10 Stocks Analysts Are Upgrading Right Now

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4. MongoDB (NASDAQ:MDB)

Market Cap: $27.31 billion

Average Upside Potential: 35%

Number of Hedge Fund Holders: 69

BTIG analyst Gray Powell initiated coverage of MongoDB at Buy on Tuesday with a $417 price target. He sees a large and growing market for its database software and share gains against legacy vendors. BTIG’s checks with partners pointed to stable demand and partner practices growing at a healthy clip, and he expects the new product cycle, led by MongoDB 9.0 and a product called AMP, to keep revenue growth above 20% over the next few years. Agent Engine and Atlas Infinite are longer-term upside, and BTIG expects a new three-year revenue target.

MongoDB sells a database that stores information as flexible documents rather than rigid tables, and revenue growth reached 25% over the past 12 months. The chief executive left in late September, the shares tumbled that day, and guidance for the current quarter also disappointed investors who were already paying a premium multiple. BTIG’s note answers that worry with demand data rather than management commentary. The next report is due in early December. We looked at whether MongoDB can hold its guidance after losing its chief executive.

3. Magnolia Oil & Gas (NYSE:MGY)

Market Cap: $6.22 billion

Average Upside Potential: 42%

Number of Hedge Fund Holders: 32

Gerdes Energy Research upgraded Magnolia Oil & Gas to Buy from Neutral on Tuesday with a $29 price target. Magnolia produces oil and natural gas in Texas, and it reported its first results since closing the Wildfire acquisition. Adjusted free cash flow came to $223.7 million. Net debt of about $1.9 billion put leverage below 1 times projected 2027 EBITDA, a goal management had planned to reach a year later or more. Management is capturing cost savings on the acquired acreage faster than planned, having already swapped in its own rigs and crews.

Chief Executive Officer Christopher Stavros said the shares have felt pressure because the seller of Wildfire received stock in the deal and may sell some of it. Magnolia’s answer is to keep returning cash: it plans to buy back at least 1% of its shares every quarter, and it has raised its quarterly dividend by a cumulative 20% this year. Our recap of JPMorgan’s bet that Magnolia can break to new highs gives more on how analysts see the stock.

2. Comfort Systems USA (NYSE:FIX)

Market Cap: $40.39 billion

Average Upside Potential: 63%

Number of Hedge Fund Holders: 83

Initiating coverage on Tuesday, JPMorgan analyst Michael Fairbanks rated Comfort Systems USA Overweight with a $1,700 price target and added it to the firm’s U.S. Equity Analyst Focus List. He credits its ability to mobilize skilled labor at scale, with more than 50 operating units across the country and a traveling workforce, and sees more upside if it signs further deals with frontier AI labs or colocation providers. He says its margins, growth, cash conversion and acquisition record justify a premium multiple.

Comfort Systems installs and services mechanical, electrical and plumbing systems, increasingly inside data centers. Its factory-built modular systems have grown into a much larger share of revenue since 2022, and capacity keeps expanding through late 2027. Third-quarter revenue rose 54%, and backlog reached a record $17.8 billion, nearly double a year earlier. Several analysts have trimmed targets over margin pressure, data center stocks fell after the midterms, and Chief Financial Officer Bill George retires at year-end. We recently examined how much of the $1.5 billion in cash the company generated is already spoken for.

1. Riot Platforms (NASDAQ:RIOT)

Market Cap: $7.01 billion

Average Upside Potential: 71%

Number of Hedge Fund Holders: 55

Jefferies analyst Jonathan Petersen upgraded Riot Platforms to Buy from Hold on Tuesday and more than doubled the price target to $28 from $13. Riot started as a bitcoin miner and now rents out power and land for AI data centers. At its Corsicana site it signed a deal that Petersen finds highly favorable, because it earns money from the property with less execution and financing risk than building the data center itself.

The 15-year initial term is expected to bring in about $28 billion, the tenant pays nearly all operating costs, and management puts the yield on the project’s cost at about 33%. Riot sold 20,264 bitcoin this year to fund the build and says it does not expect to issue equity for announced projects. The company still plans to line up $6.1 billion to $7 billion of non-recourse project debt, and KBW downgraded the shares to Market Perform on Wednesday. Whether Riot can fund the build after signing a large lease is a question we took up in an earlier look at its data center plans.

READ NEXT: Riot Platforms (RIOT) & CleanSpark (CLSK): Bitcoin Miners are Becoming AI Landlords. Riot Just Signed a $9 Billion Lease to Prove It and Can Cloudflare (NET) Become the Gatekeeper of the AI Web?

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