In the face of an impending recession, it makes sense to follow which stocks Wall Street analysts are rooting for. Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). These stocks are in the spotlight this week.
Avrobio (AVRO)
Biotechnology company Avrobio specializes in gene therapy to treat cancer and other rare diseases. It is currently riding high with the success of its latest Gaucher Day event, which mainly highlighted the company’s advancements in the treatment of the Gaucher disease. It was attended by several analysts who left the event more bullish than before.
BTIG analyst Yun Zhong upgraded Avrobio to Buy from Hold with a $4 price target. Zhong was upbeat about the promising developments on four Gaucher disease type 1 patients receiving Avrobio’s AVR-RD-02 treatment.
Further, Mizuho analyst Uy Ear reiterated a Buy rating and $6 per share price target on AVRO stock, saying that the company’s updates were in line with his expectations. However, the analyst was pleasantly surprised by encouraging details about the Gaucher treatment. “We believe Avrobio has a path forward for its late-stage HSC gene therapy for Gaucher disease, AVR-RD-02, which could have a significant commercial head start on competitors,” said Ear.
What is the Price Target for AVRO Stock?
Three analysts on Wall Street have rated Avrobio a Buy, whereas one has rated Hold, giving the stock a Strong Buy consensus rating. The average price target of $4.50 indicates 445.45% upside potential.
Apple (AAPL)
A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China. Additionally, forex headwinds are looming on Mac revenues in the December quarter. Digital advertising is also likely to keep the top line under pressure.
Several analysts are cutting their estimates for Apple in the forthcoming quarters, but long-term prospects stand firmly bullish on Wall Street.
Recently, Morgan Stanley analyst Erik Woodring reduced his unit sales expectation for the quarter for the second time in a month as COVID-19-induced restrictions threaten to impact operations at Foxconn, the primary assembly facility for the iPhone 14 series.
Nonetheless, he reiterated a Buy rating and $175 price target on AAPL stock, confident that the demand for the iPhone 14 will be postponed to the March quarter rather than be destroyed.
What is the Price Target for AAPL Stock?
Wall Street is bullish on AAPL stock, based on the opinions of 23 analysts with a Buy rating and four with a Hold rating. The average price target of $180.1 also indicates growth potential of 25% over the next year.
Synopsys (SNPS)
An impressive flow of compelling design wins and a robust product portfolio is driving software giant Synopsys’ business through the headwinds in the broader technology sector. High demand for advanced technology, design, IP, and security solutions are also strong catalysts for growth.
For any growth-focused company, dynamic cash flow growth is key to pursuing growth-boosting initiatives. Notably, Synopsys’ operating cash flow has steadily increased over the past five years.
Last week, KeyBanc analyst Jason Celino reinforced his Buy rating and raised the price target on Synopsys to $467 from $455, encouraged by as-expected Q4 results supported by broad-based strength. A significantly improved full-year 2023 guidance also supported his thesis.
What is the Price Target for SNPS Stock?
Wall Street’s bullishness is supported by seven Buy ratings and one Hold rating. Moreover, the average price target for SNPS stock stands at $424.43, reflecting 30.3% upside potential.
Rent the Runway (RENT)
Rent the Runway is a unique e-commerce service that enables users to rent, subscribe, or buy designer apparel and accessories. The company is in an advantageous position during the downturn, as consumers look at renting luxury items rather than buying them. As a result, it posted strong Q3 results.
After the print, Telsey Advisory analyst Dana Telsey reiterated a Buy rating on the stock, encouraged by RENT’s restructuring plan, which is largely complete. The analyst believes that the restructuring boosted the company’s profitability in Q3 and paved the way for a better Q4. Telsey also expects RENT to benefit from significant secular consumer trends, which can potentially drive long-term growth.
In a little more than a year since its IPO, shares of RENT have declined almost 88%. This opens up an excellent opportunity for investors to jump in and make the most from the discounts offered by the company that caters to a digital retail niche that is still in its nascent stage.
What is the Price Target for RENT Stock?
RENT has a Strong Buy consensus rating based on eight Buys and two Holds assigned in the past three months. Moreover, the average price target for RENT stock stands at $5.75, implying 122.9% upside potential.
The Takeaway
As the bear market rages on, the above four stocks rely on their unique strengths that are expected to ensure their survival through a potential recession. Wall Street pros are highly optimistic about these names.
