In this article, we discuss the 10 stocks that analysts are increasing price targets of. If you want to skip our detailed analysis of these stocks, go directly to Analysts are Increasing Price Targets of Tesla and 4 Other Stocks.
New figures released by the Commerce Department in the United States reveal that the economic growth of the country slowed in the third quarter, rising at an annualized rate of 2% between June and September this year, a sharp drop from the 6.7% annualized rate in the preceding quarter. Some of the factors that influenced this drop include a shift in consumer spending patterns, the spread of the Delta variant of the coronavirus, and the supply chain issues that have led to inflation fears across the world.
The job data for the month of September, on the back of the economic concerns, was also disappointing. According to the Labor Department in the US, the country added only 194,000 in September, against consensus estimates of 500,000. However, COVID-19 infection rates are finally dropping in many parts of the world, leading experts to predict that the economic crunch is only temporary. Interest rates have also remained more or less steady, with the US Treasury dismissing inflation concerns as transitory.
Investors who want to position themselves for the months ahead based on these indicators should follow the smart money. Some of the top stocks that analysts just increased price targets of recently include ServiceNow, Inc. (NYSE:NOW), Thermo Fisher Scientific Inc. (NYSE:TMO), and Tesla, Inc. (NASDAQ:TSLA), among others discussed in detail below. As inflation hits 5.4% and supply chain issues persist, the overall environment remains exceedingly murky.
Our Methodology
Here is our list of the 10 stocks that analysts are increasing price targets of. All the firms listed below have had their price targets increased by an investment advisory this week.
The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Analysts are Increasing Price Targets of Tesla and Other Stocks
10. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) stock recently crossed $1 trillion in market capitalization boosted by interest from investors and encouraging EV policies from Washington. The stock had pulled back in April after a record rally that saw the share price climb 700% over the course of a year. However, despite the pullback in share price, the company delivered strong earnings and posted market-beating vehicle delivery numbers in the second and third quarter.
Piper Sandler analyst Alexander Potter on October 28 kept an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) stock and raised the price target to $1,300 from $1,200, highlighting the strong warranty performance and deferred revenue in a bullish note on the EV maker.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 in the previous quarter worth $10 billion.
Just like ServiceNow, Inc. (NYSE:NOW) and Thermo Fisher Scientific Inc. (NYSE:TMO), Tesla, Inc. (NASDAQ:TSLA) is one of the stocks on the radar of elite investors.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
9. Stock Yards Bancorp, Inc. (NASDAQ:SYBT)
Number of Hedge Fund Holders: 8
In August, Stock Yards Bancorp, Inc. (NASDAQ:SYBT) had signed a definitive agreement to purchase Commonwealth Bancshares in a deal worth $153 million. The deal is expected to be finalized before the end of this year. The combined company will have 79 branches with total assets exceeding $7.3 billion, deposits equaling $6.4 billion, and $4.9 billion in gross loans. In late August, the company had also raised the quarterly dividend by 3.7% to $0.28 per share.
Keefe Bruyette analyst Kelly Motta downgraded Stock Yards Bancorp, Inc. (NASDAQ:SYBT) stock to Market Perform from Outperform on October 28 but raised the price target to $67 from $59, noting that the fundamentals of the firm were strong but the valuation was of concern.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Stock Yards Bancorp, Inc. (NASDAQ:SYBT) with 42,280 shares worth more than $2.1 million.
Along with ServiceNow, Inc. (NYSE:NOW), Thermo Fisher Scientific Inc. (NYSE:TMO), and Tesla, Inc. (NASDAQ:TSLA), Stock Yards Bancorp, Inc. (NASDAQ:SYBT) is one of the stocks that is attracting the attention of hedge funds.
Here is what Harding Loevner has to say about Stock Yards Bancorp, Inc. (NASDAQ:SYBT) in its Q2 2021 investor letter:
“If Signature, which currently sits around our market cap ceiling, could be the next First Republic, then the Louisville-based bank Stock Yards could be the next Signature. Stock Yards operates in Kentucky, Ohio, and Indiana, smaller markets where local bankers develop knowledge of their communities not easily replicated by national competitors. Stock Yards’ 60 relationship managers live in the neighborhoods where they do business and have spent decades getting to know local companies and their owners, serving them with a high level of personal attention. The result is a bank that has grown at twice the pace of the industry, while earning higher returns.
Like Signature, Stock Yards was able to grow its market share during last year’s pandemic-driven downturn. Working closely within their local communities, its bankers understood how urgently businesses needed the federally funded small business loans offered under the 2020 Payroll Protection Program Flexibility Act. Many banks struggled to process the loans, which, among other things, required close coordination with the federal Small Business Administration. Stock Yards learned the procedures quickly and was able to provide loans when other banks could not. In addition to helping its existing clients during a difficult time, it was able to attract a large number of new clients by agreeing to write the loans on condition that they move their deposit accounts from their old banks to Stock Yards.”
8. WNS (Holdings) Limited (NYSE:WNS)
Number of Hedge Fund Holders: 20
WNS (Holdings) Limited (NYSE:WNS) recently announced that it had extended a strategic partnership with Centrica, an energy solutions firm, that will enable the company to transform customer service delivery. It recently smashed market expectations on earnings per share and revenue in the second fiscal quarter results, posted earlier this week. It operates as a business process management provider.
On October 28, investment advisory Needham reiterated a Buy rating on WNS (Holdings) Limited (NYSE:WNS) stock and raised the price target to $100 from $97, implying an upside potential of over 12% in the shares.
At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $294 million in WNS (Holdings) Limited (NYSE:WNS), down from 21 in the previous quarter worth $261 million.
7. LendingClub Corporation (NYSE:LC)
Number of Hedge Fund Holders: 23
LendingClub Corporation (NYSE:LC) has soared dramatically in the past few days as the market reacts to the positive earnings results of the firm in the third quarter. Since October 26, the share price has climbed as high as 40%, the highest in more than four years. Scott Sanborn, the CEO of the firm, has said that the company plans to accelerate growth investments in new products while continuing to increase profit.
Wedbush analyst Henry Coffey on October 28 raised the price target on LendingClub Corporation (NYSE:LC) stock to $50 from $33.50, keeping an Outperform rating. The analyst highlighted favorable operating efficiency and credit dynamics as growth catalysts for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in LendingClub Corporation (NYSE:LC) with 7 million shares worth more than $127 million.
6. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 33
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) develops RNA interference therapeutics. Even though the firm fell short of market expectations in the third quarter, analysts are bullish on the stock in general due to the drug pipeline that UBS has claimed will elevate the firm to achieve a compound annual growth rate of 40% in the next few years. The firm is based in Cambridge and has a market cap of over $22 billion.
SVB Leerink analyst Mani Foroohar kept a Market Perform rating on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) stock and raised the price target to $108 from $104 on October 28, outlining the confidence in the company following the release of quarterly earnings.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), the same as in the preceding quarter worth $740 million.
ServiceNow, Inc. (NYSE:NOW), Thermo Fisher Scientific Inc. (NYSE:TMO), and Tesla, Inc. (NASDAQ:TSLA) are some of the elite stocks to buy now, in addition to Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY).
To see the rest of the stocks and continue reading click Analysts are Increasing Price Targets of Tesla and 4 Other Stocks.
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Disclosure. None. Analysts are Increasing Price Targets of Tesla and 9 Other Stocks is originally published on Insider Monkey.
