Wall Street’s top analysts support buy-rated stocks like Facebook and Micron
Sanjay Mehrota, Micron CEO
Scott Mlyn | CNBC
With the focus on where the pandemic came from, Wall Street remains a source of great uncertainty.
So how can exciting investment opportunities be found? By following the latest stock recommendations from analysts who are consistently getting it right.
TipRanks’ analyst forecasting service seeks to identify the top performing analysts on Wall Street. With this ranking, taking into account the number of reviews given by each analyst, these top experts are the analysts who achieve the highest success rate and average return per review on an annual basis.
Here are the five most popular stocks among analysts right now:
Following the Energy & Commerce House Committee hearing, “Nation Disinformation: The Role of Social Media in Promoting Extremism and Misinformation,” Monness analyst Brian White remains optimistic on Facebook. To this end, on March 29, he affirmed a buy rating and a price target of USD 375 (27% upside potential).
White argues that the hearing “was a rare phenomenon: governing the leading social media platforms through increased regulation, changes to Section 230, or possibly breaking the largest platforms apart has become one of the few issues that are both democratic and democratic Republican leaders can agree on. “
“Mark Zuckerberg did the best performance of the hearing, was well prepared, thoughtful, professional, respected the questions raised, and was open to improving the platform,” said White.
The analyst calls the hearing “a brazen political force on both sides of the aisle” and believes lawmakers tried to appeal to local voters. However, he doesn’t deny that social media has caused serious problems.
White said, “We believe that the societal dangers that these platforms have plagued our culture with are well founded and that significant changes must be made before there is no turning back.”
It should also be noted that part of the discussion has focused on whether social media platforms should be viewed as publishers rather than just information carriers, which would essentially make them “ineligible for Section 230 liability protection”.
In addition, other members of the subcommittee called for the “dissolution of Big Tech,” comparing Facebook, Google’s parent company Alphabet and Twitter with Standard Oil and AT&T.
“If this journey ultimately leads to the breakup of Facebook and / or Alphabet, we believe stocks would get a higher valuation than they are today,” commented White.
One of the top 75 analysts tracked by TipRanks, White’s calls have an average annual return of 28.2%, with a success rate of 73%.
Micron’s shares fell over 4% after close of trading on March 31, after the chip maker released its second quarter fiscal year results. In response to the better-than-expected result, Mitch Steves of RBC Capital repeated a buy rating and raised the price target from $ 110 to $ 120. The updated target implies an upside potential of 36%.
Looking at the details of the print, Micron posted sales of $ 6.24 billion, which was above the consensus estimate of $ 6.19 billion, and earnings per share of $ 0.98, which is also the The $ 0.95 call surpassed the street. In addition, DRAM made up around 71% of sales, with sales volume increasing in the high single digits compared to the previous quarter.
The guidelines were also better than originally expected by analysts. Management had sales of $ 6.9 billion to $ 7.3 billion and earnings per share of $ 1.55 to $ 1.69, bringing consensus estimates of $ 6.83 billion and US $ 1.32 Dollars have been exceeded. Additionally, Steves notes that gross margins “are growing rapidly considering the company hit a gross margin of 41.5% in the middle”.
There was a surprise for Steves, however. After the market closed on March 31, the Wall Street Journal reported that Micron and Western Digital are considering a deal that would result in the acquisition of Kioxia for approximately $ 30 billion. Based on the article, a deal isn’t certain and Kioxia might be interested in an IPO later this year if a deal is ultimately not hit.
Steves weighed the impact of a deal, commenting, “Given that the bottom line would be consolidation (if a deal does happen), we believe that would be a net positive for the storage industry. In the long term, it would likely result in improved momentum of storage supply / demand. “
With an impressive 76% success rate and an average return of 35.2% per rating, Steves is among the top 30 analysts tracked by TipRanks.
Due to increasing confidence in growth and margin prospects, James Ricchiuti of Needham switched Benchmark Electronics for electronic manufacturing services (EMS) from Hold to Buy on March 30th. In addition, the five-star analyst has set a price target of USD 35 and thus achieved the upward trend with potential at 13%.
Ricchiuti tells its customers that it previously expected the semiconductor capital goods segment to grow by around 10% in 2021, the company commented. However, the analyst believes this estimate could be “conservative” given the “increasingly positive tone in the semi-cap market, including Applied Materials, BHE’s largest customer (12% of 2020 sales).”
With this in mind, the company’s semi-cap team predicts WFE growth of 21% in 2021. “Given the more positive backdrop for this part of BHE’s business, we are more optimistic about improving our overall estimates,” said Ricchiuti.
