January saw the markets kick off the new year with strong gains, while February saw them stabilize. Over the past two weeks, the major indices have seen range-bound trading; Investor sentiment remains optimistic at this time, but there is some doubt as to where equities will head in the longer term.
It’s an environment that makes it difficult to find potential winners. What is needed is a tool to break through the uncertainty. THE Smart Score tool, at TipRanks, is designed to do just that. At its core, the tools collect and collate data, then measure it against a set of 8 factors all known to be strong predictors of future outperformance. The Smart Score itself is a single digit score, taken from the data set and presented on a scale of 1 to 10, from lowest to highest. A “perfect 10,” the highest possible, indicates a stock where the stars have aligned — and one that investors should take a second look at.
We dove into TipRanks database to extract the details of two actions that each display a “Perfect 10” smart score. According to the data, these are two Strong Buy stocks with great upside potential. Let’s find out what else recommends them, what backs up their smart scores, and what analysts think.
Rain Oncology, Inc. (RAIN)
We’ll start with Rain Oncology, formerly called Rain Therapeutics. It is a clinical-stage biopharmaceutical company, researching new precision cancer drugs based on genetic matching of treatment to patient. The methodology is designed to maximize success while minimizing side effects.
The company currently has two drug candidates in the pipeline, milademetan, which has several ongoing clinical trials, and RAD52, which is still undergoing preclinical research.
Milademetan is making headlines here. The lead clinical trial for the drug candidate, the MANTRA Phase 3 trial in the treatment of liposarcoma, has enrolled 160 patients and the company expects to release initial data during 2Q23, which the company unfortunately pushed back earlier. this month versus the previously forecast Q1 reading.
This drug candidate is also the subject of the MANTRA-2 study, a phase 2 trial of safety and efficacy in the treatment of solid tumors amplified by MDM2 in patients with advanced or metastatic disease. . The study has a target recruitment of 65 patients.
Late last month, the company released Phase 1 clinical data from trials of milademetan against a range of tumor types. The published data, in the Journal of Clinical Oncologyshowed positive anti-tumor activity and safety profiles using intermittent doses.
Financially, at the end of the third quarter, Rain had $90.7 million in cash and liquid assets. After the November earnings release, the company raised $50 million through a follow-on stock offering.
Change to Rain’s Smart Score, we find that the “Perfect 10” is supported by strong blogger sentiment and crowd wisdom, as well as hedge funds and insider buying. On the former, financial bloggers are 100% bullish on RAIN, while crowd wisdom shows a 54% positive trend over the past 30 days. On the second, company insiders have bought more than $987,000 worth of shares over the past three months, while among the hedges tracked by TipRanks, holdings in RAIN increased by 3.7 million shares in the past three months. last trimestre.
In the coverage of this stock for Roth MKM, Kumaraguru Raja, has a favorable view of the delay in releasing the milademetan data, writing: “We believe the delay is due to the lack of accumulation of the 105 PFS (progression free survival) events required for the final PFS analysis , potentially due to better performance of either trial arm. We remain optimistic and anticipate that milademetan will outperform trabectedin based on the historical PFS observed with trabectedin and the PFS of milademetan in the Phase 1 trial…We believe that milademetan has substantial opportunity in cancers where MDM2 and p53 are key factors.
To that end, in addition to a Buy rating, Raja gives RAIN shares a price target of $21, implying robust upside potential of 121% year over year. (To see Raja’s track record, Click here.)
All 7 recent analyst reviews of Rain’s stock are positive, giving the stock its unanimous consensus rating of Strong Buy. RAIN is currently priced at $9.50 and its average price target of $19.43 suggests a 104% upside over the next 12 months. (See Rain’s stock forecast on TipRanks.)
Organic cabalette (CABA)
Next up is Cabaletta Bio, another research-driven biopharmaceutical company. Cabaletta’s research targets the treatment of autoimmune diseases, a class of diseases that has long challenged effective treatment efforts. The company uses a cell therapy approach, based on the observed successes of T cell therapies in the fight against various cancers. Cabaletta works on chimeric T-lymphocyte receptor antigens for autoimmunity (CARTA), to create new therapeutic agents for recalcitrant autoimmune diseases.
Cabaletta has generated some buzz with its drug candidate CABA-201, described as a “newly designed, fully human CD19 chimeric antigen receptor (CAR) containing a 4-1BB co-stimulatory domain”. This drug candidate was added to the pipeline last fall and has shown potential in treating conditions such as myositis and systemic sclerosis, rheumatoid arthritis, and other B-cell-related autoimmune conditions. Cabaletta is studying this drug candidate on an exclusive worldwide license obtained from Nanjing IASO Biotherapeutics and expects to submit the investigational new drug application to the FDA during 1H23.
A successful IND for CABA-201 will add this drug candidate to a clinical pipeline that already includes DSG3-CAART, an investigational treatment for mPV, mucosal pemphigus vulgaris. It is a cutaneous bullous disease with few current treatment options and DSG3-CAART is designed to attack affected antibodies without affecting unaffected B cells. The drug candidate is currently at the Phase 1 stage and Cabaletta reported favorable safety data in October last year.
As for finances, Cabaletta’s latest quarterly report showed a cash balance of $85.9 million, after which, in December, the company announced a stock offering of $35 million.
This society Smart Score shows several positive measures. Hedge fund managers bought this stock last quarter to the tune of 2.9 million shares, while conventional wisdom showed a positive 9% increase over the past 30 days. Financial bloggers, who are usually quite finicky, were 100% bullish on CABA’s stock, and on the technical side, the company’s 12-month change recorded impressive positive momentum of 213%. It all adds up to a Perfect 10.
Analyst Michael Ulz reviewed Cabaletta’s details for investment bank Morgan Stanley, and he sees the company’s upcoming regulatory filings as the main catalyst. About this development, Ulz writes:[The] The IND filing for CABA-201 is expected in 1H23, paving the way for initial Ph1 data in 1H24, which we expect to lead higher. Our positive expectations are driven by a combination of: 1) breakthrough results from a university study (immune system reset in 5/5 SLE patients) also using a CD19 CAR-T, 2) similar CABA201 design (humanized CD19 binder validated and even 4 -1BB costimulatory domain), and 3) a management team experienced in the development of cell therapies for autoimmune diseases.
These comments confirm Ulz’s overweight (or buy) rating on CABA stocks, and his price target of $16 indicates confidence in a 102% upside potential for the year ahead. (To see Ulz’s prize list, Click here.)
Cabaletta Bio has garnered 5 recent reviews from analysts, and all of them are positive, making the consensus here a strong buy. The stock is selling for $7.93 and has an average price target of $13.80; this indicates a 74% gain for the coming year. (See Cabaletta stock forecast on TipRanks.)
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Disclaimer: The opinions expressed in this article are solely those of the analysts featured. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.