The market has witnessed a tidal wave of new equity listings this year with companies clamoring to raise capital (and public awareness) during the economic recovery. In addition to a strong initial public offering (IPO) pipeline, non-traditional routes like special purpose acquisition companies, or SPACs, have flooded the exchanges in 2021.
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In a sea of stock market newbies, investors have struggled to stay afloat getting to know the new kids on the block. Wall Street analysts have also been hustling to get up to speed.
Given their limited financial history and unproven markets, it can be challenging to form an opinion on fresh market entrants. But the research show must go on for sell side firms—and that it has in recent weeks.
Here are three of the newbs that bullish analysts say are worth a closer look.
Is Real Good Food Company Stock a Buy Before Earnings?
The Real Good Food Company (NASDAQ: RGF) sells “nutritious comfort foods” including breakfast, lunch, dinner, and snack items. Its frozen products are available through its website and various grocery stores. Four Real Good entrees have been placed in Costco locations nationwide including the Three Cheese Bacon Wrapped Stuffed Chicken (yum!).
While its foods may sound appetizing, Real Good’s stock has caused heartburn for early shareholders. It is down more than 30% from its November 5th debut despite any major headlines. According to analysts, with the stock now trading around $8 per share, it may be time for second helpings.
This week four sell-siders initiated coverage of Real Good Food and all called the stock a buy. Better yet, the bullish group’s $15 to $16 price targets suggest the stock can double in route to recouping its early losses. One of the bulls is Truist Financial which has lauded the company’s success in disrupting the frozen food aisle and its potential to expand into new categories.
Given how the health and wellness trend has accelerated during the pandemic, Real Good’s more nutritious pizzas and ice creams are likely to garner shelf space in more stores across the country. In the meantime, investors will be hoping for a healthy financial performance when management reports third quarter earnings on December 7th.
Is Wall Street Bullish on Caribou Biosciences?
Caribou Biosciences (NASDAQ: CRBU) is a California-based biotech developing genome-edited immune cell therapies for cancer. Its pipeline includes a range of therapeutic candidates targeting non-Hodgkin lymphoma, multiple myeloma, acute myeloid leukemia, and a variety of solid tumors.
The company’s candidate for non-Hodgkin lymphoma, CB-010, is furthest along the development track. Results from the Phase 1 ANTLER trial involving 50 patients across multiple locations are expected in the fall of 2025. Its other candidates are still in the discovery or investigational new drug-enabling (IND-enabling) phase.
So, as with many early-stage biotech companies, Caribou Biosciences is very much a waiting game when it comes to investment. Analysts think it’s worth the wait.
All five analysts following the stock have buy ratings including two that started coverage this week. Oppenheimer is now the most bullish on the Street after giving Caribou a $36 price target on Monday citing the company’s potential for grabbing market share in its focus areas.
Caribou Biosciences climbed above $30 soon after its July 2021 IPO but has since dipped back below $20 and near its initial offering price. Based on how bullish the street is on Caribou, it may be a good time to follow the herd.
What Does Life Time Group Do?
Life Time Group (NYSE: LTH) is the operator of 150-plus “athletic resort destinations” designed to change the way people workout, eat, and are entertained. A modern take on even the most advanced fitness facilities, Life Time offers a mix of popular livestream classes and competitions that are made available on its in-house digital platform. This serves to diversify its revenue streams beyond its expansive, but limited U.S. and Canadian locations.
Despite the recent influx of digital health and fitness brands, analysts say Life Time merits some extra due diligence reps. Most call the stock a buy citing Life Time’s differentiated omnichannel business model. Others are more cautious due to the competitive landscape and pandemic uncertainty. Oppenheimer’s $40 target points to a possible two-bagger, while at the other end of the spectrum Wells Fargo’s $19 suggests there is little if any upside.
The stock’s 40% run out of the gate has been slowed in recent days by concerns around the impact of the spreading Omicron variant on health clubs. In the near-term, re-masking policies will undoubtedly hurt businesses like LifeTime. But over the long haul, the company’s rapid growth rate and alignment with current health and wellness should make it a winner.