Analysts Just Upgraded These 10 Stocks

Published June 24, 2022 at 9:13 am EDT Updated September 7, 2026 at 2:16 pm EDT

In this article, we will take a look at the 10 stocks recently upgraded by analysts.

Analysts recently upgraded notable stocks, including Snowflake Inc. (NYSE:SNOW), KE Holdings Inc. (NYSE:BEKE) and Cigna Corporation (NYSE:CI). Shares of Snowflake, KE Holdings and Cigna moved higher following the upgrades.

In addition, real estate investment trust Extra Space Storage Inc. (NYSE:EXR) and Albuquerque-based energy company PNM Resources, Inc. (NYSE:PNM), also came into the limelight after analysts improved their ratings for them.

10. Noah Holdings Limited (NYSE:NOAH)

Number of Hedge Fund Holders: 9

Shares of Noah Holdings Limited (NYSE:NOAH) rose for two consecutive trading sessions after receiving an upgrade from JPMorgan on Wednesday, June 22, 2022. The research firm improved its ratings for the wealth management service provider from “Neutral” to “Overweight.”

JPMorgan analyst Katherine Lei thinks that the company’ progress related to the Hong Kong listing has alleviated the U.S. delisting risk. The analyst also raised its price target for Noah Holdings Limited from $18.5 per share to $22 per share.

Lei was also impressed by Noah Holdings Limited’s (NYSE:NOAH) improved sales data for the second quarter, implying better sequential revenue gains in April. Moreover, she expects better returns for investors following the potential Hong Kong listing.

9. Funko, Inc. (NASDAQ:FNKO)

Number of Hedge Fund Holders: 20

Shares of Funko, Inc. (NASDAQ:FNKO) hit a new 52-week high of $24.36 on Thursday, June 23, 2022, after JPMorgan upgraded the pop culture collectibles maker from “Neutral” to “Overweight.”

The research firm also lifted its price target for Funko, Inc. from $25 per share to $28 per share, citing the resilience of the toy category in the uncertain economic environment. JPMorgan analyst Megan Alexander expects Funko’s margins to turn positive this year, with further improvements in 2023.

The upgrade comes a week after Funko, Inc. inked a deal to buy high-end pop culture firm Mondo for an undisclosed amount. Funko doesn’t see any material impact on its 2022 financial results from the deal.

8. SiteOne Landscape Supply, Inc. (NYSE:SITE)

Number of Hedge Fund Holders: 23

RBC Capital improved its ratings for SiteOne Landscape Supply, Inc. (NYSE:SITE) from “Underperform” to “Sector Perform” on Wednesday, June 22, 2022. However, the research firm lowered its price target for the landscaping products distributor from $128 per share to $118 per share, citing dwindling housing demand.

Yet, RBC Capital analyst Mike Dahl believes the company’s growth prospects look bright in the long term. Dahl added that the concerns surrounding the fading housing demand have already been reflected in the share price of SiteOne Landscape Supply, Inc..

Separately, asset management firm Baron Funds talked about SiteOne Landscape Supply, Inc. in its first-quarter 2022 investor letter published in May. Here’s what the fund said:

“Shares of SiteOne Landscape Supply, Inc. (NYSE:SITE), the largest distributor of wholesale landscape supplies, fell for similar reason as Floor & Decor…. concern about the possible impact of rising interest rates and multiple compression. The company reported strong results and had a blowout year in 2021…organic revenue growth of 20%, EBITDA growth of 60%, and free cash flow per share up 90%. SiteOne, too, is projecting more modest growth this year against the tough comparisons and flat margins after superb cost management last year. Maybe growth will be slower than expected this year because of the macro environment…maybe… but the stock has traded to a valuation level that is a discount to where we think it should trade on our estimates for 2022 results. We think this is a special company and management team. We think EBITDA will grow at about 15% a year from this base through organic growth and acquisitions, and the company will generate significant free cash flow to fund future growth.”

7. Frontier Group Holdings, Inc. (NASDAQ:ULCC)

Number of Hedge Fund Holders: 24

Frontier Group Holdings, Inc. (NASDAQ:ULCC) received an upgrade from Raymond James on Thursday, June 23, 2022. Analyst Savanthi Syth raised his ratings for the airline company from “Market Perform” to “Outperform,” citing the potential merger between JetBlue Airways Corporation (JBLU) and Spirit Airlines, Inc. (SAVE).

Earlier this year, Frontier Group Holdings, Inc. inked a deal to buy Spirit Airlines in a cash and stock deal valued at $2.9 billion. However, JetBlue recently sent a counter proposal to buy Spirit for $3.6 billion, representing a much higher valuation. Spirit is expected to decide on the aforesaid proposals by the end of this month.

