Prime Wall Road analysts again shares like Lyft and Sq. amid vaccination hopes
Air travelers walk to a Lyft pickup area at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
Mario Tama | Getty Images
The Democrats have taken control of the White House, and Wall Street appears to be on board. Although President-elect Biden will struggle with the ongoing coronavirus pandemic and economic fallout, stocks have rallied in the days following the election.
With uncertainty easing, the S&P 500 had its best post-election week performance in at least four decades. In addition, impressive data from a Phase 3 study evaluating Pfizer's experimental coronavirus vaccine has boosted markets.
"Pfizer's long-awaited results that its COVID-19 vaccine is greater than 90 percent effectiveness is a positive event that will allow society to gradually normalize in 2021," wrote Goldman analysts Sachs in a message to customers.
A vaccine has yet to be approved, and with many issues related to the pandemic remaining, it is not easy to navigate the current business climate.
Following the latest stock recommendations from analysts with a proven track record is one way to find compelling investment opportunities. TipRanks' analyst forecasting service tracks analyst ratings to identify the top performing analysts on the street or the analysts with the highest success rate and average return per rating.
Here are the five most popular stocks of analysts right now:
Needham-based five-star analyst Mayank Tandon raised its price target for Square on November 6th. The value rose from $ 190 to $ 230 (25% upside potential) after the third quarter earnings release. Together with the update of the target price, the analyst repeated a buy rating.
For the quarter, Square posted net sales of $ 3.03 billion, up 140% year over year and exceeding $ 2.04 billion. This result was due to an inflow of low-margin Bitcoin revenue. The Cash App segment gross profit rose 212% year over year, and adjusted earnings per share of $ 0.34 slightly exceeded the consensus estimate of $ 0.16. Additionally, GPV was up 12% year over year to $ 31.7 billion, up $ 1.7 billion on analysts' forecast.
Looking ahead, the payment company still refuses to provide guidance due to the ongoing uncertainty surrounding pandemics. Even so, Tandon remains "positive for stocks of aggressive growth investors looking to expose themselves to positive trends for the growth of digital payments". However, Square said it expects Cash App gross profit growth to be moderate in October, but still top 160% year over year as the impact on incentives has subsided.
"We remain positive about SQ, given the impressive growth in Cash App and the improvement in trends in the seller ecosystem. While the NT investments will weigh on profitability, we believe they will help SQ maintain a share of the consumer end market. and winning business payments, both of which are a long runway for SQ, "said Tandon.
Based on its 68% success rate and an average return of 21.5% per review, Tandon ranks 70th on TipRanks' list of Top Performing Analysts.
Helca Mining, a silver and other precious metals mining company based in Coeur d & # 39; Alene, Idaho, has acquired from H.C. Heiko Ihle from Wainwright. The five-star analyst repeated his buy recommendation with a price target of USD 7 on November 10th. With this goal in mind, the upside potential is 39%.
Ihle points to the company's third quarter results as a key component of its bullish thesis. Revenue was $ 199.7 million and net income attributable to shareholders was $ 13.5 million, or $ 0.03 per share, versus revenue of $ 161.5 million and net loss attributable to shareholders of $ 19.7 million or ($ 0.04) per share. Annual quarter.
The strong result was driven by a 41% increase in silver ounces (ounces) sold year over year and a 39% increase in the average realized silver price, with the numbers at $ 3.1 million and $ 25.32 / ounce, respectively lay.
"The significantly better result resulted from the higher sales, since the cost of sales remained largely unchanged", commented Ihle. This performance prompted the company to increase its consolidated silver production forecast for FY 20 to 12.8-13.4 million ounces, compared to its previous forecast of 12.4-13.0 million ounces.
On another positive point, Ihle points out that "the liquidity remains strong even after HL has repaid the revolver". In the first quarter of 2020, the company withdrew $ 210 million from its credit facility in response to the coronavirus pandemic. In addition, a quarterly cash dividend of $ 0.00875 per common share was resolved, an increase of 250% over the previous year.
When it comes to Lucky Friday, the Idaho mine, management anticipates it will reach full capacity in the fourth quarter of 2020 and expects to produce over 3 million ounces of silver in fiscal year 21. "We note that Hecla believes that in three to five years, Lucky Friday can produce approximately 5 million ounces annually without significant capital expenditures. The company is also analyzing other mining methods to improve safety and increase production at the site," said Ihle.
The H.C. The Wainwright analyst is one of the 150 top analysts recorded by TipRanks.
After a difficult second quarter, Boingo Wireless turned the trend around in the third quarter. With significant improvements, revenue increased sequentially 0.1% to $ 58.8 million, beating Oppenheim analyst Timothy Horan's estimate of $ 57.9 million. The five-star analyst names an improvement in the EBITDA margin of 100 basis points as the driver for the solid result.
