In this article, we discuss the 5 stocks receiving price-target hike from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Increasing Price Targets of These 10 Stocks.
05. KB Home (NYSE:KBH)
Upside Potential: 9.80%
KB Home (NYSE:KBH) was founded in 1957 and is headquartered in Los Angeles, California. It is a homebuilding company that constructs and sells attached and detached single-family residential homes, townhomes, and condominiums.
Barclays raised KB Home (NYSE:KBH) price target to $56 from $51 on May 24, maintaining an Overweight rating. The investment community underestimates the positive impact of low home inventory on new construction. Despite challenges in the housing market, new construction is improving, leading Barclays to have a more positive outlook on companies benefiting from it, upgrading Corning and downgrading SiteOne Landscape Supply. Earnings estimates and price targets for homebuilders and residential distributors have also been raised.
04. Lennar Corporation (NYSE:LEN)
Upside Potential: 12.5%
On May 24, Barclays analyst Matthew Bouley increased Lennar Corporation (NYSE:LEN) price target to $135 from $120 while maintaining an Overweight rating on the shares. The analyst notes that the investment community has not fully recognized the positive impact of low home inventory on new construction and its implications for builders and building products. Despite challenges in the overall housing market, new construction is showing improvement and is in a much stronger position, according to Barclays. While maintaining a cautious stance on building products as a whole, the firm is becoming more positive on companies well-positioned to benefit from the growth in new residential construction. As a result, Corning has been upgraded to Overweight, while SiteOne Landscape Supply has been downgraded to Underweight. Barclays has also raised earnings estimates and price targets for homebuilders and residential distributors.
03. AutoZone, Inc. (NYSE:AZO)
Upside Potential: 12.17%
On May 24, BofA analyst Elizabeth Suzuki increased the price target for AutoZone, Inc. (NYSE:AZO) from $1,890 to $2,120. However, the analyst maintains an Underperform rating on the shares. The firm’s earnings estimates are adjusted after AutoZone, Inc. (NYSE:AZO) fiscal Q3 report. Despite a recent decline in the stock, the analyst believes that it is still not attractively priced.
RGA Investment Advisors made the following comment about AutoZone, Inc. (NYSE:AZO) in its Q4 2022 investor letter:
“Below is a chart of Alphabet’s (NASDAQ:GOOG) P/E ratio plotted against AutoZone, Inc. (NYSE:AZO). Any number of examples between large cap tech companies and more mature companies could illustrate this very same point, but we find this specific case most interesting because of its history.
Note that in late 2014/early 2015 these multiples crossed one another. The relative harmony between Alphabet and Autozone lasted for just shy of a year at that time, before Alphabet’s shares surged and Autozone’s shares slumped. This relationship need not matter for markets, though we think there is some signal for investors. Autozone today trades at the highest multiples of its recent history, while Alphabet trades at its lowest. Meanwhile, despite growth estimates dropping considerably at Alphabet and appreciating modestly at Autozone, Alphabet will outgrow Autozone by a wide margin over the next five years…” (Click here to read the full text)
02. Eli Lilly and Company (NYSE:LLY)
Upside Potential: 13.63%
Eli Lilly and Company (NYSE:LLY) is engaged in the discovery, development, and distribution of human pharmaceuticals worldwide. Eli Lilly and Company (NYSE:LLY) is a major pharmaceutical company in the U.S. The firm makes medicines and treatments for several diseases, such as arthritis, cancers, anxiety disorders, and other diseases. It also has partnerships with several biotechnology companies.
On May 26, Wells Fargo increased the price target for Eli Lilly and Company (NYSE:LLY) from $440 to $500 while maintaining an Overweight rating on the shares. The analyst expresses confidence in the success of the Wegovy SELECT trial, citing the positive individual components of GLP-1 benefits. Additionally, the analyst recommends holding the stock as Novo Nordisk’s (NVO) SELECT trial is expected to provide further insights when it reads out in mid-2023.
01. The Cooper Companies, Inc. (NYSE:COO)
Upside Potential: 14.67%
The Cooper Companies, Inc. (NYSE:COO) is an American firm headquartered in San Ramon, California. The firm primarily focuses on making and selling contact lenses for eye problems such as farsightedness, nearsightedness, astigmatism, and other problems.
On May 24, Piper Sandler analyst Jason Bednar increased the firm’s price target for The Cooper Companies, Inc. (NYSE:COO) from $375 to $430 while maintaining an Overweight rating on the shares. The analyst’s optimism stems from a positive conversation with a major U.S. contact lens distributor. According to the analyst’s research note, the key growth factors in the contact lens industry are leading to robust revenue growth throughout the contact lens value chain. Specifically, Cooper’s Biofinity toric lens is gaining significant shelf space at the expense of Johnson & Johnson’s Oasys toric lens. Piper Sandler considers The Cooper Companies, Inc. (NYSE:COO) a strong performer relative to other large-cap medtech companies.
You can also check out Billionaire David Tepper’s 2023 Portfolio: Top 15 Stock Picks and 10 Stocks to Sell in 2023 According to Billionaire Steve Cohen.
