9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

OPIN I O N - INVE ST I NG

Despite recent market tumult, top Wall Street

analysts see upside in these stocks
P U B L I S H E D S U N , S E P 2 6 2 0 2 1 • 9 : 3 5 A M E DT U P DAT E D S U N , S E P 2 6 2 0 2 1 • 9 : 2 6 P M E DT

Brock Ladenheim, Tipranks.com

SHARE    

Tesla CEO Elon Musk gestures as he visits the construction site of Tesla’s Gigafactory in Gruenheide near Berlin, Germany,
August 13, 2021.
Patrick Pleul | Reuters

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 1/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Though the market has been volatile, analysts are spotting opportunities for upside
among select companies.

Tipranks is able to cut through the market noise by aggregating data to show which
financial analysts are consistently making the right calls, and provides that
information on an easy-to-digest platform.

From electric vehicles to video streaming, some of the top performing analysts in
U.S. capital markets recently spelled out their hypotheses on these five stocks.

Let’s take a look and see what some of the best analysts have to say.
ADVERTISING

Netflix
Due to the Covid-19 pandemic, investors had high hopes for video streaming service
and content producer Netflix (NFLX), but high growth one quarter can often mean a
difficult comparison for the next quarter. While the firm has experienced a
deceleration in subscriber growth throughout 2021, Scott Devitt of Stifel Nicolaus
believes the worst is behind it. (See Netflix hedge fund activity on TipRanks)

Devitt rated the stock a Buy and raised his price target to $650 from $580.

The bullish analyst forecasts newly acquired subscriber numbers to ramp up during
the second half of the fiscal year. Additionally, he believes that Netflix’s
internationally inclined direction will help expand its total addressable market
overseas.    
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 2/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Stock picks and investing trends from CNBC Pro:

Goldman Sachs has a raft of new stock picks with more than
20% upside – here are 10
Democrats want to raise capital gains taxes. Here’s why
investors should think before selling
Traders are watching two big things to determine if the
market’s comeback rally is for real

The company is slated to spend about $17 billion on content for the year, and is
experiencing high levels of user engagement. Furthermore, Devitt anticipates that
Netflix is “nearing a period of sustained free cash flow generation, which should
enable a long runway of self-funded content creation, reduce the need for external
financing, and allow the company to return capital to shareholders.”

While the stock has been affected by larger market forces in recent weeks, Devitt
does not view the decline in share price as a reflection of the company’s core
business trends. He does, however, see the slight decline as a discount, and wrote
that it provides an attractive entry point for long-term investors.

Out of more than 7,000 analysts on TipRanks, Devitt is rated as No. 52. His ratings
have resulted in a 68% success rate, and have returned an average of 32.7%.

AutoZone
The Covid-19 pandemic brought with it many business-related trends, and with
people stuck at home, the do-it-yourself boom took off. While this has waned
slightly, retail firms like AutoZone (AZO) are still printing positive earnings results.
The auto parts company recently beat Wall Street consensus estimates on earnings-
per-share by more than 20% and is forecasted to have “more gas in the tank” for
2022.

Zachary Fadem of Wells Fargo rated the stock a Buy, and raised his price target to
$1,825 from $1,750.

The five-star analyst brushed off DIY slowdown worries and highlighted the firm’s
potential upsides. He wrote that AZO is slated to open about 20 more hubs
mega  
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 3/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

throughout the 2022 fiscal year, and that it has been properly managing its
inventory. (See AutoZone risk factors on TipRanks)

AutoZone has been betting on commercial business investments to expand growth,

and the analyst feels that the strong quarterly results reflect success in these
initiatives. Additionally, Fadem identified the positive of recovering labor metrics,
which he attributes to the conclusion of “enhanced unemployment benefits.”

Bullish on the company, the analyst said that the share price remains attractive and
that shareholders could be rewarded by future company growth, which will also be
bolstered by its nascent online sales segment.

On TipRanks, Fadem is rated as No. 36 out of more than 7,000 expert analysts.
Fadem’s ratings have been successful 77% of the time, and they have averaged
returns of 29.9% per each one.

Adobe
For software-as-a-service firms, cloud computing is now the name of the game.
Companies that have successfully adapted to this new reality are flourishing, and
Adobe (ADBE) is no outlier. Called a “pioneering trailblazer of digital creative and
marketing tools and services” by Brian Schwartz of Oppenheimer & Co., the
company has scaled to its current advantageous and profitable position in its market.

Schwartz rated the stock a Buy, and raised his price target to $680 from $600.

