Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets
In this article, we will discuss the 10 stocks whose price targets were recently raised by analysts. If you want to see more such stocks on the list, go directly to Wall Street Analysts See Upside Potential for 5 Stocks with Rising Price Targets.
Equity and fixed-income markets experienced a surge as a result of the Federal Reserve's indication of upcoming interest-rate reductions in the coming year, injecting renewed optimism into the financial landscape amid a backdrop of easing inflation. The worldwide measure of stock performance extended its winning streak for the sixth consecutive session, spurred by the S&P 500's close on Wednesday, which was just 2% shy of its all-time peak, reported Bloomberg. This positive momentum continued to propel upward during Thursday's Asian futures trading. Noteworthy milestones were achieved by Apple Inc., reaching a historic high, and the Dow Jones Industrial Average, also attaining record levels. The Federal Reserve's dot plot, which serves as a visual representation of policymakers' interest rate projections, revealed a signal of potential 75 basis points in cuts over the next year. This disclosure triggered a noteworthy retreat in the value of the dollar, further influencing the positive market sentiment. As the financial landscape adapts to the evolving economic dynamics, investors have been closely monitoring the Federal Reserve's signals for insights into its policy direction. The anticipation of interest-rate cuts has not only fueled the rally in stocks but has also had a notable impact on the bond market, contributing to the overall surge in bond prices. Amidst these developments, the S&P 500 continued its upward trajectory, edging closer to establishing a new historical peak. Simultaneously, the Japanese yen demonstrated strength by gaining more than 1%, reflecting shifts in currency markets as investors navigate the evolving landscape.
This week, the European Central Bank (ECB) convenes, drawing close scrutiny from investors eager to discern when it might initiate interest rate cuts, reported CNBC. While premature to declare victory against inflation, the ECB finds itself in a favorable position with inflation at a two-year low. Holger Schmieding of Berenberg notes that, having reached a 4% deposit rate plateau, the ECB can now expedite the reduction of its substantial balance sheet without undue risk to yield spreads in the eurozone. In November, inflation dropped to 2.4%, prompting heightened expectations for ECB rate cuts in 2024, especially after a comment from board member Isabel Schnabel. Currently, money markets project nearly 150 basis points of rate cuts for the coming year. However, analysts caution that markets may need to adjust their overly optimistic rate cut expectations after the ECB's meeting.
On the stock market front, analysts are bullish on telecommunications giants such as AT&T Inc. (NYSE:T) and T-Mobile US, Inc. (NASDAQ:TMUS) among many others. Check out the complete article to see the details of these upward revisions in price targets.
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10. Costco Wholesale Corporation (NASDAQ:COST)
Upside Potential: 5%
On December 13, Oppenheimer, a reputable financial research and advisory firm, conducted a comprehensive assessment of various food retailers, discounters, and beauty players. The findings shed light on favorable inventory conditions and limited clearance stock across the industry, with particular emphasis on the noteworthy performance of Costco Wholesale Corporation (NASDAQ:COST). Costco Wholesale Corporation (NASDAQ:COST), a prominent player in the retail sector, has maintained solid in-stock conditions, contributing to its positive standing in the market. However, despite its commendable operational performance, Oppenheimer made a strategic decision to remove Costco Wholesale Corporation (NASDAQ:COST) from its mid/large cap top pick listing for 2024. The primary rationale behind this move is the firm's concerns about the valuation of Costco's stock. The financial research firm acknowledges the continued aggressive promotional efforts within the retail sector, especially in the beauty category, where retailers are actively deploying strategies to drive both foot traffic and conversion rates. Despite this overarching trend, Oppenheimer has updated its top pick listing for 2024, elevating certain companies to the forefront of its recommendations.
