Analysts see a rise in stocks like Amazon and Salesforce
An Amazon employee delivers packages amid the coronavirus disease (COVID-19) outbreak in Denver, Colorado, April 22, 2020.
Kevin Mohatt | Reuters
Although the markets are far from their peaks, analysts believe that several companies still have room to develop.
Innovations in point-of-sale technology, buy-now, check-out business acquisitions, and changes in the trend towards cloud computing have prompted some of Wall Street’s top analysts to form bullish assumptions about these. actions. TipRanks unique data determines which analysts got the right notes and allows everyday investors to see who to follow.
After carefully studying the fundamentals and outlook for these companies, some of the industry’s top analysts believe they have positive potential.
As e-commerce trends increase, consumers are looking to buy now and pay businesses later to make it easier to buy. When businesses are looking for mergers and acquisitions, payment processors are often the ideal solution. This is why analysts are optimistic about PayPal Holdings, Inc. (PYPL), which recently announced a takeover of the Japanese buy now, pay later platform, Paydy.
Jason Kupferberg of Bank of America has expressed his optimistic opinion on the matter, writing that the deal will expand PayPal’s capabilities in Japan and expose it to a BNPL market with high growth potential. Japan is the third largest e-commerce market in the world, with a significant margin of penetration in a predominantly monetary society.
Kupferberg reiterated his buy rating on the stock and declared a price target of $ 323.
The five-star analyst noted that the deal with Paydy is expected to close in the fourth quarter of this fiscal year. Paidy is enjoying significant success, with volume and revenue growth of over 100% year over year. The Japanese company serves its users by consolidating their payments into one invoice and delivers value to merchants by increasing their number of repeat customers and increasing the amount they typically spend. (See PayPal risk factors on TipRanks)
Declaring PayPal’s actions as a “first choice for payments,” Kupferberg sees no significant competitive disruption from Amazon (AMZN) recently announced a partnership with Buy Now, Pay Later Affirm service (AFRM).
Kupferberg is ranked on TipRanks as No. 216 out of over 7,000 total analysts. Its rating record is impressive, with a success rate of 69% and an average return of 16.6% on each rating.
During the pandemic, companies that helped facilitate students who were not allowed to study in the classroom saw an advantage. In many places across North America, the school year has started again, but this time with students in class. As a K-12 education software company, PowerSchool Holdings, Inc. (PWGSC) has the capacity to capture both types of education markets.
Brent Thill of Jefferies Group said that although the stock has made significant gains since going public on July 28, the stock price remains at an attractive level. He believes that “PWSC’s market-leading and deeply integrated K-12 software application suite positions it as a true platform.”
Thill gave the stock a buy rating and raised his price target to $ 38 from $ 32.
PowerSchool recently reported earnings generally in line with Wall Street consensus estimates, but earnings indicate strong demand across all classes. This demand is expected to continue as schools reopen and students return to physical classrooms. (See PowerSchool Stock Charts on TipRanks)
The company’s subscription revenues have increased and existing customers are staying and upgrading their purchased plans. Additionally, international markets remain a long-term strategy, with around 1.3 billion potential students to be reached.
The five-star analyst was excited about PowerSchool’s increase in the number of active users acquired in the first half of 2021, as it shows the company’s relevance in a near-post-pandemic school reality. Additionally, the software company recently struck a high-profile deal with Miami-Dade County in Florida, underscoring its value to major metro school systems.
On TipRanks, Thill ranks # 20 out of over 7,000 experts. Based on his grades, he maintains a 78% pass rate and returns an average of 29.2% per grade.
An iconic brand with an incredibly loyal clientele, Harley-Davidson, Inc. (PORK) has seen its status fall behind in recent years. The company has connected with an older generation of consumers, but now it’s millennials who have the money to buy motorcycles. Recently, however, Harley-Davidson has made strides in adjusting to new market realities and increasing profits. (See Harley Davidson blogger’s sentiment on TipRanks)
Stating that the company has already “passed a milestone”, Ivan Feinseth of Tigress Financial Partners affirmed a bullish thesis on the stock. He wrote that “HOG’s strong brand value, combined with its capacity for innovation and continuous deployment of new products as well as international expansion and consistent long-term history of money return. to shareholders, will lead to greater creation of long-term value for shareholders â.
