In this article, we will discuss the 10 stocks whose price targets were recently raised by analysts. If you want to see more such stocks on the list, go directly to Wall Street Analysts Are Bullish on These 5 Stocks with Increasing Price Targets.
Stock futures on August 9 were pointing to an upward trajectory after Tuesday’s decline triggered by concerns over the financial system and the economy. Additionally, the Italian government’s commitment to imposing a cap on a new windfall tax provided a sense of comfort. The upcoming US inflation report, scheduled for release on Thursday, is taking center stage in the market, reported Bloomberg. The anticipated data is expected to reveal a 3.3% growth in consumer prices in July compared to the previous year. While this marks a slight increase from the previous month, it remains close to the slowest rate seen in the last two years. The yield on the 10-year Treasury notes, an important benchmark, held steady at around 4%. This stability followed a well-received auction of three-year Treasury notes on Tuesday. The auction’s lower-than-expected yield signaled stronger demand than initially projected. Meanwhile, China’s recent inflation figures demonstrated a 0.3% decline in consumer prices for July compared to the previous year. Although this drop was less severe than expected, it still indicated a move toward deflation.
According to Wells Fargo Advisors, investors are urged to exercise patience and adopt a cautious approach to navigating the current market landscape. While the stock market may present opportunities in the coming quarters, it’s crucial to emphasize capital preservation given the market’s sentiment-driven overextension. Instead of chasing after the technology sectors that have fueled the recent rally, it’s prudent to resist the temptation and consider a more measured strategy. Despite projecting a higher year-end target range for the S&P 500 Index, it’s important to acknowledge that valuations are currently stretched, making the risk-reward balance less favorable.
On the banking side, Moody’s recently downgraded credit ratings for many small- and mid-sized U.S. banks and put several major Wall Street names on a negative review, as reported by CNBC. The ratings of 10 banks were lowered, and significant lenders like Bank of New York Mellon, U.S. Bancorp, State Street, Truist Financial, Cullen/Frost Bankers, and Northern Trust are being considered for potential downgrades. Moody’s also shifted its outlook to negative for 11 banks, including Capital One, Citizens Financial, and Fifth Third Bancorp. The reasons behind this are concerns related to interest rates and managing assets and liabilities. This has implications for their available funds and financial strength. Smaller banks like M&T Bank, Pinnacle Financial, BOK Financial, and Webster Financial also experienced official downgrades. Moody’s analysts Jill Cetina and Ana Arsov noted that U.S. banks face risks due to interest rates and asset-liability management challenges, affecting their liquidity and capital.
On the stock market front, analysts are bullish on tech stocks such as DISH Network Corporation (NASDAQ:DISH), Teradata Corporation (NYSE:TDC) and MercadoLibre, Inc. (NASDAQ:MELI). Check out the complete article to see the details of these upward revisions in price targets.
Source: pexels
10. Walmart Inc. (NYSE:WMT)
Upside Potential: 9%
On August 8, Oppenheimer, a notable financial firm, opted to modify its price target for Walmart Inc. (NYSE:WMT), raising it from $165 to $175. This alteration in the price target underlines Oppenheimer’s revised assessment of Walmart Inc. (NYSE:WMT) potential stock value, signaling an improved outlook for the company’s market performance.
09. Eli Lilly and Company (NYSE:LLY)
Upside Potential: 11%
On August 8, RBC Capital increased Eli Lilly and Company (NYSE:LLY) price target from $490 to $580. This adjustment reflects RBC’s positive outlook on the company’s performance and could attract investor interest and confidence in Eli Lilly and Company (NYSE:LLY) growth potential. Eli Lilly and Company (NYSE:LLY) released its financial results for the second quarter of 2023 on August 8. The report highlights a notable increase in revenue growth and significant advancements in its pipeline projects. In the second quarter of 2023, earnings per share (EPS) increased by 86% to $1.95 on a reported basis and by 69% to $2.11 on a non-GAAP basis. These numbers include earnings from the sale of rights for Baqsimi ($0.43 EPS) and acquired IPR&D charges ($0.09 EPS).
For the full year 2023, the expected EPS has been raised. The reported EPS guidance now predicts a range of $9.20 to $9.40 (increased by $1.02), and the non-GAAP EPS guidance suggests a range of $9.70 to $9.90 (raised by $1.05). This adjustment reflects the company’s positive outlook for its financial performance in the coming months.
