In a series of recent analyst updates, key Wall Street brokerage firms have revised their valuations and price targets for several widely watched equities. These revisions come as investors continue to evaluate the growth prospects and risks among leading industry players ahead of upcoming market activity.
Abbott Laboratories (NYSE: ABT) saw a notable downward adjustment from Bernstein, with the price target lowered from $154 to $125. Despite the reduction in target price, Bernstein's analyst Lee Hambright maintained an Outperform rating on the stock, indicating confidence in Abbott's longer-term prospects. On Friday, Abbott closed trading at $108.71.
In the banking sector, DA Davidson raised TriCo Bancshares' (NASDAQ: TCBK) price target modestly from $51 to $54. Despite this upward move, analyst Jeff Rulis held firm with a Neutral rating. TriCo Bancshares shares were last quoted at $50.82. Similarly, RBC Capital lifted its price target for Texas Capital Bancshares Inc (NASDAQ: TCBI) from $105 to $110, while retaining a Sector Perform rating. The stock traded at $100.30 recently.
Energy company Kinder Morgan Inc (NYSE: KMI) also caught analysts' attention, with Scotiabank increasing its price target from $29 to $30. Brandon Bingham, the responsible analyst, kept a Sector Perform rating. Kinder Morgan shares ended the day trading near $29.66.
Turning to the technology and digital services sector, notable changes include Wells Fargo lowering the price target for Meta Platforms Inc (NASDAQ: META) from $795 to $754. Analyst Ken Gawrelski continued to assign an Overweight rating despite the downward revision. Meta shares recently traded at $661.24, reflecting considerable value below the target price.
Stifel made adjustments for two important tech stocks. It cut Trade Desk Inc's (NASDAQ: TTD) price target sharply from $90 to $74, although Mark Kelley kept a Buy rating on the name. The stock traded around $36.68, far below the target price. Conversely, Stifel raised its price target for Alphabet Inc (NASDAQ: GOOGL) from $333 to $346, and maintained a Buy rating. Alphabet shares changed hands near $330.64.
In the semiconductor and hardware space, Evercore ISI Group upgraded Intel Corp's (NASDAQ: INTC) price target from $41.10 to $45. Analyst Mark Lipacis held an In-Line rating, with the shares recently trading at $46.03. This indicates that Intel is currently trading just above the analyst's target.
Automaker Tesla Inc (NASDAQ: TSLA) also saw a price target upside revision from Barclays, which raised the target from $350 to $360. Analyst Dan Levy maintained an Equal-Weight rating on Tesla. Notably, Tesla's trading price was substantially higher than this target, at $450.75, suggesting strong market demand above analyst expectations.
ServiceNow Inc (NYSE: NOW) faced pressure with Jefferies reducing the price target significantly from $230 to $175. Nevertheless, analyst Samad Samana continued to assign a Buy rating. ServiceNow's shares were trading around $132.93 at the close.
These price target revisions underscore the dynamic environment across multiple sectors, reflecting shifting views on growth potential, sector-specific risks, and broader market sentiment.
Summary: Recent adjustments by Wall Street analysts highlight divergent views on several high-profile stocks. While Tesla's price target gained a modest boost from Barclays, its market price remains well elevated. Meta Platforms and Trade Desk saw target cuts despite maintained positive ratings, illustrating nuanced perspectives amid volatility. Rising targets for Alphabet, Intel, and certain banking institutions suggest confidence in selected growth avenues. Investors should weigh these updated assessments alongside existing portfolio strategies.
Key Points:
- Bernstein lowered Abbott Laboratories' price target to $125 but maintained an Outperform rating.
- DA Davidson and RBC Capital both raised price targets on regional banks TriCo Bancshares and Texas Capital Bancshares, respectively.
- Meta Platforms and Trade Desk faced substantial price target reductions, though ratings stayed positive.
- Barclays increased Tesla's price target to $360, maintaining an Equal-Weight rating despite the stock trading well above target.
Risks and Uncertainties:
- Price targets may not align with current market prices, reflecting potential volatility or overvaluation risk, as seen with Tesla trading far above its target.
- Revisions downward for stocks like Meta and Trade Desk indicate potential headwinds or reassessment of growth projections.
- Sectors such as digital advertising and cloud services show mixed analyst sentiment, posing uncertainties.
- Sector Perform ratings on banks and energy companies suggest cautious optimism but with sector-specific risks not fully mitigated.