6 Large-Cap and Mega-Cap Stocks Where Analysts See Large Upside Potential
On September 25, Comcast Corp. (NASDAQ: CMCSA) was started with a Buy rating and a $64 price target at Benchmark. It appears that the death of cable by cord-cutters is not a true death. Comcast has its own content and its own streaming ambitions, and its internet speeds are often better than what can be had elsewhere, something the cord-cutters and OTT crowd still need. The consensus target is much lower at $49.92 a share. They closed at $45.71 ahead of the call, but the price was $44.81 at the end of the week. This implied a whopping 43% in upside to Benchmark’s target, and there is a 1.9% dividend yield to consider as well.
Danaher Corp. (NYSE: DHR) saw its earnings estimates raised for 2020 and 2021 as Janney reiterated its Buy rating and $174 target price on September 27. This was roughly 23% above Friday’s close of $141.56, and Danaher also has a small 0.5% yield.
The drive behind this upside, which is nearly $20 higher than the consensus price target, is the pending deal with GE Life Science, which made Janney say that it will be a formidable presence, where earnings estimates are too low and where growth will exceed expectations. Janney recently hosted tours of Ireland bioproduction facilities, and GE Life Science technology was said to be the most pervasive label in manufacturing, training and R&D centers by far. The firm also believes that the 5% organic growth rate of Danaher has a full one to two points of upside and that BioProcess will represent 22% of revenue, 30% of operating income and 40% of incremental growth in fiscal 2020. Danaher’s market cap is now $101 billion.
Kimberly-Clark Corp. (NYSE: KMB) was raised to Buy from Neutral at Merrill Lynch on September 27, and the analysts have set at $155 price objective. Earlier in the week, Barclays also talked up Kimberly-Clark by saying it is outperforming and has strong earnings growth for its consumer products peers. The consensus target for the stock is $139.75. The shares were last seen trading at $140.11.
Wells Fargo started Walt Disney Co. (NYSE: DIS) shares with an Outperform rating on September 24. The firm also issued a much higher-than-consensus $173 price target after looking deeper at the coming Disney+ launch. The consensus price target was $151.73 ahead of the call and $152.65 afterward. Disney slid over the week, from $132.40 ahead of the call to $129.96 by Friday’s close. If Wells Fargo is proven right, that is 33% implied upside.
This is also now the highest of the official sell-side analyst target price, but there have been many analyst upgrades and target hikes this year since it closed the mega-merger acquisition of Fox. While most calls have been positive, Disney was named as the Zacks Bear of the Day at the start of the week, based on heated competition.
Friday’s top analyst upgrades and downgrades included Box, iRobot, Kimberly-Clark, Match, Oracle, Pinterest, Seattle Genetics, Texas Instruments and many more. As always, you can check out the full 24/7 Wall St. line of analyst coverage and research ideas.