These are the best stocks to own in the second half, according to Rosenblatt Securities
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Rosenblatt Securities is looking toward the second half of the year for investors.
Despite inflation proving stickier for longer, Rosenblatt analysts say the current trend for price pressures is “positive for equities.” The firm explored where investors can find growth in the next six months of 2023, with tech and artificial intelligence stocks making up the bulk of their list.
“We expect tech to continue to lead the market higher and we also believe that the AI enthusiasm is not over-hyped,” analysts led by Rosenblatt’s Michael Kiernan wrote in a June 28 note. “NVDA’s recent sequential guide was telling. We think this rally has plenty of runway as investor risk appetites continue to climb the wall of worry.”
Here are some highlights from the Rosenblatt list.
ROSENBLATT SECURITIES’ STOCK PICKS FOR THE SECOND HALF OF THE YEAR
Harmonic Inc
Lions Gate Entertainment Corp
Advanced Micro Devices Inc
NVIDIA Corp
Galaxy Digital Holdings Ltd
With the explosion of investor excitement and hype over AI stocks this year, the inclusion of both AMD and Nvidia should be no surprise. Rosenblatt rates both stocks as a buy, with their average price targets implying about 41% upside for Nvidia and 73% for AMD, respectively.
“In our view, that AMD’s share gain story is sustainable for the next 2-3 years. Our price target of $200 is supported by a mid-20s P/E on earnings power of over $6.00,” the note said.
Both AMD and Nvidia have benefited from the explosion in artificial intelligence so far this year.
Rosenblatt is also bullish on stock in crypto firm Galaxy Digital. With a buy rating and an $8 per share price target, the firm is forecasting about 25% upside from Monday’s close $6.38 close on the Toronto Stock Exchange.
“At a 20% discount to book value, GLXY’s current valuation provides a margin of safety for investors seeking allocation to crypto,” the note said. “While share performance will reflect crypto’s market capitalization in the near term, GLXY offers investors exposure to digital assets while its growing operating businesses are essentially free.”
In media and entertainment, Lions Gate Entertainment class B stock made the Rosenblatt list with a $17 per share price target. The forecast implies more than 100% upside compared to Monday’s $8.24 close. Analyst Barton Crockett noted that the company’s Starz segment is essentially a “freebie” and adds to consumer value.
Rosenblatt is also eyeing broadband company Harmonic, with a $22 per share price target that implies about 35% upside.
″... Harmonic has introduced a solution for building out next generation broadband networks that is highly scalable, delivers 90% space savings, a higher quality of service and is future-proof, with an easy expansion path to DOCSIS 4.0 [data over cable service interface specifications], and FTTH [fiber to the home],” the note said.