2 'Strong Buy' Tech Stocks Wall Street Just Upgraded - With Double-Digit Upside!

Hey everyone, it's Julie here with Tip Ranks and today we're diving in to two tech stocks that were just upgraded by Wall Street last week. So, let's get into it. All right, guys. Welcome back. Thank you all so much for being here. Today, we are taking a look at two stocks in the tech sector that both received upgraded ratings to a buy from Wall Street analysts last week. On top of that, they come in with a strong buy consensus and some double-digit upside potential. So, we're going to take a look at these companies, what's been going on with them recently, and of course, what these analysts are predicting for the stock's future. You can follow along over on the Tip Ranks website or right on the Tip Ranks mobile app. Links to download are in the description below. And if you enjoyed today's video, make sure you hit that thumbs up button and that you're subscribed to the channel. Now, let's dive right into our recently upgraded stocks. First up, we're taking a look at Fabernet. They trade under the ticker FN, currently priced at $427 per share. The stock has gained 27% overall in the past year, but has declined more recently and has dropped 38% in the last 3 months. Fabernet is an outsourced manufacturer based in Thailand. They make complex optical and electromechanical components. Think the precision photonix packaging that goes into data center transceivers, telecom equipment, and sensing systems. It's not a household name, but it's a critical link in the AI infrastructure supply chain. And its biggest customer is none other than Nvidia, which uses Fabernet to manufacture optical components for its networking gear. Now, Fabernet actually beat on both earnings and revenue estimates for their Q4 report that came out on August 16th, but the stock sold off hard afterwards. Earnings per share were $410 compared to $2.65 the year before and beat by 29 per share, while revenue climbed 44% year-over-year to 1.32 billion, beating by nearly $40 million. That was record quarterly and annual revenue growth. and their data center revenue of 669 million was up 68% year-over-year. The stock sold off as datacom revenue slipped sequentially. Their sales to Nvidia came in lighter and heavy capacity expansion spending created a cash flow deficit. The market read it as a valuation reset. Despite the downward pressure on the stock in recent months, many Wall Street analysts reiterated buy ratings following this report with several of them increasing their price targets. And as you know, one analyst upgrading the stock to a buy. And that was a five-star analyst from Fox Advisors. Also following that earnings report, we heard from an analyst at Barclays who increased their price target, noting that the company posted a solid quarter, beating on sales and earnings largely on data center strength. They say that their datacom and high performance compute did miss estimates. They believe the company's new capacity is on track and new programs are ramping to drive growth in fiscal 2027 and beyond. There are eight current analyst ratings on the Fabernet stock and it comes in as a strong buy with six buys and two holds. And their average price target of $726 certainly implies analysts think the stock will bounce back as that would be an upside of 70% from current prices. Looking at those recent ratings down below, they range from an upside of 40% with our hold rating here to a buy rating with an upside of 99%. And our second stock receiving an analyst upgrade was Analog Devices. They trade under the ticker ADI, currently priced at $373 per share. Their stock is up 45% in the past year, but has also declined more recently, not quite as bad as Fabernet, but down over 11% in the last 3 months. Analog Devices is one of the largest analog and mixed signal chip makers in the world. Its chips convert real world signals like temperature, sound, and motion into data that electronics can process. It's a staple across industrial automation automotive and communications. And increasingly, its power management and signal chain chips are showing up in AI data centers where efficient power delivery is becoming just as important as the GPUs themselves. They shared a beat and raise earnings report for their second quarter on August 19th, including their first ever $4 billion revenue quarter and record earnings per share. Revenue of 4.02 billion was up about 40% year-over-year. And that record earnings per share of $345 was up 68% year-over-year. And their growth was broad-based. Industrial was up 53% year-over-year. Automotive up 16% year-over-year, communications up 84% year-over-year. They saw their trailing 12-month free cash flow come in at $4.9 billion, and their guidance for Q4 points to more of the same. Low lights of the quarter did include their cash dropping to $2.3 billion after a deal with Empower. Once again, we saw quite a few Wall Street analysts increasing their price targets on the stock and reiterating buy ratings as well as an analyst from Seapport who upgraded their rating on the stock to a buy. They noted that the company said its AI data center opportunity is twice what it thought it was a few months ago. Seapport views Analog's management team as conservative and in addition, most of the company's other end markets are trending upwards with inventories getting lean and lead times lengthening. They believe Analog Devices appears to be entering the sweet part of the cycle. And with 20 current analyst ratings, Analog Devices comes in as a strong buy with 19 buys and just one hold. Their average price target comes in at $483, implying an upside potential of over 29%. And when we take a look at those most recent ratings down below, you can see quite a few analysts bumping up their price targets. On the low end, we have a hold rating with an upside of 8%. While on the high end, Robert Bar increased their price target by $225 for an upside of 80%. So, that is a quick look at two tech stocks, both getting upgraded ratings just last week and price targets with some pretty big upside potential. Let me know your thoughts on these two companies and which one you'd put on your watch list. I always appreciate hearing from you guys in the comments. And please remember, these videos are never a suggestion to buy or sell any specific stock. So, please make sure you always do your own research and due diligence. Thank you guys so much for watching. Have a wonderful day. I'll see you back here next time.