“Charts are pointing to higher highs,” says Oppenheimer. Here are 2 stocks with over 100% upside potential

There are several ways to assess whether it’s time to focus heavily on a particular stock class, and according to Ari H. Wald, head of technical analysis at Oppenheimer, the charts are currently pointing to a resumption in growth.

“Recent points in the market discussion have included incremental declines in value coupled with relative strength in growth,” noted Wald. “As we dissect the components and their impact on the market, we see growth in a stronger position to lead the S&P 500 higher than we do to assess the current state to drag it down.”

Relative growth strength aside, Wald adds, the analyst believes it’s not out of the question that cyclical stock has become “also tactically attractive vs. defensive stock.”

“These are reasons why we believe the weight of the market data supports higher highs in the coming months,” Wald added.

Meanwhile, with this in mind, Wald’s fellow analysts at Oppenheimer have been busy finding the stocks poised for serious growth; They have taken an opportunity in two stocks that they see generating gains of over 100% up from current levels.

Do these choices sit well with other street experts? Let’s take a closer look.

ORIC Pharma (ORIC)

Investors looking for triple-digit profits will often head into the biotech space. ORIC Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the discovery and development of cancer treatments. In fact, his nickname stands for Overcoming Resistance In Cancer.

As with any clinical-stage biotechnology, the pipeline matters, and ORIC currently has three drugs in Phase 1b trials; ORIC-533 for multiple myeloma, ORIC-114 for EGFR/HER2 mutant cancers, and ORIC-944 for prostate cancer patients. Dosing for all three studies began last year and a data read from all is expected sometime in the second half of the year.

The upcoming catalysts offer a turnaround for ORIC. The stock took a hit last year after a company announced it was halting development of its investigational cancer drug ORIC-101.

With all 3 current programs attracting the interest of Oppenheimer’s Matthew Biegler, the analyst believes it’s time for investors to get acquainted with ORIC again.

“Now it could get interesting,” says Biegler. “We view ORIC as an investment in a differentiated pipeline of early-stage oncology assets, backed by a strong leadership team with a history of successfully developing clinically important cancer drugs… ORIC’s pipeline is differentiated and well diversified, yet the stock is currently trading below cash – which we believe gives investors essentially open options on each of ORIC’s novel Phase 1 assets.”

Biegler is indeed bullish. Based on the above, the analyst rates ORIC as Outperform (i.e. Buy), while its price target of $14 suggests shares will climb 179% in the year ahead. (To see Biegler’s track record, Click here)

Wall Street analysts can be a contentious bunch — but when they agree on a stock, it’s a positive sign for investors to take notice. This is the case here as all current ratings on ORIC are Buy, making the consensus rating a unanimous Strong Buy. Analysts have posted an average price target of $15, slightly more optimistic than Biegler’s above, and pointing to an approximately 200% increase from the current share price of $5.01. (See ORIC Stock Forecast)

CalciMedica, Inc. (LIME)

For Oppenheimer’s next election, we’ll stay in biotech. CalciMedica is a newly formed company resulting from a recent merger between CalciMedica and Graybug Vision.

The Company is focused on the discovery and development of small molecule medicines to treat severe and chronic inflammatory and autoimmune diseases – particularly those with high unmet needs. It does this by developing inhibitors of the CRAC channels (Calcium Release-Activated Channels). To the uninitiated, calcium is a key regulator of numerous biological processes, and activation of the CRAC channel affects a number of these processes, including inflammation, vascular permeability, and cell death.

Its lead product candidate is Auxora, which is intended as a therapy for life-threatening inflammatory diseases such as acute pancreatitis, respiratory arrest and acute kidney injury.

Auxora is currently being tested in clinical trials with catalysts on the horizon. Top-line results from the ongoing Phase 2b clinical trial (CARPO) in AP (acute pancreatitis) patients with systemic inflammatory response syndrome (SIRS) are expected in Q4 23, and later this year the Company will also report results from the ongoing clinical Announce phase 1/2 study (CRSPA) in pediatric patients who develop AAP (asparaginase-associated pancreas) due to toxicity from treatment with asparaginase for their underlying ALL (acute lymphoblastic leukemia).

Oppenheimer analyst Leland Gershell has high hopes for this promising biotech and outlines the bull case for Auxora.

“Auxora exerts potent anti-inflammatory and organ-protective effects through CRAC channel blockade and has shown a signal of efficacy in severe COVID-19 pneumonia and acute pancreatitis (AP),” explained Gershell. “We are optimistic for the success of Phase 2b in recent Q4 23, and a Phase 1/2 in pancreatitis, often resulting from leukemia treatment, could pave the way to accelerated approval and a monetizable Priority Review Voucher (PRV). “

“We believe Auxora has $400 million in revenue potential in AP alone, indicating little competition is foreseeable. We expect development progress of Auxora to drive outperformance in 2023 and beyond,” the analyst added.

To that end, Gershell rates CALC as Outperform (ie, Buy), supported by a price target of $14. If that’s the right price, it would mean the stock could climb 180% from current levels. (To see Gershell’s track record, Click here)

Some stocks fly under Wall Street’s radar, and CALC seems to be one such name right now. Currently, Gershell’s review is the only one on record. (See CALC stock forecast)

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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.

Source : finance.yahoo.com

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