Salesforce [CRM] the stock price reversed the trend last week – making double-digit gains when most stocks weakened. After improving its outlook for the entire year, software as a service company was a rare ray of hope in an otherwise troubling week for the markets.
The start of last week saw the biggest sell-off the markets have seen in the past four months, with some pundits questioning whether Evergrande was the next Lehman Brothers as the indebted real estate company missed an interest payment deadline. By midweek, those fears had turned into the possibility that the Fed would start cutting its bond purchases from November, while rate hikes could start next year.
This does not mean that analysts think there is more growth in the market. We’re looking at three stocks – including Salesforce – that were either updated or had bullish calls repeated in the past week that may have a potential upside of at least 20% on their stock price.
Piper Sandler bats for Salesforce
Salesforce share price [CRM] jumped 12.9% last week after raising its outlook for fiscal 2022, easily outpacing the Nasdaq’s 3.5% gain in the same period. Piper Sandler analysts improved the action on Friday, after coming away impressed from talks with the new management of the SAAS giant.
“We are in the process of moving CRM from ‘overweight’ to ‘neutral’ based on in-person conversations with new leaders over the past two days, giving us confidence that we could attend a period multi-year expansion of multiples and benefits linked to operational discipline and the organic. investments that can support growth.
âWe are in the process of upgrading the CRM from ‘overweight’ to ‘neutral’ based on in-person conversations with new leaders over the past two days, which gives us confidence that we could witness a multi-year period of expansion of multiples and benefits linked to operational and organic discipline. investments that can support growth â- Piper Sandler analysts
Piper Sandler raised her price target on the Salesforce share price from $ 280 to $ 365, which would cause a 28% rise at Friday’s close. Wells Fargo also raised its price target from $ 325 to $ 340.
Citi supports GM share price
general managers [GM] the stock price took a dip in last Monday’s sell-off, falling 4.8% at one point in intraday trading. However, the stock managed to end the week up 1.8%, indicating that investors may have been a little too hasty to hit the sell button.
Citi analyst Itay Michaeli on Friday reiterated his call to “buy” the GM stock price. Michaeli has an official price target of $ 90 per share on GM, but believes the stock has the potential to hit $ 100 – up nearly 100% at Friday’s close. The automaker’s next investor day could be a key catalyst.
âWe continue to view the next Investor Day as a significant potential positive catalyst for the stock, as we see a number of avenues for GM to address key debates and unlock trapped value,â Michaeli wrote in a note Friday.
“We continue to view the next Investor Day as a significant potential positive catalyst for the stock, as we see a number of avenues for GM to address key debates and unlock the trapped value” – Citi analyst Itay Michaeli
Michaeli isn’t the only analyst optimistic about GM’s potential. According to data from Refinitiv, GM has an average price target of $ 70.15 – up 34.3% at Friday’s close. Of the 34 analysts offering recommendations, eight rate the stock as a âbuyâ, 14 âoutperformâ and only one sees it as a âholdâ.
Dell stock at a broken price
Dell [DELL]. After appropriately impressing analysts, Dell was rewarded by Citi saying it was its “first choice of stocks” and consolidating a place on CitiGroup’s Focus list in the United States with a price target of 130 $ – a 26% rise from Friday’s close of $ 103.88.
Citi analysts also noted that Dell could be a good deal compared to its peers.
âOn basic metrics, we think Dell is trading around 20-25% off its peers,â CitiGroup analysts said.
An uncertain market
The Evergrande fiasco saw an estimated $ 6.7 billion wiped out in value from Hong Kong’s four biggest real estate giants last Monday. However, the fallout was not limited to the Chinese markets. Global indices fell as investors sold stocks, including those with no clear connection to China.
Looking further ahead, some pessimism entered the markets last week. Next to Evergrande, the other big story has been the Federal Reserve signaling that it will move towards tightening monetary policies that have kept interest rates at historically low levels. Other central banks have already increased the cost of borrowing. This is arguably the biggest long-term hurdle facing the US and European stock markets today.
âTo be clear, there is still a good chance that US stocks will hit new highs while the risk of a recession remains low. But the climb will probably be more bumpy â- Tan Kai Xian from Gavekal
The counter argument is that this was a massive sell off triggered by a negative headline, with the possibility that some will buy back in the weeks to come.
“To be clear, there is still a good chance that US stocks will record new highs as the risk of a recession remains low,” said Tan Kai Xian of Gavekal. Barron. “But the climb will probably be more bumpy.”
Barron also points out data from Bank of America Securities which shows that $ 28.6 billion was pulled from US markets last week, the highest number since 2018. However, it also points out that eight BofA clients believe there will have a “merger” for two who think there will be a “merger”. So while it seems like more growth is always expected, the way forward seems a little less clear as the era of cheap money draws to a close.
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