In this article, we will take a look at the 10 stocks recently upgraded by analysts. If you want to see some more stocks on the list, go directly to Analysts are Upgrading These 5 Stocks.
Bond traders are increasingly betting on the possibility that the Federal Reserve will lead the U.S. economy into a recession. The short-term Treasuries, sensitive to policy changes, experienced a sell-off on June 14, while longer-term bonds rallied. According to Bloomberg, this shift occurred after Fed officials indicated their readiness to raise interest rates by another half-point this year, following a temporary pause in the central bank’s 15-month hiking campaign. Consequently, as measured by the gap between two-year and 10-year securities, the yield curve inverted by more than 90 basis points, nearing the extreme level of 109 basis points last observed in March. On June 15, gold experienced a decline, reaching a nearly three-month low, due to the strengthening of the U.S. dollar and Treasury yields following indications from the U.S. Federal Reserve about potential interest rate increases in the near future, reported Reuters. The price of spot gold dropped by 0.7% to $1,929.99 per ounce, marking its lowest level since March 17. Similarly, U.S. gold futures fell by 1.4% to $1,941.50. However, following the Federal Reserve’s decision to hold off on a rate hike during its recent meeting, U.S. stock futures showed little change. However, there were indications that two more rate hikes could potentially take place later in the year.
The Federal Reserve’s latest economic projections suggested that the economy is performing better than expected, and inflation is declining at a slower rate, indicating the likelihood of a half-percentage point increase in borrowing costs by the end of this year. The U.S. inflation rate has remained consistently higher than the Federal Reserve’s target of 2% per year. However, inflation eased to 4% in May, marking the lowest rate in two years, following a peak of 9.1% in June of the previous year. In light of the progress made in curbing inflation, the Federal Reserve decided to forgo a rate hike during its recent meeting.
On the Asian side, Morgan Stanley predicts that Asia’s economic growth will surpass that of the United States and Europe by the end of this year. According to the investment bank’s Chief Asia Economist, the region was less affected by interest rate shocks compared to its Western counterparts, leading to a projected outperformance of approximately 450 basis points in the fourth quarter. However, the annual exodus of millionaires from China is on the rise. According to CNBC, China experienced a net outflow of 10,800 high-net-worth individuals in 2022; this year, an additional net outflow of 13,500 is anticipated. This ongoing trend of wealthy individuals leaving China is not exclusive to the COVID-19 pandemic period but has persisted over the past decade. Notably, Australia is poised to surpass the United Arab Emirates in 2023 as the country attracting the highest net influx of millionaires.
On the stock market front, Stifel analyst Chris O’Cull has raised his recommendation on Domino’s Pizza, Inc. (NYSE:DPZ) from Hold to Buy. At the same time, Berenberg has upgraded The Estée Lauder Companies Inc. (NYSE:EL) from Hold to Buy. Meanwhile, notable stocks, including Accenture plc (NYSE:ACN) and Oracle Corporation (NYSE:ORCL) were spotted gaining value after receiving upgrades from analysts. Check out the complete article to see some other stocks recently upgraded by analysts.
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10. Braskem S.A. (NYSE:BAK)
Number of Hedge Fund Holders: 5
Braskem S.A. (NYSE:BAK) is a Brazilian company that produces and sells chemicals, including ethylene, polymer, and chemical grade propylene, butadiene, butene-1, benzene, toluene, and xylenes products. The company also produces and commercializes thermoplastic resins, fuels, intermediates, and other specialty chemicals.
On June 14, HSBC analyst Sriharsha Pappu upgraded Braskem S.A. (NYSE:BAK) from Hold to Buy. Following HSBC’s decision to upgrade Braskem S.A. (NYSE:BAK), the company experienced a 3.5% surge in its stock value. HSBC analyst Sriharsha Pappu emphasized Braskem S.A. (NYSE:BAK) favorable position, citing higher profit margins in Brazil, protective tariffs, and a dominant presence in the domestic market. HSBC believes that a potential bidding war could arise and finds the stock appealing due to positive mid-cycle earnings and the approaching end of the chemical cycle downturn.
