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 See Upside Potential for 5 Stocks with Rising Price Targets.
On May 8, the S&P 500 faced resistance after a four-day winning streak, its longest run since March. The index stayed below the 5,200 level it had briefly reached earlier in the week, reflecting a loss of momentum in the stock market. The day’s trading was characterized by fluctuations, with notable declines in major technology companies such as Nvidia and Tesla. These losses played a role in tempering Wall Street’s enthusiasm for stocks. Uber Technologies also suffered a sharp drop after reporting disappointing first-quarter bookings, while Intel saw a decline due to a downgraded revenue outlook in light of a U.S. ban on chip exports to Huawei Technologies. At the same time, oil prices reversed earlier losses after a decline in U.S. stockpiles suggested a tightening market. West Texas Intermediate crude traded above $78 a barrel as the Energy Information Administration reported a reduction of 1.36 million barrels in inventories. This shift in the oil market is seen as a bullish indicator amid generally bearish technical trends. These factors reflect an inflection point in the market, as investors reassess their positions amid evolving economic conditions, corporate performance concerns, and changes in the oil market. Futures positioning has raised doubts about the strength of the S&P 500’s recent gains, suggesting that some investors are more cautious about the sustainability of the rally.
On May 8, an official from the International Monetary Fund (IMF) expressed concern over the growing divisions between the United States and China, warning that their trade tensions could hinder global economic growth. The U.S. has heightened trade restrictions and sanctions on China, citing national security concerns and ongoing disputes in the South China Sea and around Taiwan, reported CNBC. IMF Deputy Managing Director Gita Gopinath noted that trade relations between the U.S.-led Western bloc and the China-aligned bloc have weakened since Russia’s invasion of Ukraine. Trade between these blocs has decreased by roughly 12%, and foreign direct investment has fallen by 20% compared to levels within these groups. The IMF estimates that, in the most extreme scenario, these divisions could cost the world up to 7% of its GDP. The pandemic and geopolitical strife have disrupted international trade patterns not seen since the Cold War, according to Gopinath. Increasingly, countries are focusing on economic and national security when making trade and investment decisions. This trend threatens to undermine a rules-based global trading system and the benefits of economic integration. However, while the global economy faces significant challenges due to fragmentation, the overall trade-to-GDP ratio has been relatively stable over the past two decades. This stability is partly due to the role of neutral countries like Mexico and Vietnam, which act as connectors for rerouting trade and investment between the U.S. and China. These non-aligned nations leverage their economic and diplomatic influence to help keep the world economy integrated. The presence of these neutral mediators may serve as a buffer against the full impact of the ongoing U.S.-China tensions, providing a pathway for continued international cooperation and trade.
On the stock market front, analysts are bullish on stocks such as NVIDIA Corporation (NASDAQ:NVDA), ServiceNow, Inc. (NYSE:NOW) and Exxon Mobil Corporation (NYSE:XOM) among many others. Check out the complete article to see the details of these upward revisions in price targets.
A Wall Street trader on the trading floor discussing the company’s stock performance.
10. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Upside Potential: 11%
On May 7, Piper Sandler upgraded its price target for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), which is a biopharmaceutical company, raising the target to $456 from $450. The firm maintained its Overweight rating on the shares due to a significant financial outperformance in the first quarter. The company exhibited strong results in both its top-line and bottom-line performance. Piper Sandler highlighted that despite a mention of some inventory benefits from international channels, the key focus of the story is on the company’s advances in its late-stage pipeline. Specifically, Piper Sandler is optimistic about the submission of a New Drug Application (NDA) for vanza, with the potential for approval in January 2025. Additionally, progress on the rolling NDA for suzetrigine, targeting acute pain, is underway and is expected to be completed this quarter. The current market price for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stands at $422.52, and the new price target suggests an upside potential of approximately 11%. This indicates that investors could see substantial gains given Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) promising developments and pipeline progression.
Just like NVIDIA Corporation (NASDAQ:NVDA), ServiceNow, Inc. (NYSE:NOW) and Exxon Mobil Corporation (NYSE:XOM), wall street analysts are also bullish on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX).
09. Walmart Inc. (NYSE:WMT)
Upside Potential: 15%
On May 7, UBS analyst Michael Lasser raised the firm’s price target for Walmart Inc. (NYSE:WMT), a major player in the retail industry, to $69 from $63 and maintained a Buy rating on the shares. This revision suggests an upside potential of 15% compared to the current market price of $60.76. In a research note to investors, Lasser acknowledged that Walmart Inc. (NYSE:WMT) performed well in the first quarter, even with the unpredictable consumer spending environment and challenges such as the impact of an earlier Easter and pressures facing lower-income households. UBS believes that Walmart Inc. (NYSE:WMT) performance in the quarter will meet expectations and demonstrate that the company’s strategic investments are paying off. The firm sees Walmart Inc. (NYSE:WMT) ongoing ability to capture market share both domestically and internationally as a significant advantage. This market share expansion, along with other factors, indicates that the stock has potential for further growth and suggests that Walmart Inc. (NYSE:WMT) remains a strong investment option.
