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Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Inspired (INSE)

Consensus Price Target: $13.50 (88.3% implied return)

Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Why Is INSE Not Exciting?

1. Annual revenue growth of 3.1% over the last two years was below our standards for the consumer discretionary sector

2. Anticipated sales growth of 2.2% for the next year implies demand will be shaky

3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Inspired’s stock price of $7.01 implies a valuation ratio of 14.7x forward price-to-earnings. Read our free research report to see why you should think twice about including INSE in your portfolio, it’s free.

Vail Resorts (MTN)

Consensus Price Target: $198.25 (36% implied return)

Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE:MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.

Why Are We Wary of MTN?

1. Performance surrounding its skier visits has lagged its peers

2. Projected sales growth of 3.2% for the next 12 months suggests sluggish demand

3. Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat

At $138.51 per share, Vail Resorts trades at 16.8x forward price-to-earnings. To fully understand why you should be careful with MTN, check out our full research report (it’s free).

Pfizer (PFE)

Consensus Price Target: $31.13 (29.2% implied return)

With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.

Why Do We Think Twice About PFE?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.2 percentage points

3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability