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.
On January 30, Asian stock markets experienced a decline, with China bearing the brunt of the downturn, amid growing concerns among investors. This pessimism in the market is putting pressure on policymakers in China to consider implementing rate cuts in order to stimulate economic growth in the world's second-largest economy. Specifically, stock prices in Hong Kong saw a drop of approximately 2%, while mainland China stocks were on track for a third consecutive day of decline. The recent liquidation order issued against China Evergrande Group on Monday intensified market anxieties, leading to a notable 4% decrease in a Bloomberg index tracking Chinese developers. The Evergrande liquidation saga has cast a shadow over both the Chinese and Hong Kong markets, prompting investors to reassess their positions and adopt a cautious approach. This development underscores the significant influence that regulatory and economic factors in China can have on global financial markets. As market sentiment remains fragile and uncertainty looms, investors are closely monitoring the situation and its potential implications for broader market dynamics. The possibility of rate cuts by Chinese policymakers is being closely watched as investors seek clues about the future direction of economic policy and its impact on market stability.
The oil market remained stable as investors awaited the United States' response to the recent deadly attack on American troops in Jordan, reported Bloomberg. This attack has the potential to escalate tensions in a region crucial to global crude production. Brent crude futures were trading above $82 per barrel following a 1.4% decline on Monday, despite the drone strike targeting US soldiers. Iran has attempted to distance itself from the attack. Additionally, data indicating that OPEC+ is making a sluggish start to implementing new output cuts contributed to downward pressure on oil prices. West Texas Intermediate (WTI) also showed little movement amidst the uncertainty. Oil traders are closely monitoring developments, particularly any indications of the US government's response to the attack. There are concerns that any action taken by the US could further heighten tensions in the region, potentially impacting oil supply and prices. As a result, market participants are proceeding cautiously, awaiting clarity on the situation and its potential implications for the oil market.
On the stock market front, analysts are bullish on stocks such as Meta Platforms, Inc. (NASDAQ:META), McDonald's Corporation (NYSE:MCD) and Visa Inc. (NYSE:V) among many others. Check out the complete article to see the details of these upward revisions in price targets.
Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets
10. Airbnb, Inc. (NASDAQ:ABNB)
Upside Potential: N/A
On January 29, Barclays analyst Mario Lu reiterated his Underweight rating on Airbnb, Inc. (NASDAQ:ABNB) while adjusting the price target upwards from $100 to $110. This decision comes amidst ongoing scrutiny and cautious sentiment regarding the company's performance and valuation. Despite the upward revision in the price target, Lu maintains a conservative stance on Airbnb, Inc. (NASDAQ:ABNB) outlook, suggesting that the stock may not offer significant upside potential in the near term. The decision to maintain the Underweight rating indicates Barclays' skepticism about Airbnb, Inc. (NASDAQ:ABNB) ability to justify its current valuation. The revised price target of $110 suggests that Barclays anticipates limited growth prospects for Airbnb, Inc. (NASDAQ:ABNB), especially considering the prevailing market conditions and the company's financial performance. While the price target raise acknowledges certain positive factors, such as the company's strong brand recognition and market presence, it also underscores the cautious approach taken by analysts like Lu. As of the closing bell on January 29, Airbnb, Inc. (NASDAQ:ABNB) stock was trading at $152.70, reflecting the market's reaction to the revised price target and Barclays' assessment of the company's valuation.
Polen Focus Growth Strategy stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its fourth quarter 2023 investor letter:
“The largest relative detractors in the quarter were Illumina, Airbnb, Inc. (NASDAQ:ABNB), and Microsoft. Airbnb continues to deliver double-digit growth in revenue and nights booked, which is especially impressive given the year-ago growth rates it delivered on these same metrics (+29% and +31, respectively). Despite these attractive results, the stock sold off as investors reacted to fourth quarter guidance that came in slightly below expectations. Coming into the fourth quarter, the stock was up +60% on the back of strong fundamentals. Stepping back, nothing has changed. Private rentals continue to take market share from hotels globally, and Airbnb continues to take market share within private rentals given its relentless focus on improving the guest and host experience. Looking ahead, we expect many years of robust earnings and cash flow growth from here.”
09. Apple Inc. (NASDAQ:AAPL)
Upside Potential: 4%
On January 29, Baird analyst William Power increased the price target for Apple Inc. (NASDAQ:AAPL) from $186.00 to $200.00, affirming an Outperform rating. This adjustment reflects Baird's optimistic outlook on Apple Inc. (NASDAQ:AAPL) performance and potential within the technology sector. With a revised price target suggesting a 4% upside potential compared to the current market price, the analyst's move indicates confidence in Apple Inc. (NASDAQ:AAPL) ability to continue delivering value to investors. The decision to maintain the Outperform rating underscores Baird's belief in Apple's strong position in the industry and its ability to outperform market expectations. The raised price target of $200.00 reflects Baird's positive assessment of Apple Inc. (NASDAQ:AAPL) growth prospects, innovation pipeline, and financial performance. It suggests that the company's stock is undervalued relative to its potential, making it an attractive investment opportunity for shareholders. As of the closing bell on January 29, Apple Inc. (NASDAQ:AAPL) stock was trading at $191.73, indicating a modest premium over the revised price target set by Baird.
Polen Focus Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) and NVIDIA alone drove over 1,100 basis points of the Russell 1000 Growth Index’s 42% return, so not owning them was a meaningful headwind to our relative return in 2023. While on a total attribution basis, Apple was not a top three detractor to our full-year return, given its extremely large weighting in the Index, we feel it’s worth sharing our thoughts.
The company’s share price appreciated nearly 50% in a year when its revenue declined and earnings per share was relatively flat with the previous year.
For 2024, consensus expectations are for low-single-digit revenue growth and only slightly faster EPS growth. These pedestrian growth rates are not surprising for a company with nearly $400 billion in annual revenue. What is more surprising is that Apple shares trade at nearly 30x forward earnings, a large premium to the market and many faster-growing, competitively advantaged businesses.
While we continue to think Apple is a wonderful business, it is also a slow growing one with risks that we do not see as insignificant. Apple’s entire supply chain is based in China and much of its incremental revenue growth also comes from China, so if there is a U.S.-China issue that makes it more difficult for U.S.-based companies that have access to large amounts of local data to operate in China, Apple’s business would likely face more challenges than many others. In addition, much of Apple’s services growth and margin expansion has come from direct payments from Google to be the default search provider on iOS devices. This practice is currently the subject of a lawsuit between Google and the U.S. Justice Department. If this practice is deemed unlawful, it could take away a large and highly profitable revenue stream from Apple’s already slow growth engine. While we closely cover Apple, we continue to believe we have better investment opportunities. Apple’s current P/E is above our Portfolio’s weighted average, yet its long-term earnings growth rate is likely to be lower than even our slowest growing holding, according to our research.”
08. Intuit Inc. (NASDAQ:INTU)
Upside Potential: 4%
On January 29, Oppenheimer analyst Scott Schneeberger increased the price target for Intuit Inc. (NASDAQ:INTU) from $610.00 to $678.00, upholding an Outperform rating. This adjustment underscores Oppenheimer's positive outlook on Intuit Inc. (NASDAQ:INTU) prospects within the software and financial technology industry. With the revised price target indicating a 4% upside potential compared to the current market price, Schneeberger's move reflects confidence in Intuit's ability to deliver value to investors. Maintaining the Outperform rating signals Oppenheimer's belief in Intuit Inc. (NASDAQ:INTU) competitive positioning and growth trajectory. The raised price target of $678.00 reflects Oppenheimer's bullish stance on Intuit Inc. (NASDAQ:INTU) long-term growth prospects, innovative product offerings, and financial performance. It suggests that the company's stock is undervalued relative to its potential, presenting an attractive investment opportunity for shareholders. As of the closing bell on January 29, Intuit Inc. (NASDAQ:INTU) stock was trading at $652.88, indicating a slight premium over the revised price target set by Oppenheimer.
L1 Capital International Fund made the following comment about Intuit Inc. (NASDAQ:INTU) in its Q3 2023 investor letter:
“Following significant under-performance, some high-quality businesses in these sectors are now becoming more attractive from a valuation perspective – in our language they are now getting warmer on our Bench of potential investments.
