In this article, we discuss the 10 stocks that analysts just increased price targets of. If you want to skip our detailed analysis of these stocks, go directly to Analysts Just Increased Price Targets of These 5 Stocks.
The United States economy has rebounded strongly from the 2020 lows this year, posting incredible growth numbers that have even dwarfed the pre-pandemic level of business activity. Despite fears of inflation on the back of increased demand for goods in the past few weeks, the US Federal Reserve has refused to raise the interest rates, although several policymakers project the rates will rise next year. International Monetary Fund Chief Economist Gita Gopinath has said that inflationary pressures will mostly normalize by next year.
In an interview with Nikkei Asia, Gopinath also sought to ease concerns surrounding the collapse of property giant Evergrande in China, noting that the country was more than capable of limiting the impact of the crisis to markets in the rest of the world. The economist also voiced concern over the tighter US monetary policy in the emerging world over the next few years. IMF had earlier lowered the global economic forecast to 5.9% from 6% due to supply chain disruptions and inflation pressures.
In light of these developments, investment advisors have been busy updating the economic forecast on individual stocks. Financial stocks with solid fundamentals dominate recent upgrades, with some surprises also making the cut. Some of the top stocks that analysts just raised the price targets of include Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA), among others discussed in detail below. The IMF has forecast that elevated inflation will subside to pre-pandemic levels in 2022.
Our Methodology
With this context in mind, here is our list of the 10 stocks that analysts just increased price targets of. All the firms listed below have had their price targets raised by an investment advisory this week.
The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey. The list is compiled according to the number of hedge funds having stakes in each firm.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Analysts Just Increased Price Targets of These Stocks
10. Bicycle Therapeutics plc (NASDAQ:BCYC)
Number of Hedge Fund Holders: 12
Bicycle Therapeutics plc (NASDAQ:BCYC) recently reported positive data from a study into a cancer drug that earned company praise from several investment advisors. It is placed tenth on our list of 10 stocks that analysts just increased price targets of. Roth Capital, Cantor Fitzgerald, and HC Wainwright all raised the price targets on the stock after the results of the cancer drug were released.
Reni Benjamin, an analyst at JPM Securities, maintained an Outperform rating on Bicycle Therapeutics plc (NASDAQ:BCYC) stock on October 14 and raised the price target to $85 from $53, noting that new pipeline drugs of the firm were showcasing “strong clinical activity”.
At the end of the second quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $162 million in Bicycle Therapeutics plc (NASDAQ:BCYC), up from 11 in the previous quarter worth $155 million.
Just like Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA), Bicycle Therapeutics plc (NASDAQ:BCYC) is one of the stocks attracting the attention of institutional investors.
9. América Móvil, S.A.B. de C.V. (NYSE:AMX)
Number of Hedge Fund Holders: 13
América Móvil, S.A.B. de C.V. (NYSE:AMX) is ranked ninth on our list of 10 stocks that analysts just increased price targets of. The company recently announced that it would be merging Chilean operations with Liberty Latin America in a joint venture that is forecast to reach over 6 million homes via fixed network within the next three years. In the wireless domain, the firm has reported impressive numbers too, adding 4.2 million subscribers to the network between March and June this year.
Barclays analyst Gilberto Garcia kept an Overweight rating on América Móvil, S.A.B. de C.V. (NYSE:AMX) stock on October 14 and raised the price target to $21 from $19. The stock soared 1% after the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in América Móvil, S.A.B. de C.V. (NYSE:AMX) with 2.6 million shares worth more than $40 million.
In addition to Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA), América Móvil, S.A.B. de C.V. (NYSE:AMX) is one of the stocks on the radar of elite investors.
8. American Equity Investment Life Holding Company (NYSE:AEL)
Number of Hedge Fund Holders: 20
American Equity Investment Life Holding Company (NYSE:AEL) recently underwent a major managerial change, naming Axel Andre as the new CFO. Andre has served at AIG and Goldman Sachs previously. The company has strong fundamentals. It beat market estimates on earnings per share in the second quarter. The firm is placed eighth on our list of 10 stocks that analysts just increased price targets of.
