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 Analysts Are Increasing Price Targets of These 5 Stocks.
The rally in global equities extended into Asia on July 3, buoyed by positive momentum from Wall Street and indications of easing US inflation. Shanghai’s equities surged over 1%, and technology companies listed in Hong Kong saw a substantial increase of around 3%. Furthermore, shares of Asian electric-vehicle manufacturers and their suppliers experienced gains, as Tesla Inc. and BYD Co. reported record sales in the second quarter. According to Bloomberg, Japan’s Topix index was poised for further gains, reaching levels not seen since the mid-1990s, thanks to increased confidence among major manufacturers. The rise in Chinese stocks on Monday stood in contrast to the 6% decline witnessed in MSCI Inc.’s China Index during the first half of the year. While some investors remain cautious due to policy risks and China’s modest economic recovery, others view the market’s attractive valuations as an opportunity.
Gold prices remained relatively unchanged on July 3 as the strength of the U.S. dollar weighed on the appeal of bullion. Market participants eagerly awaited key economic data to gain further insights into the Federal Reserve’s stance on future interest rate hikes. Despite stagnant U.S. consumer spending in May, indicating that the Fed’s efforts to curb inflation were having some effect, the core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose by 4.6% year-on-year, slightly lower than April’s increase of 4.7%. According to CME’s Fedwatch tool, investors are currently assigning an 87% probability of a 25 basis points rate hike in July. Reuters reported that interest rates are expected to remain in the range of 5.25% to 5.5% before potentially seeing cuts in 2024. Gold experienced a 2.5% decline in the second quarter, mainly driven by the anticipation of a prolonged period of rate hikes by the Federal Reserve. Higher interest rates typically discourage investment in non-yielding assets like gold.
As the second half of the year began, the price of oil remained relatively stable, with traders closely monitoring demand challenges and a complex supply outlook. Brent crude managed to stay above $75 per barrel after experiencing four consecutive quarterly losses, marking its weakest performance in over 30 years of recorded data. Throughout this year, oil prices have declined by approximately 12% due to factors such as a slowdown in China’s economic recovery, concerns about a potential US recession, and abundant supplies fueled by robust exports from Russia and Iran. According to Bloomberg, these dynamics have contributed to a cautious market sentiment surrounding oil.
Bond investors could benefit in 2023 if indicators suggesting central banks may tighten policy excessively and push their economies into recession are accurate, reported Reuters. While headline inflation has eased, underlying pressures remain high, leading central banks to maintain a hawkish stance. Recent moves by Canada, Britain, and Norway to tighten policy and signals from the U.S. Federal Reserve and European Central Bank officials indicated further rate hikes. Markets anticipate a 25 basis point Fed hike in July, reduced expectations for cuts next year, and increased projections for ECB and Bank of England hikes. Additionally, yield curve inversion has deepened as shorter-dated bond yields surge, reflecting concerns of a potential recession.
On the stocks market front, analysts are bullish on healthcare stocks such as 89bio, Inc. (NASDAQ:ETNB) and Accolade, Inc. (NASDAQ:ACCD) along with sports apparel and equipment stock NIKE, Inc. (NYSE:NKE). Check out the complete article to see the details of these upward revisions in price targets.
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10. Paychex, Inc. (NASDAQ:PAYX)
Upside Potential: 4%
Paychex, Inc. (NASDAQ:PAYX) was founded in Rochester, New York, in 1971. It is a payroll services company providing human resource, payroll, and benefits outsourcing services. It deals primarily with small to medium-sized businesses. Paychex, Inc. (NASDAQ:PAYX) has more than 100 offices. UBS, on June 30, increased its price target on Paychex, Inc. (NASDAQ:PAYX), raising it from $115 to $116. This upward revision suggests a slightly more positive outlook on the stock’s potential performance. The adjusted price target indicates that UBS expects a modest upside for Paychex, Inc. (NASDAQ:PAYX) shares. The raised price target from UBS could reflect their belief in the company’s growth prospects and their assessment that it could deliver better-than-expected results in the market.
09. TopBuild Corp. (NYSE:BLD)
Upside Potential: 7%
TopBuild Corp. (NYSE:BLD), headquartered in Daytona Beach, Florida, is a company that operates in the field of installing and distributing building materials for commercial, industrial, and residential purposes. With the United States currently facing a severe winter, there is a growing demand for insulation services. This increased demand has benefited TopBuild Corp. (NYSE:BLD). The company’s strong performance in the third quarter of 2022 reflected this positive trend, as its revenue rose by 53.7% compared to the previous year, reaching $1.3 billion. This exceeded the consensus forecast of $1.21 billion. Additionally, the adjusted earnings per share (EPS) of $4.76 were 66 cents higher than analysts’ expectations of $4.10. These encouraging results led the company to provide revenue guidance for the full year of 2022, estimating a range between $4.95 billion and $5 billion, surpassing analysts’ forecast of $4.86 billion.
