Analysts Are Increasing Price Targets of These 5 Stocks

In this article, we discuss the 5 stocks receiving price-target hike from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Increasing Price Targets of These 10 Stocks.

5. Comerica Incorporated (NYSE:CMA)

Number of Hedge Fund Holders: 45

DA Davidson raised its price target for Comerica Incorporated (NYSE:CMA) from $80 per share to $82 per share on Friday, January 20, citing its upbeat financial performance for the fourth quarter.

Comerica Incorporated (NYSE:CMA)’s latest earnings were primarily driven by solid net interest income and strong loan growth. The Texas-based financial services company earned $2.58 per share, well above $1.66 per share in the comparable period of 2021. Revenue for the quarter grew 36 percent versus last year to $1.02 billion. Analysts expected Comerica Incorporated (NYSE:CMA) to earn $2.55 per share on revenue of $1.01 billion.

In addition, the company’s net interest income skyrocketed 61 percent to $742 million, while total loans jumped 9.5 percent to $52.38 billion in the quarter. On the downside, total deposits fell 15.6 percent to $71.36 billion.

4. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 69

Stifel increased its price target for The Procter & Gamble Company (NYSE:PG) from $139 per share to $147 per share on Friday, January 20. The latest price action came a day after the consumer goods giant released its fiscal Q2 results.

The Procter & Gamble Company (NYSE:PG) reported adjusted earnings of $1.59 per share, down from $1.66 per share in the year-ago period. Revenue also slipped 1 percent on a year-over-year basis to $20.77 billion. Analysts were looking for earnings of $1.59 per share on revenue of $20.73 billion.

3. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 75

Shares of Block, Inc. (NYSE:SQ) jumped over seven percent on Friday, January 20, after Truist increased its price target for the digital payments company from $85 per share to $105 per share.

Truist analyst Andrew Jeffrey lifted the price target as a part of a broader research coverage on fintech stocks. Jeffrey thinks the company’s gross payment volume growth will jump to 32 percent from 22 percent last year.

Separately, asset management firm Baron Funds also talked about Block, Inc. (NYSE:SQ) in its second-quarter 2022 investor letter. Here’s what the firm said:

“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 115

A number of research firms lifted their price targets for Netflix, Inc. (NASDAQ:NFLX) following its impressive quarterly performance last week. Canaccord raised its price target for the video streaming giant from $365 per share to $400 per share on Friday, January 20.

Canaccord was primarily moved by the company’s better-than-expected net subscriber additions. Meanwhile, Deutsche Bank increased its price target for Netflix, Inc. (NASDAQ:NFLX) from $350 per share to $400 per share, while Cowen also raised its price target from $405 per share to $440 per share on January 20. Both research firms praised the company’s latest results and paid-sharing initiative.

Now let’s have a look at the key highlights from the Q4 report. Netflix, Inc. (NASDAQ:NFLX) added 7.66 million new subscribers in the quarter, beating the consensus of 4.5 million by a big margin.

Revenue for the quarter rose 1.8 percent on a year-over-year basis to $7.85 billion, marginally above expectations. On the downside, Netflix, Inc. (NASDAQ:NFLX) posted earnings of 12 cents per share, which came in well below the consensus, due to a loss associated with a debt held in Europe.

1. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 177

Shares of Meta Platforms, Inc. (NASDAQ:META) closed higher on Friday, January 20, after receiving a price-target hike from MKM Partners. The research firm lifted its price target for the social network giant from $140 per share to $155 per share.

MKM Partners analyst Rohit Kulkarni expects ad spending to improve in the coming quarters, with YouTube and Instagram potentially being the top beneficiaries of the increased spending. In addition, Kulkarni kept a “Buy” rating for Meta Platforms, Inc. (NASDAQ:META).

Separately, investment management firm Wedgewood Partners also discussed Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2022 investor letter, stating:

“Meta Platforms detracted from performance during the quarter and for most of the year. Meta’s advertising revenue grew slightly (currency-adjusted) over 2021 but was up over +60% compared to 2019 (pre-Pandemic). The Company reported 2.9 billion “daily active users (DAUs)” of its Family of Apps (as of September 2022), up nearly +30% from December 2019. Despite these impressive gains, the stock now trades at absolute levels well below where it traded before the Pandemic. Much of the market’s concern revolves around slowing revenue growth and aggressive reinvestment. It is now quite evident that there was a tremendous pull-forward of demand for many businesses and services over the past couple of years. The normalization of revenue growth from that pull-forward is hardly an existential crisis. Further, while Meta’s profit margins have fallen below pre-Pandemic levels, the business likely hired well in excess of what it needed because it assumed the Pandemic induced growth would continue. Meta has plenty of room to moderate its expense base and drive significant value by repurchasing shares at today’s historically depressed multiples.”

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