Investing

6 Big Stocks With Massive Upside In Analyst Calls

While this is massive upside for perhaps the best-run airline in America, Southwest’s consensus analyst price target is $49.64. Its 52-week range is $27.42 to $47.17. J.P. Morgan’s take here is that its valuation is a dream and that the stock looks incredibly cheap at less than 10 times expected earnings.

Southwest Airlines has a consensus price target of $49.11 and a 52-week trading range of $27.42 to $47.17. A week earlier, Cowen & Co. reiterated its Outperform rating and raised its price target to $50 from $45 in the call.

If investors want a very ‘other side of the coin’ call for Southwest, Morgan Stanley started coverage with an Underweight rating at the end of June when shares were just under $35 at the time.

LinkedIn Corporation (NYSE: LNKD) had incredibly solid earnings on the surface, but the initial 10% gain or so was immediately tempered when investors did the math on guidance. That raised guidance was mostly due to the second quarter pop. The company also continues to integrate Lynda.com into the fold. There were some cautious calls, but Credit Suisse would have none of that. The firm had an Outperform rating already but raised the target to $311 from $307.

Credit Suisse now sees over $2.00 in earnings per share and said it thinks investors should looking past the guidance as it is clouded by display headwinds. LinkedIn’s closing price of $203.25 leaves an implied upside of 53% here. Investors need to consider one thing here – Credit Suisse has the most bullish call of all analysts with formal price targets. The consensus price target is closer to $250, and LinkedIn has a 52-week range of $187.61 to $276.18.

Again, there were cautious post-earnings analyst calls as well. Evercore ISI even downgraded LinkedIn to Hold from Buy and lowered its target price down to $220 from $250.

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LendingClub Corp. (NYSE: LC) is still a fairly recent IPO and its growth expectations have been tempered now that it has pulled back more than 50% from its post-IPO highs. The firm Canaccord Genuity sees a huge opportunity here, and it initiated coverage with a Buy rating and a price target of $24.00. LendingClub’s $14.51 close on Friday would leave an implied up side of 65% or so.

Investors need to consider here that LendingClub was an extremely hot IPO as investors got to chase the peer-to-peer lending market. That $24.00 price target sounds very ambitious as of now, but the consensus price target is $21.69, the median price target is up at $23, and the highest analyst target is up at $31.

The last LendingClub upgrade prior to this was Stifel Nicolaus, raising its rating to Buy from Hold with a $25 price target – but shares were around $17.00 at that time. If Canaccord was being too ambitious here, it gave an even more ambitious upside target and a new Buy rating in On Deck Capital, Inc. (NYSE: ONDK).

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Again, it is not normally the case where large cap stocks get analyst calls with upside projections north of 30% or 50%. it often implies that the analyst behind the call is the most aggressive of all peers. 24/7 Wall St. prefers to include counter-calls here to such bullish calls so that readers do not think that the most bullish case is the norm or a shared view by all investors and analysts. Again, most of the normal Buy and Outperform ratings in large cap stocks come with upside of 8% to 15% rather than over 30% to over 50%.