Analyzing stocks with elevated price targets is a sure-fire approach to succeed in any market. Starting the investment path and identifying the appropriate standards for the industry you want to invest in can sometimes be tedious. But if you are looking for stocks with elevated price targets, you should start by selecting experienced giants like JPMorgan Chase & Co..
There are reputable companies that conduct financial analyses, such as Wells Fargo Securities (NYSE:WFC) And B. Riley Financial (NASDAQ:RILY). Yet few can compete with JPMorgan, which has $3.9 trillion in assets worldwide and can analyze and collect a wealth of market data. Investors who care about the world appreciate the company’s direction and follow it.
Reviewing stocks with higher price targets is especially important right now. JPMorgan expects economic growth to slow in 2024, with real GDP growth falling to around 0.7%. Although core inflation is expected to remain above the Fed’s 2% target through 2024, inflation trends are likely to continue to fall. JPMorgan expects core PCE readings to rise 2.4% in 2024, less than the 3.4% increase in 2023.
Therefore, it is important to be vigilant and not ignore JPMorgan when evaluating stocks with elevated price targets.
Abercrombie & Fitch (ANF)
Source: Paul McKinnon / Shutterstock.com
Abercrombie & Fitch (NYSE:ANF) has risen over 63% this year thanks to booming sales across all brands and regions. Against this backdrop, JPMorgan changed its rating to overweight from neutral and raised its price target on ANF to $194 from $167. The consensus price target is $175, representing a potential upside of 24%.
Abercrombie & Fitch recently reported its largest first quarter net sales increase ever and gross profit margin of 66.4 percent, up 540 basis points year over year.
Abercrombie & Fitch will reopen in Pittsburgh and Buffalo, marking the company’s return to those locations after closing its Buffalo store in 2021. ANF generates over $1 billion in online sales annually, which complements its brick-and-mortar business.
Abercrombie & Fitch also collaborates with McLaren F1. This relationship includes events, social media and licensed graphic apparel. Abercrombie honored this partnership by displaying McLaren’s new Formula 1 car in its Fifth Avenue store and running a digital contest to win a race weekend in Miami.
Spotify (SPOT)
Source: Fabio Principe / Shutterstock.com
Spotify (NYSE:JOB) Gross margins in the first quarter were excellent, according to JPMorgan, due to growth in Music and Marketplace, as well as improved podcasts and commercials. JPMorgan raised the price target for SPOT shares from $320 to $365 and expects more paying customers and higher prices in key regions to boost earnings. Experts have rated Spotify a “strong buy.” With an average price target of $392.80, the stock has a potential upside of 24 percent despite a one-year return of over 128 percent.
Spotify will introduce a $5 HiFi add-on that will allow users to listen to FLAC music at 24-bit/44.1 kHz without loss to Apple (NASDAQ:AAPL) Music and Amazon (NASDAQ:Amazon) Music offers free music in high quality.
Spotify CEO Daniel Ek announced a “Deluxe” version. The subscription version of Spotify will include all the features of the free versions, higher sound quality, music management, AI-powered tracks, and more. Deluxe is expected to cost $17-18 per month.
Spotify and WPP (NYSE:WPP) has also entered into a groundbreaking global partnership. This partnership will leverage Spotify’s audio analytics and WPP’s Choreograph technology to target WPP clients’ consumers with distinctive and relevant audio ads.
In addition, Spotify and Universal Music Group (OTCQB:UNVGY) are expanding their partnership. Under this agreement, UMG will use Spotify’s tools and data to better understand audience engagement and improve the music experience for fans.
LendingTree (TREE)
Source: II.studio / Shutterstock.com
CreditTree (NASDAQ:TREE) rounds out our list of stocks with raised price targets from JPMorgan; the analyst firm raised its forecast on TREE stock to $53 from $38 and reiterated its overweight rating. Oppenheimer maintained its “outperform” rating and also raised its price target on LendingTree to $65 from $55, reflecting confidence in the company’s future performance and potential benefits from an insurance comeback and lower interest rates.
Lending Tree’s adjusted EBITDA and profit beat estimates; revenue fell at the high end of estimates. The company is about 5% ahead of previous forecasts and has revised its full-year revenue guidance upward to $690 million to $720 million.
LendingTree’s first quarter earnings per share of 70 cents beat estimates by 36 cents. Although it was down year-over-year, revenue of $167.8 million beat estimates by $4.77 million. The company again beat experts’ forecasts, forecasting second quarter revenue of between $175 million and $190 million. TREE even beat those estimates, reporting revenue of $210.1 million.
Analysts have given TREE a consensus rating of Strong Buy: six Buy, one Hold, and zero Sell. This represents an increase of 17.86% from the last price of $46.52 and has an average price target of $54.83.
At the time of publication, Faizan Farooque had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.
As of the date of publication, the responsible editor held a LONG position in AAPL and AMZN.