American Equity Investment Life Holding Company (NYSE:AEL) was given a new price target of $33 at Morgan Stanley on October 14, up from $31 earlier. The rating was maintained at Equal Weight in the update.
At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $187 million in American Equity Investment Life Holding Company (NYSE:AEL), down from 24 in the preceding quarter worth $262 million.
Alongside Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA), American Equity Investment Life Holding Company (NYSE:AEL) is one of the stocks that hedge funds are buying.
7. Brighthouse Financial, Inc. (NASDAQ:BHF)
Number of Hedge Fund Holders: 26
Brighthouse Financial, Inc. (NASDAQ:BHF) stock has returned over 54% to investors in the past year. It is ranked seventh on our list of 10 stocks that analysts just increased price targets of. The company recently filed a shelf registration statement for an unspecified amount of mixed securities. It aims to use the proceeds for general corporate purposes. In the second quarter, the firm beat market predictions on earnings per share by $1.95.
Investment bank Morgan Stanley raised the price target on Brighthouse Financial, Inc. (NASDAQ:BHF) stock to $55 from $53 with an Equal Weight rating on October 14. The new target implies an upside potential of 11% from the present share price.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Greenlight Capital is a leading shareholder in Brighthouse Financial, Inc. (NASDAQ:BHF) with 3.6 million shares worth more than $165 million.
Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA) are some of the top stocks to buy now, just like Brighthouse Financial, Inc. (NASDAQ:BHF).
In its Q4 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Brighthouse Financial, Inc. (NASDAQ:BHF) was one of them. Here is what the fund said:
“In addition, we have recently increased our position size in Brighthouse Financial (BHF), one of the of the largest annuity and life insurance companies in the U.S. Since separating from MetLife, Brighthouse has built strong sales momentum and has focused on building out a new, less capital intensive business. Brighthouse is targeting nearly $9B in annual annuity sales by the end of 2021 (double 2017 levels) and expanding its life insurance businesses by 10x over the same time period. The company is targeting its capital-intensive business to be 18% by 2025 (half of 2016 levels), which should further enhance future cash flow generation. The company’s capital ratios remain strong and well above regulatory requirements. Management is aggressively returning cash to shareholders, targeting a total of $1.5B in share buybacks by the end of 2021 and retiring nearly 1/3 of their outstanding shares. While the market remains concerned about the impact of lower interest rates and their capital-intensive business, we believe the share price is over discounting these concerns and see the potential impact lessening over the coming years. Brighthouse’s equity appears significantly mispriced, closing the year at a greater than 70% discount to book value and a price-to-earnings multiple of 3 times, a significant discount to its peers and the overall market.”
6. Angi Inc. (NASDAQ:ANGI)
Number of Hedge Fund Holders: 26
Angi Inc. (NASDAQ:ANGI) works in the interactive media and services industry. Earlier this week, the share price of the firm jumped over 3.5% after metrics showed that the revenue of the company had jumped 18% in September. It is placed sixth on our list of 10 stocks that analysts just increased price targets of. The firm has a market cap of close to $6 billion.
On October 14, investment advisory Wells Fargo reiterated an Overweight rating on Angi Inc. (NASDAQ:ANGI) stock and raised the price target to $16 from $14. The shares of the firm jumped more than 3% after the upgrade.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $313 million in Angi Inc. (NASDAQ:ANGI), down from 35 in the previous quarter worth $309 million.
Airbnb, Inc. (NASDAQ:ABNB), BlackRock, Inc. (NYSE:BLK), and APA Corporation (NASDAQ:APA) are some of the elite stocks to buy now, in addition to Angi Inc. (NASDAQ:ANGI).
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Disclosure. None. Analysts Just Increased Price Targets of These 10 Stocks is originally published on Insider Monkey.