Feinseth reiterated a buy note on the stock and provided a price target of $ 56.
The analyst found Harley-Davidson’s current valuation attractive for entry, and its strong quarterly earnings reports show there remains significant upside potential. The company has improved its balance sheet and free cash flow, which should help secure strategic investments, dividend increases and share buybacks.
As for recent initiatives, a new standalone brand of electric motorcycles has been introduced in the form of the updated LiveWire One. This electric motorcycle represents the company’s attempt to capture changing consumer trends. In addition, a Certified Pre-Owned Program provides direct exposure to the used motorcycle market for Harley-Davidson.
Feinseth sees monetization opportunities in the purchases of custom branded accessories by existing Harley owners, as well as in the company’s efforts to expand its international customer base.
According to TipRanks unique calculating capabilities, Feinseth was ranked # 75, out of over 7,000 professional financial analysts. He was successful 72% of the time on his stock quotes and got an average of 20.3% on each of them.
If there is one glaring trend that has emerged from the Covid-19 pandemic, it is the accelerated digital transformation. Work-from-home mandates have driven businesses and businesses of all sizes to move their operations online and seek cloud-based solutions. Even with employees returning to their offices, this larger shift to digitization is here to stay, and Salesforce, Inc. (CRM) is there to capitalize on the lag.
Brian White of Monness optimistically hypothesizes that Salesforce’s single platform is “more relevant than ever” and is poised to capture much of the digital transformation trend.
White reiterated a buy note on CRM and stated a price target of $ 300.
Last July, the software company finalized its high-profile acquisition of trade coordination firm Slack. Salesforce will be holding its annual Dreamforce conference soon, and White expects the new addition to get the majority of investor attention.
In addition to all of the Slack-related integrations announced last month, the five-star analyst expects more innovations to be unveiled at Dreamforce. He is particularly confident about the development, writing that “not only do we believe that Slack offers the potential to dramatically improve the value of the Salesforce platform, but the deal also gives the company additional financial flexibility over the years. Next 12 to 18 months “.
Beyond Slack and its potential, other acquisitions by Salesforce, including MuleSoft and Tableau, have already been successful.
Financial data aggregator TipRanks currently ranks White 38th out of more than 7,000 certified financial analysts. The site also calculates its success rate at 79% and it returns an average of 29.2% for each grade.
As e-commerce trends took off throughout the pandemic, Amazon (AMZN) is now investing in physical retail spaces and is now developing a new method of paying for products. According to Justin Post of Bank of America, the multinational conglomerate is launching new point-of-sale technology in its supermarkets and bookstores. To go further, this hardware and software would also be integrated with third-party companies. (See Amazon’s hedge fund trading activity on TipRanks)
Post reiterated its buy rating on the stock and added a 12-month price target of $ 4,250.
The five-star analyst noted that this new innovation would be implemented in accordance with the company’s delivery channels and its new palm-sized payment system, Amazon One. Once incorporated by small and medium-sized businesses, the technology could compete with other point-of-sale companies like Square (SQ) and PayPal (PYPL).
Post explained that the Covid-19 pandemic has heightened the need for small and medium-sized traders to better connect with consumers. There are more ways to generate sales for local businesses, too, and Amazon’s technology can offer insightful business analysis to sellers themselves.
Amazon will not only sell point-of-sale technology to third-party retailers, but consumers will likely be able to pay at point-of-sale through their Amazon accounts. Post notes that the product will offer “deep integration with Amazon’s market processing, fulfillment, order processing and payment capabilities,” to allow Amazon to continue to compete with marketplaces like Shopify (STORE) and Google (GOOGL).
On TipRanks, Post maintains a rating of # 43 out of over 7,000 expert analysts. He has a 74% pass rate on his grades and has an average of 29% on each.