In this article, we will discuss the 10 stocks recently upgraded by analysts. If you want to see more such stocks on the list, you can directly visit Analysts Are Upgrading These 5 Stocks.
Although the equity markets have been buoyed by the expectation of lower interest rates this year, we may likely see an increase in volatility as earnings estimates are revised downward. This week, we expect a pickup in U.S. first-quarter earnings results. Some major banks have already reported, beating market expectations for profits. However, according to FactSet data, first-quarter earnings are expected to experience the largest decline in three years, marking the second consecutive quarter of such declines. Amid this doom and gloom situation, analysts are upgrading stocks such as Walmart Inc. (NYSE:WMT) and Netflix, Inc. (NASDAQ:NFLX), among many others.
The market experienced a quiet evening and morning with little news to report on April 20. Stocks in the US and Europe remained steady, while Europe’s composite reading saw a jump thanks to service strength, despite softness in manufacturing. Japan’s core CPI exceeded the St consensus, but the BOJ isn’t expected to take any policy actions at the next meeting. Chinese stocks fell, with the media citing “Biden’s investment curbs,” but the curbs have been anticipated for some time. Bloomberg reports that the PBOC will scale back pandemic-era stimulus measures, but China’s domestic macro story remains strong. While there were no significant developments in earnings reports since the US close, several large industrial firms have expressed optimism about the global growth outlook.
Chuck Grom, an analyst at Gordon Haskett, upgraded Walmart Inc. (NYSE:WMT) rating from Accumulate to Buy. At the same time, UBS analyst John Hodulik upgraded Netflix, Inc. (NASDAQ:NFLX) from Neutral to Buy. Meanwhile, notable stocks, including Coterra Energy Inc. (NYSE:CTRA), Tapestry, Inc. (NYSE:TPR) and Global Payments Inc. (NYSE:GPN), were spotted gaining value after receiving upgrades from analysts. For a list of analyst downgrades, please visit 10 Stocks Analysts Are Downgrading.
Check out the complete article to see some other stocks recently upgraded by analysts.
10. The AZEK Company Inc. (NYSE:AZEK)
Number of Hedge Fund Holders: 18
The AZEK Company Inc. (NYSE: AZEK) is a renowned manufacturer and designer of outdoor living products that are not only visually appealing but also eco-friendly and easy to maintain. Their product line includes TimberTech® decking, Versatex® and AZEK® Trim, and StruXure™ pergolas, making them a top player in the industry.
In a research note to investors on April 19, BofA upgraded The AZEK Company Inc. (NYSE:AZEK) from Neutral to Buy and increased its price target to $31 from $28. The analyst believes that after a difficult year for the composite decking industry in 2022, it will see a recovery in the latter half of 2023. The analyst states that the current sales are likely to be ahead of company guidance, and that channel inventory is low. Additionally, the analyst believes that The AZEK Company Inc. (NYSE:AZEK) is well-placed to regain its market share.
09. Comstock Resources, Inc. (NYSE:CRK)
Number of Hedge Fund Holders: 19
Comstock Resources, Inc. (NYSE:CRK) produces natural gas and operates in the Haynesville Basin. It is located in close proximity to many significant LNG terminals on the Gulf Coast. In the fiscal year of 2022, the company generated $673 million of free cash flow from its operations and maintained the industry’s most economical operating cost structure, resulting in an 83% EBITDA margin. In the fourth quarter of 2022, compared to the previous year, the company saw a 22% increase in free cash flow to $129 million, and earnings per share rose by 184% to $1.05.
Paul Diamond of Citigroup recently revealed that Comstock Resources, Inc. (NYSE:CRK) had been raised from a Sell to a Neutral rating, with a price target rise from $10 to $12. The rationale for this upgrade is that the corporation owns a huge amount of real estate in the Haynesville area. It’s worth noting that on March 16, 2023, Citigroup downgraded Comstock Resources, Inc. (NYSE:CRK) from a Buy to a Sell recommendation and reduced the price target from $24.00 to $10.00. However, the new upgrade and higher price target indicate that Citigroup is more enthusiastic about Comstock Resources, Inc. (NYSE:CRK) future prospects.
08. Ryanair Holdings plc (NASDAQ:RYAAY)
Number of Hedge Fund Holders: 21
On April 19, Johannes Braun, an analyst at Stifel, upgraded Ryanair Holdings plc (NASDAQ:RYAAY) rating from Sell to Buy and set a price target of EUR 18. According to Braun’s research note, the aviation industry in Europe is facing significant structural bottlenecks, which could potentially benefit the sector’s profits. The analyst believes that the combination of high demand for travel, strict capacity control, and increased pricing could lead to sustainable profits for the industry.
Ryanair Holdings plc (NASDAQ:RYAAY) reported a solid quarter, with revenue growth outpacing the increase in costs. The company also anticipates robust demand for its Easter and Summer flights. Furthermore, the airline is currently operating at a level that surpasses the pre-pandemic era, increasing its market share, which bodes well for its future performance.
07. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Number of Hedge Fund Holders: 26
Relay Therapeutics, Inc. (NASDAQ:RLAY) unique approach to drug discovery has garnered attention in the biotech industry. By combining computational and experimental technologies, the company is taking on the challenge of developing new therapies for diseases that have been difficult to treat with traditional approaches. Relay Therapeutics, Inc. (NASDAQ:RLAY) Dynamo™ platform is at the forefront of this effort, allowing the company to identify drug-protein targets that were previously considered unfeasible.
In a research note to investors on April 19, Raymond James analyst Dane Leone upgraded Relay Therapeutics, Inc. (NASDAQ:RLAY) from Outperform to Strong Buy and maintained a price target of $29 after the presentation of RLY-2608 data. The analyst stated that the validation of the Dynamo drug discovery and development platform’s principal platform, which led to increased mutant specificity of PI3KH, resulting in differential toxicity, was clearly achieved. The absence of high grade hyperglycemia is also a positive development. The analyst believes that the sustained dosing intensity, later responses, and durability of benefit are likely to be strong due to the lack of discontinuation and limited reductions.
Like Relay Therapeutics, Inc. (NASDAQ:RLAY), analysts also improved their ratings for Walmart Inc. (NYSE:WMT), Netflix, Inc. (NASDAQ:NFLX) and Global Payments Inc. (NYSE:GPN).
06. Alliant Energy Corporation (NASDAQ:LNT)
Number of Hedge Fund Holders: 28
Alliant Energy Corporation (NASDAQ:LNT) is a provider of regulated energy services to over 995,000 electric and 425,000 natural gas customers across Wisconsin and Iowa. The company is committed to delivering energy solutions and exceptional service that customers and communities can rely on, while maintaining a strong focus on safety, efficiency, and responsibility.
Alliant Energy Corporation (NASDAQ:LNT) has been upgraded by Wells Fargo from Equal Weight to Overweight, with a price target of $61 (previously $58) on April 19. The firm notes that Alliant Energy Corporation (NASDAQ:LNT) stock has underperformed in the past nine months, possibly due to a regulatory setback in Iowa. However, Wells Fargo highlights the company’s strong financial position and track record, as well as above-average regulation. They view the regulatory environments in Wisconsin and Iowa as being in the top quartile, with above-average allowed return on equity (ROE) and forward-looking test years. Finally, the firm believes Alliant Energy Corporation (NASDAQ:LNT) balance sheet is healthy and that any external equity needs are manageable.
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Disclosure: none. Analysts Are Upgrading These 10 Stocks is originally published on Insider Monkey.
