Sunesis Pharmaceuticals Inc. (SNSS), Callidus Software Inc. (CALD) and Providence Service Corporation (PRSC) are three top analyst stock picks trading for under $10.00 per share. In this article, we’ll take a look at the catalysts driving these analyst projections and why they may represent an attractive buy for investors at these levels.
Sunesis’s Vosaroxin Targets $500mm+ Market
Sunesis Pharmaceuticals Inc., a biopharmaceutical company focused on the oncology therapeutics for hematologic and solid tumor cancers, was initiated with a Buy rating and $3.50 per share price target at MLV Equity. At a significant 180% premium to the current market price, the analyst’s price target reflects a very bullish outlook on the company’s future.
The company’s Vosaroxin has the potential to become a new standard of care in AML, which represents a $500 million market opportunity. With a well-designed pivotal Phase III clinical trial for this indication, investors should see significant catalysts between 2012 and 2014. Meanwhile, the firm’s other clinical trials represent additional opportunities for shareholders over the long-term.
Callidus Sees Strong Customer Growth Rates
Callidus Software Inc., a developer of sales performance management software and services provided in the cloud, was initiated with a Buy rating and $8.00 per share price target at Craig-Hallum. At a significant 72% premium to the current market price, the analyst’s price target reflects a very bullish outlook on the company’s future.
With its recent agreement with Pfizer (PFE), the company’s sales momentum appears to be improving despite any macroeconomic woes. Meanwhile, some 50 new customers joined its Litmos service since it acquired the company in the second quarter of this year, according to a recent press release. These top-line sales stand to unlock significant value for shareholders.
Providence Service Remains Misunderstood
Providence Service Corporation, a provider of government-sponsored social services and non-emergency transportation services, was initiated with a Buy rating and $15.00 per share price target by BB&T. At a significant 46% premium to the current market price, the analyst’s price target reflects a very bullish outlook on the company’s future.
While the company’s stock has declined over the past year, many investors attribute these declines to misplaced headline risk related to reimbursements. Last quarter, the firm was able to complete its contract renewal cycle with substantially all of its contracts renewed at relatively stable rates. Meanwhile, two new wins in Virginia and Wisconsin could generate significant value in 2012 and beyond.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.