Equities have been absolutely crushed to bear market status. Some investors now are shopping around and bottom-fishing for any stock that could provide some upside. One major Wall Street firm believes it has found a couple that offer huge upside potential.
J.P. Morgan issued a few calls recently, and although there is no particular focus in terms of sector or industry, the main idea is upside. Each call is incredibly positive, forecasting massive upside in both the near and long term.
While market headwinds have put a damper on the markets in general over the past few months, J.P. Morgan believes that a couple of these stocks could provide solid upside in the coming months and years.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Funko
J.P. Morgan’s Megan Alexander upgraded Funko Inc. (NASDAQ: FNKO) to Overweight from Neutral and raised the $25 price target to $28, implying upside of 33% from the recent closing price of $21.00. Alexander noted that, considering the strong content rebound with Funko’s “stable of evergreen properties,” she sees upside to Wall Street’s 2022 revenue estimates. She also cites the toy category’s resilience in recessionary periods and the expectation for margins to move to positive from negative over the balance of the year and expand in 2023.
The stock traded above $24 early Friday, in a 52-week range of $15.28 to $24.36. Shares are up over 25% year to date.
Snowflake
Mark Murphy was the lead analyst on the call on Snowflake Inc. (NYSE: SNOW). He upgraded it from Neutral to Overweight with a price target of $165. That implies upside of 30% from the recent closing price of $127.36. Murphy noted in the report that Snowflake’s standing “surged to elite territory” in the firm’s annual CIO Survey for 2022. As a result, he is also incrementally confident that Snowflake is reaching an inflection point in terms of material free cash flow generation.
Meanwhile, shares have sold off heavily from mid-November 2021 and are now trading only slightly above their $120 IPO offering price from 2020, despite the company’s revenue runate as of the latest quarter having grown to about $1.7 billion from about $0.5 billion in the quarter preceding its initial public offering.
Snowflake stock has a 52-week trading range of $110.26 to $405.00, and it traded near $148 a share early Friday. The stock is down about 58% year to date.
Originally posted at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