Loop Capital, on June 30, increased its price target on TopBuild Corp. (NYSE:BLD) to $285 from $225. However, despite the price target increase, Loop Capital maintains a Hold rating on the shares. This indicates a neutral stance on the stock’s potential performance. The raised price target from Loop Capital reflects their optimism regarding TopBuild Corp. (NYSE:BLD) growth potential. The increased target suggests a potential upside for the stock. The decision to maintain a Hold rating suggests Loop Capital sees limited additional upside beyond the revised target price.
08. Avadel Pharmaceuticals plc (NASDAQ:AVDL)
Upside Potential: 9%
Avadel Pharmaceuticals plc (NASDAQ:AVDL) is a biopharmaceutical company based in Dublin, Ireland. They are focused on developing a product called LUMRYZ, which is being tested in Phase 3 clinical trial. LUMRYZ contains sodium oxybate and is intended to treat excessive daytime sleepiness or cataplexy in adults with narcolepsy. The company was previously known as Flamel Technologies SA before changing its name to Avadel Pharmaceuticals plc (NASDAQ:AVDL) in January 2017. It was founded in 2015 and operates primarily in the United States. Avadel Pharmaceuticals plc (NASDAQ:AVDL) shares have returned over 500% value to investors over the past 12 months. Craig-Hallum, on June30, increased its price target on Avadel Pharmaceuticals plc (NASDAQ:AVDL) from $16 to $18. The raised price target from Craig-Hallum indicates their belief that Avadel Pharmaceuticals plc (NASDAQ:AVDL) has the potential for growth and could deliver better-than-expected results in the market. It suggests confidence in the company’s prospects.
07. Palo Alto Networks, Inc. (NASDAQ:PANW)
Upside Potential: 12%
According to a research note from Scotiabank issued on June 30, Palo Alto Networks, Inc. (NASDAQ:PANW) raised its price target from $269 to $285. This update suggests a more positive outlook on the company’s stock performance. Scotiabank’s new price target implies a potential upside of 12.50% from the current price of Palo Alto Networks. This adjustment indicates that Scotiabank believes the stock has room for further growth and offers potential returns for investors.
TimesSquare Capital Management mentioned Palo Alto Networks, Inc. (NYSE:PANW) in its fourth-quarter 2022 investor letter. Here is what the fund said:
“Within Information Technology, Palo Alto Networks, Inc. (NASDAQ:PANW) offers network security solutions to enterprises, services providers, and government entities. The company delivered another strong quarter with revenues, billings, and earnings all above the consensus. Management recognizes a challenging macro environment that is altering customer behavior such as increased deal scrutiny and elongating sales cycles. Their shares pulled back by -15% during the quarter.”
06. The Interpublic Group of Companies, Inc. (NYSE:IPG)
Upside Potential: 14%
The Interpublic Group of Companies, Inc. (NYSE:IPG) is a major advertising and marketing company. Interpublic Group of Companies Inc. (NYSE:IPG) has gained about 55% over the past 12 months. Adrien Hilaire, an analyst at Bank of America Securities, has recently reaffirmed a Buy rating on The Interpublic Group of Companies, Inc. (NYSE:IPG) in a report published on June 30. Alongside this rating, Hilaire also set a price target of $44.00 for the company. The Interpublic Group of Companies, Inc. (NYSE:IPG) shares were valued at $38.58 as of the previous Friday’s closing. This indicates that Hilaire’s price target implies a potential upside in the stock’s value. With the Buy rating and the given target price, Hilaire appears optimistic about The Interpublic Group of Companies, Inc. (NYSE:IPG) prospects and believes it could generate favorable returns for investors.
Ariel Small-Cap Value Strategy made the following comment about The Interpublic Group of Companies, Inc. (NYSE:IPG) in its Q4 2022 investor letter:
“Marketing communication company, The Interpublic Group of Companies, Inc. (NYSE:IPG) was another top contributor in the quarter on solid earnings and a subsequent raise in full year guidance. IPG continues to deliver resilient organic growth across its portfolio as many of the world’s largest advertisers remain laser-focused on market share, despite macro uncertainty. The company is benefitting from spend across traditional media properties, as well as from new categories including ad-supported streaming, retail media and digital transformation projects. In our view, these results demonstrate the strength and resiliency of the business model; and we have conviction in the management team’s ability to flex IPG’s variable cost structure to weather any cyclical headwinds that may come its way.”
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Disclosure: None. Analysts Are Increasing Price Targets of These 10 Stocks is originally published on Insider Monkey.