The bullish analyst called Adobe a “verifiable cloud platform success story” and
declared his optimism on its outlook. This positivity came after Adobe’s recent
encouraging earnings results, which exceeded Wall Street consensus estimates on
several key metrics. (See Adobe’s insider trading activity on TipRanks)

While further upside, supported by high levels of profitability, is expected by

Schwartz, he did warn short-term investors of a possible healthy pullback. This
correction would come after the stock climbed about 29% year-to-date (as of his
writing). He asserted that “the fundamental outlook for Adobe is positive.”

In regard to its most robust platforms, the Digital Experience cloud-based products
are ramping up with natural growth, and acquired enterprise management company
Workfront is integrating successfully.    
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 4/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Of the more than 7,000 professional financial analysts on TipRanks, Schwartz ranks
as No. 3. His ratings have been successful 81% of the time, and collectively they
have averaged a return of 35.4%.

Tesla
The market for electric vehicles (EV) is still a marginal portion of the overall auto
industry, but this is sure to change in the coming years. Calling it a “front and
center” winning stock play in EVs, Daniel Ives of Wedbush argued that Tesla (TSLA)
has yet to hit its major global stride, with much more capacity for production on the
way this year. (See Tesla blogger sentiment on TipRanks)

Ives reiterated a Buy rating on the stock, and assigned a price target of $1,000 per
share.

Although the bullish analyst admitted that Chinese regulatory challenges exist and
have been weighing on the stock price for the last couple of quarters, he anticipates
them dissipating by the end of the year. He added that until the Berlin Gigafactory is
operational, the fact that Europe has its Tesla vehicles shipped in from China is an
unsustainable “logistical nightmare.”

Read more about electric vehicles from CNBC Pro

Morgan Stanley believes this air taxi start-up can rally more
than 60%
Piper Sandler predicts this electric aircraft play could rally
80%
Bank of America predicts 50% gain in Lucid, compares EV
maker to Tesla and Ferrari

This issue, however, will be overcome once Berlin begins producing Tesla vehicles.
Additionally, the company’s capacity to meet demand will be supported again, once
the other manufacturing plant under construction in Austin, Texas goes online.

Another difficulty has been the global semiconductor chip shortage, which has been
a drag on the larger auto industry for most of 2021.

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 5/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

While competition is heating up quickly, Ives expects Tesla to remain in a dominant

position in relation to other EV firms. He foresees the EV and autonomous vehicle
market to grow from 3% today to 10% by 2025, with Tesla benefitting far more than
other companies from this shift.

Ives maintains a ranking of No. 33 out of over 7,000 total analysts on TipRanks. His
ratings have succeeded 75% of the time, and have brought in an average of 35.7%
on each one.

Uber
Although mobility in general was hampered during the most severe days of the
Covid-19 pandemic, Uber Technologies (UBER) managed to leverage its
ridesharing drivers as food delivery vehicles and maintain relevance. The company
has dealt with several high-profile headwinds over the last quarter or two, but Doug
Anmuth of JPMorgan sees them waning, with upside on the horizon.

Anmuth maintained his Buy rating on the stock, and declared a price target of $72.

The analyst explained that the factors dragging on the share price are dissipating,
and should clear up by fourth quarter of this fiscal year. These include regulatory
obstacles, a low supply of drivers, and worries surrounding its ability to finally
produce a profit.

He dispelled the concerns by stating that in several countries, ride volumes have
exceeded pre-pandemic levels and that the supply of drivers has been improving.
Additionally, the incentives Uber had been offering to new drivers have been
reduced, signaling a lowered sense of recruitment urgency for the firm.

In regard to Uber Eats, Anmuth wrote that the rapidly expanding food delivery
platform has been experiencing high levels of user retention. Furthermore, a
significant number of users are converted directly from the ridesharing app, which is
indicative of a strong platform ecosystem.

Anmuth believes that Uber’s management declared third-quarter guidance on the

conservative side, so the analyst expects a beat in this metric, come its next earnings
print. (See Uber stock charts on TipRanks)

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 6/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Aggregated by TipRanks, Anmuth ranks as No. 75 out of more than 7,000 other
analysts. His success in rating stocks correctly is 68%, and has brought in an average
return of 25.4%.

TechCheck WATCH IN THE APP

UP NEXT | Fast Money Halftime 12:00 PM ET

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 7/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

TRENDING NOW

‘I’ll be darned’: Biden reacts to pivotal German election result

Boston Fed President Rosengren abruptly announces retirement 9 months

earlier than planned
2

Goldman Sachs has a raft of new stock picks with more than 20% upside –
here are 10
3

challenge
Microsoft launches new phone features for Teams in latest   
to Zoom
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 8/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Dow rises 200 points as 10-year yield retakes key 1.5% level, tech shares
weigh on broader market
5

Sponsored Links by Taboola

FROM THE WEB

Find the perfect Gift

Bvlgari Shop Now

Enjoy Fun-10s-tic Treats!

