Barclays stock research team released a recommendation report on Monday (December 12). Among the 24 stocks in the United States, Mexico, and Canada recommended by the investment bank, the five stocks with the greatest upside potential were selected, as well as Barclays’ forecasts on the target price of these stocks for the next 12 months and the stock dividend yield.
1.Tenet Healthcare
Tenet Healthcare's (US stock code: THC) investment in outpatient and medical assistance services has attracted the attention of Barclays. Obviously, the company has not attracted the attention of the market. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) multiple is 6.5 times, while that of its similar competitors is 7.3 times. However, Barclays believes that due to the rapid growth of the service sector business, Tenet Health Insurance’s enterprise value multiple will be Will grow to 7.3 times. Its Conifer medical solution system is working with USPI (United Surgical Partners International Inc.) to establish an outpatient surgery center.
Barclays has a target of US$36 for Tenet Health Insurance’s stock price. Starting from the closing price of US$15.18 on Friday (December 9), the increase will reach 137.2%. Tenet Health Insurance's stock price downside target is $14, a drop of only 7.8%. The company does not provide dividends.
2.Jazz Pharmaceuticals
(US stock code: JAZZ), as Barclays sees it, the development of its strong unlisted new drug (pipeline) and the low risk of competition in the field of its key types of drugs.
: Jazz Pharma’s Xyrem (sodium oxybate) is an orphan drug and is currently the only FDA approved for the treatment of sudden myasthenia (cataplexy) and daytime narcolepsy (EDS) related to narcolepsy (Narcolepsy) : Excessive daytime sleepiness), has 14 patent protections. The drug will benefit from the reduction in sodium in its new formulation. It is expected that the intellectual property protection period of the drug will be extended;
: Barclays expects that its leukemia drug Vyxeos will be approved by the FDA;
: Its Defitelio is approved by the FDA for the treatment of livers caused by blood stem cell transplantation in adults and children Vein obstruction (VOD). This is the first drug approved in the United States for the treatment of severe hepatic vein obstruction (VOD). Jazz Pharmaceuticals will benefit from sales of the drug in the US market. All of the above advantages of
prompted Barclays to predict its target stock price of $200, which is 95.5% higher than Friday's close of $102.30. The downside risk target price of Jazz Pharmaceuticals is $95, with a downside range of 7.1%. The company's stock does not pay dividends.
3.Mobileye
Barclays believes that Mobileye's (US stock code: MBLY) products are likely to be at the core of the automotive industry's transformation, as the company leads the industry with its ADAS (Advanced Driving Assistant System), or advanced driving assistance system, and Software has increasingly become the core technology of autonomous vehicles. Mobileye's main business is to provide chips and software for those driving system cameras. Barclays believes that its products are easy to expand and customize on demand. The company's profits are like "a software company" with many partners. If the self-driving car industry begins to experience explosive growth, the company will become a "pig on the cusp".
The company, as the most effective profit point for investors to follow the development of the self-driving car industry, Barclays set its target price at $60, 68.6% higher than the $35.58 at the close of trading on Friday. MBLY does not provide dividends. The downside risk of the company's stock price is that it will be taken the lead by a new competitor. For this, Barclays has a target price of $10, a 68.6% drop.
4.Goldcorp
finally comes to the point-gold mining stocks. Although Goldcorp (US stock code: GG), a gold production company headquartered in Canada, hasThe poor performance of Penasquito and Eleonore's businesses forced them to lower their future expectations. But Barclays believes that the company's new management will push up the company's valuation. The future of the company's business depends on the price of gold and the performance of the company's leading position in the industry. Barclays is very optimistic.
For Goldcorp, Barclays’ target price is $19, which is 43.9% higher than the closing price of $13.2 last Friday. In addition, the dividend yield attached to the company's stock is 1.8%. In terms of stock price risk, Barclays looked down to $10, a drop of 24.2%.
5.FEMSA
In view of the fact that President-elect Trump is very unfriendly to his southern neighbors, FEMSA (US stock code: FMX), headquartered in Monterrey, in the northeastern city of Mexico, has appeared on Barclays’ stock pick list. Said it was an accident. The business of this company is very easy to distinguish:
Barclays believes that this decentralized business strategy enables FEMSA to withstand political risks more than other Mexican companies. FEMSA's expansion in South America is also worthy of investors' attention.
Barclays' estimate of its target stock price is $109, which is 37.5% higher than the $79.28 at the close of trading on Friday. In addition, the stock dividend yield is 0.3%. The sharp decline in the Mexican peso in the future, coupled with the decline in retail and medical product sales, will keep the company’s stock’s minimum target price at $85, still a 7.2% increase.
