Tesla has been a favorite among investors. And it’s not hard to see why: shares of the electric car giant have shed a staggering 992% in the last five years. While that means long-term investors are laughing all the way to the bank, it’s important to remember that big swings can happen in both directions. Tesla shares are already down 41% in 2022.
Still, Goldman is fairly bullish on the company. In January, one of his analysts, Mark Delaney, named Tesla a top pick for 2022. He reiterated a buy recommendation for the company and raised his price target to $1,200.
Considering that Tesla shares are trading at around $709 each right now, the target price implies 69% upside potential. “We believe that Tesla, given its leadership position in electric vehicles and its focus on clean transportation in general, will be better positioned to capitalize on the long-term shift to electric vehicles,” Delaney wrote in a note to investors. He is also optimistic about the company’s improving profitability and production figures. “We expect Tesla to expand margins in the medium term as the important Model Y product ramps up, as well as new factories in Berlin, Germany and Austin, Texas, and in the long term as its software revenue mix grows.” added the analyst.
Snowflake is a cloud computing-based data storage company based in Bozeman, Montana. While Snowflake shares are down 57% in 2022, the company still has a market capitalization of more than $45 billion.
In the three months ending January 31, revenue was up 102% year over year to $359.6 million. In particular, the net income retention rate was a solid 178%. The company continued to make huge customer gains. It now has 184 customers with product revenue of more than $1 million in the last 12 months, up from 77 such customers a year ago. Goldman Sachs recently lowered Snowflake’s share price target to $289 but maintained its buy rating on the company. Given that Snowflake is currently trading at around $143.50 each, the target price implies 101% upside potential.
Shares of Match Group, which has a portfolio of brands including Tinder, Match and Hinge, are down 45% in the past 12 months. Bumble, the parent company of apps Bumble and Badoo, has fallen more than 60% since the shares began trading last February. But Goldman Sachs expects a rebound in these two names.
“Match Group & Bumble have underperformed the S&P 500 in 2021 and we view the current valuation as an attractive entry point into a multi-year compounding growth story,” analyst Alexandra Steiger wrote in January.
He set a $157 price target on Match, which was later lowered to $152, still 95% higher than where the stock is today. For Bumble, Steiger lowered his price target to $42 in March, implying an advantage of more than 46%.
Both companies have been delivering strong growth figures. In the first quarter of 2022, Match Group’s revenue increased 20%, while Bumble’s revenue increased 24%.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
