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.
Global stock markets experienced a retreat on September 21 in response to recent central bank decisions, notably from the Federal Reserve and the Bank of England. The Federal Reserve's announcement of an extended period of elevated interest rates dampened market sentiment, leading to declines in stock prices. Concurrently, investors are anxiously awaiting the Bank of England's policy decision, which is uncertain due to softer inflation data. The Stoxx 600 Index witnessed a 0.7% decline in Europe, with nearly all industry sectors in negative territory. In the United States, futures contracts for major benchmarks slipped, extending the previous day's losses on Wall Street. Asian stock markets registered their most significant drop in over a month, reflecting concerns emanating from the Fed's policy stance and global economic uncertainties. Meanwhile, US Treasuries displayed mixed performance in the bond market, with certain yields edging higher. Simultaneously, the US dollar strengthened, often seen as a safe-haven asset during periods of market uncertainty.
On the European side, the Swiss National Bank (SNB) ended its five consecutive interest rate hikes, keeping rates unchanged at 1.75% in its latest quarterly monetary policy meeting, reported CNBC. The SNB noted that the previous tightening of monetary policy effectively addressed inflationary pressure. Switzerland's inflation rate of 1.6% in August, below the 2% target, contributed to the decision. Despite Switzerland's strong economic performance and a robust Swiss franc, the central bank maintained its policy stance as the Swiss economy showed signs of stagnation in Q2. The Swiss Market Index was among the few European indices to trade positively following the SNB's decision. Looking ahead, the SNB recognized the global economic outlook remained subdued, with potential risks including a significant global economic slowdown and energy supply concerns in Europe. The central bank anticipates around 1% economic growth in Switzerland this year, with slight unemployment increases and reduced production capacity utilization.
Oil prices declined on September 21, following the largest monthly drop in the previous session. This drop was driven by expectations of a U.S. interest rate hike, which overshadowed the impact of reduced U.S. crude stockpiles. Brent futures for November delivery fell 97 cents, or 1.04%, to $92.56 a barrel, while U.S. West Texas Intermediate crude (WTI) dropped 97 cents, or 1.08%, to $88.69, marking its lowest level since September 14. Both benchmarks had experienced declines of over $1 earlier in the day. The decision by the U.S. Federal Reserve to keep interest rates unchanged at the recent Federal Open Market Committee (FOMC) meeting, while signaling a potential rate increase by year-end, was viewed as a "hawkish pause" that added pressure to risk assets like oil, according to ING analysts. This hawkish stance also resulted in the U.S. dollar reaching its highest level since early March, making commodities like oil more expensive for buyers using other currencies. While data from the U.S. Energy Information Administration (EIA) revealed a decrease in crude inventories in line with expectations, the decline was smaller than anticipated, causing some traders to lock in profits following a 10% gain since the start of the month. Despite these short-term factors, concerns about global supply tightness entering the fourth quarter persisted, with Cushing crude stocks at their lowest since July 2022 and ongoing production cuts by the Organization of the Petroleum Exporting Countries and its allies. In summary, oil prices retreated due to expectations of a U.S. interest rate hike, despite reductions in U.S. crude stockpiles. While short-term factors influenced the market, concerns about supply tightness remained a driving force.
On the stock market front, analysts are bullish on tech stock Microsoft Corporation (NASDAQ:MSFT), Pinterest, Inc. (NYSE:PINS) and Constellation Brands, Inc. (NYSE:STZ). Check out the complete article to see the details of these upward revisions in price targets.
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10. Occidental Petroleum Corporation (NYSE:OXY)
Upside Potential: 3%
Occidental Petroleum Corporation (NYSE:OXY) is a significant player in the energy industry, engaged in the exploration, production, and marketing of oil and gas resources. It is an American oil and gas exploration and production company that operates in the United States, the Middle East, Canada, and Chile. In Canada and Chile, the company only operates its petrochemical manufacturing business. Citigroup analyst Scott Gruber raised the price target for Occidental Petroleum Corporation (NYSE:OXY) from $62.00 to $67.00 on September 20. Citigroup's decision to raise the price target for Occidental Petroleum Corporation (NYSE:OXY) to $66.00 indicates its confidence in the company's prospects. The new price target suggests an upside potential of 3% from the current trading price, underscoring Citigroup's belief in Occidental Petroleum Corporation (NYSE:OXY) ability to deliver strong results and maintain its competitive position in the energy sector. The earnings per share of Occidental Petroleum Corporation (NYSE:OXY) substantially reduced, decreasing from $2.44 in Q3 2022 to 68 cents in Q2 2023. This underscores the magnitude of the adjustment towards industry norms that has transpired within the oil sector this year.
In a manner akin to Microsoft Corporation (NASDAQ:MSFT), Pinterest, Inc. (NYSE:PINS), and Constellation Brands, Inc. (NYSE:STZ), Occidental Petroleum Corporation (NYSE:OXY) has also seen analysts raise its price target.
09. Ecolab Inc. (NYSE:ECL)
Upside Potential: 10%
Ecolab Inc. (NYSE:ECL) is a chemicals company based in Saint Paul, Minnesota. It provides water treatment services and sanitization products for industrial use. The firm beat its second-quarter analyst EPS estimates. On September 20, Evercore ISI raised the price target for Ecolab Inc. (NYSE:ECL) from $170.00 to $195.00. As of the latest data available, the current price of Ecolab Inc. (NYSE:ECL) is $177.53, representing a 0.7% increase. The raised price target of $195.00 suggests a positive outlook on the stock from Evercore ISI, projecting a 10% upside potential as compared to the current market price of Ecolab Inc. (NYSE:ECL). Similar to the way analysts have raised price targets for Microsoft Corporation (NASDAQ:MSFT), Pinterest, Inc. (NYSE:PINS), and Constellation Brands, Inc. (NYSE:STZ), they have also increased their price target for Ecolab Inc. (NYSE:ECL).
