Stockchase-logo
Loading...
    Track Stocks Watchlist
    Top Picks Today
    =iconClose Home All Opinions Top Picks Stocks Experts Top Experts Panic-proof Top 100 Stocks Monthly gems News
    Watchlist Track Stocks
    Top Picks Today
    Home » Stock Lists

    2 Upgraded Stock Price Targets: Twitter and Williams-Sonoma

    Allan Tong Posted On April 20, 2021
    0
    0
    Shares
    • Share On Facebook
    • Tweet It

    Stock price targets

    Discover What's Inside

    • Stock Price Targets
      • Twitter, Inc (TWTR-N)
      • Williams-Sonoma Inc. (WSM-N)

    Stock Price Targets

    With earnings season underway, we continue to look at stocks that have enjoyed recent stock price upgrades. There’s nothing like an earnings beat or miss to change an analyst’s opinion.

    Then again, how accurate are their stock price targets? Take these stock price targets with a grain of salt and instead look at the reasons behind them as well as traditional metrics, including P/E and 90-moving averages. This week we focus on a tech stock and a reopening play with a bullish outlook on the market in the coming month, but are also expecting bumpiness and pockets of buying opportunities.

    Twitter, Inc (TWTR-N)

    This popular social media platform is often overshadowed by Facebook and has historically underperformed it. Twitter shares rose 173% over the past five years compared to 292% for FB. Historically, Twitter has struggled to monetize its users’ messaging activity until recently. Just a few months ago, there were fears that some users would abandon the platform after disgraced former U.S. President Donald Trump was banned from using it to incite rioting.

    However, since President Biden’s inauguration, the opposite has happened. Twitter shares have bounced 49% while Facebook has risen 20% to recent all-time highs. Twitter stock itself reached a high of $77.63 on March 1 but has since peeled back $10 during recent selling of tech stocks. In a nutshell, Twitter moved up too fast too soon and deserved to retrench.

    On Monday, Oppenheimer maintained its outperfom rating on the stock, but boosted its stock price target from $70 to $85, based on a bet that global internet advertising will grow 20% YOY in 2021 as economies reopen, particularly in the travel and entertainment industries. Other tailwinds: government pumping stimulus into economies and continuing e-commerce strength. Those are all valid reasons, and 2021 looks sunny for Twitter, but pinpointing a stock price target on this stock is tougher than usual.

    Currently, 34 analysts stock price targets are anywhere from $52 to $114, which averages out to $75.41 or 7.5% upside. The consensus is a weak buy, based on 14 buys, 19 holds and one sell. In the past month alone there have been three buys and five holds.

    Twitter’s cash flow, profit margin and earnings remain negative, and lag its peers. Twitter stock’s EPS growth is declining, but it remains above the industry average. The EPS itself stands at -$1.45 while the industry average is $14.80. As for growth, Twitter has lost market share as it increases revenues slower than its competitors. This extends the trend from last year when Twitter grew revenues by 27.96% vs. the industry’s 29.46%.

    Bottom line: The time to buy this was in mid-January and the money has been made. I wouldn’t be surprised if Twitter retrenched a little further, and only then can an investor initiate. On Monday, Twitter stock had fallen back to its 50-day moving average of $67.52, so it’s time to watch this. (The 200-day is $55.47.) If you already own Twitter stock, hold.

    Williams-Sonoma Inc. (WSM-N)

    Since March 18, two analysts initiated buys while two others maintained their buy signals on WSM stock. Only three of them offered stock price targets, which averaged $204, which is far above the consensus of $164.25. WSM stock is another weak buy drawn from seven analyst buys, eight holds and one sell, but at $168 the stock continues to trade above its 50-day moving average of $160.25 and 200-day of $123.24. WSM continues to ride the U.S. housing boom which shows no signs of abating.

    If anything, housing sales and renos should rise as America pumps more vaccines into arms (on Monday, all adults in the U.S. can get jabbed). The reopening of malls (remember those?) will revive brick-and-mortar sales while WSM’s e-commerce has done well during lockdowns.

    Another plus in WSM stock’s favour is its 20.3x PE which is cheap compared to the industry’s 31.5x. Margins also outpace the competition. For example, WSM stock’s profit margin is 10.04% vs. its peers’ 8.3%. WSM stock pays only a 1.39% dividend, but at a safe 24% payout ratio.

    EPS growth is outpacing the industry average. Recent EPS was 8.59%, which marks a 90.73% increase over the previous year. In that year, revenue growth slightly lagged the industry’s (24.36% vs. 25.2%), but has reversed the trend since then and as a result has gained market share.

    On March 17, WSM stock released Q4 earnings and revenues beats that the street liked. Before it spiked, WSM stock was changing hands around $136. Since then, shares have ranged between $165 and $187. Company revenues should continue to sail in 2021 though there will be mini-pullbacks on days like Monday and Tuesday this week when WSM stock gives back 2.5% so consider an initial position below $165.

    0
    Shares
    • Share On Facebook
    • Tweet It




    Trending Now
    This Week's Stock Picks & BNN Top Picks Summary: MELI-Q, V-N and 20 Stock and 4 ETF Top Picks (May 02-08)
    Melisa R. H. May 9, 2025
    Weekly 52-Week Low (or 52-Week High): DPM-T, III-T, SOY-T, IPO-T and More 52-Week Highs and Lows (Apr 16-22)
    Melisa R. H. April 23, 2025
    Markets extend losses
    Read Next

    Markets extend losses

    • logo

      We’re fintech passionates that reinvest almost all our revenues into the development of Stockchase and Wealthica. We hope you enjoy Stockchase and join Premium!

    • Top Reviews

      • Questrade Review: Pros & Cons of Trading with Questrade Canada (2023)
        8.5
      • The Ugly Truth About Identity Theft – Free Credit Report
        7
      • Questrade vs Others | The Review Competitors Don’t Want you to Read (2023)
    • Popular Posts

      • This Week's Stock Picks & BNN Top Picks Summary: MELI-Q, V-N and 20 Stock and 4 ETF Top Picks (May 02-08)
      • Weekly 52-Week Low (or 52-Week High): DPM-T, III-T, SOY-T, IPO-T and More 52-Week Highs and Lows (Apr 16-22)
      • Most Anticipated Earnings: NGT-T, WCN-T and more Canadian Companies Reporting Earnings this Week (Apr 21-25)
    • Stock Lists

      • Unraveling 15 of the Best Natural Gas Stocks: A Canada-USA...
        November 10, 2023
      • 13 Recession-Proof Stocks for Portfolio Safety
        October 26, 2023
      • The Ultimate Top Drone Stocks List for Sky-High Returns...
        October 25, 2023
      • Top Hotel Stocks to Buy for your Growth Portfolio
        October 12, 2023
      • Which Brookfield Stock to Buy? BAM vs BN: the Inspiring...
        October 9, 2023



    • Stockchase neither recommends nor promotes any investment strategies.

      About us : Privacy & Terms : Contact us

    © Stockchase Inc.
    Press enter/return to begin your search