Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets

In this article, we will discuss the 10 stocks whose price targets were recently raised by analysts.

On January 17, financial markets experienced a significant downturn, marking the worst day in a month for stocks, primarily driven by a surge in bond yields. Accrdoing to Bloomberg, this development has raised speculations that the Federal Reserve may not be quick to implement interest rate cuts, given the apparent resilience of the economy. The likelihood of a March interest-rate cut, as indicated by Fed swaps, has now been trimmed to approximately 50%, reflecting a shift in market expectations. The surge in US retail sales, reported as the highest in three months, further intensified concerns among investors. The robust reading on retail sales triggered apprehensions about the efficacy of Wall Street’s assertive dovish stance, especially in the context of favorable economic data. Central bank officials, adopting a more cautious tone regarding potential easing measures, added to the apprehension among traders. This cautious stance has created an environment where market participants are now readjusting their expectations, delaying the anticipated timing of the first Fed move. As a result, the odds of a rate reduction in the first quarter have been revised downward. The comments from European Central Bank President Christine Lagarde underscore the concerns about aggressive market bets on interest-rate cuts. Lagarde emphasized that such speculative behavior in financial markets may not be conducive to policymakers’ efforts and their ability to effectively manage economic challenges.

Generative Artificial Intelligence (AI) has commanded considerable attention at the World Economic Forum, drawing interest from major tech players like Salesforce, Microsoft, and Google. In 2024, the spotlight has shifted to a more nuanced exploration of generative AI, with a specific emphasis on advancing the accuracy of AI results. This evolution is deemed critical for fostering confidence, particularly in high-stakes industries such as healthcare and manufacturing. Intel CEO Pat Gelsinger has emerged as a key advocate for this refinement, asserting that the next phase of AI development involves incorporating formal correctness into the underlying models. In an interview with CNBC, Gelsinger underscores the need for precision, especially in domains like medicine, manufacturing, and autonomous driving, where accuracy is paramount. Interviews with Gelsinger and Clara Shih, CEO of Salesforce AI, reveal a shared commitment to experimentation and co-piloting tests as instrumental strategies for improving accuracy and encouraging wider adoption of AI technologies. Shih introduces a pragmatic three-phase approach for Artificial General Intelligence (AGI) adoption, which begins with assisting work, progresses to ensuring accuracy in autopilot mode, and ultimately leads to trusting the technology at chosen confidence levels. This phased approach aligns with the broader goal of making AGI more approachable and less intimidating, emphasizing the crucial role of human acceptance. Sam Altman, CEO of OpenAI, contributes insights during panel discussions, characterizing AGI as a potent tool rather than a disruptive force replacing jobs. Altman underscores the collaborative potential of AI, describing it as an enhancer of productivity that amplifies human capabilities.

Adena Friedman, CEO of Nasdaq, reflects on the past year as a transformative period for AI, describing it as a time of discovery. The financial industry, including Nasdaq, is gearing up for an “activation” phase, leveraging AI to update outdated code and modernize aging systems. The anticipated outcome is significant improvements in automated workflows, leading to substantial time savings for employees. The discussions at Davos underscore the pivotal role of generative AI in shaping the technological landscape. The current focus on accuracy, trust-building, and practical applications across diverse industries signals a transformative shift, emphasizing the collaborative potential of AI as a tool for enhancing productivity and human capabilities.

On the stock market front, analysts are bullish on stocks such as Amazon.com, Inc. (NASDAQ:AMZN), NVIDIA Corporation (NASDAQ:NVDA) and Verizon Communications Inc. (NYSE:VZ) among many others. Check out the complete article to see the details of these upward revisions in price targets.

10. Intel Corporation (NASDAQ:INTC)

Upside Potential: N/A

As of January 16, Barclays analyst Ryan Macwilliams has opted to uphold his Equal-Weight rating on Intel Corporation (NASDAQ:INTC), while concurrently revising the price target upward from $32 to $44. This adjustment in the price target indicates an optimistic outlook for the stock’s performance in the foreseeable future. It is important to note that the industry context for Intel Corporation is crucial in understanding these recommendations. In the dynamic landscape of the technology sector, Intel, as a prominent player in the semiconductor industry, is subject to various market forces and trends. The Equal-Weight rating implies that the analyst perceives Intel Corporation performance to be in line with the broader market, neither overweight nor underweight. This nuanced stance suggests a balanced perspective, taking into consideration both the company’s strengths and potential challenges. The decision to raise the price target to $44 signifies increased confidence in Intel Corporation ability to deliver positive returns to investors.