Our ‘all-weather’ portfolio centred around our unique definition of ‘quality’ delivered strong performance in the September quarter. Three companies positively contributed over 0.5% (in Australian dollars) to the Fund’s returns for the quarter (Booking Holdings, Intuit Inc. (NASDAQ:INTU) and Natural Resource Partners, in alphabetical order), and another three companies almost reached this level of positive contribution. No companies detracted from the Portfolio’s returns by 0.5% or more.
As part of our travels during the quarter (see page 6) we had the opportunity to meet with management of both Booking Holdings and Intuit. We continue to view both companies as exceptionally well managed.
Intuit held its annual Investor Day during the quarter and the presentation materials are well-worth a review. Intuit is at the forefront of commercial application of artificial intelligence (AI) across its portfolio of businesses – QuickBooks, TurboTax, Credit Karma and Mailchimp. Intuit has been investing in AI for many years, well before ChatGPT became a buzz word…” (Click here to read the full text)
07. Alphabet Inc. (NASDAQ:GOOGL)
Upside Potential: 7%
On January 29, Keybanc analyst Justin Patterson increased the price target for Alphabet Inc. (NASDAQ:GOOGL) from $153 to $165 while affirming an Overweight rating. This adjustment reflects Keybanc's optimistic outlook on Alphabet's prospects within the technology and internet services industry. With the revised price target suggesting a 7% upside potential compared to the current market price, Patterson's decision underscores confidence in Alphabet's ability to generate value for investors. By maintaining the Overweight rating, Keybanc expresses its conviction in Alphabet Inc. (NASDAQ:GOOGL) competitive position and growth trajectory. The raised price target of $165 reflects Keybanc's bullish perspective on Alphabet's long-term growth potential, innovative product offerings, and financial performance. It indicates that Alphabet Inc. (NASDAQ:GOOGL) stock is undervalued relative to its potential, presenting an attractive investment opportunity for shareholders. At the closing time on January 29, Alphabet Inc. (NASDAQ:GOOGL) stock was trading at $153.51, signaling a slight premium over the revised price target set by Keybanc. This adjustment is expected to influence investor sentiment and contribute to ongoing discussions about Alphabet Inc. (NASDAQ:GOOGL) position as a leading player in the technology and internet services market.
06. Intel Corporation (NASDAQ:INTC)
Upside Potential: 9%
On January 29, Morgan Stanley raised its target price on Intel Corporation (NASDAQ:INTC) shares from $39.00 to $48.00, while maintaining an "equal weight" rating. This adjustment reflects Morgan Stanley's assessment of Intel Corporation (NASDAQ:INTC) position within the semiconductor industry and its outlook for the company's future performance. With the revised target price suggesting a 9% upside potential compared to the current market price, Morgan Stanley's decision underscores a moderate level of optimism regarding Intel Corporation (NASDAQ:INTC) prospects. By maintaining an "equal weight" rating, Morgan Stanley acknowledges Intel's strengths and weaknesses relative to its peers in the industry. This rating suggests that Intel's performance is expected to align with the broader market trends, without significant outperformance or underperformance. The raised target price of $48.00 reflects Morgan Stanley's belief in Intel Corporation (NASDAQ:INTC) ability to execute its strategic initiatives and drive shareholder value over the long term. It indicates that Intel Corporation (NASDAQ:INTC) stock is undervalued relative to its potential, presenting a favorable investment opportunity for investors seeking exposure to the semiconductor sector. As of the closing bell on January 29, Intel Corporation (NASDAQ:INTC) stock was trading at $43.84, indicating a potential upside from the revised target price set by Morgan Stanley.
Upslope Capital Management stated the following regarding Intel Corporation (NASDAQ:INTC) in its fourth quarter 2023 investor letter:
“Intel Corporation (NASDAQ:INTC) – New Long: This is not a traditional long for Upslope in any sense. Intel is outside of the box in terms of typical sector and market cap focus, and the position is really a portfolio hedge (and structured as such). The thesis is very simple: Intel is uniquely positioned to benefit in two important scenarios, both of which require “protection” for Upslope’s portfolio: a continued melt-up in technology stocks and/or rising tensions over Taiwan. Combined with expectations and sentiment around Intel that were incredibly low, this nudged me to add exposure via long-dated INTC call options. While still material in terms of delta-adjusted exposure, the position has been reduced repeatedly and is much more modest today.”
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