Investor sentiment has defied initial hurdles and pushed the S&P 500 up by 9% post its August low. A string of positive economic data releases, including strong retail sales figures and better-than-expected jobless claims, have steered this momentum. Fed Chair Jerome Powell’s statements indicating a readiness to cut interest rates also boosted Wall Street’s confidence. In light of this bullish run, the burning question is: how does one identify the next hottest stock in this market? One effective strategy is to look towards high-upside stocks recommended by analysts from elite institutions like Morgan Stanley. These experts bring a wealth of knowledge and experience to the table.
Compass Pathways (CMPS)
Morgan Stanley has singled out COMPASS Pathways, a biopharma company at the forefront of developing unique treatments for challenging mental health disorders using psilocybin’s psychedelic properties. Their synthetic psilocybin formulation, COMP360, is combined with therapy to treat various mental health conditions. The treatment entails sessions to build rapport with the therapist followed by controlled drug administration sessions with the patient. The active trials are targeting treatment-resistant depression (TRD) with Phase 3 trials ongoing.
The potential upside for CMPS stock is pegged at 220%, according to Morgan Stanley analyst Vikram Purohit. The company’s leading clinical program and promising milestones have him bullish on the stock. Currently trading at $7.19, the average price target of $40.57 suggests a whopping 464% upside potential according to analysts.
Rocket Pharmaceuticals (RCKT)
Another Morgan Stanley pick, Rocket Pharmaceuticals, is making leaps in gene therapy research, focusing on complex hematologic and cardiovascular conditions. While facing a hurdle with the FDA for one of their treatments, Rocket remains committed to resolving the issue. Their expansive pipeline, especially in cardiovascular studies, has caught the eye of Wall Street.
Analyst Michael Ulz at Morgan Stanley is upbeat about Rocket’s cardiovascular advancements and strong pipeline. With an Overweight rating on RCKT and a price target of $45, Ulz foresees a potential 142% gain within the next year.
As we navigate these unpredictable markets, keeping an eye on these high-upside stocks identified by experts at Morgan Stanley could lead to significant gains in the coming year. Consider making informed investment decisions based on sound advice and thorough research. Stay ahead in the game of picking winners in the stock market!
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