Upslope Capital Management stated the following regarding Intel Corporation in its fourth quarter 2023 investor letter:

“Intel Corporation (NASDAQ:INTC) – New Long: This is not a traditional long for Upslope in any sense. Intel is outside of the box in terms of typical sector and market cap focus, and the position is really a portfolio hedge (and structured as such). The thesis is very simple: Intel is uniquely positioned to benefit in two important scenarios, both of which require “protection” for Upslope’s portfolio: a continued melt-up in technology stocks and/or rising tensions over Taiwan. Combined with expectations and sentiment around Intel that were incredibly low, this nudged me to add exposure via long-dated INTC call options. While still material in terms of delta-adjusted exposure, the position has been reduced repeatedly and is much more modest today.”

09. Colgate-Palmolive Company (NYSE:CL)

Upside Potential: 2%

As of January 16, Barclays has adjusted its outlook on Colgate-Palmolive Company (NYSE:CL), a key player in the consumer goods industry. Specifically, Barclays has raised the company’s price target from $75 to $82, reflecting a moderate upside potential of 2% in comparison to its current market price. Despite this upward revision, Barclays maintains an Equal Weight rating on Colgate-Palmolive Company shares. This strategic move by Barclays suggests a cautious yet optimistic stance on the company’s performance. The Equal Weight rating implies that, according to Barclays analysts, Colgate-Palmolive Company is expected to perform in line with industry peers, neither overweight nor underweight. Investors may interpret this rating as an indication of balanced expectations for the stock’s future performance. The increase in the price target to $82 underscores Barclays’ confidence in Colgate-Palmolive Company ability to generate positive returns for investors. The 2% upside potential suggests a measured optimism, taking into account various factors such as market conditions, company fundamentals, and potential catalysts within the consumer goods sector.

Similar to the optimistic sentiments expressed by analysts towards Amazon.com, Inc., NVIDIA Corporation, and Verizon Communications Inc., they are favorable about Colgate-Palmolive Company.

08. The Coca-Cola Company (NYSE:KO)

Upside Potential: 10%

As of January 16, Barclays analyst Lauren Lieberman has made notable adjustments to the outlook for The Coca-Cola Company (NYSE:KO), a prominent player in the beverage industry. Specifically, Lieberman has increased the company’s price target by 10%, elevating it from $60 to $66. Importantly, this modification reflects a substantial upside potential of 10% in comparison to its current market price. Concurrently, Barclays has maintained an Overweight rating on The Coca-Cola Company shares. The decision to raise the price target to $66 indicates a heightened level of confidence in Coca-Cola’s future performance, as perceived by Barclays. This optimistic adjustment may be underpinned by factors such as anticipated improvements in financial metrics, strategic initiatives, or positive trends within the beverage industry. The Overweight rating reaffirms Barclays’ belief that The Coca-Cola Company is poised to outperform its industry peers. This rating suggests a favorable view of the stock’s potential for delivering strong returns relative to the broader market. Investors may interpret this as a signal to consider The Coca-Cola Company as an attractive investment opportunity within the beverage sector.

Hayden Capital made the following comment about The Coca-Cola Company in its third 2023 investor letter:

“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.

Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.

I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.

But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”

Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”

07. Lowe’s Companies, Inc. (NYSE:LOW)

Upside Potential: 11%

As of January 16, Piper Sandler has revised its assessment of Lowe’s Companies, Inc., a prominent player in the home improvement retail industry. Specifically, Piper Sandler has increased the target price for Lowe’s Companies, Inc. from $218.00 to $245.00, signaling a substantial upside potential of 11%. This adjustment is accompanied by Piper Sandler’s decision to affirm an “overweight” rating for the stock. The heightened target price of $245.00 reflects Piper Sandler’s optimistic outlook on Lowe’s Companies, Inc., suggesting a strong belief in the company’s potential for future growth. This positive adjustment may be driven by factors such as anticipated improvements in financial performance, strategic initiatives, or favorable trends within the home improvement retail sector. The “overweight” rating underscores Piper Sandler’s conviction that Lowe’s Companies, Inc. is well-positioned to outperform its industry peers. This rating implies a favorable view of the stock’s potential to deliver robust returns compared to the broader market. Investors may interpret this rating as a signal to consider Lowe’s Companies, Inc. as an attractive investment opportunity within the home improvement retail landscape.

