Top Stories
Top Stories
Markets

Wall Street analysts say these stocks have upside potential

Key Points
  • CNBC looked at recent Wall Street research to find stocks analysts say have upside.
  • Stocks include Energizer Holdings, Keysight Technologies, United Technologies, Hasbro, Under Armour, and Vocera Communications.
A worker arranges boxes of Hasbro  board games on a shelf at a Target Corp. location in Emeryville, California.
David Paul Morris | Bloomberg | Getty Images

Wall Street analysts told clients this week that despite a turbulent market, there remains plenty of buying opportunities for stocks with upside potential.

The S&P 500 is up almost 3% this month compared to August where it was down 1.8%

CNBC did a deep dive through the most recent Wall Street research to find stocks with upside potential.

Stocks include Energizer Holdings, Keysight Technologies, United Technologies, Hasbro, Under Armour, and Vocera Communications.

Toy maker Hasbro has "40%+ stock appreciation potential," Jefferies analyst Stephanie Wissink said in a note to clients this week.

The combination of the company's strong growth in digital gaming along with the recently acquired independent studio, Entertainment One makes for, "two powerful, higher-margin engines," Jefferies said.

Hasbro stock is up 7.2% on the week.

Energizer Holdings was the recipient of a rare double upgrade by analysts at Bank of America earlier this week. The firm also raised its price target on the manufacturer of batteries to $48 from $35 for a 20% "potential upside."

"Our prior rating of Underperform had been premised on our view that Auto Care challenges would take longer to remedy and that Battery cannibalization would be more onerous than the market had previously priced in," they said.

Energizer is up 10% on the week.

Investor meetings between Visteon Corp. management and analysts has left analysts at Citi feeling slightly more bullish on the automotive electronics supplier.

While the firm is keeping its neutral rating on the company for now, it did add the stock to the "90-Day Catalyst Watch List" and looks forward to its guidance for the second half of the year.

"We walked away feeling better about Visteon's ability to deliver H2 guidance," analyst Itay Michaeli said. "If Visteon can execute to its prior H2 guidance it would likely bolster confidence in the multi-year growth/margin story."

Shares of the company are up 4.5% on the week.

Here's what else analysts are saying about stocks with upside:

Bank of America — Energizer Holdings, Buy rating

"We upgrade ENR to Buy from Underperform and raise our PO to $48 for 20% potential upside. Our prior rating of Underperform had been premised on our view that Auto Care challenges would take longer to remedy and that Battery cannibalization would be more onerous than the market had previously priced in."

Deutsche Bank — Keysight Technologies, Buy rating

"In our view, software is a meaningful differentiator for the company versus other test and measurement peers given the depth of the software portfolio, design wins, industry partnerships, etc. Further, software accelerates KEYS top line growth and margin expansion ahead of consensus and buy side expectations, warranting a higher multiple for the stock. Highlights: 1) 40%+ upside versus current levels. We are calling for KEYS equity value per share of $140 based on our software scenario analysis and sum of the parts valuation, which suggests +40% outperformance versus current levels. KEYS software opportunity accelerates topline growth and drives meaningful margin expansion over the next few years."

Baird — United Technologies, Outperform rating

"We believe investors should be aggressively buying UTX and/or RTN at current levels to take advantage of discount to peers, especially with UTX spins on track for early 1Q20. RTX is trading today ~40% cheaper than its highest-valued peers; we believe pair trades make sense here. .. .Buy both RTN and UTX given the steep valuation discount to peers, with 30%-40% upside in both names from current prices."

Jefferies — Hasbro, Buy rating

"We see 40%+ stock appreciation potential in the next 1-2 years backed by two powerful, higher-margin engines: 1) digital gaming; and 2) eOne media platform integration. We expect underlying core toy sales to grow modestly, generating cash flow to support investment, debt deleveraging, and dividend payout. Near-term checks suggest momentum; we are tweaking estimates slightly. Multi-year model looks even more attractive."

Cantor Fitzgerald — Vocera Communications, Overweight rating

"The company recently presented at several competitor conferences, with management commentary remaining positive regarding the company's growth outlook. Indeed, 1H19 performance was challenged due to the Smartbadge introduction and some deal slippage experienced in 2Q19. The tempered start to the year resulted in a reduced outlook for 2019. That said, we remain confident in Vocera's future growth trajectory. Importantly, we believe the company can return to mid-teens revenue growth and expand adjusted EBITDA margins. The company has multiple avenues to accelerate operating performance going forward. With the shares under pressure thus far in 2019, we believe they represent an attractive opportunity for investors, with about 48% potential upside to our price target."

Citi — Visteon Corporation, Neutral rating & Catalyst watch list

"We walked away feeling better about Visteon's ability to deliver H2 guidance. The importance of trim-mix was cited several times by management. Our proprietary AutoTech dataset can provide investors with U.S. trim-mix intelligence. Opening 90-Day Upside Catalyst Watch: If Visteon can execute to its prior H2 guidance it would likely bolster confidence in the multi-year growth/margin story. The stock also tends to work better heading into CES & typical January guidance updates, so this could provide further momentum if H2 financials improve."