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Intel Corporation (INTC), Bristol Myers Squibb Co. (BMY): Three Noteworthy Upgrades Worth a Look

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Intel Corporation (NASDAQ:INTC) traded higher after last weekend’s feature story in Barron’s. The firm upped its outlook, saying it expects Intel Corporation (NASDAQ:INTC) to double over the next five years due to market share gains in tablets and smartphones.

Moreover, Barron’s feature columnist Jack Hough anticipates big demand for lucrative server chips and a stabilization in the PC market. Hough also expects the company to cut its capital spending spree and capitalize on more high-end contracts (such as Apple & Samsung).

Intel Corporation (NASDAQ:INTC)

It is very difficult to imagine Intel Corporation (NASDAQ:INTC) doubling in price, trading over $50. The stock has produced gains of just 20% over the last decade, and has pretty much hovered around $25 during this period. With that said, Hough’s reasons are sensible, and Intel Corporation (NASDAQ:INTC) is a cheap stock that does pay a 3.70% dividend yield. Therefore, I think the call is possible, although I still view Intel Corporation (NASDAQ:INTC) as a safe high-yield holding; not a high-flying momentum stock.

“Paradigm Changing” call after ASCO

Bristol Myers Squibb Co. (NYSE:BMY) has seen gains of 47% in 2013, and was up 3.5% on Monday, as the market responded to the upside of its PD-1 drug nivolumab; both alone and in combination with Yervoy. Nivolumab stole the show at ASCO, and Goldman Sachs has issued a Conviction Buy on the stock.

Goldman calls Bristol Myers Squibb Co. (NYSE:BMY)’ immune-oncology program “paradigm changing” and raised its price target to $55 from $48. The firm also notes that the market is likely to be massive and that Bristol Myers Squibb Co. (NYSE:BMY) is well-positioned to capitalize on the opportunity.

As an investor, I agree with everything in Goldman’s note. Bristol Myers Squibb Co. (NYSE:BMY)’ anti PD-1 drug is showing effectiveness at successfully treating various diseases – and is the most advanced product in this new class of drugs. Right now, it is looking as if nivolumab will enter the market next year, while Merck & Co., Inc. (NYSE:MRK)’s anti PD-1 will be two years behind.

Currently, analysts project sales for the anti PD-1 market to be up to $10 billion annually. Thus, you can see why the market is responding so well to Bristol Myers Squibb Co. (NYSE:BMY). Personally, I am buying the stock. It still has a 3% yield and with $16 billion in annual sales, the addition of this new drug could increase total sales by 40% over five years. The opportunity simply appears too great to ignore.

It’s not a fad!

Sodastream International Ltd (NASDAQ:SODA) traded higher by almost 9% after Barclays raised its price target from $55 to $100. The firm notes that its channel checks indicate more than 20% top-line growth. The firm also notes that it could see the stock peaking at $150, and that its products are “not a fad.”
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