Madison Investors Fund made the following comment about Lowe’s Companies, Inc. in its Q3 2023 investor letter:

“The bottom five individual contributors were Dollar Tree, Fiserv, Analog Devices, Lowe’s Companies, Inc. (NYSE:LOW), and Alcon. Both Analog Devices and Lowe’s Companies saw end-market demand moderate (in semiconductors and home improvement products, respectively) relative to the strong levels over the last couple of years. Despite these near-term trends, we remain very confident in the long-term trends within both markets.”

06. JPMorgan Chase & Co. (NYSE:JPM)

Upside Potential: 15%

As of January 16, BMO Capital analyst James Fotheringham has made significant adjustments to the outlook for JPMorgan Chase & Co., a major player in the financial services industry. Specifically, Fotheringham has increased the firm’s price target from $192 to $194, signaling a noteworthy upside potential of 15%. However, it’s important to note that despite the upward revision in the price target, BMO Capital has maintained a Market Perform rating on JPMorgan Chase & Co.. The decision to raise the price target to $194 suggests an optimistic perspective on JPMorgan’s future performance, indicating confidence in the potential for significant appreciation in its stock value. This positive adjustment may be attributed to factors such as anticipated improvements in financial metrics, strategic initiatives, or positive trends within the financial services sector. The Market Perform rating from BMO Capital implies a neutral stance on JPMorgan Chase & Co., suggesting that the stock is expected to perform in line with the broader market. While there is acknowledgment of the potential for upside, the rating indicates a measured view on the stock’s relative performance compared to its industry peers.

In its fourth quarter 2023 investor letter, Vltava Fund stated the following regarding JPMorgan Chase & Co.:

“Last spring, the US went through a brief banking crisis that cost several smaller and medium-sized banks their lives. One of them, First Republic Bank, with assets of $230 billion, went into receivership and was bought out by the largest US bank, JPMorgan Chase & Co. (NYSE:JPM). The acquisition terms were very favourable for JPM and the facts that few, if any, other banks could have taken over the whole of First Republic Bank in its then-present state while guaranteeing more than $100 billion of its deposits played a role. JPM could do it. It is not only the largest, but also by its balance sheet the strongest US bank and, in our opinion, clearly the best managed. It has come out of this crisis even stronger. We have actively followed the banking sector for 20 years in many countries around the world. Our view is that a well-managed bank can be a very good long-term investment but that it is better to focus on the best and highest quality available. Banking is not a sector where it pays to trade quality for cheaper valuations. That is why we hold JPM.”

05. Verizon Communications Inc. (NYSE:VZ)

Upside Potential: 15%

As of January 16, financial institution Citi has revised its evaluation of Verizon Communications Inc., a key player in the telecommunications industry. Citi has upgraded its rating on Verizon from Hold to Buy and concurrently raised the price target from $42 to $45, reflecting a substantial upside potential of 15% in compariosn to its current market price. The decision to bestow a Buy rating on Verizon Communications Inc. implies Citi’s strong endorsement of the stock as an attractive investment opportunity. This positive shift in the rating suggests that Citi anticipates Verizon Communications Inc. to outperform its industry peers, signaling confidence in the company’s growth prospects, strategic initiatives, or other favorable factors within the telecommunications sector. The adjusted price target of $45 emphasizes Citi’s optimistic outlook on Verizon Communications Inc. future market performance. This upward revision indicates Citi’s belief in the potential for significant appreciation in the stock’s value, providing investors with a clear signal to consider Verizon Communications Inc. as a compelling investment within the telecommunications landscape.

