It’s not exactly an ideal time to be a stock market investor. The market is in correction territory, with many leading tech giants experiencing a pullback in prices. With that in mind, the savvy investor will want to focus on Needham price targets to steer them out of the current chaos.
Needham price targets can be a reliable guide to steer you through turbulence. Needham ratings become doubly important when the market is down, with investors looking to identify resilient stocks or those with strong recovery potential. Moreover, amidst market uncertainty, Needham’s expert analysis can help investors make more informed decisions, safeguarding against larger losses while identifying opportunities with substantial upside potential. Having said that, let’s look at three stocks that Needham is upbeat about.
Netflix (NFLX)
In a recent article, I discussed the ‘beat and hold’ theme this earnings season, where strong top-and-bottom-line beats are unlikely to move stock prices. This theme was evident with streaming giant Netflix (NASDAQ:NFLX), which delivered another handsome beat across both lines but dipped post-earnings.
It added an impressive 9.33 million subscribers in the first quarter (Q1) and ended with an eye-catching 269.6 million subscribers. Additionally, sales shot up 14.8% to $9.37 billion, while operating income rose to $2.6 billion, a 53% jump from the same period last year.
Moreover, Needham seized the opportunity to upgrade NFLX stock to a ‘buy,’ setting a target price of $700, a 25% upside from current prices. They argue that Netflix is one of the best tech companies to benefit from generative AI in the future. Its robust positioning is underscored by its global presence, the value of its data, and other factors such as price hikes and increased advertising revenues.
Boston Scientific (BSX)
Boston Scientific (NYSE:BSX) is one of the top medical device manufacturers catering to interventional medical specialties. Interventional medicine is a fast-evolving sphere spurred by tech advancements, an aging global population, and a growing preference for minimally invasive procedures. Consequently, BSX has operated an incredibly consistent business over the years, positioning it as a giant in biomedicine.
BSX’s fundamentals are a visual delight, marked by an A-graded profitability profile and consistent top-line expansion. In the past five quarters, the company has outperformed estimates across both lines by comfortable margins. Moreover, its stock recently hit a 52-week high after delivering another earnings surprise in Q1. Revenue growth shot up to $3.86 billion, a 14% jump from the prior-year period, beating estimates by $180 million. Likewise, its non-GAAP EPS of 56 cents increased by five cents, continuing its fine form since Q1 2023.
Consequently, Needham raised its target price for BSX stock from $71 to $82, a 12.3% upside from current price levels.
Silicon Labs (SLAB)
Silicon Laboratories (NASDAQ:SLAB) is a semiconductor play that boasts a strong presence in the Internet of Things (IoT) market and a diversified range of earnings sources. Demand and supply imbalances over the past year or so have weighed down its fundamentals, but recent top-and-bottom-line beats point to significant upside ahead. In the past four consecutive quarters, it has bested estimates across both lines by considerable margins.
However, unlike its peers, SLAB stock was trading in the red last year, shedding 14% of its value, while the broader market gained 26%. It has been seeing encouraging activity of late, though, which could be the start of something. Moreover, Needham elevated SLAB stock’s rating following better-than-expected Q1 results. Analyst Rajvindra Gill from the investment bank noted that the firm is in an excellent position to capitalize on a rebound in the semiconductor industry. He talked about improving SLAB customers’ and distributors’ inventory levels, order trends, operational leverage, and upcoming design improvements. Consequently, Gill shifted SLAB stock’s rating from ‘hold’ to ‘buy’ while setting a $150 target.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