Among the newly endorsed top picks are Church & Dwight Co., Inc. (NYSE:CHD), Target Corporation (NYSE:TGT), Ulta Beauty, Inc. (NASDAQ:ULTA), and Walmart Inc. (NYSE:WMT). Moreover, Costco Wholesale Corporation (NASDAQ:COST) target has been raised by Oppenheimer from $630.00 to $675.00, maintaining an "Outperform" rating. With the current price of Costco Wholesale Corporation (NASDAQ:COST) stock standing at $642.00, this adjustment implies an upside potential of 5.0%.
09. Centene Corporation (NYSE:CNC)
Upside Potential: 7%
On December 13, Wells Fargo increased its price target on Centene Corporation (NYSE:CNC), revising it from $74 to $82, while maintaining an Equal Weight rating on the shares. This adjustment comes in the aftermath of a constructive Investor Day (I-Day) for Centene. According to Wells Fargo, the narrowing range of outcomes on near-term Medicaid rates and costs is a key factor contributing to this positive adjustment. The firm suggests that if industry Medicaid margins continue to remain at elevated levels, any potential pressure may not become evident until the subsequent rate cycle. This update from Wells Fargo indicates a growing confidence in Centene Corporation (NYSE:CNC) outlook, especially concerning its Medicaid-related factors. Investors and analysts may interpret this revision as a signal of optimism, taking into account the insights gained from Centene Corporation (NYSE:CNC) Investor Day and the potential implications for the company's financial performance in the near term. The Equal Weight rating suggests a neutral stance, emphasizing a balanced consideration of Centene Corporation (NYSE:CNC) overall investment attractiveness in the current market conditions.
Oakmark Fund made the following comment about Centene Corporation (NYSE:CNC) in its Q3 2023 investor letter:
“Centene Corporation (NYSE:CNC) is one of the largest health insurers in the U.S. The company specializes in three major government-sponsored programs: Medicaid, Marketplace and Medicare Advantage. Each of these benefits from long-term secular tailwinds. In Medicaid, states are steadily outsourcing their programs to managed care companies, like Centene, as it helps states reduce costs and improve care quality. Indeed, Managed Medicaid penetration has increased from 25% of total Medicaid spend in 2010 to 60% today, and we expect further gains over time. In Marketplace, growth is driven by the trend toward more individuals buying health insurance. Centene holds the #1 market share in both of these programs and is well positioned to capitalize on their continued growth. The stock trades for 10x consensus 2024 EPS, but this doesn’t tell the whole story. Past missteps in Centene’s Medicare business will result in that segment losing $0.80 per share next year. We believe Centene can turn Medicare around and generate positive earnings in the next few years. This could increase EPS by more than $1 per share and reduce the P/E ratio to just 8.5x. We think that’s good value for a business that generates healthy returns on capital and is capable of growing EPS at a low double-digit rate.”
08. Verizon Communications Inc. (NYSE:VZ)
Upside Potential: 8%
On December 13, Wells Fargo & Company revised its outlook on Verizon Communications Inc. (NYSE:VZ), increasing the target price from $35.00 to $40.00. Despite this upward adjustment, the firm has maintained an Equal Weight rating on the shares, signaling a neutral stance in its overall assessment. With Verizon Communications Inc. (NYSE:VZ) current stock price standing at $36.99, the revised target price suggests an upside potential of 8%. This indicates that Wells Fargo sees a modest but positive trajectory for Verizon Communications Inc. (NYSE:VZ) stock performance in the foreseeable future. The Equal Weight rating emphasizes a balanced perspective on Verizon within the broader context of the market. The target raise also reflects Wells Fargo's evolving analysis of Verizon Communications Inc. (NYSE:VZ) fundamentals and market conditions, providing valuable insights for investors navigating the telecommunications sector.
