Conventional wisdom has it that after high inflation and heavy market losses, we are in for a rough ride in 2022. But there are always conflicting voices offering alternative opinions and forecasts – and that’s what we hear from Jonathan Golub, chief strategist for US equities at Credit Suisse.
Golub’s argument is based on data. How he sees it: “The data is looking a lot less recessionary than it was three or four months ago… Things [consumers] Purchases aren’t going to go up as much as their wages and yet there really are a lot of jobs and when you add it all up it means a consumer is strong and if the consumer is stronger then the likelihood of a recession in the next six Months or so is less than everyone thought.”
If Golub is right, now is a logical time for investors to start buying shares and taking advantage of the low prices before the market rises. Golub’s colleagues at Credit Suisse follow this bullish line of thought, picking stocks poised for gain should conditions turn bullish. Do other analysts agree with Credit Suisse? We opened up the TipRanks database to find out. Here are the facts.
Viridian Therapeutics, Inc. (VRDN)
We start with Viridian Therapeutics, a biopharmaceutical company focused on developing new medicines to treat serious and rare diseases with high unmet medical needs. Viridian has drug candidates that are potentially best-in-class, and its lead candidates target thyroid eye disease (TED). The Company’s preclinical research program is focused on rare and autoimmune diseases.
However, the leading drug candidates are worth a closer look. VRDN-001 is currently the subject of the recently initiated Phase 3 THRIVE study; Last month, Viridian announced the first patient enrollment for the study, which is being conducted at approximately 50 sites in North America and Europe. The study will evaluate the efficacy and safety of VRDN-100 as a treatment for patients with active TED. Topline results are expected to be released in mid-2024.
The story goes on
The Company is also evaluating VRDN-001 in a Phase 1/2 study that includes multiple randomized, placebo-controlled cohorts of both normal healthy volunteers and TED patients. Initial clinical data from the first cohort indicated significant and rapid improvements in both signs and symptoms of TED at week 6 after two infusions of 10 mg/kg VRDN-001. In addition, patients enrolled in the 20 mg/kg cohort had baseline characteristics that were generally similar to those of the 10 mg/kg cohort.
Among the bulls is Credit Suisse analyst Tiago Fauth, who takes a bullish stance on COGT stocks. He writes, “We believe the Company’s current market capitalization understates Viridian’s overall long-term prospects, underpinned by: (1) a leading asset with well-characterized safety, pharmacokinetics/pharmacodynamics (PK/PD), a validated mechanism of action and potential for differentiated efficacy/dosage schemes; (2) a validated multi-billion dollar end market; (3) multiple choices for a potentially best-in-class subcutaneous product; and (4) a strong balance sheet that provides insight into registration data points.”
Bottom line, Fauth rates VRDN as Outperform (i.e. Buy) and its price target set at $51 suggests ~75% upside potential by the end of 2023. (To look at Fauth’s track record, click here)
Some stocks make an all-round positive impression on Wall Street analysts, and VRDN is one of them. This biopharmaceutical company has a unanimous Strong Buy consensus rating based on 11 recent positive reviews. (See VRDN Stock Prediction on TipRanks)
CNH Industrial NV (CNHI)
The next Credit Suisse pick we’re looking at is CNH Industrial, a player in agriculture and construction services and equipment. Based in the UK, the company offers world-class heavy equipment for large-scale farming and construction, as well as R&D capabilities and strategic focus. Operating through several subsidiaries, CNHI is known for holding major brand names in its field, including Case IH, New Holland and Steyr.
The company ended Q3 22, the most recent quarter reported, with consolidated revenues of $5.88 billion, up 23% year-on-year, while net income increased 21% year-on-year to $559 million -dollar rose. Bottom line, diluted earnings per share of 41 cents represented a 20% increase year over year and beat guidance by 24%. CNHI reported $272 million in net cash from operations for the quarter.
The agriculture segment proved stronger than construction over the past year, with agriculture accounting for $4.5 billion of net sales in the third quarter, up 26% from the year-ago quarter. Construction revenue of $895 million increased 16% year over year.
Fluctuations in currency valuations helped make 2022 a difficult year for CNHI, but despite the negative exchange rate, the company forecasts a 16% to 18% increase in net sales for industrial activities for the full year.
5-star analyst Jamie Cook, who covers CNHI for Credit Suisse, likes what he sees in the company’s prospects for continued growth.
“By 2024, CNHI is targeting Industrial Activities net sales of $20-22 billion, representing a CAGR of approximately 6% and an Adjusted EBIT margin of 12-13%. CNHI expects market share gains of more than 200bps over the three-year planning period (2022-24), driven by new product launches, and anticipates minimal volume growth in the agricultural machinery market. Given our bullish view on AG’s fundamentals and our view that Precision AG is growing margins, we believe CNHI’s targets are reasonable and have upside potential,” noted Cook.
Cook’s optimism underpins her Outperform (ie, Buy) rating on CNHI, while her $21 price target shows her confidence in a 30% one-year upside potential for the shares. (To see Cook’s track record, click here)
Overall, CNHI has 12 recent analyst ratings on the record, and their 9-to-3 split favoring buy over hold gives it a consensus rating of Strong Buy. (See CNHI Stock Forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is for informational purposes only. It is very important that you do your own analysis before making any investment.