Top Analyst Upgrades: Qualcomm, Twilio, IFF and CIENA

Summary

  • Key upgrades have taken place in Qualcomm, Twilio, International Flavors & Fragrances, and CIENA since Friday according to Investing.com’s Pro Recap.
  • Citi has upgraded Qualcomm and lifted its price target to $160.00 from $110.00. The bank anticipates inventory replenishment in the handset market to boost Qualcomm’s revenue and margins extending into the first quarter of 2024.
  • Twilio’s upgrade from Piper Sandler to Overweight follows potential business divides, improved marketing budgets, and burgeoning catalysts like cryptocurrency.
  • Jefferies has upgraded International Flavors & Fragrances, citing anticipation of a new CEO bringing enhancements to the company structure and a reviving cycle in the ingredients business boosting growth prospects.
  • Lastly, CIENA earned an upgrade from Evercore ISI with the firm forecasting the firm as a high-value asset available at a reduced price. Anticipations for a robust 2024 abound based on these analyst picks.

This Investing.com analysis presents the Pro Recap of key analyst upgrades since Friday, including noteworthy changes in Qualcomm, Twilio, International Flavors & Fragrances, and CIENA.

If you’re creating a stock market investment portfolio for 2024, consider joining InvestingPro. You’ll gain access to the AI-powered investing strategy that outperformed the market by a staggering 670% over the last ten years.

Citi upgrades Qualcomm

Citi has moved Qualcomm (NASDAQ:) to Buy from Neutral, raising its price target to $160.00, up from $110.00. The bank anticipates a positive shift in Qualcomm’s print and guide when it reports earnings later this month.

Citi analysts forecast the handset market’s inventory replenishment to boost Qualcomm’s revenue and profit margin. This trend is expected to continue through Q1 2024, with Qualcomm predicted to gain a larger market share at Samsung (KS:).

We’ve increased our F24E revenue and EPS estimates from $37.5 billion and $7.61 to $38.5 billion and $8.16, respectively, and our F25E revenue and EPS estimates from $41.0 bn and $8.82 to $41.0 billion and $9.29.

Twilio’s upgrade to Overweight by Piper Sandler

Piper Sandler upgraded Twilio (NYSE:) to Overweight from Neutral, raising its price target from $75.00 to $82.00.

The upgrade was due to Twilio’s improved execution on profitability initiatives offering significant upside to its FCF estimates. Furthermore, potential catalysts including business split, enhanced marketing budgets, cryptocurrency, and capital returns were contributing factors.

Despite concerns about 2024 top-line expectations, the analysts believe revenue appears stable with improving input and lessening headwinds in 2024. Plus, Twilio’s current valuation suggests a favorable risk-reward balance, presenting investors with the opportunity to invest in a top-tier CPaaS company at an industry-average market valuation.

new year

Additional upgrades

Jefferies elevated International Flavors & Fragrances (NYSE:) to Buy from Hold, lifting its price target to $112.00 from $73.00.

This upgrade was fueled by the expectation of structural improvements due to the newly appointed CEO and an anticipated restocking cycle in the ingredients business fast-tracking growth.

Evercore ISI also upgraded Ciena (NYSE:) to Outperform from In Line, raising the price target to $57.00 from $52.00, calling it a “premium asset at a discount price.”

We are upgrading Ciena to Outperform as we foresee the recent earnings report resetting expectations favorably, opening a path for stronger performance in FY24.

Elevate your investment strategies with ProPicks

Get an edge on your 2024 investments with ProPicks, an innovative, AI-powered stock-picking tool newly introduced for InvestingPro users.

Experience the strategies used by institutions and billionaire investors to amass tremendous returns and mitigate losses. With our six different strategies, including the flagship “Tech Titans,” you can gain unrivaled access to the market’s best stock selections every month, right at your fingertips.

Avail our year-end sale to save up to 50% and never miss a bull market again!

new year

These key shifts highlight underlying trends that may influence forex trading and impact a variety of assets, providing potential opportunities for informed investors.

PIP Penguin
Logo