While it may be logical to assume that short-selling stocks are stocks to avoid, as many investors and traders are essentially betting on, this is not always the case.
Opinions on the stock market vary, and it’s not uncommon to find stocks with both high short-term interest rates and positive recommendations from Wall Street analysts.
But only one is correct, right? And if analysts turn out to have nailed the nail in the head, panic-induced short-covering shenanigans will occur, and short-squeeze can occur as short sellers buy back to cover their losses. There is a possibility
Against this background, TipRanks database Find three names that fit a specific niche. Stocks with high short interest rates of 25% or more, but stocks designated as strong buys by street analysts. Click here for details.
Harmony Bioscience Holdings (HRMY)
Harmony Biosciences was founded with the mission to develop and bring to market cutting-edge treatments for people with rare neurological disorders with unmet medical needs.
The ultimate goal of biotechnology is to get drugs approved by regulatory authorities. A feat already accomplished by Harmony. Wakix (Pitrisanto) is the first non-narcotic treatment for narcolepsy and was approved by the FDA in 2019 to treat adults with this disorder. The phase III INTUNE trial evaluating pitrisant in adult patients with idiopathic hypersomnia (IH). The company recently announced an accelerated timeline for the study and now expects enrollment to be completed during the current quarter and a topline data readout he expects in Q4 2023.
The drug is selling well, with its most recently reported quarterly earnings up 40.7% year-over-year to reach $128.31 million, beating consensus by $970,000. Adjusted EPS of $1.01 also beat estimates of $0.78.
So while it looks pretty successful, the short float percentage (as of April 13th) is 36.16%, and many are betting on Harmony’s success. This may be partly due to his March brief report for Scorpion Capital claiming that “people have blood on their hands.”
As is often the case, the report sent stocks plummeting, but what it did was briefly explained by Raymond James analyst Daniel Brill.
“The main debate as to why HRMYs have blood on their hands relates to Wakix’s QTc-prolonging effects and potentially associated cardiotoxicity,” Brill continued. believes the FDA has failed to do its job, but we see no signs of it and based on our own efforts with prescribers, we believe the safety profile of Wakix is not an issue. To put it bluntly, Wakix’s label front page highlights the warning of QTc prolongation, and its main competitor in the narcolepsy market is literally “date rape drugs.” ”
In fact, Brill thinks the stock is grossly undervalued. In addition to the Outperform (i.e., Buy) rating, the analyst has a price target of $62 on the stock, indicating he has 89% room to grow over the next year. (To see Vril’s achievements, click here)
All of Brill’s colleagues would agree if it weren’t for one fence sitter. With an additional 6 He Buys and He 1 Holds, the stock claims a strong buy consensus rating. The average goal of $62 is the same as Brill’s. (look HRMY stock price forecast)
Bolero Inc. (bowl)
As its name and ticker suggest, Bowlero is a company involved in bowling activities. Specifically, the company owns and operates more than 325 high-end bowling centers in the United States, Canada and Mexico, making it a world leader in bowling entertainment. Additionally, in 2019, it acquired the Professional Bowlers Association, the major league in bowling. The Professional Bowlers Association boasts thousands of members and a global fan base of millions. Aside from lane/equipment fees, the company also generates additional income from diversion of surcharges such as his F&B (food and drink), merchandise, and arcade/games.
The company announced a series of strong financial results for the second quarter of fiscal year 2023 (the January quarter) in a recently reported statement. Revenue reached a record $273.4 million, up 33.2% year-on-year, beating forecasts by $16.58 million. Adjusted EBITDA reached $97 million, an increase of 45.2% compared to the same period last year.
BOWL has just become a public institution since December 2021 and has entered the market through the merger of SPACs. But in contrast to many companies that went public via the blank check route and were hit hard by the 2022 bear market, BOWL’s share price is doing well, up 33% over the past 12 months. increase.
Nevertheless, at 28.53%, the short percentage of floats (as of April 13th) is quite high. But for Stifel analyst Steven M. Wieczynski, BOWL bettors are about to have a disrespectful awakening.
“Legendary bowler Pete Weber once declared, ‘Who do you think you are? “In our opinion, no more words can be used to describe how we see BOWL’s long-term growth story. We believe we are at the beginning of an attractive growth story with a dominant position in , a rich asset set to roll up, a blueprint for successful acquisitions and margin expansion, and strong long-term tailwinds. In short, it’s been a long time since we’ve come across a story in our universe with such strong growth characteristics.”
Quantifying these bullish comments, Wieczynski rates BOWL as a buy, in line with his price target of $26. This suggests that the company’s stock will give him a 76% return over the next year. (To see Wieczynski’s achievements, click here)
Short stocks may be lined up, but all Wall Street analysts agree this is the stock to own. Based on only 7 buys in total, the stock claims a strong buy consensus rating. Achieving an average target of $21.17, the investor could get a return of up to 44% in one year. (look BOWL inventory forecast)
Sannova Energy (Nova)
Let’s change gears once again and turn to the renewable energy sector, our final, very shortened name.Sunnova Energy is the leading provider of residential solar installations in the United States. The company’s products perform the full range of home solar installation services, from roof panel installation to battery set-up to repairs and equipment replacement when necessary. In addition, the company also provides financing for purchases and offers insurance and maintenance plans. Sunnova operates in 41 states and territories and counts a customer base of 309,300.
30,100 of those were added in the first quarter of 2023. The company increased its customer addition guides for the full year from 125,000 to 135,000, up from his previous 115,000.
Elsewhere in its recently reported first-quarter statement, revenue increased dramatically 146% year-over-year to $161.7 million, beating Street’s expectations by $2.16 million. But on the other side of the scale, losses pile up. The company posted a net loss of $110 million, compared with his $22 million loss a year ago. This resulted in EPS of -0.70, worse than analysts had expected of -0.59.
Many may think that the loss is set to last. NOVA’s short percentage of float he was 30.42% (as of April 13).
But that’s not Baird analyst Ben Kallo’s view. Scanning a recent print, Kallo found many bright spots.
“NOVA cited increased confidence in its ability to serve new markets after increasing customer addition guidance by 10K at the midpoint, expanding credit facilities and securing a path to low-cost capital. ‘ explained the analyst. “We are encouraged by the signs of a deflationary environment and believe that lower costs for batteries and other equipment will increase NOVA’s battery fit rate and number of services per customer. The long-term setup is strong. I still believe that.”
Calling NOVA a “fresh pick,” Kallo has an outperform (or buy) rating backed by a price target of $44. What is the impact on investors? A significant increase of 145% from current levels. (To see Caro’s achievements, click here)
Overall, NOVA has a strong following on other streets. Based on 17 total buys and his two holds, the stock claims a strong buy consensus rating. The forecast suggests a profit of 96% over the year, considering the average target clock of $33.84. (look NOVA stock price forecast)
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Disclaimer: The opinions expressed in this article are those of the featured analyst only. This content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.