Ariel Global Fund made the following comment about Verizon Communications Inc. in its Q3 2023 investor letter:

“By comparison, global communications and technology leader, Verizon Communications Inc. (NYSE:VZ), continued to weigh on performance following an article in the Wall Street Journal outlining concerns on lead cable lines posing a significant public health threat. Although the lead covered cable lines remain an overhang on shares, we find Verizon’s valuation to be compelling. The company delivered a solid earnings report, with subscriber and financial metrics in-line or ahead of consensus. Management also reiterated full year guidance and noted it may exceed its outlook for free-cash-flow. From a competitive and financial standpoint, we view Verizon to be among one of the best positioned telecoms in the world. Looking forward, we expect free cash flow to grow significantly in the years ahead as the company moves past the secular peak in 5G capital spending.”

04. Snowflake Inc. (NYSE:SNOW)

Upside Potential: 22%

As of January 16, financial firm Truist Financial has made significant adjustments to its assessment of Snowflake Inc. (NYSE:SNOW), a leading player in the cloud data platform industry. Truist Financial has increased its target price on Snowflake Inc. shares from $210.00 to $230.00, signaling a substantial upside potential of 22% in compariosn to its current market price. Simultaneously, Truist Financial has bestowed a “buy” rating upon the company. The decision to elevate the target price to $230.00 reflects Truist Financial’s optimistic outlook on Snowflake Inc. future market performance. This adjustment signifies Truist Financial’s confidence in the company’s potential for significant appreciation in stock value, considering factors such as anticipated improvements in financial metrics, strategic initiatives, or positive trends within the cloud data platform sector. The “buy” rating underscores Truist Financial’s strong endorsement of Snowflake as a favorable investment opportunity. This positive rating suggests that Truist Financial believes Snowflake Inc. is well-positioned to outperform its industry peers, and investors should consider it as an attractive option within the dynamic and competitive cloud data platform landscape.

ClearBridge Multi Cap Growth Strategy made the following comment about Snowflake Inc. in its Q2 2023 investor letter:

“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.

Snowflake Inc. (NYSE:SNOW), a cloud-based data platform company, is positioned well to help enterprises better leverage their own data to get the most out of AI models. Though it is still early days in terms of adoption, Snowflake saw workloads for data science, machine learning, and AI use cases grow more than 90% year-over-year in its most recent quarter.”

03. Amazon.com, Inc. (NASDAQ:AMZN)

Upside Potential: 31%

As of January 17, Wells Fargo & Company has made notable revisions to its evaluation of Amazon.com, Inc., a behemoth in the e-commerce and technology industry. Wells Fargo has increased its target price on Amazon.com, Inc. shares from $190.00 to $197.00, indicating a substantial upside potential of 31% in compariosn to its current market price. Concurrently, Wells Fargo has assigned an “overweight” rating to the company. The decision to raise the target price to $197.00 underscores Wells Fargo’s positive outlook on Amazon’s prospective market performance. This adjustment reflects Wells Fargo’s confidence in the company’s potential for significant appreciation in stock value, taking into consideration various factors such as expected improvements in financial metrics, strategic initiatives, or positive trends within the e-commerce and technology sector. The “overweight” rating emphasizes Wells Fargo’s endorsement of Amazon.com, Inc. as an attractive investment opportunity. This rating suggests that Wells Fargo believes Amazon.com, Inc. is well-positioned to outperform its industry peers, and investors should consider it favorably within the dynamic and competitive landscape of e-commerce and technology. Investors and market participants may interpret the 31% upside potential as a compelling opportunity, prompting a closer examination of the underlying factors contributing to this positive outlook. Analyzing how Amazon adapts to evolving market trends, technological advancements, and consumer behavior within the e-commerce and technology industry will be crucial for assessing the feasibility of the projected upside.

