Despite COVID-19's devastating impact on the economy, Goldman Sachs’ chief U.S. equity strategist David Kostin believes 2020 earnings might not be as bad as previously expected. Kostin gave his estimate for S&P 500 earnings per share in 2020 a lift, from $110 to $115. For 2021, the forecast remains at $170, which is 4% above 2019’s realized level, with the figure landing at $188 for 2022.That said, management commentary will be an essential factor in gauging the outlook. “Given the heightened investor focus on the earnings outlook in 2021 and 2022, we expect management commentary will prove more valuable than backward-looking results,” Kostin wrote in a recent note.As for his stock picks, the strategist argues that given the low interest rate environment, names with the longest-duration cash flow are “what you want to own.” These companies include those in the technology and healthcare sectors.Bearing this in mind, we used TipRanks’ database to take a closer look at two stocks that just received Goldman Sachs’ stamp of approval, with the firm projecting upside potential of at least 50% for each.ACM Research Inc. (ACMR)Specializing in wet processing technology, ACM Research has an impressive product lineup designed for a range of applications. Based on its technology, Goldman Sachs sees plenty of growth on the horizon, recently adding the company to its Conviction List.Representing the firm, analyst Allen Chang reminds investors that the company is one of the top wafer cleaning tool makers. Wafer cleaning is done at multiple points during wafer fabrication such as post-etch, post-photoresist and post-CMP, some of the most repeated processes in wafer fabrication.It should be noted that there are some serious heavyweights in this space, namely SCREEN Holdings, Lam Research and Applied Materials. However, ACMR “is the leader among domestic peers in China with 20% of share allocation in YMTC’s cleaning tool purchase.”Chang also mentions that over the past few quarters, it has placed a significant focus on expanding its product offerings and launched a new line of semi-critical cleaning tools, copper plating equipment and furnaces. “These product additions provide scope to expand ACMR’s SAM (serviceable available market) from US$1.5 billion (single wafer cleaning tools only) to US$5 billion per year,” he added.What exactly is driving Chang’s bullish thesis? “Our constructive view on ACMR is based on: 1) its technological strength and proven track record with a high-quality customer base (e.g. SK Hynix), allowing the company to capture more share of local fabs; 2) increasing demand driven by China’s massive investment into semiconductor manufacturing,” he commented. As a result, the analyst expects net profits to increase at a 63% CAGR in 2020E-25E.Even though ACMR’s earnings growth profile is in line with the sector, the stock is trading at 31x/20x the 2021/22E EPS estimates (vs. its China A-Share local SPE peers at above 100x/50x for 2021/22E), making the valuation compelling, in Chang’s opinion.Due to all of the above, Chang rates ACMR a Buy along with a $150 price target. This figure implies shares could surge 76% in the next year. (To watch Chang’s track record, click here)Turning now to the rest of the Street, opinions are split almost evenly. 3 Buys and 2 Holds add up to a Moderate Buy consensus rating. At $87.50, the average price target brings the upside potential to 3%. (See ACM Research stock analysis on TipRanks)Inspire Medical Systems (INSP)Moving to the healthcare sector, Inspire Medical Systems wants to redefine the standard of care for obstructive sleep apnea (OSA). Given its long runway ahead, it’s no wonder this name just scored Goldman Sachs’ stamp of approval.Covering the stock for Goldman, analyst Amit Hazan tells clients that a big part of his bullish thesis is related to its expansion in U.S. reimbursement coverage during the past year, which creates a “path of accelerating growth for Inspire to penetrate its over $10 billion addressable market opportunity for OSA in the U.S.”The analyst added, “Despite our cautious stance on COVID impacts near term, our long-term forecast for implanting facilities to double by 2024 and utilization improvement drives a 5-year sales CAGR of over 25%. In short, this story should gain traction as COVID impacts subside, and we view the current share price as an attractive opportunity for investors.”Looking more closely at the market, about 400 million patients worldwide and 25 million in the U.S. suffer from moderate to severe OSA. Based on the fact that INSP’s unique MIS neurostimulation therapy has been reviewed and clinically validated as a safe and effective alternative for OSA patients who fail CPAP, Hazan believes that the company is well positioned to capitalize on the opportunity.Speaking to the reimbursement coverage, Hazan points out that the commercial side has accelerated, with its covered lines growing from 25 million to 180 million in the last 18 months. “Maybe even more importantly, during 2020, all 7 MACs came out with positive LCDs, which effectively constitutes national Medicare coverage today. We expect the remaining major commercial plans (an additional 70-80 million lives) coming on by the end of this year,” the analyst commented.As broad reimbursement coverage is now in place, INSP is free to focus on execution. To this end, Hazan estimates that the number of centers will double over the next five years. When it comes to utilization, improved reimbursement and increased DTC efforts could lead to a significant boost in annual implants per center.Add in its strong cash position of $175 million as of Q2 2020, and the deal is sealed for Hazan. The analyst rates INSP a Buy along with a $148 price target. Shares could appreciate by 50%, should the analyst’s thesis play out in the coming months. (To watch Hazan’s track record, click here)Overall, out of 7 total reviews published in the last three months, 6 analysts rated the stock a Buy, while 1 said Sell. So, INSP gets a Moderate Buy consensus rating. However, the $96.14 average price target suggests shares could dip 4% in the next twelve months. (See INSP stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Anjalee Khemlani speak with Sorrento Therapeutics CEO & Founder Dr. Henry Ji about the company’s FDA clearance for a COVID-19 drug trial, to be used on patients with milder symptoms. If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to…
Microsoft is set to report its fiscal Q4 2020 earnings on Wednesday after the bell, and the focus will be on how much the company's Azure platform continues to grow.
