Wall Street analysts bullish on stocks like Chevy and Qualcomm

Wall Street analysts bullish on stocks like Chevy and Qualcomm

Chevy CEO Sumit Singh (C) owns Chevy Inc. on June 14, 2019 on the New York Stock Exchange (NYSE). The opening bell has rung to begin day trading for the IPO.

Andrew Kelly | Reuters

The upside potential lies in many areas of the stock market, from e-commerce focused pet healthcare to cybersecurity to online sports games.

Financial data aggregator TipRank compiles the opinions of expert analysts in the capital markets. Some of the best in the business recently explained their bullish thesis on five stocks that hit different categories in the world of listed companies.

Let’s take a look at what analysts have to say about the top performing stocks and sectors in the current market environment.

crowd strike

The shift to cloud-based IT solutions over the past year and the combination of several high-profile cybernetic vulnerabilities have led security companies to higher valuations. Crowd strike (CRWD) is not out of the question, as it recently posted “fantastic” results after a strong second quarter, as Alex Henderson of Needham & Co. wrote. He said the CRWD dashed their hopes “everywhere”.

Henderson reiterated a buy note on the stock and raised his price target from $ 335 to $ 340.

After winning several large clients, the analyst is convinced that the company can continue to make lucrative deals and increase frequencies. In addition, he noted that customer retention is healthy and more and more customers are receiving modules from CrowdStrike.

Five-star analysts are overly bullish on the title, saying its “platform design gives it substantial advantages in AI, automation, efficiency and scalability over its competition.” He added that CrowdStrike can easily grow organically or inorganically and deliver value to its shareholders and customers.

In addition to beating its earnings and forecast, the cybersecurity firm has outperformed subscribed customers quarter over quarter and has a trusted pipeline. Henderson said the company recently signed an agreement with Verizon for its Falcon Suite software.

The analyst wrote that because of CrowdStrike’s strong business performance, he believes “investors will be rewarded for buying and holding these stocks.”

On TipRanks, Henderson is ranked # 35 out of over 7,000 analysts. They have a 71% pass rate on their notes, with an average return of 30.6% per note.

Chevrolet

As people were prohibited from shopping at retail outlets during the COVID-19 pandemic, e-commerce businesses have exploded. Many people acquired new pets while stuck at home. Pets are considered annuities and require recurring care. When combined with Chewy’s Animal Pharmacy Services (CHWY), this translates into customer loyalty.

Brian Fitzgerald of Wells Fargo writes that Chevy’s PetScribe platform “could improve health care compliance among pet parents and many potential revenue opportunities for CHWY and its healthcare partners over the years. time”. The suite of tools helps veterinary clinics increase revenue and optimize the experience for their clients.

Fitzgerald maintained his bullish buy rating on the stock and declared a price target of $ 110.

Although Chewy increases its operating expenses by investing in distribution centers and marketing, the analyst still sees an advantage as the company innovates and executes its efforts. Additionally, despite a slight decline in year-over-year customer growth, Chevrolet’s net sales per active customer “grew by the largest margin in company history for a customer base. complete ”.

The five-star analyst also noted that newly acquired customers spend more upfront and have higher spend rates throughout their association with the company.

On TipRanks, out of over 7,000 financial analysts, Fitzgerald is ranked No. 36. It has a 72% pass rate on its stock ratings and gives an average return of 33.4% per rating.

Qualcomm

The consequences of the global semiconductor shortage have affected several major industries, especially car makers and smartphone makers. For chip designers, competitive demand has exceeded current supply levels. This is true for Qualcomm (qcom), which is positioned well for long-term revenue by signing important deals and focusing on meeting demand.

Vijay Rakesh of Mizuho Securities wrote that the company is adopting a multi-sourcing strategy to equalize chip sourcing. In addition, the recently concluded deal between Qualcomm and Chinese tech company HONOR is expected to yield substantial gains, especially taking into account the multimedia ramp-up opportunities for the Beijing 2022 Winter Olympics.

Rakesh again placed a buy note on the stock and reiterated his bullish price target of $ 180.

Beyond smartphone processors, the five-star analyst sees room for growth in market share for RF front-ends as well as for personal computers, laptops and automobiles. Qualcomm recently completed the acquisition of processor maker Nuvia, giving Rakesh a long-term revenue forecast from 2023 to 2024.

Calling it the “gorilla in the room,” the analyst does not foresee any serious short-term damage to Apple’s plans to source iPhone processors. It expects the tech retailer to eliminate internal chips from its low-end phones first, and possibly high-end products later. The initial phase of this “difficult transition” will begin in 2023.

On TipRanks, Vijay Rakesh is ahead of the curve, ranked # 89 out of over 7,000 professional analysts. Their pass rate is 68% and their collective grades yielded an average return of 26.7%.

FuboTV

Video and TV streaming services and online sports betting companies have seen significant growth among the winners over the past year and a half. One company in particular is trying to bring the two together. fuboTV (fubo) bet on the move and his efforts show he is on the right track.

Darren Aftahi of Roth Capital Partners wrote that the TV streaming service “has taken two important steps in the imminent launch of its bookmaker”. These two projects include regulatory successes as well as an upcoming test of its new platform.

Aftahi rated the stock as a bullish buy and declared a price target of $ 45.

Analyst Five Star pointed out that FuboTV recently received regulatory approval in Iowa and Arizona for mobile sports betting games. This development is seen as an important step towards the potential rise of the company, as it is the first state to accept FuboTV’s applications. The company’s gaming platform is currently awaiting regulatory approval in three other states.

To meet its fourth quarter release schedule, FuboTV is running a trial of its live sports streaming service in conjunction with the “free-to-play” and the Fanview gaming experience, with the next trial slated for September. These beta tests aim to prove their concept of an integrated gaming platform with streaming and maximize user engagement.

Aftahi is convinced that this new concept could offer the company a number of innovative ways to monetize and differentiate its platform, as well as “build a wheel for membership and engagement”.

On TipRanks, Aftahi maintains a # 140 ranking out of more than 7,000 expert analysts. They have a 50% success rate and an impressive average return of 39.1%.

Autodesk

Multinational software developer Autodesk (ADSK) recently hosted its annual Investor Day, where it presented a number of developments that have piqued the interest of analysts. Current or upcoming changes in billing strategy, the digitization of its products, and the shift to a more subscription-based model have provided RBC Capital’s Matthew Hedberg with enough evidence to reiterate his bullish thesis.

Hedberg gave the stock a buy status and provided a price target of $ 363.

Autodesk also used the Investor Day platform to state its free cash flow targets for 2023, which the analyst called “bullish” and are expected to be met. His optimism is in part due to changes in the company’s billing policy.

Regarding this change, Hedberg clarified that ADSK plans to convert multi-year prepaid contracts into annual paid contracts. While he expects this move to create volatility in the company’s free cash flow in the near term, it is expected to stabilize positively around fiscal 2025 or 2026. This makes the stock particularly appealing to the game. long-term.

The analyst referred to the transition to digitization over several years, explaining that he is encouraged that “the company’s decision to strengthen the system has essentially eliminated non-compliant users of the current product.” In addition, during the pandemic, 75% of new go-to-market customers were direct.

On TipRanks, the site ranks Hedberg among more than 7,000 analysts, placing him in 7th place. Their grades earned them an 82% pass rate and an average return of 39.3%.

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