Lifting shares are growing after the company sees the best week for rides since the pandemic began


Morgan Stanley: These two stocks are ready to rise by at least 30%

The markets are trying to sort out a series of conflicting forces. It is the bull trend, which has pushed stocks higher since last summer, which in recent weeks has been partly tracked by fears of inflation. There is the enormous fiscal stimulus of the COVID aid legislative package, which is helping to push up that inflationary pressure, but there is also the ongoing vaccination program that promises to return to more normal conditions. Morgan Stanley’s chief US stock strategist Mike Wilson has been following the stock market’s recent ups and downs and has shared the benefits of his experience. “We see two potential risks to consider … First, the risk is associated with interest rates rising sharply because the bond markets are simply coming through what other asset prices already reflect. Secondly, there is a risk that some of the positive operating capacity that we have seen in the company’s earnings reports will start to go in reverse order, ”noted Wilson. Transforming from the general picture to a narrower picture, Wilson adds, “With this macro background, we continue to favor areas of the market that are reasonably priced …” Given Wilson’s prospects, Morgan Stanley analysts score on the table in two layers, with these professionals who see at least 30% upside potential in store. By running the ticks through TipRank’s database, we wanted to find out exactly what makes them so compelling. TPI Composites (TPIC) We start in the green energy sector, where it connects to manufacturing. TPI Composites is a manufacturer of composite materials and has used the specialized knowledge for the manufacture of wind turbine blades since 2001. In 2019, the most recent year with fully available data, TPI handled 18% of all onshore wind blades sold globally on one megawatt. The company saw net sales for 2020 reach $ 1.4 billion and sell more than 9,500 sheets. In the latest result for 4Q20, TPI reported results for the quarter and for last year as a whole. The results were strong and beat the forecasts by a large margin, but the share still fell sharply. A look at the data sheds some light. In the quarter, TPI reported $ 465.6 million in revenue and 14 cents EPS compared to expectations of $ 450 in the top line and 12 cents EPS. Quarterly sales increased by 10% compared with the previous year. At the same time, the strong sales growth for the year was not enough to compensate for losses during the corona crisis during Q1 and Q2. The company ended the year with a GAAP loss of 52 cents per share. Also on the negative side of the ledge, forward sales in 2021 will bring sales in the range of $ 1.75 billion to $ 1.85 billion – this will be 2021’s annual growth of about half of what analysts hoped to see. Morgan Stanley analyst Laura Sanchez sees the company as fundamentally sound and writes: “We see a risk reward that is skewed upwards driven by robust wind installations globally, market dominance given TPI’s global footprint, growth in the transport sector and a path to marginal expansion. .. We also note that TPIC provides investors with a unique way to play secular growth in the global wind and electricity markets without taking exposure to other, usually industrial sectors. For this purpose, Sanchez rates TPIC as an overweight (ie buy), and its price target of $ 77 represents an increase of ~ 54% in the coming year. (To see Sanchez’s record, click here) Wall Street analysts generally agree that this is a stock to buy. Of the last 10 reviews here are 7 Buys and 3 Holds, which makes the consensus rating a moderate buy. The average price target of $ 63.10 suggests an upward 28% one year from the current trading price of $ 49.60. (See TPIC stock analysis on TipRanks) Carvana Company (CVNA) From industry and green energy, we are moving to the world of online sales, where Carvana has become a major seller of used vehicles and puts a new twist on online vehicle purchases. The company operates from a chain of 23 offices and semi-automated car storage garages around the continental United States, from where it enables customers to test drive vehicles and pick up purchases. During the fourth quarter of 2020, Carvana sold 72,172 vehicles, an increase of 43% compared to the previous year. Sales added over $ 1.8 billion in total revenue, for an annual increase of 65%. The company’s gross profit for the quarter, $ 243.9 million, increased by 71% compared to the previous quarter. These strong measurement values ​​were also seen at year-round level. The 244,111 cars sold in 2020 accounted for a 37% increase in sales, while the $ 5.587 billion in full-year revenue increased by 42% year-on-year and the gross profit of $ 793.8 million increased by 57% compared to 2019. Earnings are reflected in the company’s stock performance, which has shown steady growth over the past 12 months. During that period, CVNA increased by 290%. It’s an impressive win for Morgan Stanley’s analyst Adam Jonas. In our opinion, CVNA’s moat consists of its: 1) first mover advantage, 2) brand awareness, 3) robust nationwide logistics network, 4) complete online transaction opportunities to buy cars, sell cars and at the same time offer online financing and warranty options to customers, 5) a less fixed cost and capital-intensive business model, 6) strong customer service and, 7) the ability to utilize its platform in associated business areas, which gives it great opportunities for upwards. Jonas considers CVNA to be his “highest ranked car salesman” and rates the share as overweight (ie buy). In addition, analyst CVNA gives a price target of 420 USD, which means an upward trend of 31% from current levels. (To see Jonas’ results, click here) Carvana’s latest stock estimate has pushed the stock price up to $ 321.25, slightly above the average price target of $ 314. This has not stopped Wall Street analysts from valuing the stock highly, as the analyst’s consensus rating is a strong purchase, based on 16 recent reviews that include 13 purchases and 3 holdings. (See CVNA stock analysis on TipRanks) To find great ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a recently launched tool that unites all of TipRanks stock insights. Disclaimer: The views expressed in this article are solely those of analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investments.