Three London stocks are on the rise and are expected to rise more than 50% in the next 12 months. CNBC Pro screened stocks that RBC Capital Markets analysts are following that are rising this year, have momentum, and have upside potential of more than 50%. Shares of Team17, a British video game publisher, could rise 51.6% to £3.60 ($4.68) over the next 12 months, according to RBC. UK shares are priced in pennies. One hundred pence is equivalent to one pound. Team17 says it publishes “indie games developed by independent developers.” RBC Capital Markets began coverage of the stock in July, saying Team17 had a “high-quality” management team and that new strategies and acquisitions were key drivers of growth. “With the independent expertise of founder Debbie Bestwick, new CEO Steve Bell’s refreshed strategy and clear messaging, and new chairman Frank Sagnier’s experience in franchise building and M&A, we believe the group is well-positioned to drive Organic vs. inorganic growth,” Royal Bank of Canada (RBC) analyst Ross Broadfoot said in a report to clients on July 15. TM17-GB 1Y Series Recently, Royal Bank of Canada (RBC) said it reported “a string of good results” in September. The company reported total sales of £80.6 million, just below revenue expectations of £81.5 million. Net profit was £19.2 million, well above expectations. “The share price has been weak recently, suggesting a warning that this may be due to expected weak performance from new games. The group is taking big steps towards its strategy in terms of cost control and first-party intellectual property growth, with margins That’s a gain of 150 basis points. Broadfoot’s success rate is 75%, meaning that three-quarters of analyst ratings over the past year have been profitable for investors. The median price is 3.60 pounds, with upside potential of 51.6%. Shares of Drax Group, one of the UK’s largest power plant operators, are up 28% this year and may surge 65% next year, according to RBC Capital Markets forecasts. , the company announced a 300 million pound share buyback plan, equivalent to nearly 15% of the company’s market value at the time, and the stock rose by nearly 20% (RBC’s Alexander Wheeler). The investment bank said it was “positive on the growth of its core business” of Drax, which burns wood pallets to generate electricity. Wheeler also noted that the stock had “huge potential” after the company reported first-half results on July 26. upside potential.” Shares are up more than 70%, but they could still double. The investment bank has the most bullish view among seven analysts covering the stock. The company was spun out of the University of Oxford and specializes in gene and cell therapies. RBC analyst Charles Weston said the stock remained “significantly undervalued” after the company reported first-half financial results. OXB said sales in the first half of 2024 were up 18% on last year, reaching £51.8 million. Royal Bank of Canada also said the stock could rise 387% in the next three years as the company turns a profit. “Since OXB should become meaningfully profitable in 2026 and likely reach higher peak margins in 2028, we adopt 20x EV/(adjusted profit) for 2028 forecast (adjusted profit) vs. “Trading at a slight premium to peers to reflect OXB’s higher expected growth (profits), the implied fair value at end-2027 is £18,” Wheeler said in a note to clients on September 23.
