SUPERNEWS

Equities

Analyst Optimism Fuels Market Momentum

Analysts project significant gains for select stocks, with United Airlines and Micron Technology leading with up to 37% and 28.7% upside.

By Bill Bullington

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4/1, 06:16 EDT
Advanced Micro Devices, Inc.
Broadcom Inc.
Citigroup, Inc.
Delta Air Lines, Inc.
Alphabet Inc.
Meta Platforms, Inc.
Marvell Technology, Inc.
Microsoft Corporation
Micron Technology, Inc.
NVIDIA Corporation
Spotify Technology S.A.
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Key Takeaway

  • S&P 500 and global stocks show strong year-to-date gains, with select stocks like Amazon, Delta Airlines, and Micron Technology outperforming.
  • Analysts project significant upsides for United Airlines (37%) and Micron Technology (28.7%), highlighting sector diversity in growth.
  • Optimism spans across sectors with buy ratings for Home Depot (10% upside) and Boeing (53% upside), plus raised targets for Nvidia due to AI advancements.

Analyst Optimism Fuels Market Momentum

The financial markets have continued their upward trajectory into 2023, with the S&P 500 marking a notable increase of approximately 24% over the past year. This positive momentum has extended into the current year, with the S&P 500 up by around 10% year-to-date, even reaching new record highs in March. Similarly, global stocks, as represented by the FTSE All World Ex US index, have seen a nearly 8% rise year-to-date, indicating a widespread bullish sentiment among investors. Analysts have identified a select group of stocks, including Amazon, Delta Airlines, Marathon Oil Corporation, Micron Technology, and United Airlines, that have outperformed the broader market so far in 2023, with year-to-date price increases exceeding 10%.

Spotlight on High-Potential Stocks

Recent analysis using FactSet data has spotlighted stocks with significant interest from analysts and substantial year-to-date performance. United Airlines and Micron Technology stand out, with analysts projecting a 37% upside for United Airlines and a 28.7% increase for Micron Technology. This highlights the diversity in sectors experiencing growth. Additionally, global stocks like Chinese battery manufacturer CATL have shown impressive performance, with CATL receiving a potential upside of 34%, according to analysts. This reflects bullish sentiment across various markets and sectors.

Sector-Wide Optimism

Analysts are expressing optimism across diverse sectors, including home improvement, aerospace, and technology. Mizuho has initiated a buy rating for Home Depot, anticipating a 10% upside driven by expected rate cuts and increased housing turnover. UBS has reiterated a buy rating for Boeing, projecting a 53% upside as the company focuses on resolving manufacturing issues. Furthermore, advancements in AI technology have led Wells Fargo and Goldman Sachs to raise price targets for Nvidia, emphasizing the company's pivotal role in AI infrastructure development.

Street Views

  • Anthony Cassamassino, Bank of America (Bullish on Alphabet):

    "Alphabet’s upcoming Cloud Next Conference and I/O event are potential near-term catalysts for the stock... A relaunch of its controversial Gemini image generation program would also improve sentiment."

  • Vivek Arya, Bank of America (Bullish on Micron):

    "The adoption of accelerated/AI servers is a generational shift with NVDA and AVGO the leaders. … However, we believe the rising tide – accelerator market ~2xing to $200bn over next 3 years – could create volatile but fruitful opportunities among the #2 vendors."

  • Morgan Stanley Analyst for Delta Air Lines (Bullish on Delta Air Lines):

    "We believe DAL’s push into Premium will not just allow them to outperform the rising tide of Airlines demand growth, but will also be rewarded by investors in much the same way that Abercrombie & Fitch’s (ANF) recent reinvention as a more premium and relevant specialty retailer has been rewarded by investors."