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.
05. Abbott Laboratories (NYSE:ABT)
Upside Potential: 15%
Abbott Laboratories (NYSE:ABT) is an Illinois, United States-based healthcare company. On July 24, Barclays analyst Matt Miksic increased the price target for Abbott Laboratories (NYSE:ABT) to $132 per share, up from the previous target of $127. Despite the upward adjustment in the price target, Miksic maintains an Overweight rating on Abbott Laboratories (NYSE:ABT) stock, indicating his continued positive outlook on the company’s performance. This upward revision in the price target suggests that the analyst expects Abbott Laboratories (NYSE:ABT) stock to experience further growth and believes it has the potential to outperform the market and its peers. The new price target of $132 indicates a level at which the analyst believes the stock could reach in the future, reflecting confidence in the company’s fundamentals, products, and potential for future earnings growth. As an “Overweight” rating typically suggests a recommendation to buy more of the stock compared to its benchmark weighting, this reaffirms Miksic’s confidence in Abbott Laboratories (NYSE:ABT) future prospects and potential for sustained success in its industry.
Here’s what Polen Capital said about Abbott Laboratories (NYSE:ABT) in its Q1 2023 investor letter:
“As stated below in the portfolio activity section, Abbott Laboratories (NYSE:ABT) is expected to see roughly $6 billion in COVID test sales evaporate this year, creating a headwind for margins and underlying earnings per share. As long-term owners of the business, these test sales were never part of our original investment case. The core business, our primary focus, has a clear path of growing high single digits in 2023 with durable growth beyond, in our view. We believe the current price of 23x NTM P/E , while reasonable, is also misleading considering earnings this year will be artificially depressed because of the drop in COVID testing sales. On normalized earnings, the price is lower. We anticipate underlying EPS growth of at least low-teens over the next three to five years.
Lastly, we trimmed Abbott Laboratories, bringing it back to a more average position size and to also fund our increase in Thermo Fisher. Abbott is entering a year in which the company is expected to see approximately $6bn in COVID-19 test sales disappear, thus, creating a headwind for margins and EPS. That said, the core business has a clear path to growing high single digits in FY23. EPS grew at a 20% CAGR from 2019-2022, far beyond our expectations when we initiated our investment. Now, we expect a more normal growth rate of low teens EPS beyond this year. Further, management’s adeptness at allocating capital continues to impress us. We expect Abbott to drive top line growth without heavily investing in R&D and SG&A this year— management effectively “front-loaded” those investments in 2021 and 2022 when COVID test sales created a bolus of cash. We believe this should allow for leverage on the operating margin going forward. Combined, Abbott and Thermo Fisher now represent 7% of the Portfolio.”
04. Mastercard Incorporated (NYSE:MA)
Upside Potential: 16%
Mastercard Incorporated (NYSE:MA) is a financial technology company that provides transaction processing and other payment-related products and services. On July 24, Barclays analyst Raimo Lenschow conveyed an optimistic outlook on Mastercard Incorporated (NYSE:MA) and raised the price target from $437 to $470. This upward revision in the price target signifies Barclays’ strong belief in the company’s future performance and growth prospects. Lenschow’s positive assessment of Mastercard Incorporated (NYSE:MA) indicates that he expects the company to continue performing well and potentially outperform the market. The new price target of $470 suggests that Barclays sees the stock’s value reaching that level in the future, reflecting their confidence in Mastercard Incorporated (NYSE:MA) fundamentals and potential for further appreciation.
LVS Advisory made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:
“We have owned Mastercard Incorporated (NYSE:MA) on and off since inception. We re-initiated the position in summer 2022 during the broader market sell-off. The stock traded off to an attractive valuation and we believed the tailwinds from a reopening of international travel still had legs. This was a small portfolio position and the stock has appreciated in the year we have owned it. The stock’s valuation is once again rich and the tailwinds from international travel and consumer spending appear to be tapering. We sold the position because we believe other opportunities within our existing portfolio will generate superior returns.”
