Upgraded Stocks to Watch – Roblox, Axon Enterprise, Alcoa, InterDigital.
Introduction:
Roblox’s (NYSE:RBLX) share price rose more than 2%, Upgrades and downgrades by analysts can have a significant impact on stock prices. As such, keeping track of analyst recommendations can be a useful tool for investors to identify stocks with potential for growth or stocks to avoid. In this article, we will look at four stocks that have recently been upgraded by analysts: Roblox, Axon Enterprise, Alcoa, and InterDigital. We will analyze the reasons for the upgrades and provide trade suggestions for each stock.
Roblox:
Roblox is an online gaming platform that allows users to create, share, and play games with others. The company recently reported its Q1 results, which showed strong revenue growth and user engagement. As a result, Roth/MKM upgraded the company to Buy from Neutral and raised its price target to $48.00 from $37.00.
Trade suggestion:
Buy Roblox stock. The strong Q1 results suggest that the company’s growth trajectory is intact, and the upgraded price target implies further upside potential. Investors should look to accumulate Roblox stock on any dips.
Axon Enterprise:
Axon Enterprise is a company that provides law enforcement technology solutions, including body cameras and software. The company reported its Q1 results, which beat consensus estimates for EPS and revenue. However, investors are worried about the possibility of slowing growth, as future contracted revenue grew just 3% year-over-year. JPMorgan upgraded the stock to Overweight from Neutral with a price target of $236.00.
Trade suggestion:
Sell Axon Enterprise stock. While the Q1 results were strong, the concerns about slowing growth could weigh on the stock in the near term. Additionally, the 15% drop in share price after the earnings report suggests that the market is pricing in these concerns. Investors should look to exit positions in Axon Enterprise and consider re-entering the stock when growth prospects improve.
Alcoa:
Alcoa is a global producer of aluminum, bauxite, and alumina. The company reported its Q1 earnings last month, which missed on EPS and revenue estimates. However, Credit Suisse recently upgraded the stock to Outperform from Neutral with a price target of $50.00.
Trade suggestion:
Buy Alcoa stock. While the Q1 earnings were disappointing, the Credit Suisse upgrade suggests that the market may be underestimating the company’s growth prospects. Investors should look to accumulate Alcoa stock on any dips and hold for the long term.
InterDigital:
InterDigital is a company that develops and licenses technology solutions for wireless devices. The company recently reported impressive Q1 results and was upgraded by BofA Securities to Buy from Underperform with a price target of $105.00.
Trade suggestion:
Buy InterDigital stock. The strong Q1 results and a bullish outlook from BofA Securities suggest that the company is well-positioned for growth. Investors should look to accumulate InterDigital stock on any dips and hold for the long term.
Conclusion:
Upgrades and downgrades by analysts can provide valuable insights for investors. In the case of Roblox, Alcoa, and InterDigital, the recent upgrades suggest that these companies have strong growth prospects. However, in the case of Axon Enterprise, concerns about slowing growth may weigh on the stock in the near term. Investors should carefully consider these factors and adjust their positions accordingly.
