Piper Sandler’s Johnson sees near-term upside in these two stocks

on Sep 23, 2021
  • High multiple stocks could take a hit if the U.S. Fed decides in favour of a rate hike.
  • Piper Sandler's Craig Johnson sees upside in two "not so popular" stocks in Q4.
  • He also named Unity Software and Cimarex as top picks in his interview with CNBC.

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High multiple stocks could take a hit in the upcoming months if the U.S. Fed decides in favour of a rate hike. Amidst the concern, Piper Sandler’s Craig Johnson sees potential for upside in two stocks, albeit ones that are not very popular.

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Johnson’s remarks on CNBC’s “Worldwide Exchange”

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Johnson’s first pick is Methanex Corporation (NASDAQ: MEOH) – the world’s largest producer and supplier of Methanol. On CNBC’s “Worldwide Exchange”, he said this morning:

Methanex is a stock that we think has decent upside, improving price, and improving relative strength. So, it’s definitely one that we would put on a shortlist as we look forward into the fourth quarter as the basic material companies and economy at large continue to recover.

MEOH has rallied about 40% since mid-August but is still down more than 5.0% on a year-to-date basis.

Why does Johnson like Bio-Techne Corp?

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Another name that pops out to Johnson is Bio-Techne Corporation (NASDAQ: TECH) that develops, manufactures and sells life science reagents, instruments and services for the research, diagnostic, and bioprocessing markets. Johnson said:

This is a chart that’s been putting up a really nice price action on an absolute basis, the relative strength has been very strong, and it’s a very constructive segment in the healthcare space.

The bullish call on TECH is particularly bold, considering the stock has already rallied about 70% since the start of the year. Last week, the $21 billion company launched ExCellerate iPSC Expansion Medium.  

Johnson’s list of top stocks for Q4 also includes Unity Software and Cimarex Energy Co.

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