Madison Sustainable Equity Fund made the following comment about Ecolab Inc. (NYSE:ECL) in its second quarter 2023 investor letter:
“Ecolab Inc. (NYSE:ECL) is benefiting from price increases put in place last year to offset inflationary pressures. The price increases more than offset flattish volumes and are modestly ahead of raw material inflation resulting in a return to earnings growth. We believe that Ecolab’s profitability will improve going forward from market share gains and its fast-growing bioprocessing business.”
08. CyberArk Software Ltd. (NASDAQ:CYBR)
Upside Potential: 14%
In a notable development within the technology sector, Bank of America has raised its price target for CyberArk Software Ltd. (NASDAQ:CYBR) from $187.00 to $198.00. This upgrade reflects growing optimism about the company's prospects in the cybersecurity market. As of the most recent data, CyberArk Software Ltd. (NASDAQ:CYBR) is trading at $172.94, representing a noteworthy 3.8% increase from its previous trading price. This surge in stock price aligns with the positive sentiment expressed by Bank of America through the raised price target. Bank of America's decision to increase the price target for CyberArk Software Ltd. (NASDAQ:CYBR) suggests a bullish outlook for the company's stock. The new price target of $198.00 implies a significant upside potential of 14% from the current trading price, signaling confidence in CyberArk's ability to deliver strong financial performance and maintain its competitive edge in the cybersecurity industry. The cybersecurity sector has been gaining prominence due to the increasing frequency and sophistication of cyber threats across industries. Companies like CyberArk Software Ltd. (NASDAQ:CYBR) are critical in safeguarding sensitive data and digital assets from cyberattacks.
Wasatch Small Cap Core Growth Strategy made the following comment about CyberArk Software Ltd. (NASDAQ:CYBR) in its Q4 2022 investor letter:
“IT accounted for several of the greatest detractors from strategy performance during the fourth quarter. Among these were Paylocity Holding Corp. (PCTY), CyberArk Software Ltd. (NASDAQ:CYBR) and Q2 Holdings, Inc. (QTWO).
A cybersecurity company that operates globally, CyberArk specializes in products and services to protect and safeguard customers’ IT networks and devices. A recent flurry of buyouts by private equity firms has fostered an active rumor mill that’s at times produced rapid gyrations in the prices of cybersecurity stocks. We suspect CyberArk may have been the target of some of this speculation during the third quarter. Moreover, the growing slate of security products offered by cloud-computing giants Microsoft, Amazon Web Services and Google may have bruised investor sentiment toward the group.”
07. AutoZone, Inc. (NYSE:AZO)
Upside Potential: 15%
On September 20, JP Morgan analyst Christopher Horvers increased the price target for AutoZone, one of the leading players in the automotive retail sector, from $2,950 to $2,975 while maintaining an "Overweight" rating for the stock. This adjustment in the price target reflects JP Morgan's optimistic outlook for the company's performance. As of the latest available market data, AutoZone is trading at $2,583.36, marking a notable 4.4% increase from its previous trading price. This surge in the stock price is aligned with the positive sentiment expressed by JP Morgan through the upward revision of the price target. JP Morgan's decision to raise the price target for AutoZone underscores its bullish stance on the company's stock. The new price target of $2,975 implies an upward potential of 15% from the current trading price, reinforcing JP Morgan's confidence in AutoZone's ability to deliver strong results and maintain its competitive position in the automotive retail sector.
RGA Investment Advisors made the following comment about AutoZone, Inc. (NYSE:AZO) in its Q4 2022 investor letter:
“Below is a chart of Alphabet’s (NASDAQ:GOOG) P/E ratio plotted against AutoZone, Inc. (NYSE:AZO). Any number of examples between large cap tech companies and more mature companies could illustrate this very same point, but we find this specific case most interesting because of its history.
Note that in late 2014/early 2015 these multiples crossed one another. The relative harmony between Alphabet and Autozone lasted for just shy of a year at that time, before Alphabet’s shares surged and Autozone’s shares slumped. This relationship need not matter for markets, though we think there is some signal for investors. Autozone today trades at the highest multiples of its recent history, while Alphabet trades at its lowest. Meanwhile, despite growth estimates dropping considerably at Alphabet and appreciating modestly at Autozone, Alphabet will outgrow Autozone by a wide margin over the next five years…” (Click here to read the full text)
06. Valero Energy Corporation (NYSE:VLO)
Upside Potential: 15%
On September 20, Raymond James analyst Justin Jenkins expressed his positive outlook on Valero Energy Corporation (NYSE:VLO). Jenkins has maintained a "Strong Buy" rating for the stock and increased the price target from $150.00 to $164.00. This modification in the price target demonstrates Jenkins' confidence in Valero Energy Corporation (NYSE:VLO) prospects, considering the company's strategic positioning and financial strength. As per the latest available market data, Valero Energy Corporation (NYSE:VLO) currently trades at $142.97, a slight 0.2% increase from its previous trading price. This modest uptick in the stock price aligns with the positive sentiment expressed by Raymond James through the upward revision of the price target. Jenkins' decision to raise the price target for Valero Energy Corporation (NYSE:VLO) to $164.00 underscores his belief in the company's future potential. The new price target implies a significant upward potential of 15% from the current trading price, emphasizing Jenkins' conviction in Valero Energy Corporation (NYSE:VLO) capacity to deliver robust results and maintain a competitive position in the oil and refining industry.
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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.