9. D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS)
Number of Hedge Fund Holders: 6
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) was established in 2000 and is based in Istanbul, Turkey. It is an e-commerce platform operator based in Turkey. Their main website offers a wide range of products, including electronics, books, toys, cosmetics, and furniture. They also provide additional services such as HepsiExpress for on-demand grocery delivery, HepsiJet for last-mile delivery, and HepsiLojistik for storage and fulfillment. Other offerings include advertising services, international product purchasing through HepsiGlobal, e-money and payment services through Hepsipay and online airline ticket purchases through Hepsiburada Seyahat. On June 14, D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) was upgraded by Citi analyst Maksim Nekrasov from Neutral to Buy. The analyst has also raised the price target from $0.90 to $2.00.
8. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 12
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is an aerospace and space travel company focused on developing, manufacturing, and operating spaceships and related technologies to conduct commercial human spaceflight. Its main spacecraft, the SpaceShipTwo, travels supersonically to the boundary between Earth and space after being released from the launcher aircraft. In October 2019, Social Capital Hedosophia, the SPAC led by Chamath Palihapitiya, took Virgin Galactic Holdings, Inc. (NYSE:SPCE) public, valuing the firm at around $2.3 billion. The stock has nosedived since then, and Palihapitiya has stepped down from his role on the firm’s board of directors. However, Alembic Global revised its assessment of Virgin Galactic Holdings Inc (NYSE: SPCE) on June 14, upgrading its previous rating from Underweight to Neutral.
7. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 13
HSBC Holdings plc (NYSE:HSBC) provides banking and financial services worldwide, operating through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. HSBC Holdings plc (NYSE:HSBC) was founded in 1865 and is based in London, the United Kingdom. HSBC Holdings plc (NYSE:HSBC) has a prominent presence in over 63 countries across the globe. HSBC Holdings plc (NYSE:HSBC) is leveraging its global presence to optimize its non-essential operations while maintaining a strong core business that defies negative investor sentiment. On May 2, HSBC Holdings plc (NYSE:HSBC) reported Q1 financial results with a GAAP EPS of $0.52 and revenue of $20.2 billion, reflecting a substantial 64% YoY growth. Additionally, HSBC Holdings plc (NYSE:HSBC) saw positive growth in its net interest margin and common equity tier 1 capital ratio, while credit losses and impairment charges decreased significantly. On June 14, CICC analyst Dekai Hou raised their rating on HSBC Holdings plc (NYSE:HSBC) from Market Perform to Outperform.
6. IPG Photonics Corporation (NASDAQ:IPGP)
Number of Hedge Fund Holders: 24
Founded in 1990, IPG Photonics Corporation (NASDAQ:IPGP) is headquartered in Oxford, Massachusetts. IPG Photonics Corporation (NASDAQ:IPGP) is a global leader in developing, manufacturing, and selling high-performance fiber lasers, amplifiers, and diode lasers for diverse applications in materials processing worldwide. Their laser product portfolio includes a range of innovative offerings, such as hybrid fiber-solid state lasers, pulsed lasers, tunable lasers, and optical fiber delivery cables, among others. They also provide integrated communications systems, specialty fiber amplifiers for broadband networks, and laser systems and tools for welding, cutting, and precision applications. IPG Photonics Corporation (NASDAQ:IPGP) serves various sectors, including materials processing, communications, and medical fields, and distributes its products through direct sales, independent representatives, and distributors.
IPG Photonics Corporation (NASDAQ:IPGP) saw a 16.8% increase in its share price during the morning session on June 14 following an upgrade from a Raymond James analyst. The stock’s rating was upgraded from Market Perform to Outperform while maintaining a price target of $170. Notably, the price target set by the analyst was 27% higher than the market price at the time of the upgrade announcement.
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Disclosure: None. Analysts are Upgrading These 10 Stocks is originally published on Insider Monkey.
