Big Calls: Six of the wildest buy calls made by analysts in 2019
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When analysts talk, investors usually listen whether they agree or not. This is particularly the case when calls are especially radical, whether calling the entire stock a dud, predicting it will rise several times or just bold calls about its market opportunities.
Here are six of the most radical calls made by analysts in 2019.
Its been a rollercoaster ride for BidEnergy (ASX:BID) shareholders in the last two years. Between December 19, 2017 and February 12, 2019 it rose from 5.4c to $1.72 – a gain of 3,062 per cent!
One broker, Phillip Capital, thinks it will triple in 24 months. A research note by analyst Wayne Sanderson set a price target of $1.60. While this was down from its previous target of $2.20, it is still higher than its current price of just under 50c.
The company sells an automated system that monitors energy spend. It can manage invoices, analyse meter data and offers an auction marketplace where energy retailers bid for companies’ energy spend.
Robots replacing humans in the construction industry — sounds like a good idea, and a State One Stockbroking report tipped this could make FBR (ASX:FBR) $60 billion in revenue each year. Assuming FBR had 15,000 machines making $4m each.
But State One forecasts the company will only have 10 machines operating by FY22 and it will take longer to get to 15,000.
In the shorter term, FBR has set itself a target of 10 houses built by November; a more immediate metric to watch out for.
Its own shareholders may’ve lacked confidence in the rare earths explorer but Ord Minnett’s Dylan Kelly has tipped it to double. He has four reasons why:
The broker went as far as to compare the latter to Japanese support for Lynas in the previous decade.
The market gives particular attention to analysts when similarly bold calls have been right before. When short-sellers Bonitas Research alleged Rural Funds Group was worthless, the stock crashed.
And its not just a Twitter troll, its a firm run by the same people that bought down Blue Sky Alternative Investments (ASX:BLA).
We are short Rural Funds Group (#ASX: $RFF) and believe it is a Fraud. Expect $RFF #RFF to ultimately be worthless. New Fraud Report just released on our website https://t.co/c9zj9ObJr3 @ActivistShorts @FT @business @markets @WSJbusiness @ASX
— Bonitas Research (@BonitasResearch) August 6, 2019
The stock has never fully recovered but it did rally after the board came out swinging against it. The directors blasted the allegations as false and between them bought $1.2m in stock.
Nonetheless the board engaged EY to double check for them and on Monday, having gotten the all clear, announced it intended to sue Bonitas over its actions.
As its name suggests, Smart Parking takes technological disruption to car parks with its technologies such as plate recognition and in-app payments. It reached 54c in late 2017 then fell throughout 2018.
Earlier this week, Smart Parking’s share price lifted. Despite its books taking a turn for the worse, it revealed multiple companies were interested in acquiring it. While so far it has turned down offers it reckons it is open to an offer at an acceptable price.
US lender Credible Labs (ASX:CRD) was tipped back in April by Moelis for 28 per cent growth. This was nowhere near any of the other stocks.
But while many of these predictions for growth have not come true – at least not yet; this stock has gone above and beyond and now sits at $2.19. The catalyst? An offer by Fox to acquire 67 per cent of the company.