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Deutsche Bank says to buy these two battered shares before they rebound

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Should investors prepare for a winter of persistent headwinds? Inflation remains high, rising interest rates are putting pressure on capital as well as making consumer credit more expensive, and China’s coronavirus lockdowns and Russia’s war in Ukraine continue to cripple global supply chains.

But even though the markets are facing serious headwinds, not every stock will react by falling. According to analysts at Wall Street giant Deutsche Bank, two very interesting stocks are likely to see big gains in the future.

Go to TipRanks database, we found that both are rated Buy, and both have shown huge losses in recent months, severely underperforming the broader markets. However, Deutsche Bank analysts believe these stocks have room for gains in 2023, in the range of 40% or more. Details here.

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BlackSky Technology (BKSY)

We’ll start with a small satellite intelligence company, BlackSky. This company owns and operates a leading network of low-Earth orbit small satellites, and can capture images in a cost-effective and efficient manner wherever and whenever its customers request it. BlackSky’s services include data processing on its Spectra AI software platform, which can integrate data from third-party sensors to gain critical insights and analytics. The company’s client base includes US and international government agencies, as well as global businesses and organizations.

BlackSky controls a large group of small satellites, and the company can provide multiple benefits to its customers. These include an average of 90 minutes for product delivery, an average of 60 minutes on satellite revisits, and up to 15 satellite revisits per site per day. In addition, BlackSky can provide direct satellite downlinks for both terrestrial and offshore operations.

All of this adds up to a solid business in a unique niche. BlackSky capitalized on that to post an impressive 113% year-over-year profit in Q3 2022, to a total of $16.9 million. This gain was supported by strong gains in image analysis services and software, which increased its share of total revenue to 89%. While BlackSky, like many high-tech companies, is operating at a net loss, earnings per share of -$0.12 beat Street’s forecast of -$0.20.

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However, while BlackSky has shown some impressive growth numbers this year, including a major contract with the US government’s National Reconnaissance Office (NRO), loss-makers have been out of favor in 2022, and the company’s shares have fallen sharply. Year-to-date, BKSY stock is down 62%.

BlackSky coverage by Deutsche Bank, Analyst Edison Yu He points out that the company has had difficulties lately — but also has gained a lot of momentum going forward over the next year.

“BlackSky has been operationally inconsistent but laser focused on leveraging its flagship Spectra AI software to generate valuable, actionable insights backed by lucrative government/defense contracts that we ultimately believe makes it an attractive strategic target given its current low valuation… BlackSky benefits from increased customer activity Associated with the conflict between Russia and Ukraine and also the increase in the strength of other contracts… BlackSky is increasing the selling force and partner network, which should bring in more customers,” said Yu.

Looking at BlackSky’s potential going forward, Yu rates the stock a Buy along with a $3 price target indicating his confidence in a one-year gain is 75%. (to watch yo log, click here)

Turning now to the rest of the Street, other analysts also like what they see. 4 Buys and No Holds or Sells adds to the Strong Buy consensus rating. Shares are trading for $1.71 and an average price target of $4.25 indicates a potential upside of approximately 148% for the next 12 months. (See BSKY stock forecasts on TipRanks)

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tight-knit company (COHR)

The second stock we’ll look at, holding, is a new ticker but has a long history. Until July this year, the company was known as II-VI, and it occupied an important position in the silicon semiconductor wafer industry. It continues to live in this niche specializing in the design and manufacture of precision equipment for engineered materials and optoelectronic component systems. But on July 1 of this year, the company completed its acquisition of Coherent, Inc. And, beginning on September 8, the combined company adopted the name Coherent and began using the ticker COHR on the Nasdaq Stock Exchange. Although the company has taken on a new brand, new name, and new strip, it will continue to use Stock Register II-VI consistently with COHR.

On the business front, the new company added Coherent’s proprietary laser technology to its micro-machining and optoelectronics microtechnologies. Overall, the merger is expected to bring added value to enterprise customers in the chip segment.

In the last quarter, the first quarter of fiscal year 2023, Coherent saw a significant jump in revenue from $887 million in the fourth quarter of fiscal year 2002 to $1.34 billion in the current period. This was a 51% gain sequentially; On a year-over-year basis, revenue gains came in at 68%. The strong revenue gain was supported by year-over-year organic revenue growth of 20%. Looking ahead, Coherent can count on a record backlog of $3.05 billion in work, up 119% from the year-ago quarter.

Like many others, the stock has suffered badly in 2022; COHR shares are down more than 49% year-to-date.

However, referring to the low share price and issues that worry investors, Deutsche Bank Sydney is Take an optimistic stance.

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“COHR shares have underperformed the broader market year-to-date amid concerns that the growth of its organic business will slow and that the newly acquired heirloom knit business is highly exposed to GDP-driven markets, while post-deal debt leverage is also Very high. However, based on the company’s outlook and through our recent work, we believe investor concerns are overly pessimistic.”

“We also believe that some of the growth drivers in Comms, silicon carbide (SiC), sensor, semicap, and display are not appreciated by investors, which will likely offset risks associated with the rest of the business,” the analyst added.

Given the disconnect between the company’s stock performance and its strong potential, Ho rates COHR as a buy into the future, and sets a $50 price target that would imply a one-year upside potential of roughly 44%. (To watch the log is, click here)

Overall, this chip-related tech company earned 16 recent Street analyst reviews, including 11 Buy, 4 Holds, and 1 Sell, for a Moderate Buy consensus rating. Average price target is $56.71, which means upside of 63% from the current share price of $34.81. (See COHR stock forecasts on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best stocks to buya newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.