A couple that I like and have been a recent buyer of:
1. Indivior (INDV 19.50). A specialty pharma company that has three major drugs targeting substance use disorders. Biggest seller is Sublocade which targets opioid addiction. They are projected to earn approx 2.00/sh in FY24, that's up from an adj 1.57 in FY23. (both are taxed at approx 20%). The company has been buying back shares and has set aside cash to pay for class action lawsuits that were recently settled. I think the worst of their litigation problems are behind them. The stock has traded at 15x TTM adj eps in the past. I like its potential over the next 3-6 mos.
2. Audiocodes (AUDC 10.65). This is an Israeli company that provides advanced communications software, products, and productivity solutions for the digital workplace worldwide. The company offers solutions, products, and services for unified communications, contact centers, hosted business services, Voice.AI, and service provider businesses. Its definitely a beneficiary of the AI boom/focus, and is transitioning into a higher margin software/services company. FY23 earnings were down y/y, although a strong turnaround is being signaled by the company and its Q4 results. If they can execute and hit their LT forecasts, the company's prospects could rerate into a higher forward multiple to match its adj operating margin growth/strength that could power strong eps growth. Mgmt guiding to adj eps of 1.00 - 1.15; if they can get a 15x forward multiple the stock could see upwards of 15-16/sh later this year. Of course, the risk of an expansion in the Mideast conflict will likely put some caution into buying, but I think the risks of severe business interruption are probably unlikely.