Like Frontier Group Holdings, Inc., analysts also raised their ratings for Snowflake Inc., KE Holdings Inc. and Cigna Corporation.

6. Welltower Inc. (NYSE:WELL)

Number of Hedge Fund Holders: 25

Shares of Welltower Inc. (NYSE:WELL) closed higher on Wednesday, June 22, 2022, after JPMorgan upgraded the Ohio-based real estate investment trust from “Neutral” to “Overweight,” citing sales momentum in the senior housing.

JPMorgan analyst Michael Mueller expressed appreciation for the sales momentum in senior housing driven by Welltower Inc. through price hikes and persistent growth in occupancy.

The upgrade follows the company’s revised profit outlook for the second quarter of 2022. Earlier this month, Welltower Inc. updated its Q2 earnings guidance to a range of 22 – 25 cents per share, from its previous projection of 20 – 25 cents per share.

5. Extra Space Storage Inc. (NYSE:EXR)

Number of Hedge Fund Holders: 29

Extra Space Storage Inc. is a real estate investment trust focused on self-storage facilities. It is the second-biggest provider of self-storage services in the U.S. Customers can store things like boats and RVs in the company’s secure storage units spread across the country.

Shares of Extra Space Storage Inc. rose nearly two percent on Wednesday, June 22, 2022, after JPMorgan upgraded the Utah-based company from “Neutral” to “Overweight,” citing optimism surrounding the self-storage sector.

JPMorgan analyst Michael Mueller expects Extra Space Storage Inc. to produce operating income growth in the mid-teens, which is significantly higher than the consensus for the real estate investment trust group.

4. KE Holdings Inc. (NYSE:BEKE)

Number of Hedge Fund Holders: 34

Shares of KE Holdings Inc. jumped over six percent on Thursday, June 23, 2022, after receiving an upgrade from HSBC. The research firm improved its ratings for the Chinese company from “Hold” to “Buy,” expressing renewed confidence in the company’s guidance.

HSBC analyst Albert Tam thinks KE Holdings Inc. will benefit from the recent policy changes related to China’s property market. Those changes would help the company in boosting its sales. Tam also raised his price target for KE Holdings Inc. from $13.70 per share to $20.80 per share.

3. PNM Resources, Inc. (NYSE:PNM)

Number of Hedge Fund Holders: 37

Shares of PNM Resources, Inc. closed higher on Wednesday, June 22, 2022, after Mizuho upgraded the Albuquerque-based energy company from “Neutral” to “Buy.” The research firm thinks that Avangrid, Inc. (AGR) will be successful in acquiring PNM Resources, Inc. for $50.30 per share.

Mizuho analyst Paul Fremont expects an annualized return of 18 percent for investors if the deal is finalized.

Last year in October, PNM Resources, Inc. entered into a merger deal with Avangrid. However, the New Mexico Public Regulation Commission blocked the deal in December, citing certain risks. Subsequently, Avangrid filed an appeal against the regulatory refusal earlier this year.

2. Cigna Corporation (NYSE:CI)

Number of Hedge Fund Holders: 63

Shares of Cigna Corporation turned green on Wednesday, June 22, 2022, after receiving an upgrade from Morgan Stanley. The research firm raised its ratings for the healthcare and insurance company from “Equal Weight” to “Overweight.”

In a research note to investors, Morgan Stanley analyst Ricky Goldwasser said Cigna Corporation would greatly benefit from the biosimilars of Humira in the healthcare services market. Goldwasser also raised his price target for Cigna Corporation from $283 per share to $296 per share.

Separately, investment management firm Davis Funds mentioned Cigna Corporation in its fourth-quarter 2021 investor letter published earlier this year. The fund said:

“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”

1. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 81

Shares of Snowflake Inc. rallied over 12 percent on Thursday, June 23, 2022, after JPMorgan upgraded the cloud computing-based data warehousing company from “Neutral” to “Overweight.”

The upgrade follows JPMorgan’s recent annual chief investment officers (CIO) survey. The research firm found in the survey that the majority of Snowflake Inc.’s existing customers plan to boost their cloud spending this year.

In addition, JPMorgan analyst Mark Murphy said that Snowflake Inc. shares are trading slightly higher than their IPO price of $120 despite a sharp surge in its quarterly revenue since going public in 2020.

You can also take a peek at 10 Dividend Stock Picks of Robert Pitts’ Steadfast Capital Portfolio and 10 Favorite Stocks of Dan Loeb’s Third Point.

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