2 New Stocks: LAVA Therapeutics and Zhihu

The official unemployment rate increased by 0.1 percent to 6.1 percent, and hourly earnings increased by 0.7 percent. The last point appears to be a plus – except that when paired with the vast government stimulus pumping cash into the economy, it seems to be negative.

For two factors, low-interest rates have aided in re-igniting the stock market engine in recent years. To begin with, it holds credit costs down, making it simple to maximize all kinds of transactions – vehicles, houses, and even stocks. The second explanation is that bond yields have been unable to increase significantly due to low-interest rates. Stocks are the way to go for investors looking for a return.

The stock analysts at the bank have been on the lookout for equities poised to rise in the current environment.

LAVA Therapeutics (LVTX)

LAVA Therapeutics is developing gamma-delta bispecific T cell engagers, which it calls gamma-delta bispecific T cell engagers. LAVA has four patented compounds in its pipeline. In the first half of this year, the leading candidate, LAVA-051, will begin a Phase 1/2a clinical trial. LAVA-1207, the second candidate, will start a Phase 1/2a trial in 2H21. LVTX stock went public on March 25 in an initial public offering (IPO) that raised $100.5 million. The stock began trading at $15, and 6.7 million shares were issued.

Three Wall Street biotech analysts have taken note of LAVA’s unique approach to cancer care in its short time on the stock sector. The consensus rating of Strong Buy is unanimous, indicating that this is a stock to buy. The stock is currently priced at $11.80, and the average price target of $23.67 is even higher. Fye makes it possible.

Zhihu (ZH)

Zhihu is a player in China’s online content industry. The company’s website is a question-and-answer platform, similar to Quora, where users can ask questions and receive answers from the group. Zhihu had 43.1 million content creators by the end of December last year, who had shared over 315 million questions and answers. The monthly average users (MAU), a crucial metric for every website, rose from 43.1 million in the fourth quarter of 2019 to 75.7 million in the fourth quarter of 2020.

JPM analyst Binbin Ding mentions several factors that bode well for Zhihu in the initiation of coverage analysis: 1) Zhihu is renowned for its extensive content and is regarded as China’s most reliable online content culture. 2) Ads, membership, content-commerce solutions, e-commerce, and education are among the monetization models available. Based on three recent Buy ratings, the stock has a Strong Buy consensus ranking.