Investing

8 Analyst Stocks Under $10 With Massive Upside Potential

Micron Technology

Micron Technology Inc. (NASDAQ: MU) may have formally missed the sub-$10.00 mark by two cents at the close of the week, but this stock traded under $10 every day in the week before Presidents’ Day and closed under $10 on three of those days.

Wells Fargo said that Micron held its analysts day and upcoming DRAM and NAND technology transitions could help drive bit growth over the next two years. It did warn that there would be several quarters in which bit growth paused, but it reiterated its Outperform rating and its valuation range is $16.00 to $19.00. Most of the focus on Micron was on fiscal 2017 rather than 2016.

Micron’s consensus analyst target is $16.73 and its 52-week range is $9.31 to $32.84. Be advised that any analyst defense of Micron in the past year or more has left investors and traders alike thinking they shook hands and did high-fives with Edward Scissorhands.

Monster Worldwide

Monster Worldwide Inc. (NYSE: MWW) was once the leader of the online jobs market that crushed the newspaper Help Wanted ads. Then came social media and then something else. Monster managed to beat earnings last week, but revenue was light and shares fell from $4.25 to $2.82 by Friday’s close.

Two firms following Monster maintained positive ratings but lowered their price targets: Evercore ISI (Outperform) lowered its price target to $7 from $8, and BMO Capital Markets (Outperform) lowered its price target to $4 from $8. Despite these lower targets, the analysts are still holding out for big upside. Monster’s 52-week trading range is $2.43 to $8.23.


Nokia

Nokia Corp. (NYSE: NOK) is set to close on its merger with Alcatel-Lucent S.A. (NYSE: ALU) soon. Nokia’s earnings report this past week did very little to hurt its stock price, despite warning that telecom equipment is looking soft and despite warnings about order problems seen in China. Despite post-Samsung patent royalty woes causing downgrades, some Nokia analysts are sticking with upside here, even if they trimmed their targets.

BMO Capital Markets maintained its Outperform rating in Nokia but cut its price target to $8 from $10. Morningstar maintained its Buy rating and maintained its $7.50 fair value target, despite noting Nokia’s understandably cautious tone about near-term demand. Nokia closed out last week at $5.86, has a consensus target price of $7.81 and has a range of $5.71 to $8.37 over the trailing 52 weeks.

Pandora Media

Pandora Media Inc. (NYSE: P) had such a wishy-washy week that its stock looked like it might be back up to $10.00 on buyout rumors ahead of earnings. Then reality set in after earnings and Pandora shares closed down 12% at $8.00 on Friday. We did see some positive calls, but many target prices were lowered handily by analysts.

FBR Capital Markets raised Pandora to Outperform from Market Perform with a $16 price target before Friday’s market reaction had been seen. Credit Suisse maintained its Neutral rating but lowered its target price to $17 from $24. Wells Fargo maintained its Market Perform rating but lowered its valuation range to $10.00 to $12.00 from a prior $12.00 to $14.00 range.

Other Pandora ratings with Buy, Outperform or Overweight but with lower targets were seen as follows: Canaccord Genuity (to $13 from $16), JPMorgan (to $23 from $28, seems high) and Wedbush Securities (to $15 from $26). Keep in mind that Pandora is expected to lose money in 2016, and it has a 52-week range of $7.10 to $22.60.

Vonage Holdings Corp. (NYSE: VG) remains a top VoIP telephony company, but shares have slid from highs and its $4.70 close on Friday was down 18% from the $5.74 close at the end of 2015. Vonage reported that its 2015 adjusted EBITDA was $144 million and revenue was up 16% to $895 million. Its business revenue rose some 132% to $219 million.

At least two firms maintained positive ratings on Vonage but trimmed their upside targets. Vonage was reiterated as Buy at Dougherty, but its price target was cut to $7.00 from $9.50. Oppenheimer maintained its Outperform rating as well, but it lowered its price target to $6.50 from $8.00.

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