08. Booking Holdings Inc. (NASDAQ:BKNG)
Upside Potential: 17%
On May 7, HSBC raised its price target for Booking Holdings Inc. (NASDAQ:BKNG), a leading company in the online travel industry, to $4,230 from $4,220 and reaffirmed its Buy rating on the shares. The stock is currently trading at $3,624.05, which indicates an upside potential of 17% following the upgrade. HSBC’s decision to increase the price target reflects its preference for Booking Holdings Inc. (NASDAQ:BKNG) within the U.S. online travel market. The firm’s analyst noted Booking’s advantage in terms of scale and consistent execution, which distinguishes it from competitors in the space. The performance gap between Booking Holdings Inc. (NASDAQ:BKNG) and its peers has become more pronounced, particularly in the first quarter, across various metrics. The recommendation suggests that Booking Holdings Inc. (NASDAQ:BKNG) strong market position and operational effectiveness make it a promising investment opportunity, with room for significant growth. As the company continues to leverage its strengths in the online travel sector, investors can expect potential benefits from its ongoing success.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its first quarter 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed negatively to relative performance. The Company grew bookings on their platforms +16% and reported +22% growth in adjusted operating income during their fourth quarter of 2023. We think the market is cautious about the Company’s results for 2024 because they will be lapping very high levels of growth compared to those in 2023 (full year 2023 bookings growth +24%). However, Booking’s end markets continue to be quite healthy, outside of geographies affected by war because consumers still have plenty of wallet share to re-dedicate to travel compared to pre-COVID-19 numbers. We applaud the Company as they aggressively repurchase shares at valuation levels well below the market and peers. This should serve to compound our ownership in Booking’s business, which has exceptional pro2itability.”
07. D.R. Horton, Inc. (NYSE:DHI)
Upside Potential: 18%
On May 7, Keefe, Bruyette & Woods analyst J. Rahmani raised the price target for D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder in the real estate and construction industry, from $172 to $178 while maintaining an Outperform rating on the stock. With the current market price at $149.03, this new target implies an upside potential of 18% for investors. D.R. Horton, Inc. (NYSE:DHI) is known for its reputation as one of the largest and most respected homebuilders in the United States. The company operates across multiple markets, offering a wide range of housing options to meet the needs of diverse customer bases. Analyst J. Rahmani’s decision to raise the price target reflects confidence in the company’s ability to sustain its strong performance and capitalize on opportunities within the housing market.
On the same day, UBS also increased its price target for D.R. Horton, Inc. (NYSE:DHI) from $192 to $200 while maintaining its Buy rating on the stock. UBS’s revised target reflects the company’s solid performance in the second quarter and its positive outlook. D.R. Horton, Inc. (NYSE:DHI) is known for its excellence and consistent high-level execution, even in the face of challenging interest rate environments, according to the UBS analyst. The firm believes that D.R. Horton, Inc. (NYSE:DHI), along with other major publicly traded homebuilders, is poised to continue benefiting from robust demographic demand, limited availability of existing homes, and the company’s size, scale, and financial advantages compared to most private competitors. These factors contribute to D.R. Horton, Inc. (NYSE:DHI) strong position in the homebuilding industry, making it an attractive investment opportunity for investors.
Baron Real Estate Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its fourth quarter 2023 investor letter:
“The share prices of our investments in homebuilder companies – Toll Brothers, Inc., D.R. Horton, Inc. (NYSE:DHI), Inc., and Lennar Corporation – gained 39.4%, 41.8%, and 33.2%, respectively, in the most recent quarter, in part due to the continuation of strong quarterly business results, management optimism about 2024 prospects, and a more than 100 basis point decline in 30-year mortgage rates during the quarter.
2023 was an excellent year for the public homebuilders. Housing fundamentals were resilient despite the affordability challenges of elevated mortgage rates and home prices. Several years of pent-up demand, fears that mortgage rates could move higher, a dearth of inventory in the existing home market, and an overall housing supply shortage drove home buyers off the sidelines to “stretch their wallet,” in part due to fears that they could miss out on the opportunity to buy a home. The Fund’s homebuilding companies Toll Brothers, D.R. Horton, and Lennar increased 108.0%, 71.4%, and 66.3%, respectively, in 2023.
Though we anticipate more modest gains for the Fund’s homebuilder investments in 2024, we remain optimistic about the long-term prospects for Toll Brothers, D.R. Horton, and Lennar. Further, we continue to believe there is a compelling case for the homebuilder valuations to re-rate higher over time.
Since the beginning of 2020, D.R. Horton, Lennar, and Toll Brothers have demonstrated substantial resilience and operating prowess. Despite several black swan events – COVID-19, a sharp increase in mortgage rates from 3% to 8%, and supply-chain disruptions – each company has managed its business exceptionally well and demonstrated that the demand to buy homes is resilient.”
06. Coterra Energy Inc. (NYSE:CTRA)
Upside Potential: 18%
Similar to NVIDIA Corporation (NASDAQ:NVDA), ServiceNow, Inc. (NYSE:NOW), and Exxon Mobil Corporation (NYSE:XOM), Wall Street analysts also have a positive outlook on Coterra Energy Inc. (NYSE:CTRA). On May 7, Susquehanna increased its price target for Coterra Energy Inc. (NYSE:CTRA), a leading player in the oil and gas industry, from $32 to $33 while maintaining its Positive rating on the stock. With the current market price at $28.19, the new target represents an 18% upside potential for investors. The firm’s decision to raise the price target highlights its optimism about Coterra Energy Inc. (NYSE:CTRA) future performance. The company is well-positioned to capitalize on opportunities in the energy sector, given its strong operational capabilities and strategic focus. Investors might find Coterra Energy Inc. (NYSE:CTRA) an attractive option due to its potential for growth and profitability in the oil and gas market, as indicated by the favorable outlook from Susquehanna.
Diamond Hill Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its fourth quarter 2023 investor letter:
“Other bottom contributors in Q4 includedCoterra Energy Inc. (NYSE:CTRA), VF Corporation and Ciena Corporation. Coterra Energy is an oil exploration and production company focused in West Texas’s Permian Basin and Oklahoma. Though production is beating expectations, shares traded in sympathy with the broader industry, which declined alongside falling oil and natural gas prices.”
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Disclosure. None. Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets was initially published on Insider Monkey.
