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Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets
Umar Farooq
10 min read

In This Article:

In this article, we will discuss the 10 stocks whose price targets were recently raised by analysts. If you want to see more such stocks on the list, go directly to Wall Street Analysts See Upside Potential for 5 Stocks with Rising Price Targets.

Global stock markets experienced a retreat on September 21 in response to recent central bank decisions, notably from the Federal Reserve and the Bank of England. The Federal Reserve's announcement of an extended period of elevated interest rates dampened market sentiment, leading to declines in stock prices. Concurrently, investors are anxiously awaiting the Bank of England's policy decision, which is uncertain due to softer inflation data. The Stoxx 600 Index witnessed a 0.7% decline in Europe, with nearly all industry sectors in negative territory. In the United States, futures contracts for major benchmarks slipped, extending the previous day's losses on Wall Street. Asian stock markets registered their most significant drop in over a month, reflecting concerns emanating from the Fed's policy stance and global economic uncertainties. Meanwhile, US Treasuries displayed mixed performance in the bond market, with certain yields edging higher. Simultaneously, the US dollar strengthened, often seen as a safe-haven asset during periods of market uncertainty.

On the European side, the Swiss National Bank (SNB) ended its five consecutive interest rate hikes, keeping rates unchanged at 1.75% in its latest quarterly monetary policy meeting, reported CNBC. The SNB noted that the previous tightening of monetary policy effectively addressed inflationary pressure. Switzerland's inflation rate of 1.6% in August, below the 2% target, contributed to the decision. Despite Switzerland's strong economic performance and a robust Swiss franc, the central bank maintained its policy stance as the Swiss economy showed signs of stagnation in Q2. The Swiss Market Index was among the few European indices to trade positively following the SNB's decision. Looking ahead, the SNB recognized the global economic outlook remained subdued, with potential risks including a significant global economic slowdown and energy supply concerns in Europe. The central bank anticipates around 1% economic growth in Switzerland this year, with slight unemployment increases and reduced production capacity utilization.

Oil prices declined on September 21, following the largest monthly drop in the previous session. This drop was driven by expectations of a U.S. interest rate hike, which overshadowed the impact of reduced U.S. crude stockpiles. Brent futures for November delivery fell 97 cents, or 1.04%, to $92.56 a barrel, while U.S. West Texas Intermediate crude (WTI) dropped 97 cents, or 1.08%, to $88.69, marking its lowest level since September 14. Both benchmarks had experienced declines of over $1 earlier in the day. The decision by the U.S. Federal Reserve to keep interest rates unchanged at the recent Federal Open Market Committee (FOMC) meeting, while signaling a potential rate increase by year-end, was viewed as a "hawkish pause" that added pressure to risk assets like oil, according to ING analysts. This hawkish stance also resulted in the U.S. dollar reaching its highest level since early March, making commodities like oil more expensive for buyers using other currencies. While data from the U.S. Energy Information Administration (EIA) revealed a decrease in crude inventories in line with expectations, the decline was smaller than anticipated, causing some traders to lock in profits following a 10% gain since the start of the month. Despite these short-term factors, concerns about global supply tightness entering the fourth quarter persisted, with Cushing crude stocks at their lowest since July 2022 and ongoing production cuts by the Organization of the Petroleum Exporting Countries and its allies. In summary, oil prices retreated due to expectations of a U.S. interest rate hike, despite reductions in U.S. crude stockpiles. While short-term factors influenced the market, concerns about supply tightness remained a driving force.

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