Technology

Goldman Sachs Raises Price Targets on Sizzling Momentum Tech Stocks

With Presidents Day, Valentine’s Day and Mardi Gras over, and just six weeks left in the first quarter of 2021, many investors are looking past earnings season to next quarter and the rest of 2021 s they start to reset portfolios. Many investors still are very nervous, especially given the massive rally since the start of the year that has pushed all of the major indexes and the Russell 2000 to all-time highs. Yet, the overall take is one of slow but steady going forward, given the incredible run in the equity markets and the potential for a growing economy due to the COVID-19 vaccine being distributed nationally and another round of stimulus payments in the queue.

In a series of new reports, Goldman Sachs raised and reiterated the price targets on stocks of some companies that delivered the goods in a big way during earnings season. Given the levels of the price targets, all still look to have some very solid upside potential. Here we spotlight three momentum tech stocks rated Buy in which the analysts have hiked the price targets significantly higher on two and reiterated one on another. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Kornit Digital

This off-the-radar stock has been rising for almost a year and shows no signs of letting up. Kornit Digital Ltd. (NASDAQ: KRNT) develops, designs and markets digital printing solutions for the fashion, apparel and home decor segments of the printed textile industry worldwide. The company’s solutions include digital printing systems, ink and other consumables, associated software, and value-added services.

Its products and services include direct-to-garment printing systems from smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and maintenance and support and professional services. The company serves decorators, online businesses, brand owners and contract printers.

Kornit Digital posted blowout results, and the Goldman Sachs analysts said this:

Kornit reported another strong quarter with broad-based demand outperformance as the company continues to see tailwinds from the shift to digital printing and e-commerce. We are upgrading our rating to a Buy as numbers materially outpace our forecasts. The company also announced new 3D textile printing applications for embroidery, high-density printing, and vinyl heat transfer effects, potentially increasing the TAM by 25% – 30%. While we had originally believed that current growth might be unsustainable as we exit COVID we are increasingly convinced that COVID has actually accelerated adoption of personalized fashion enabling technology.

Goldman Sachs upgraded the shares to Buy from Neutral and raised the price target to $135 from $83. The much lower Wall Street consensus target is $81.29, and shares were last seen trading on Wednesday at $116.85 apiece. That was up almost 20% on the day.

Palantir

This company came public as a direct listing and struggled out of the gate, but the stock seems to be taking off now. Palantir Technologies Inc. (NASDAQ: PLTR) builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.