Top Wall Street Analysts Say Buy Rivian and Nio

Investors can’t seem to find a bottom in this bear market and are struggling to hold onto any optimism amid growing fears of a possible recession.

However, the key to successfully surviving a bear market is to calmly wait for the market to recover, while taking advantage of the current pullbacks in the right stocks.

It now makes more sense than ever to keep a close eye on what top Wall Street analysts are saying about stocks. Here are five stocks selected by some of the best analysts on Wall Street according to TipRanks, which ranks analysts by performance.

Electric vehicle (EV) manufacturer Nio (NIO) is suffering from a general weakness in consumer purchasing trends (in response to inflation); and this weakness is expected to remain an overhang at least for the rest of this year.

Furthermore, the lockdown in China due to the COVID-19 resurgence has been a bad one so far, but with the easing of restrictions, Nio is expected to witness a growth spurt. (See Trading activity of the Nio . hedge fund on TipRanks).

Recently, analyst Mizuho Vijay Rakesh cut his revenue estimates for the June quarter and full year. Furthermore, he also cut his stock price target to $48 from $55, noting short-term pressures, most of which are beyond Nio’s control.

However, strong EV demand has kept Rakesh’s long-term outlook for Nio elevated. Additionally, Rakesh sees supply chain disruptions that have persisted since the beginning of the pandemic, easing in the second half of the year. It is expected that in the second half of this year, foundries will add more capacity to help EVs and other automakers ramp up production smoothly.

Overall, Rakesh maintains an upbeat view of the company over the medium to long term, with a reinforced Buy rating.

Rakesh holds the 131st position on a list of nearly 8,000 analysts that monitor and rank on TipRanks. Furthermore, 56% of his stock ratings were successful, returning an average of 19.5% per rating.

Another auto and electric vehicle accessory maker in Vijay Rakesh’s sights is Rivian (RIVN). True, the company has been a victim of circumstances, especially supply chain disruptions and chip shortages, but growth is expected to gain traction soon after the clouds clear.

Notably, Rakesh is optimistic about the battery EV (BEV) outlook in the second half of the year. “Despite heightened macro risks, BEV could rise sharply in the second half of the year as China reopens and demand improves, with BEV likely to rise >55% 2H (more than) 1H,” Rakesh said. the EV industry in general. (See Rivian stock chart on TipRanks)

Thus, despite reducing his output estimate for Rivian In the June quarter, the analyst is optimistic about the company achieving economies of scale supported by “a structured path towards further vertical integration, giving more control over manufacturing and distribution.” vehicle distribution.” Rakesh calculated short-term difficulties into his price target and cut it from $10 to $70 per share.

“We see RIVN as a strong and pure starter in the electric vehicle market with a focus on the higher growth SUV/light truck market and strong commercial vehicle roadmap,” explains Rakesh. with Amazon,” Rakesh explained while reiterating his Buy rating on the stock.

Microchip technology (MCHP) is a leading developer and manufacturer of microcontrollers, memory and similar products, and interfaces for embedded control systems (small, low-power computers designed for specific tasks) . Like its peers, the company is also facing the consequences of global supply chain shortages, resulting in increased lead times and production constraints.

Recently, analyst Stifel Nicolaus, Tore Svanberg, found various benefits to the business and upgraded MCHP stock from Hold to Buy. He also raised his price target to $75 from $70. (See Microchip’s internal trading activities on TipRanks)

Svanberg believes that Microchips has proven its business to be resilient in previous downturns. Additionally, he also noted that the current valuation of price-to-earnings is 9.8 times the estimated non-GAAP earnings-to-EPS value of CY23, which is close to the company’s lowest traded valuation. Microchip for the past five years. This makes the stock even more attractive right now.

“MCHP has established a diversified, high-performance analog and embedded computing business model, with a revenue base,” said Svanberg, 28th out of nearly 8,000 analysts tracking on TipRanks. impressive diversity on many indicators. Furthermore, his stock ratings were successful 66% of the time, returning an average of 22.5% per rating.

The banking sector is one of the sectors benefiting the most from the high interest rate situation, and Citigroup (OLD) is one of the biggest players in the field.

As an RBC Capital Markets analyst Gerard Cassidy As a recent research report pointed out, Citigroup is asset-sensitive, meaning net interest revenue should increase steadily throughout a tight monetary period. The higher level of net interest revenue generated through rising interest rates would fall to the ‘final profit’ level and could have a meaningful impact on EPS,” he said.

Cassidy is also optimistic about Citigroup’s long-term outlook. More than half of the company’s revenue comes from outside North America, putting the company in a strong position to benefit from growth in emerging markets.

More importantly, Citigroup, and most of the industry players, have experienced below-normal credit losses, which may seem like a good thing on the surface, but not a sustainable trend according to Cassidy . While there is a chance that credit losses increase to normal levels in the second half of 2022, the analyst believes they are “manageable for C but could lead to increased volatility in its share price. ” (See Citigroup Risk Factors on TipRanks)

These observations prompted Cassidy to reiterate a Buy rating on C stock that reflects his long-term bullish bias. His short-term interest has been factored into a price target, which he has dropped from $65 to $60.

Gerard Cassidy ranks 30th out of nearly 8,000 analysts tracked by TipRanks. Furthermore, he has a history of 67% successful ratings and 22.7% return on each rating.

Public memory (PSA) owns, develops, and operates self-storage facilities in the United States It is encouraging that a large portion of Public Storage’s customers do not want to move their stored items around, making it easier for the company to Easier to increase the monthly fee. Furthermore, the recent sale of its Business Parks unit to Blackstone, expected to be completed in the third quarter of this year, is expected to yield $2.7 billion in proceeds for the Public memory.

Recently, Stifel analyst Stephen Manaker reiterated his positive stance on the hosting operating environment, supported by strong and sustained demand.

Manaker also pointed Public memory strong balance sheet, as the company’s ample cash reserves are expected to cover any expenditures by 2022. The analyst assumes that $400 million in net proceeds from the sale of the Commercial Area will be retained by the company (and the remainder will be paid through cash dividends). Additionally, a cash balance of $941 million was present at the end of the first quarter. Furthermore, $500-800 million is also expected to be retained in the cash flow this year. This puts PSA in a strong liquidity position. (See Publicly store Dividend date and history on TipRanks)

Now, Manaker recalls that PSA has a $500 million bond that matures this year. Furthermore, according to company guidelines, $1 billion is the budget for acquisitions for fiscal year 22. The above assumptions and calculations made by Manaker have inferred that PSA may not even have to raise. more capital to pay off the bond debt and execute the repurchase deal. This is good news in a time of high interest rates.

These strong upside moves prompted the analyst to reiterate the Buy rating on the stock. However, increasing interest rates prompted Manaker to cut his price target to $360 from $410, even though he assumed lower interest expenses.

Notably, Stephen Manaker holds 42nd place out of nearly 8,000 analysts followed on TipRanks. Interestingly, 75% of his ratings were successful, and each of his ratings has yielded an average return of 19%.