Cycle & Carriage Register Now

MORE FROM CNBC FROM THE WEB

Jim Cramer says Free Webinar: Invest Like A Seasoned
he sees no reason Investor In Stock Market
to buy the stock
market dip just yet
Mary Buffett Business Pte Ltd Sign Up

Jim Cramer sees

buy opportunity in Casinos Will Hate You For Doing This
Adobe shares but They Can’t Stop You
after CEO’s
comments likely Casino Slots
dented stock
Check Out the Easiest Way to Invest in
Elon Musk says Amazon CFDs
the chip shortage
is a ‘short-term’
Trading Reviews Click Here
problem
  by 
Taboola    
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activity… 9/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Stocks making the

biggest moves
premarket:
General Mills,
FedEx, Adobe and
more

Stocks making the

biggest moves
midday: Carnival,
Nike, Match and
more

Stocks making the

biggest moves
after the bell:
Stitch Fix, Hyatt
Hotels, FedEx and
more

MORE FROM CNBC

Jim Cramer sees buy
opportunity in Adobe shares
after CEO’s comments likely…
Kevin Stankiewicz

Elon Musk says

the chip shortage
   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activi… 10/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Sam Shead

Stocks making the biggest moves in the premarket: Alphabet, Tesla, Gores
Guggenheim and more
Peter Schacknow 4 H O U R S AGO
Stocks making the biggest moves after the bell: Stitch Fix, Hyatt Hotels, FedEx
and more
Tanaya Macheel
Stocks making the biggest moves premarket: General Mills, FedEx, Adobe and
more
Hannah Miao
Netflix buys the entire catalog of ‘Charlie and the Chocolate Factory’ author
Roald Dahl
Ryan Browne

FROM THE WEB by Taboola     

Invest in UK Property-66% ROI

Predicted in 5 years!

Sponsored Select Property Group

Find the perfect

Gift

Sponsored Bvlgari

Ready to transform your 2D CAD experience?

Optimize your design processes with DraftSight. Increase ROI without sacrificing quality or productivity.    
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activit… 11/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

If You Like to Play, this City-Building Game is a Must-Have. No Install.

SponsoredForge of Empires - Free Online Game

70GB at $18. No contract.

SponsoredGOMO by Singtel.

FROM THE WEB by Taboola     

Enjoy Fun-10s-tic Treats!

Sponsored Cycle & Carriage

Unlimited
rollover up to
100GB, 1000…
Sponsored GOMO by Singtel.

Fluffiness at your door

SponsoredMcDonald’s Singapore

Apply for Singapore PR Now. Calculate your PR Chances.

SponsoredPaul Immigrations

Singapore: Stop Using a Browser that Tracks You    

https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activi… 12/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

SponsoredBrowserguides.com for Brave

MORE FROM CNBC

Jim Cramer says investors
should put these three
companies on their ‘shopping…
Kevin Stankiewicz

Netflix buys the

entire catalog of
‘Charlie and the…
Ryan Browne

Apple claimed it had less than 20 million TV+ subscribers in July, showbiz union
says
Kif Leswing
Tesla drivers can now request Full Self-Driving Beta with the press of a button,
despite safety concerns
Lora Kolodny
Apple’s power move to kneecap Facebook advertising is working

Alex Kantrowitz

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activi… 13/14
9/28/21, 12:04 AM Analysts see upside in these stocks like Netflix & Tesla

Subscribe to CNBC PRO Licensing & Reprints

CNBC Councils Supply Chain Values
CNBC on Peacock Advertise With Us
Join the CNBC Panel Digital Products
News Releases Closed Captioning
Corrections About CNBC
Internships Site Map
Ad Choices Careers
Help Contact

      

News Tips
Got a confidential news tip? We want to hear from you.

GET IN TOUCH

 CNBC Newsletters
Sign up for free newsletters and get more CNBC delivered to your inbox

SIGN UP NOW

Get this delivered to your inbox, and more info about our products and services. 

Privacy Policy
Do Not Sell My Personal Information
CA Notice
Terms of Service

© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and
Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by

   
https://www.cnbc.com/2021/09/26/analysts-see-upside-in-these-stocks-like-netflix-tesla.html?__source=iosappshare%7Ccom.apple.UIKit.activi… 14/14