It should also be noted that Benchmark launched this year “with strong booking momentum in 2020 (over $ 800 million in new bookings) despite the pandemic”.
This prompted Ricchiuti to state that “BHE is aiming for 5% revenue growth through 2022, which seems increasingly reasonable in an improving economy. Given the strong mix of higher quality revenues, we are confident that gross margins will be solid sequential over the course of the course will improve by 2021 while at the same time we expect BHE to hold the line on SG&A costs. “
Additionally, Ricchiuti believes that the strength of defense could offset headwinds in the commercial aerospace A&D business.
With a success rate of 67% and an average return of 23.5% per rating, Ricchiuti ranks 83rd in TipRanks’ list of the best performing analysts.
Lantheus develops diagnostic imaging tools and products that healthcare providers can use to identify diseases. For SVB Leerink analyst Richard Newitter, the recent takeover of the worldwide rights to NTI-1309 from Noria Therapeutics, an imaging agent for PET oncology, is an “interesting addition to the LNTH offering for cancer diagnostics / pharmaceutical services”.
Against this background, Newitter repeated a buy recommendation for the share. In addition, the analyst kept the target price of $ 25 unchanged. This number suggests that there could be upside potential of 17% in stock.
Under the terms of the acquisition, LNTH has exclusive rights to develop, manufacture and commercialize the NTI-1309. In addition, Noria will be responsible for the candidate’s early clinical development. Upon completion of the Phase 1 study, NTI-1309 will be integrated into the LNTH portfolio of imaging biomarkers and included in the offering for academic organizations and pharmaceutical companies in oncology drug development programs.
Newitter further weighed on the recent purchase, saying, “NTI-1309 has the potential to expand the reach of LNTH beyond prostate cancer … with additional diagnostic biomarker targeting and pharmaceutical service capabilities for other cancers.” He added, “From our point of view, NTI-1309 represents a longer term initiative and adds to the overall value of LNTH’s diagnostic / pharmaceutical services portfolio.”
Because of this, Newitter expects the company to generate approximately 20% revenue between 2020 and 2023E as it leverages its growing pipeline of diagnostic image enhancement solutions to “open sizable, rapidly growing and undermined cardio / oncology market opportunities.” .
That being said, PyL ‘Lantheus’ prostate specific membrane antigen (PSMA) targeted PET imaging agent for prostate cancer diagnosis remains the main focus of SVB Leerink analyst. The therapy is being reviewed as a matter of priority by the FDA. The PDUFA date is set for May 28th.
“We see PyL as an exciting new product cycle for the company and a major growth driver for the company in the short and medium term. We are modeling the PyL rev of $ 5.7 million in 2021E and $ 52 million in 2022E, what mgmt. Appeared comfortable with during recent meetings, “Newitter explained.
Newitter landed at # 178 on the TipRanks ranking, with a 71% success rate and an average return of 26.9% per review.
After calling Matt Murphy, Marvell CEO, Christopher Susand, an analyst at Susquehanna, is optimistic about the semiconductor company’s long-term growth prospects.
Therefore, the top analyst retained a buy rating. Additionally, Rolland raised its target price from $ 60 to $ 62 to reflect increased visibility. This new target implies an upside potential of 27% from the current level.
According to Rolland, the most important part of the call was discussing Marvell’s ASIC strategy.
“Overall, management believes that custom ASICs (5G, cloud, auto) could offer billions of dollars in opportunities in five years. The Inphi addition and its strong position in optics should be an accelerator and magnet for new ASIC companies in a broader sense. Marvell should continue to increase speeds and feeds to eventually offer ASIC capabilities that can compete with Broadcom, “said the analyst.
Additionally, the company will continue to “increase speeds and feeds” and, in Rolland’s view, may offer ASIC capabilities similar to Broadcom’s. From a financial perspective, the analyst believes ASICs will have little impact on gross margins, but other areas like NRE could boost operating margins.
Turning to 5G, Rolland stated, “In addition to Marvell’s strong 5G core offerings, we believe the FPGA swap can now take place in the radio head, which may be highlighted by Marvell’s recent announcement to Samsung. Marvell has shown ~ 70% energy savings over previous ones FPGA solutions in the radio head. “
Additionally, Murphy pointed out that O-RAN is gaining momentum around the world, with the recent C-band auction potentially also providing a boost, “as carriers should soon invest more aggressively in base station hardware after spending billions on related frequency auctions.” “
Rolland is a top 50 analyst and has a 74% success rate and an average return of 21.7% per rating.