Stifel Raises Price Targets on 4 Red-Hot Momentum Stocks

By Lee Jackson Updated Jan 12, 9:27AM EST · Published Aug 4, 8:25AM EDT

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Wall Street is notorious for being the quintessential Monday morning quarterback, often raising or lowering price targets and stock ratings after the fact, which to be frank anybody could do. At 24/7 Wall St. we keep a close eye on the analysts calls across the many firms we cover, and one thing is for sure: The higher the market trades, the more analysts seem to be trying to get it right, as there is little room for error at current levels.

In a series of new research reports, Stifel analysts raise price targets on four red-hot momentum stocks that have reported solid earnings and have outstanding prospects for the rest of 2017 and beyond. All four are rated Buy at Stifel.

Cirrus Logic

This company gets a staggering percentage of its total revenue with Apple. Cirrus Logic Inc. (NASDAQ: CRUS) is a fabless semiconductor company that develops analog and mixed-signal integrated circuits for a range of consumer and industrial markets. It offers audio products, including codecs, analog-to-digital converters, digital-to-analog converters, active noise cancelling circuits, amplifiers and micro-electromechanical system microphones, as well as standalone digital signal processors. Those audio products are used in various mobile applications, such as smartphones, tablets, portable media players, wearables and accessories like headsets and headphones.

The company’s products are also used in a range of high-precision industrial and energy-related applications, including digital utility meters, power supplies, energy control, energy measurement and energy exploration applications.

The Stifel analysts note that business trends are right on track as the company enters the seasonably strong second half of the year. They also cite strong product and customer diversification as reasons to own shares.

The Stifel price target was boosted to $75 from $73. That compares with the Wall Street consensus target of $71.10. The shares closed Thursday at $59.

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Equinix

This is one of the larger cap companies in the data center arena, and a top play for more conservative accounts. Equinix Inc. (NASDAQ: EQIX) provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers primarily in the Americas, Europe, the Middle East, Africa and the Asia-Pacific.

The company provides colocation services and related offerings, including operations space, storage space, cabinets and power for customers colocation needs; interconnection services, comprising physical cross connect/direct interconnections, Equinix Internet Exchange, Equinix Cloud Exchange, Equinix Metro Connect and Internet connectivity services; and managed IT infrastructure services, including installation of customer equipment and cabling, as well as equipment rebooting and power cycling, card swapping and emergency equipment replacement services.

Second-quarter earnings beat on margins, and the full-year guidance highlights strong margin growth from the company’s acquisition of 29 Verizon data centers earlier this year.

Shareholders receive a 1.78% distribution. The $485 Stifel price target rose to $497, while the consensus target is $469.05. The shares closed Thursday’s trading at $449.36.

Tableau Software

This red-hot stock has been a rumored takeover target for some time. Tableau Software Inc. (NASDAQ: DATA) provides business analytics software products in the United States, Canada and elsewhere. The company offers Tableau Desktop, a self-service analytics environment that empowers people to access and analyze data independently, and Tableau Server and Tableau Public, a free cloud-based platform for analyzing and sharing public data.

Stifel is extremely bullish on the data analytics company as it posted a surprise adjusted profit for the quarter and revenue grew handily year over year.

Stifel raised its price target to $85 from $75. The consensus target is $63.95, and shares closed Thursday at $69.80, up 8% on the day.

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Take-Two Interactive Software

This top video game producer has cashed in with some super-hot titles. Take-Two Interactive Software (NASDAQ: TTWO) offers its products under labels such as Rockstar Games and 2K. It develops and publishes action/adventure products under the Grand Theft Auto brand, as well as other franchises, including Civilization, Borderlands, Bioshock and Red Dead under the Rockstar Games label. The Grand Theft Auto franchise has been one of the best-selling video games ever released.

The company also posted a fiscal first-quarter beat, driven by strong contribution from Grand Theft Auto and continued growth in digital spend. The research report noted this:

The key takeaway from this update, in our opinion, was the sustained momentum for the GTA V franchise, including a record quarter for GTA Online, the largest contributor to recurrent consumer spending (+71% year-over-year and; 58% of non-GAAP revenue). And based on the fiscal first quarter beat and traction for its titles, management made material upward adjustments to fiscal 2018 guidance, and continues to project record results in fiscal 2019.

The Stifel price target was boosted to $96 from $87. The posted consensus target is $83.12, and shares closed on Thursday at $89.09, up over 10% on the day.

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With these stocks spiking higher on solid results, it may make sense to buy partial positions and see if the shares don’t pull back this month or in the fall. All are suitable for more aggressive growth styled accounts.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.