In this article, we discuss the 5 stocks receiving upgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Upgrading These 10 Stocks.
05. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 33
Coterra Energy (NYSE:CTRA) posted impressive Q4 results, exceeding its previously published guidance for both oil and gas production. The company’s total production for the quarter reached 632 thousand barrels of oil equivalent per day, with 90.7 thousand barrels of oil produced daily and 2.78 billion cubic feet of natural gas per day. Although total production was down 7.8% year-over-year, Coterra Energy (NYSE:CTRA) made up for it with an 8.8% increase in the realized oil price and a 9.9% increase in the price of natural gas. These positive trends in commodity prices contributed to the company’s robust revenue performance for the quarter and the full year 2022.
On April 19, Citi analyst Scott Gruber upgraded Coterra Energy Inc. (NYSE:CTRA) rating from Sell to Neutral, with a revised price target of $25, up from $22. The analyst believes that even if gas prices were to decline, Coterra Energy Inc. (NYSE:CTRA) proximity to cash cost means that the stock is unlikely to experience significant downward pressure in the near term. Additionally, the anticipated reduction in Haynesville drilling and production activity is expected to support gas prices along the forward curve and benefit E&P companies with portfolios focused on Appalachia, including Coterra Energy Inc. (NYSE:CTRA).
04. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 38
OTR Global, on April 19, upgraded its view on Tapestry, Inc. (NYSE:TPR) to Positive from Mixed, citing checks in China and the U.S. According to the latest analyst forecasts as of April 6, Tapestry, Inc. (NYSE:TPR) has an average one-year price target of $50.79, with a range of $38.68 to $63.00. This suggests a potential increase of 17.87% from its most recent closing price of $43.09. Tapestry, Inc. (NYSE:TPR) is expected to generate approximately $6.6 billion in annual revenue, representing a modest increase of 0.83% compared to previous figures. The non-GAAP earnings per share for the same period are projected to be $3.67.
03. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 52
In a research note to investors on April 19, Baird analyst David Koning upgraded Global Payments Inc. (NYSE:GPN) from Neutral to Outperform and increased the price target from $130 to $156. Koning notes that the company maintains its market share and that Q1 industry trends look promising. He also predicts that a mid-2024 valuation for the stock could be $156. The firm believes that the market has yet to fully appreciate Global Payments Inc. (NYSE:GPN) earnings growth potential, which they estimate to be in the mid-teens on a sustained basis at a lower-than-S&P multiple. Additionally, Baird believes that concerns over slowing merchant trends may be overstated.
02. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 66
Chuck Grom, an analyst at Gordon Haskett, upgraded Walmart Inc. (NYSE:WMT) rating from Accumulate to Buy and raised the price target from $155 to $165 on April 19. According to the analyst, the company’s foot traffic growth has improved sequentially in April by 1,120 basis points to 0.7% on a four-year basis, outperforming the firm’s coverage and broader retail. This improvement is in line with the firm’s earlier expectation that traffic trends would begin to inflect higher. Gordon Haskett believes that Walmart Inc. (NYSE:WMT) benefits from increasing wallet share from core customers in a softening macroeconomic environment and gaining market share with higher-income customers.
01. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 117
On April 19, UBS analyst John Hodulik upgraded Netflix, Inc. (NASDAQ:NFLX) from Neutral to Buy and raised the price target from $350 to $390 following the company’s latest earnings report. Hodulik believes that Netflix, Inc. (NASDAQ:NFLX) is the primary beneficiary of reduced competition in the direct-to-consumer streaming market, as other players focus on profitability. This should drive subscriber growth and pricing power in the coming years, while also keeping a check on content costs – one of the biggest drivers of Netflix, Inc. (NASDAQ:NFLX) profits and free cash flow. The analyst sees a “compelling risk/reward” at current share levels and expects Netflix, Inc. (NASDAQ:NFLX) growth to improve in Q3 and beyond.
You can also take a look at the 13 Best Emerging Market Stocks to Buy and 12 Cheap Utility Stocks to Buy According to Analysts.
