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Updated Price Targets of These 3 Stocks Imply +10% Upside
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We see daily analyst upgrades and downgrades, coming with updated price targets. They can be helpful tools for investors, providing a more structured plan and helping to inject positivity surrounding future performance when raised.
Of course, stocks don’t straightforwardly reach price targets, as unforeseen circumstances can always influence performance. Overall, the positive shift in sentiment can be seen as a primary takeaway from these upgrades.
Recently, three stocks – Target (TGT - Free Report) , Home Depot (HD - Free Report) , and Starbucks (SBUX - Free Report) – have all gotten favorable upgrades from analysts. Let’s take a closer look at each.
Target
Target has evolved from a pure brick-and-mortar retailer to an omnichannel entity, modernizing its supply chain to compete with pure e-commerce players. Morgan Stanley upgraded shares from equal weight to overweight, with a new $165 per share price target implying +15% upside from current levels.
The company has enjoyed positive earnings estimate revisions for its upcoming quarterly release expected in February, with the $2.38 Zacks Consensus EPS Estimate up nearly 9% since last October. The company’s profitability has improved nicely, with the value reflecting 26% growth year-over-year.
Image Source: Zacks Investment Research
It’s worth highlighting that the company’s adverse share performance over the last several years has boosted its yield, with shares currently paying out 3.1% annually. And Target has grown its payout nicely, boasting a double-digit 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
TGT shares have also recently experienced the ‘Golden Cross,’ as illustrated in the chart below. The Golden Cross occurs when the shorter 50-day moving average rises above the 200-day moving average, reflecting bullish momentum.
Image Source: Zacks Investment Research
Home Depot
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products, and related services. Piper Sandler upgraded shares from neutral to overweight, raising its price target to $400 and implying +11% upside amid optimism among home improvement.
Shares may not entice value-focused investors given its forecasted growth, with the current 23.6X forward earnings multiple (F1) above the 21.5X five-year median and its respective Zacks Industry average. The company’s earnings are forecasted to decline 10% in its current year on 3% lower sales.
Image Source: Zacks Investment Research
The company’s quarterly consistency can’t be overlooked, exceeding the Zacks Consensus EPS Estimate in 14 consecutive releases. Shares got a nice boost following its latest release, with Home Depot posting a modest EPS beat and reporting sales 0.5% ahead of expectations.
Image Source: Zacks Investment Research
Starbucks
Starbucks is the leading roaster and retailer of specialty coffee globally. Morgan Stanley raised SBUX shares to overweight with a price target of $120 per share, reflecting +30% upside from current levels.
The company’s growth profile remains strong, with consensus estimates for its current fiscal year suggesting 16% earnings growth paired with a 10% sales uptick. Peeking ahead to FY25, consensus estimates reflect an additional 17% of bottom line growth on 10% higher revenues.
Image Source: Zacks Investment Research
Like TGT, Starbucks has increasingly rewarded its shareholders throughout the years, carrying a nearly 10% five-year annualized dividend growth rate. Shares currently yield 2.5% annually, nicely above its respective Zacks Industry average of 2%.
Image Source: Zacks Investment Research
Bottom Line
Price targets can be helpful tools. Of course, it’s critical to note that not all stocks reach these forecasted levels, as unforeseen circumstances can always affect future performance.
Still, the positivity surrounding upgrades can be seen as a solid takeaway.
For those seeking stocks that analysts have recently received favorable coverage, all three above – Target (TGT - Free Report) , Home Depot (HD - Free Report) , and Starbucks (SBUX - Free Report) – precisely fit the criteria.
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Updated Price Targets of These 3 Stocks Imply +10% Upside
We see daily analyst upgrades and downgrades, coming with updated price targets. They can be helpful tools for investors, providing a more structured plan and helping to inject positivity surrounding future performance when raised.
Of course, stocks don’t straightforwardly reach price targets, as unforeseen circumstances can always influence performance. Overall, the positive shift in sentiment can be seen as a primary takeaway from these upgrades.
Recently, three stocks – Target (TGT - Free Report) , Home Depot (HD - Free Report) , and Starbucks (SBUX - Free Report) – have all gotten favorable upgrades from analysts. Let’s take a closer look at each.
Target
Target has evolved from a pure brick-and-mortar retailer to an omnichannel entity, modernizing its supply chain to compete with pure e-commerce players. Morgan Stanley upgraded shares from equal weight to overweight, with a new $165 per share price target implying +15% upside from current levels.
The company has enjoyed positive earnings estimate revisions for its upcoming quarterly release expected in February, with the $2.38 Zacks Consensus EPS Estimate up nearly 9% since last October. The company’s profitability has improved nicely, with the value reflecting 26% growth year-over-year.
Image Source: Zacks Investment Research
It’s worth highlighting that the company’s adverse share performance over the last several years has boosted its yield, with shares currently paying out 3.1% annually. And Target has grown its payout nicely, boasting a double-digit 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
TGT shares have also recently experienced the ‘Golden Cross,’ as illustrated in the chart below. The Golden Cross occurs when the shorter 50-day moving average rises above the 200-day moving average, reflecting bullish momentum.
Image Source: Zacks Investment Research
Home Depot
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products, and related services. Piper Sandler upgraded shares from neutral to overweight, raising its price target to $400 and implying +11% upside amid optimism among home improvement.
Shares may not entice value-focused investors given its forecasted growth, with the current 23.6X forward earnings multiple (F1) above the 21.5X five-year median and its respective Zacks Industry average. The company’s earnings are forecasted to decline 10% in its current year on 3% lower sales.
Image Source: Zacks Investment Research
The company’s quarterly consistency can’t be overlooked, exceeding the Zacks Consensus EPS Estimate in 14 consecutive releases. Shares got a nice boost following its latest release, with Home Depot posting a modest EPS beat and reporting sales 0.5% ahead of expectations.
Image Source: Zacks Investment Research
Starbucks
Starbucks is the leading roaster and retailer of specialty coffee globally. Morgan Stanley raised SBUX shares to overweight with a price target of $120 per share, reflecting +30% upside from current levels.
The company’s growth profile remains strong, with consensus estimates for its current fiscal year suggesting 16% earnings growth paired with a 10% sales uptick. Peeking ahead to FY25, consensus estimates reflect an additional 17% of bottom line growth on 10% higher revenues.
Image Source: Zacks Investment Research
Like TGT, Starbucks has increasingly rewarded its shareholders throughout the years, carrying a nearly 10% five-year annualized dividend growth rate. Shares currently yield 2.5% annually, nicely above its respective Zacks Industry average of 2%.
Image Source: Zacks Investment Research
Bottom Line
Price targets can be helpful tools. Of course, it’s critical to note that not all stocks reach these forecasted levels, as unforeseen circumstances can always affect future performance.
Still, the positivity surrounding upgrades can be seen as a solid takeaway.
For those seeking stocks that analysts have recently received favorable coverage, all three above – Target (TGT - Free Report) , Home Depot (HD - Free Report) , and Starbucks (SBUX - Free Report) – precisely fit the criteria.