Why Are Analysts Bullish On These Stocks? CSCO, BLUE, CQP, PTEN, CCL

Analysts play vastly important roles when it comes to key movements in the stock markets. These are experts who study stocks for a living and when they upgrade a stock then the stock naturally gets the attention of investors. Here is a look at some of the stocks which have been upgraded by analysts lately.

Bluebird Bio Inc (NASDAQ:BLUE) – The stock soared by over 16% on Wednesday after it had been given an upgrade from neutral to buy by BofA Securities. Additionally, the target price for the Bluebird Bio Inc stock was also bumped from $6 a share to $10 a share. The analysts noted that the sickle cell disease gene therapy offering from Bluebird Bio was an underappreciated product.

Bank of America analysts expect the approval from the United States Food and Drug Administration to be awarded by the action date in December this year. It was further noted that despite the setbacks suffered in the development of the product, the data suggested that it was on the same level or even stronger candidate than some of its closest competitors.

The projected peak sales of the product were pegged at around $1 billion. Additionally, the acceptance of the BLA or biologics license application for the love-cel would also mitigate additional risks.

Cheniere Energy Inc (NYSEAMERICAN:CQP) – Analysts from UBS noted yesterday that the Cheniere Energy Inc stock continued to be one of the notable laggards in its category. However, the stock was upgraded nonetheless from ‘neutral’ to ‘buy’ and the 12-month price target was set at $57 a share.

In the note that was sent to the bank’s clients, the analysts noted that the sentiments about the company could be at an inflection point as the global fundamentals for liquefied natural gas (LNG) had improved considerably. The analysts also anticipate the cash volatility at the company to be controlled since 95% of its LNG production is contracted up until 2024.

Additionally, there are future growth opportunities in store owing to the Sabine Pass Expansion project. It was also pointed out that the growth from the project would also result in a distribution boost for the company’s shareholders. The analysts concluded that the current valuation of the stock offered an ‘attractive entry point’.

The stock has been trending higher over the past month with a gain of 7% on increased volume. However, the stock is down about 9% so far this year.

Patterson-UTI Energy (NASDAQ:PTEN) – Another stock that received an upgrade from analysts was Patterson-UTI Energy. Yesterday Scott Gruber, the Citigroup analyst reiterated his neutral rating on the stock. However, he boosted the target price to $15 a share from $13 a share. The overall one-year price target for the stock was set at $16.43 a share and that reflected an upside of 15.29% from yesterday’s closing price of $14.25 a share. 

That was an indication of the fact that there is general optimism about the Patterson-UTI Energy stock among analysts. The analysts following the stock have set price targets in the range between $12.62 a share to $23.10 a share and that indicates that the expectations with regards to the stock are quite varying. The latest outlook from Gruber could be seen as a positive for the stock given the bumped-up target price.

The stock has outperformed the broader market in the past month and gained over 30%. However, despite the recent rally, the stock is still down about 4% year-to-date.

Cisco Systems Inc (NASDAQ:CSCO) -The networking behemoth may not have had a great run in recent times in terms of its operations. However, on Wednesday it got a shot in the arm after analyst SamikChatterjee of JP Morgan went bullish on the stock. He noted that the business spending at Cisco had ‘limited further downside’. Following the development, Cisco’s stock rallied strongly.

The analyst essentially stated that orders appeared to have been bottoming. This was a positive outlook given the company had suffered from an erosion in order trends in the previous quarters. The stock jumped by 2% in premarket trading yesterday and was on track to touch its highest level in three and a half months. He went on to add that the sluggishness in overall business spending on a macro level would be offset by the fact that Cisco provided significant support to its ‘elevated’ backlog of orders.

CSCO stock went up over 2.30% in Wednesday’s trading session and close at $52.43, near its 52-week high of $52.56. The stock has jumped about 19% in the past year.

Carnival Cruise Lines (NYSE:CCL) – The COVID-19 pandemic and the associated travel restrictions had pretty much cratered the company’s business. However, the cruising space is making a comeback as restrictions are all but lifted and a company to watch could be Carnival Cruise Lines. 

Analyst John Staszak of Angus provided the company’s stock with an upgrade as he classified it as buy from hold. The upgrade was mainly prompted by some of the new marketing plans that had been launched by Carnival Cruise Lines. Staszak noted that the rise in marketing spending should lead to elevated revenues for the cruise operator. The rising liquidity of the company is the reason why it is able to spend on marketing and that was another positive indication about its current health.

After a downtrend last year, the stock came back strongly this year with a gain of 128% so far this year. Earlier this month, the stock reached its 52-week high of $19.55.