst Anupam Rama immersed himself in Orchard and was in awe of what he saw. In his coverage of the stock, he notes several key points: “The maturing of data in various indications of rare genetic diseases continues to reduce the risk of the broader ex vivo autologous gene therapy platform from an efficacy standpoint. and safety … OTL-200 and other drug candidates) have sales potential in the order of $ 200-400 million each … Importantly, the overall benefit / risk profile of Orchard’s approach is viewed favorably in the eyes of physicians. At current levels, we believe ORTX stocks reflect under-reflect the risk-adjusted potential of the pipeline … Upside potential of 122% over the next 12 months. (To look at Rama’s track record, click here.) Wall Street is generally in clear agreement with JPM on this one as well. ORTX shares have 6 buy notices, unanimously by Strong Buy analysts, and the average price target of $ 15.17 suggests a 124% rise from the current price of $ 6.76. (See Orchard’s stock market analysis on TipRanks.) Disclaimer: The opinions expressed in this article are those of the featured analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.