As the market continues to rise and investor sentiment remains optimistic, UBS analysts have identified two stocks with strong growth potential.
Allegro MicroSystems is a semiconductor company specializing in integrated circuits (ICs) for various technological and industrial applications, particularly in the automotive sector. Despite recent challenges, UBS analyst Timothy Arcuri believes Allegro's potential for a cyclical recovery is underestimated. He notes that the company's position in the EV supply chain and its extensive patent portfolio provide a solid foundation for future growth. Allegro's fiscal 2Q25 results showed a slight decline in revenue but exceeded earnings per share expectations. Arcuri maintains a bullish stance, projecting a price target of $30, suggesting a potential upside of 45% over the next year.
Chord Energy is an independent oil and gas company operating in the Williston Basin. The company has a significant presence in the area and recently acquired Canadian firm Enerplus, enhancing its asset base and operational capabilities. In its latest quarterly report, Chord reported strong production and revenue growth. UBS analyst Josh Silverstein expresses optimism about Chord's future, citing improving operational efficiency and a strong balance sheet. He believes the current valuation does not accurately reflect the company's strong fundamentals and sets a price target of $168, indicating a potential upside of 32.5% over the next year.
Both Allegro MicroSystems and Chord Energy exemplify the bullish sentiment prevailing in the market, supported by strong fundamentals and growth prospects. These stocks present compelling opportunities for investors looking to capitalize on the anticipated market recovery.