BOSTON ( TheStreet) -- Barrington Research has updated its market-beating list of Best Ideas for 2011, which includes stocks such as Sirius XM ( SIRI), Imax ( IMAX) and others it expects to rise up to 97%.Investors may not be as familiar with Chicago-based Barrington Research as they are with Morgan Stanley or Credit Suisse, but the firm's Best Ideas List outperformed key benchmarks in 2010, when it was first started.
Echo Global Logistics ( ECHO) Company Profile: Echo Global Logistics is a provider of technology-enabled business process outsourcing, serving the transportation and logistics needs of its clients. Current Share Price: $16.77 Potential Upside from June 30: 1% based on a price target of $18 Barrington's Take: Though the stock trades nearly at the firm's price target following a 40% rally this year, Barrington analysts are still fans of Echo Global as the company's "technology offerings are a competitive differentiator that will enable the company to continue gaining share of a large and underpenetrated market opportunity." "Despite projected long-term earnings growth for Echo that is approximately three times faster than the average of its peers, shares of Echo are valued at only a modest premium to the peer group average," the analysts write.
Imax ( IMAX) Company Profile: Imax is an entertainment-technology company, specializing in motion-picture technologies. Current Share Price: $26.69 Potential Upside from June 30: 17% based on a price target of $38 Barrington's Take: Imax remains on the Best Ideas List thanks to "an appealing long-term growth story as management executes its footprint expansion program both domestically and internationally," Barrington analysts write. "Imax remains early in its growth overseas, although international agreements are being struck with increasing frequency," the analysts add. "Footprint expansion is key to longer-term growth, overriding volatility from current theatrical success in our investment thesis."
Sirona Dental Systems ( SIRO) Company Profile: Sirona Dental Systems makes advanced dental equipment. Current Share Price: $54.91 Potential Upside from June 30: 19% based on a price target of $63. Barrington's Take: Sirona "offers investors an opportunity to leverage the overall recovering dental industry and rapidly growing high-tech dental equipment market with a company that has a competitive advantage as the technological leader in the industry," Barrington analysts wrote. The analysts note that shares are relatively inexpensive compared to the company's growth potential, trading at a 2012 price-to-earnings multiple of 16 times, below its five-year average of approximately 20 times.
Bridgepoint Education ( BPI) Company Profile: Bridgepoint Education is a regionally accredited provider of post-secondary education services, which includes programs in the disciplines of business, education, psychology, social sciences and health sciences. Current Share Price: $27.42 Potential Upside from June 30: 20% based on a price target of $30 Barrington's Take: The firm says Bridgepoint Education remains a top pick for 2011 for the same reasons Barrington picked the stock in 2010, namely discount valuation, strong fundamentals, experienced management team, a scalable business model and a solid balance sheet. "Bridgepoint's stock has plenty of catalysts...to help it move higher over the next 12 months," Barrington analysts wrote. They note the unprecedented high level of short interest -- 49% of the float was sold short as of June 15, down from 58% in April -- that continues to get squeezed.
AtriCure ( ATRC) Company Profile: AtriCure is a medical-device company that makes surgical ablation systems designed to create precise lesions, or scars, in heart tissue. Current Share Price: $13.83 Potential Upside from June 30: 32% based on a $17 price target Barrington's Take: The research firm notes that atrial fibrillation is the most common type of cardiac arrhythmia, with at least 2.5 million people diagnosed in the U.S. "ATRC has the only approved
Navistar International ( NAV) Company Profile: Navistar produces International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis. Current Share Price: $55.08 Potential Upside from June 30: 33% based on a price target of $75 Barrington's Take: Navistar remains a top pick for Barrington "due to the company's low valuation relative to the expected growth rate in commercial vehicles." "NAV's focus on such fuel efficient innovative products together with continued cost reduction efforts should promote sales growth, as well as operational leverage in the upcoming future," Barrington analysts wrote.
NetSpend Holdings ( NTSP) Company Profile: NetSpend provides reloadable prepaid debit cards cards and related alternative financial services in the U.S. Current Share Price: $8.56 Potential Upside from June 30: 50% based on a price target of $15 Barrington's Take: Another new addition to the Best Ideas List, NetSpend is Barrington's way of playing the more than 60 million individuals in the U.S. that are underbanked or unbanked altogether. "In our opinion, NTSP has the ability to grow its revenues in excess of 20% annually with adjusted EBITDA and adjusted net income growth of 25% to 30% annually over a three- to five-year time period," the analysts wrote.
U.S. Auto Parts Network ( PRTS) Company Profile: U.S. Auto Parts Network is a distributor of aftermarket auto parts and accessories. Its products consist of body parts, engine parts, performance parts and accessories. Current Share Price: $7.83 Potential Upside from June 30: 57% based on a price target of $12 Barrington's Take: U.S. Auto Parts Network was a new addition to Barrington's Best Ideas List in January and remains among the firm's best picks. The company "represents a solid long-term secular growth story due to the shift to online auto parts sales by consumers, management's efforts to add products and increase conversion rates, potential market share gains and benefits that should accrue from the transformational acquisition of JC Whitney," the analysts write.