03. Apple Inc. (NASDAQ:AAPL)
Upside Potential: 17%
Wells Fargo analyst Aaron Rakers, on July 24, made some positive adjustments to the price targets for shares of Apple Inc. (NASDAQ:AAPL) while keeping their existing ratings unchanged. The new price target for Apple Inc. (NASDAQ:AAPL) stock has been raised from $210 to $225, reflecting the analyst’s optimistic outlook on the company’s performance. These revisions were made in anticipation of Apple Inc. (NASDAQ:AAPL) third-quarter earnings announcement scheduled for August 3. In his analysis, Rakers emphasized the favorable prospects for the PC industry, asserting that the inventory correction phase has been successfully completed. This positive development allows him to shift the focus towards a stabilizing demand environment as we progress into the second half of 2023 and the first half of 2024. As a result, he maintains an optimistic stance on Apple Inc. (NASDAQ:AAPL) future performance. Wells Fargo’s Overweight rating, which remained unchanged, indicates the analyst’s confidence in Apple Inc. (NASDAQ:AAPL) ability to outperform its competitors and the broader market. This suggests that Rakers expects Apple Inc. (NASDAQ:AAPL) stock price to experience growth and deliver favorable returns to investors.
Wedgewood Partners Large Cap Focused Growth Fund made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) contributed to positive performance during the quarter despite declining revenues and operating earnings mostly driven by difficult comparisons in its Mac segment. iPhone sales grew as supply chain bottlenecks seem to be in the rearview mirror, with component prices falling. The Company also highlighted the torrid growth of its App Store ecosystem, which saw over $1.1 trillion in billings on the platform during 2022, more than double the billings in 2019. Apple has tremendous leverage across the mobile economy due to the App Store’s mission-critical relevance to both developers and users. We continue to hold Apple as a top weighting in the portfolio because this asset-light ecosystem drives sustainably high returns on invested capital.
In January 2007 Steve Jobs introduced the iPhone at Macworld in San Francisco. At the time of that momentous day, Jobs had not planned for third-party developers to build native software applications (apps) for the iPhone’s internal operating software (iOS). However, later that year, bowing to considerable pressure from the developer community, Jobs relented. When the second-generation iPhone (3G) was released in the summer of 2008, Apple announced the opening of the iPhone App Store at the same time. According to the Company in July 2009, after just the first 12 months since the launch of the App Store, 1.5 billion apps were downloaded from 65,000 apps from more than 100,000 developers from 77 countries.
That early symbiotic relationship between the iPhone (hardware) and the App Store (software) completely redefined the utility of the iPhone (think Intel and Microsoft). Too bad American Express coined the phrase, “Don’t Leave Home Without It.” That perfectly describes the utility of the modern iPhone. Heck, for years now, most of us won’t walk from the kitchen to the garage without it…” (Click here to read the full text)
02. Microsoft Corporation (NASDAQ:MSFT)
Upside Potential: 20%
On July 24, DA Davidson increased its price target on Microsoft Corporation (NASDAQ:MSFT) from $350 to $415 per share. This significant upward adjustment in the price target is attributed to Microsoft Corporation (NASDAQ:MSFT) strong leadership and prominence in the field of artificial intelligence (AI). The firm’s positive assessment of Microsoft Corporation (NASDAQ:MSFT) AI capabilities indicates its confidence in the company’s ability to leverage this cutting-edge technology to drive growth and innovation. As a result, DA Davidson maintains its buy rating on Microsoft Corporation (NASDAQ:MSFT) shares, suggesting that they believe the stock has the potential to outperform the market and deliver favorable returns to investors. The new price target of $415 represents the level at which DA Davidson expects Microsoft Corporation (NASDAQ:MSFT) stock to potentially reach in the future, reflecting their optimistic outlook for the company’s performance and growth prospects.
The Ithaka Group made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated on the back of excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI.”
01. Coterra Energy Inc. (NYSE:CTRA)
Upside Potential: 30%
Coterra Energy Inc. (NYSE:CTRA) is a Texas-based energy company involved in hydrocarbon exploration. On July 24, Stifel analyst Derrick Whitfield increased the price target for Coterra Energy Inc. (NYSE:CTRA) to $35 per share, up from the previous target of $34. Alongside this positive adjustment, Whitfield reaffirmed his Buy rating on Coterra Energy Inc. (NYSE:CTRA) stock, indicating his continued confidence in the company’s future performance. The upward revision in the price target suggests that the analyst expects Coterra Energy Inc. (NYSE:CTRA) stock to experience further appreciation and believes it has the potential to outperform the market. The new price target of $35 represents a level Whitfield believes the stock could reach in the future, reflecting his positive outlook on the company’s fundamentals and growth prospects.
You can also take a look at 10 Best Retail Dividend Stocks to Buy and 12 Highest Yielding Dow Jones Dividend Stocks