Tsai Capital Corporation stated the following regarding Amazon.com, Inc. in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) ($151.94 – up 80.9% for the year. Recent high $155.63): Amazon, founded by Jeff Bezos in his garage in 1994, is the most dominant e-commerce company and owns Amazon Web Services (AWS), the leading cloud provider. Andy Jassy, formerly head of AWS, became CEO of Amazon in 2021 and is executing exceptionally well. Because of their scale, AWS and Amazon retail benefit from numerous competitive advantages, which in turn drive a high customer value proposition. For example, instead of using the benefits of size to maximize short-term profits, Amazon operates with a scale-economies-shared business model, giving back some of its margin to the underlying consumer. This in turn drives further demand and strengthens the company’s ecosystem. Amazon’s long-term strategy masks the underlying earnings power of the business. As consumers continue to shift their spending from in-store purchases to online shopping, and as data continues to migrate from on-premise servers to the cloud, we expect Amazon to grow revenue at a low double-digit rate for at least the next five years and increase its profit margins over time.”

02. NVIDIA Corporation (NASDAQ:NVDA)

Upside Potential: 31%

As of January 16, financial institution KeyBanc has adjusted its evaluation of NVIDIA Corporation, a leading semiconductor manufacturer. KeyBanc has increased its price target on NVIDIA Corporation shares from $670 to $750, indicating a substantial upside potential of 31%. Simultaneously, KeyBanc has reaffirmed an “overweight” rating for the company. The decision to elevate the price target to $750 underscores KeyBanc’s positive outlook on NVIDIA Corporation future market performance. This adjustment signifies KeyBanc’s confidence in the company’s potential for significant appreciation in stock value, considering factors such as anticipated improvements in financial metrics, strategic initiatives, or positive trends within the semiconductor industry. The “overweight” rating emphasizes KeyBanc’s endorsement of NVIDIA as an attractive investment opportunity within the semiconductor sector. This rating suggests that KeyBanc believes NVIDIA Corporation is well-positioned to outperform its industry peers, and investors should consider it favorably within the competitive landscape of semiconductor manufacturing.

In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding NVIDIA Corporation:

“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.

The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and NVIDIA Corporation (NASDAQ:NVDA). Those three stocks, as well as Microsoft, were among the leading contributors to Strategy performance for the quarter. Microsoft and Nvidia continued to be supported by strong execution and leadership positions in the implementation of generative artificial intelligence (AI).

These are high-quality, cash flow generative businesses that we will continue to own, actively adjusting our positioning sizes based on risk/reward and portfolio construction priorities. With Nvidia shares more than tripling in 2023, we opportunistically took profits throughout the year, an approach that continued in the fourth quarter with additional trims that brought the position down to 6% of overall assets.

Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”

01. Repay Holdings Corporation (NASDAQ:RPAY)

Upside Potential: 33%

As of January 16, Barclays analyst Ramsey El-Assal has made significant adjustments to the outlook for Repay Holdings Corporation (NASDAQ:RPAY), a player in the financial technology industry. El-Assal has increased the price target on Repay Holdings Corporation from $9.00 to $10.00, indicating a noteworthy upside potential of 33%. Importantly, Barclays maintains an “Overweight” rating for the company. The decision to raise the price target to $10.00 signifies Barclays’ optimistic outlook on Repay Holdings Corporation future market performance. This adjustment suggests Barclays’ confidence in the company’s potential for substantial appreciation in stock value, considering factors such as anticipated improvements in financial metrics, strategic initiatives, or positive trends within the financial technology sector. The “Overweight” rating emphasizes Barclays’ endorsement of Repay Holdings Corporation as an attractive investment opportunity within the financial technology industry. This rating implies that Barclays believes Repay is well-positioned to outperform its industry peers, and investors should consider it favorably within the competitive landscape of financial technology.

Baron Small Cap Fund made the following comment about Repay Holdings Corporation in its first quarter 2023 investor letter:

“Shares of payment processing solutions provider Repay Holdings Corporation (NASDAQ:RPAY) fell this quarter. Although the company reported strong fourth quarter results with 17% organic gross profit growth and 29% EBITDA growth, its 2023 financial guidance missed Street expectations. We believe Repay’s weaker outlook reflects macroeconomic uncertainty, the divestiture of a non-core business, tough comparisons in the B2B segment due to biennial political ad spending at its media clients, and, perhaps, some conservatism on the company’s part. We are disappointed that growth has slowed in the core consumer segment but are hopeful that results will return to mid-teens growth. We think the shares are silly cheap, at less than seven times depressed EBITDA, for a well-managed business with unique offerings and a scalable operating platform.”

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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.