Additionally, cash EBITDA of $ 10.3 million exceeded Horan's $ 9.1 million forecast for lower SG&A and network operating expenses. Capital expenditures accounted for 58% of sales compared to 50% in the previous quarter. According to the analyst, this result underscores "expectations of strong growth".
"Revenue bottomed out last quarter and EBITDA margins improved. Multi-family businesses saw increased traffic usage, significant Wi-Fi usage, and higher ARPU. There has been positive progress on the MTA project, and one carrier will be operational in the fourth quarter of 20 through 2022 and could generate annual sales of $ 20 million, "noted Horan.
Some investors expressed concern that the lower traffic associated with the pandemic continues to impact Boingo's retail / advertising segment. Horan points out, however, that the number of connections has improved from 13.8 million to 28.3 million, with the DAS nodes in arrears sped up by 500 and more CAPX reimbursements, "indicating strong network demand" .
The analyst added, "Although there has been no update to a strategic transaction, we believe a deal will come about. As the COVID headwinds decrease, there is much more visibility into the business and transaction activity in the industry has increased at a low cost Debt, and WIFI has unique infrastructure facilities. "
All of this resulted in Horan increasing its sales and cash EBITDA projections for FY21 by 420 basis points. The analyst also anticipates DAS revenue growth will improve as Boingo books venues and MTA projects soar.
For this purpose, Horan, who is 83rd in the TipRanks ranking thanks to his success rate of 71%, retained a buy recommendation and a price target of USD 15 (17% upside potential) on November 9th.
Oppenheimer's Ittai Kidron is right on the cutting edge in Q2 2021 despite the SaaS software company's mixed fiscal 2 fiscal year. On Nov. 6, the five-star analyst maintained a buy rating and a target price of $ 75, indicating an upside of $ 75 34% suggests.
During the quarter, the ARR was flat quarter over quarter, with revenue projections pointing to declines for the third quarter of the fiscal year. The US dollar-based net expansion declined to an all-time low of 98%, down from 100% quarterly and 112% year over year. In addition, the gross margin and operating margin were down 673 basis points and 784 basis points, respectively, compared to the previous quarter.
Kidron adds that there is a high execution limit as the product and pricing model changes and the macro and competitive landscape is difficult.
The analyst explained: "The company sees the early negative effects of the transition to its new product / pricing model, which is compounded by the challenging macro environment and fierce competition. We expect the environment to remain challenging and investors are careful. " ahead of more mixed results. "
Still, Kidron remains optimistic. The move to New Relic One is progressing. The company sees "the first positive signs that confirm the potential of the new pricing strategy". There was also strong account growth as around 77% of ARR came from accounts over $ 100,000. "We continue to see strategic / business value in the product (TDP, FSO, AI) and price changes of New Relic (per user for observability / data ingestion for telemetry), but be careful, it will take 3-4 quarters to reach the customer Renewals have been completely worked through, "he said.
All in all, Kidron argues, "with stocks trading at the lower end of its range (~ 4.5x EV / sales) the risk / reward scenario looks positive."
With a success rate of 73% and an average return of 36.7% per rating, Kidron is one of TipRanks' top 15 analysts.
Mark Mahaney, an analyst at RBC Capital, sees a recovery for Lyft. To that end, it held onto an optimistic call to the ride-sharing agency on Nov. 10, but lowered its target price from $ 48 to $ 46. This new target leaves room for upside potential of 26%.
Mahaney isn't surprised by the company's third quarter performance, citing that its $ 500 million revenue was affected by the US mobility restriction. However, trends picked up slightly in the third quarter, with journeys declining 54% yoy in July, 53% in August, 48% in September and 47% in October. For comparison: trips in April fell by 75% compared to the previous year. Additionally, EBITDA posted a loss of $ 240 million, beating the company's forecast of $ 265 million.
The final result? Mahaney argues that fundamental trends are improving, with Lyft "aggressively managing spending". Additionally, according to the analyst, the Prop 22 passage has "eliminated a placeholder for large costs" as gig workers in California continue to be classified as contractors.
"In the long term, we continue to appreciate a very large market opportunity for ridesharing, which is in the early stages of the S-Curve roll-out, and we continue to recognize many significant innovations for both driver and driver. Given a recovery in US mobility We continue to like LYFT as a pure game in the US ridesharing industry, especially at <3X EV / Sales, "wrote Mahaney.
With a success rate of 68% and an average return of 31.9% per rating, Mahaney ranks 45th out of 7,079 analysts recorded by TipRanks.