Tesla Inc. (TSLA) is reportedly pushing for a new all-time record in deliveries in the third quarter despite the coronanvirus pandemic impact on the economy and a renewed wave of infectious cases.The electric carmaker has informed its staff that the goal for this quarter is a new all-time record in deliveries, according to Electrek. Tesla’s last all-time delivery record was in Q4 2019 when it delivered 112,000 vehicles.During the second quarter, Tesla’s production was affected by the pandemic, like most other automakers. Its main California factory was shut down for more than a month, and a lot of its retail operations were closed due to restrictions put in place to try to slow down the pace of the pandemic.What’s more, the global economic crisis made many people think twice about a large purchase like a vehicle. Nonetheless, Tesla performed relatively well, with deliveries being down only 5% compared to last year while most other automakers saw a decline of 30% or more in deliveries.Production at Gigafactory Shanghai has ramped up significantly since Q4 2019, which is going to help Tesla achieve its goal on the production side along with Model Y production resuming at its California factory, which should be operating for most of the quarter.Furthermore, Tesla has taken a number of steps that should boost demand this quarter to match higher production capacity. Back in May, Tesla cut the price of the Model 3, which is still the automaker’s best-selling vehicle, and it now sells for $38,000 in the U.S.In addition, Tesla recently lowered the price of the base Model Y, and last weekend, the automaker introduced a lease option on the new electric SUV.The electric carmaker’s shares have surged 293% year-to-date as it reported 90,650 car deliveries in the second quarter, which exceeded analysts’ expectations for about 74,130 vehicles.The stock is advancing 2.5% at $1,683.98 in Tuesday’s pre-market trading after yesterday jumping almost 10% as investors await the release of the company’s quarterly earnings on Wednesday.Ahead of the financial results, five-star analyst Daniel Ives at Wedbush said yesterday that “anticipation is high as profitability this quarter will result in S&P 500 inclusion and is already considered a fait accompli among the bulls”.“In a nutshell the success in China out of the gates is a major achievement for Tesla and if this trajectory continues will be a "game changer" for its EV penetration story over the next decade and a highlight during earnings this week,” Ives wrote in a note to investors. “This quarter is another step forward in the Tesla story as Musk & Co. must deliver to match euphoric Street expectations baked into the stock.”For now, the analyst though maintains a Hold rating on the stock with a $1,250 price target for the base case and a $2,000 price target for the bull case.In light of this year’s strong rally, the $969.42 average analyst price target now implies 41% downside potential for the shares in the coming 12 months. (See Tesla’s stock analysis on TipRanks).Related News: The Fate of Nikola (NKLA) Stock Remains Up in the Air Tesla’s Elon Musk Overtakes Buffett On Billionaires Rich List GM To Release Electric Truck Next Year With 20 More EVs By 2023 More recent articles from Smarter Analyst: * Starbucks Expands China Order Services To Four Alibaba Apps * Synaptics Snaps Up DisplayLink For $305M In All-Cash Deal; Top Analyst Lifts PT * Zoom Expands In India With New Tech Center As Demand Surges * eBay Confirms $9.2B Sale of Classifieds Biz To Adevinta
WAKEFIELD, Mass., July 21, 2020 /CNW/ — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading vertically integrated cannabis operator in the United States, announces today the closing of the private placement offering previously announced on July 2, 2020 (the “Offering”). Pricing of the initial tranche of the Offering was set on July 2, 2020. Under the initial tranche, subscribers purchased an aggregate of 3,541,429 subordinate voting shares of the Company (the “Subordinate Voting Shares”) at a price of C$7.70 per Subordinate Voting Share for aggregate gross proceeds of approximately C$27,269,003.
Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Jessica Smith discuss U.S Treasurary Secretary Steven Mnuchin’s meeting with White House Chief of Staff Mark Meadows, and what could come out of it.