Mairs & Power Growth Fund made the following comment about Verizon Communications Inc. (NYSE:VZ) in its Q3 2023 investor letter:
“Thanks to the excitement around AI, we are finding attractive opportunities in so-called old economy industries and/or value-orientated names. One such opportunity that we added to in the quarter was Verizon Communications Inc. (NYSE:VZ). Verizon is the largest wireless operator in the United States and benefits from large barriers to entry thanks to government regulation and the billions of dollars needed to maintain a cellular network. T-Mobile (TMUS) has historically been a thorn in Verizon’s side but recently has become more disciplined on pricing. In fact, T-Mobile’s most recent unlimited data phone plan is more expensive than both AT&T’s (T) and Verizon’s. We are also excited about Verizon’s fixed wireless access opportunity, in which the internet is delivered to consumers’ homes via cellular network instead of cable. In addition to long-term potential, Verizon offers an attractive 8% dividend yield.”
07. Synopsys, Inc. (NASDAQ:SNPS)
Upside Potential: 11%
On December 13, Wells Fargo analyst Gary Mobley adjusted his perspective on Synopsys, Inc. (NASDAQ:SNPS), raising the price target from $620 to $630 while maintaining an Overweight rating on the shares. The rationale behind this optimistic shift stems from Synopsys, Inc. (NASDAQ:SNPS) recently disclosed 10-K, which reveals robust current remaining performance obligations (CRPO). This, in turn, bolsters the analyst's belief that Synopsys, Inc. (NASDAQ:SNPS) fiscal year 2024 revenue guidance is conservative. The emphasis on the CRPO metric suggests a positive outlook for Synopsys, Inc. (NASDAQ:SNPS), indicating a strong foundation for future revenue generation. Wells Fargo's confidence in the company's potential is further supported by the analysis of the 10-K data. Additionally, the firm expresses optimism about the strategic move of the Synopsys, Inc. (NASDAQ:SNPS) Special Interest Group (SIG) spin, expecting it to deliver shareholder value.
This update provides valuable insights for investors considering or currently holding Synopsys, Inc. (NASDAQ:SNPS) shares, suggesting potential growth opportunities based on the company's financial disclosures and strategic decisions. The Overweight rating indicates Wells Fargo's positive stance, encouraging investors to consider Synopsys, Inc. (NASDAQ:SNPS) as a promising investment within its market category.
Carillon Eagle Mid Cap Growth Fund made the following comment about Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2023 investor letter:
“Synopsys, Inc. (NASDAQ:SNPS) provides semiconductor development software. The company has been executing well and investors have appreciated the steady growth and increasing margins and cash flow. Furthermore, investors were attracted to the new tools the company is releasing to help companies use artificial intelligence (AI) to improve their semiconductor development projects.”
06. Abbott Laboratories (NYSE:ABT)
Upside Potential: 13%
On December 13, Wells Fargo & Company has increased its target price on Abbott Laboratories (NYSE:ABT), elevating it from $116.00 to $121.00. While making this adjustment, the firm has maintained an Overweight rating on the shares, reflecting a positive outlook for Abbott Laboratories (NYSE:ABT) within its coverage. With Abbott Laboratories' current stock price at $107.23, the revised target price suggests an upside potential of 13%. This indicates Wells Fargo's confidence in the company's growth prospects and its ability to deliver favorable returns to investors. The Overweight rating underscores Wells Fargo's view that Abbott Laboratories (NYSE:ABT) is well-positioned for success within its industry, encouraging investors to consider the stock as an attractive investment option. The target raise implies a favorable reassessment of Abbott Laboratories (NYSE:ABT) valuation and performance potential, providing valuable information for investors seeking insights into the healthcare sector.
Diamond Hill Large Cap Strategy made the following comment about Abbott Laboratories (NYSE:ABT) in its Q3 2023 investor letter:
“Health care facilities operator HCA Healthcare and medical device company Abbott Laboratories (NYSE:ABT) were also among our bottom contributors. Abbott Labs was impacted by concerns about potential threats to its diabetes franchise from new drugs. A majority of Abbott’s continuous glucose monitor (CGM) customers rely on insulin for their treatment, which means their disease will not respond to the newer medications. This concern negatively impacted investor sentiment and, in turn, Abbott’s share price, leading to underperformance in the recent quarter.”
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Disclosure: None. Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets is originally published on Insider Monkey.
