In this article, we discuss the 5 stocks recently upgraded by analysts. If you want to read our detailed analysis of these companies, go directly to Analysts Just Upgraded These 10 Stocks.
5. Extra Space Storage Inc. (NYSE:EXR)
Number of Hedge Fund Holders: 29
Extra Space Storage Inc. (NYSE:EXR) 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. (NYSE:EXR) 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. (NYSE:EXR) 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. (NYSE:BEKE) 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. (NYSE:BEKE) 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. (NYSE:BEKE) 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. (NYSE:PNM) 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. (NYSE:PNM) 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. (NYSE:PNM) 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 (NYSE:CI) 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 (NYSE:CI) would greatly benefit from the biosimilars of Humira in the healthcare services market. Goldwasser also raised his price target for Cigna Corporation (NYSE:CI) from $283 per share to $296 per share.
Separately, investment management firm Davis Funds mentioned Cigna Corporation (NYSE:CI) 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. (NYSE:SNOW) 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. (NYSE:SNOW)’s existing customers plan to boost their cloud spending this year.
In addition, JPMorgan analyst Mark Murphy said that Snowflake Inc. (NYSE:SNOW) 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.