08. The Boeing Company (NYSE:BA)
Upside Potential: 13%
On August 8, Wells Fargo increased the target price for The Boeing Company (NYSE:BA) shares from $250 to $270 per share. They also maintained an Overweight rating on the stock. According to analysts, Yiping Ke, the Executive Director at CMIG Aviation Capital, a leasing company, mentioned in a webinar that deliveries of the 737 MAX aircraft to China are expected to restart later this year. Ke, who directly works with Chinese airlines, indicated that some airlines are getting ready for these deliveries between September and November, as mentioned by the analysts.
The analysts also pointed out that while there isn’t a single specific event driving this change, Ke highlighted recent interactions between The Boeing Company (NYSE:BA) executive VP Stan Deal and the head of China’s aviation authority, along with ongoing high-level discussions. The analysts summarized Ke’s perspective by saying that it’s possible The Boeing Company (NYSE:BA) could deliver the remaining approximately 85 737 aircraft already built for China by 2024.
07. Airbnb, Inc. (NASDAQ:ABNB)
Upside Potential: 16%
On August 7, DA Davidson’s Tom White decided to increase their price projection for Airbnb, Inc. (NASDAQ:ABNB) by 15.7%, marking a shift from the previous target of $140 to a new target of $162. This upward revision in the price target indicates the positive outlook that White holds for the company’s performance in the foreseeable future. Notably, White has reaffirmed their endorsement of a Strong Buy rating for Airbnb, Inc. (NASDAQ:ABNB) stock, suggesting a high level of confidence in its potential. In a comprehensive research commentary, Tom White underlined the robustness of Airbnb’s financial performance during the second quarter of 2023. This impressive financial report was officially disclosed on August 3. White’s recognition of Airbnb, Inc. (NASDAQ:ABNB) strong Q2 2023 earnings underscores the company’s effective execution of its business strategy and its ability to adapt to evolving market conditions.
Artisan Developing World Fund had this to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q1 2023 investor letter:
“Top contributors to performance for the quarter included online travel marketplace Airbnb, Inc. (NASDAQ:ABNB). Airbnb outperformed on the resilience of the travel category including for long-term stays, and on operating leverage as cost optimization is met with revenue increases. Notably, our top four holdings entering the quarter (Sea, Meli, Nvidia, Airbnb) which represented 24.37% of capital on December 31, 2022, increased an average of 64.42% during the quarter.”
06. Humana Inc. (NYSE:HUM)
Upside Potential: 21%
On August 8, following an in-line quarter and guidance raise, Bernstein opted to raise its price target for Humana Inc. (NYSE:HUM) from $568 per share to $599 per share. This upward revision underscores Bernstein’s positive reassessment of Humana Inc. (NYSE:HUM) potential stock value, implying a more favorable outlook for the company’s market performance. While increasing the price target, Bernstein maintains its “Market Perform” rating, which essentially translates to a “hold” recommendation. This suggests that while Bernstein recognizes Humana Inc. (NYSE:HUM) potential, they don’t anticipate significant outperformance compared to the broader market.
Notably, the analysts at Bernstein highlight the strong performance of Humana Inc. (NYSE:HUM) Medicare Advantage, a Medicare program that provides comprehensive coverage beyond the original Medicare. This acknowledgment could indicate that Bernstein sees positive growth potential in this particular area of Humana’s business, which might have contributed to their decision to raise the price target.
Baron Health Care Fund made the following comment about Humana Inc. (NYSE:HUM) in its second quarter 2023 investor letter:
“These positive effects were somewhat offset by adverse stock selection in managed health care, where the Fund’s investments in health insurance leaders Humana Inc. (NYSE:HUM) and Elevance Health, Inc. were a modest drag on performance. Humana and Elevance Health were down during the quarter because of commentary from UnitedHealth Group Incorporated management indicating that medical cost trends were running at the high end of their guidance driven by higher levels of outpatient medical activity, particularly among Medicare patients. We think UnitedHealth, Humana, and Elevance will be able to manage through an uptick in medical cost trends, but we modestly reduced our positions in Humana and Elevance due to the potential impact on earnings.
We continue to own UnitedHealth, Humana Inc., and Elevance Health, Inc. because we believe these companies will be able to manage through this period without a material earnings impact, but we did modestly reduce our positions in Humana and Elevance Health.”
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Disclosure: None. Wall Street Analysts are Bullish on These 10 Stocks with Increasing Price Targets is originally published on Insider Monkey.
