On Tuesday, Wells Fargo shared a list of 10 high-conviction long/short ideas for the fourth quarter, highlighting various companies with potential for significant stock movements. The firm anticipates Fair Isaac Corporation (NYSE:FICO) will materially increase its scores prices across mortgage, auto, and card sectors. These price hikes are expected to become public knowledge by the end of October, during the MBA convention.
Las Vegas Sands Corp. (NYSE:NYSE:LVS) is poised for an attractive fourth quarter, according to Wells Fargo. With the expected bottoming of Macau EBITDA and the disruption peak in the third quarter, the opening of the Londoner casino in time for Golden Week, and strategic positioning, LVS is anticipated to perform strongly into 2025.
Wells Fargo also highlighted TC Energy Corporation (TSX:NYSE:TRP), which is set to spin out its Liquids business on October 2. Post-spin, the firm believes TRP could command the highest multiple in the midstream sector due to its focus on gas pipelines and nuclear exposure, potentially leading to a 25% stock appreciation from current levels.
Willis Towers Watson (NASDAQ:WTW) was noted as the most undervalued among its peers, with a P/E ratio significantly lower than the industry average. Wells Fargo sees several catalysts that could drive the stock higher, including third-quarter earnings and an investor day in December.
The firm expressed confidence in the risk/reward profile for Annexon, Inc. (NASDAQ:ANNX), Arvinas, Inc. (NASDAQ:ARVN), and Axsome Therapeutics, Inc. (NASDAQ:AXSM), anticipating positive clinical data and market reactions that could significantly lift their share prices. Myriad Genetics (NASDAQ:MYGN) is also favored for sustained growth into 2025 and potential for upward revisions.
Conversely, Wells Fargo maintains an Underweight rating on Tesla, Inc. (NASDAQ:TSLA), citing declining delivery growth due to lower demand and reduced effectiveness of price cuts. The firm expects Tesla's auto gross margin excluding credits to drop year-over-year.
Lastly, Ulta Beauty, Inc. (NASDAQ:ULTA) faces potential headwinds according to the firm, with competitive challenges likely to impact long-term targets and pressure margins beyond 2025. Negative catalysts could arise from a revision of these targets during Ulta's investor day on October 16.
In other recent news, Myriad Genetics, a genetic testing provider, reported a notable financial performance with second-quarter revenues of $211.5 million, exceeding consensus expectations. The company also raised its guidance for 2024 to an estimated $835-845 million. Analyst firms, including Wolfe Research, Scotiabank, Jefferies, and TD Cowen, responded positively to these developments, raising their price targets for Myriad Genetics.
Myriad Genetics' main product, the MyRisk hereditary cancer panel, is expected to account for approximately 44% of the company's sales for 2023. The company's near-term growth is anticipated to be in the double-digit range, aided by recent exits of competitors and revenue cycle management initiatives.
In addition, Myriad Genetics has seen positive developments in non-invasive prenatal screening and carrier screening segments. However, GeneSight, which represents 18% of the company's 2023 revenues, continues to be a topic of debate among investors.
Myriad Genetics boasts a robust product pipeline, expected to support the company's growth strategy in the coming years. The company has also secured a new patent for its molecular residual disease assay technology and is preparing to launch new products between 2025 and early 2026.
These are the recent developments for Myriad Genetics, all based on independent sources and clear evidence, providing a factual overview of the company's recent activities.
InvestingPro Insights
To enrich the article with relevant data on Myriad Genetics (NASDAQ:MYGN), which Wells Fargo favors for sustained growth into 2025, we can add some key insights from InvestingPro.
Myriad Genetics has shown impressive revenue growth, with a 14.78% increase over the last twelve months as of Q2 2024. This aligns with Wells Fargo's positive outlook on the company's growth potential. Additionally, the stock has demonstrated strong performance, with a remarkable 70.76% price total return over the past year.
InvestingPro Tips highlight that 6 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company's financial prospects. This supports Wells Fargo's expectation of potential upward revisions. The stock is also trading near its 52-week high, indicating positive market sentiment.
It is worth noting that while Myriad Genetics is not currently profitable, analysts predict the company will be profitable this year. This projection aligns with the article's focus on the company's growth trajectory into 2025.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Myriad Genetics, providing a deeper understanding of the company's financial health and market position.
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