These stocks aren’t being treated fairly say analysts. The market is undervaluing their real potential. But that’s good news for investors- because it means we have a compelling investing opportunity at hand. Here we see why these three five-star analysts are confident that these stocks deserve to move higher.
Let’s delve in now:
Netflix (NFLX)
The streaming giant has just received a big boost from top-rated Goldman Sachs analyst Heath Terry (Track Record & Ratings). This five-star analyst believes that shares can spike 25% from current levels.
“Despite Netflix outperforming consensus estimates for net subscriber additions for the past five years, analyst forecasts continue to understate the company’s future growth, both near and long term, in our view,” Terry explained.
He sees out-of-home mobile viewing as a big source of potential subscribers, especially in countries like India. The firm forecasts 30 million net adds in 2019 versus consensus estimates of 25 million.
As we can see from the screenshot below, Terry may be notably above consensus, but he is not the most bullish analyst on the stock. That award goes to Imperial Capital’s David Miller (Track Record & Ratings). His Street-high $494 price target suggests upside potential of over 30%.
View NFLX Price Target & Analyst Ratings Detail
Rhythm Pharmaceuticals Inc (RYTM)
This biopharma is developing treatments for rare genetic deficiencies that result in life-threatening metabolic disorders.
Notably, Rhythm has just announced updated clinical data from setmelanotide’s Phase II “basket” study in several rare genetic obesity disorders. This includes both Bardet-Biedl Syndrome (BBS) and Alström Syndrome.
“We continue to think that Rhythm is undervalued for setmelanotide’s potential” cheers Cowen & Co’s Phil Nadeau (Track Record & Ratings). He has just reiterated his Buy rating on the stock with a $40 price target. From current levels that translates into over 39% upside potential.