This last week was another solid week in the markets, led by promises of more quantitative easing from the European Central Bank, a rate cut in China, and strong major technology earnings here in the United States. Investors keep proving that they will buy stocks on weakness, and suddenly the DJIA and S&P 500 are back within a few percentage points each from their all-time highs.
24/7 Wall St, reviews dozens of analyst research reports each day of the week to fin hidden value and upside for its readers. Some of these analyst calls cover stocks to buy, and generally most buy ratings come with upside of 8% t 15% in the large-cap Dow and S&P stocks.
There are other analyst calls, some even in large-cap or S&P stocks, where analysts are far more aggressive — with upside nearing 50%, or even 100%. These calls are often outlier calls, or sum-of-the-parts calls that are not always based upon cash flows, dividends or just simple earnings power ahead.
The one caveat that investors cannot ignore at all is that the more aggressive analyst calls are often against the herd, and sometimes they are such outliers that they almost are hard to follow. Such is life. More implied upside almost always means more risk. None of these stocks would be deemed suitable for conservative investors or any ‘widows and orphans’ accounts. There are only for the biggest risk taking investors who can stomach severe losses if the underlying these from each analyst report turns out to be wrong or if the analysis proves to be false.
With those caveats in hand, here are eight analyst calls from this last week with upside projections of close to the 50% to 100% made in the calls.
Bluebird Bio, Inc. (NASDAQ: BLUE) was given a ‘double your money’ research call on Tuesday, but investors need to understand just how much this stock has sold off here. Oppenheimer started coverage with an Outperform rating and assigned a $162.00 price target after noting that sell-off has gone too far versus Bluebird’s upside and growth opportunity.
Bluebird’s consensus price target has started coming off drastically (from over $200 early in the week to under $190) and we would expect that to continue since shares went out at $83.10 on Friday. Its 52-week range is $35.00 to $197.35.
Callaway Golf Company (NYSE: ELY) was reiterated as Buy with a $16.00 price target at Jefferies this week. That was versus a prior $8.94 close and versus a $9.68 close on Friday, so this is not quite a “double” prediction but well over that 50% upside threshold. Again, that is implied and far from assured.
Jefferies noted strong results and a faster turnaround – oh and the Topgolf stake isn’t hurting as it has rekindled what was a continually declining interest in golf. The report said: Going forward, we see a number of positive catalysts providing further upside potential, which keeps us positive on both the stock & the golf industry as a whole.