Wynn Resorts and Merck among Wells Fargo’s conviction calls for Q1 – Seeking Alpha

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Wells Fargo outlined for investors a list of six stocks that it views as high-conviction names for Q1. In a note published this week, the financial institution said its analysts are overweight the below names and see tactical advantages and catalysts that can propel these stocks higher.

Wynn Resorts (NASDAQ:WYNN): The bank lists WYNN as Overweight and raised its price target to $101 from its prior $74 a share target. The new figure represents a potential 18% upside move from Tuesday’s closing price $85.61. Wells Fargo stated, “WYNN is poised to benefit from Macau/China re-opening in 2023 and beyond.”
Merck & Co. (NYSE:MRK): Wells Fargo labeled MRK as an Overweight pick and tagged the pharmaceutical firm with a price target of $125, up from its previous call of $110. “We think the setup is improving for MRK as the Keytruda beat and raise story is supplemented by pipeline success… MRK’s focus on its cardiovascular portfolio is paying off with Sotatercept, and we expect incremental data in PAH plus oral PCSK9 data in 2023 to support this.”
Argenx (NASDAQ:ARGX): Wells raised its price target on ARGX to $470 a share, a 24% increase from its previous call. The financial institution stated, “We’re bullish on ARGX based on Vyvgart’s many expansion opportunities across multiple IgG-mediated autoimmune diseases that we expect to fuel significant growth.”
Abbott Laboratories (NYSE:ABT): Wells Fargo has an Overweight rating on ABT and a $140 target. “We expect the company to continue to deliver double-digit underlying EPS growth on mid-to-high single-digit underlying sales growth and operating leverage.”
Dynatrace (DT): The bank placed a $50 price target on the software stock, up from its previous price target of $45. “We believe that DT has the only enterprise-grade cloud platform capable of supporting modern workloads in a hybrid environment. This should enable DT to maintain strong win rates in the enterprise market and ultimately drive ARR growth.”
Eversource Energy (ES): Wells issued a $99 price target on ES, noting the company “is executing on a back-to-basics (simplification) strategy that will transform the company back into a fully regulated electric, natural gas and water utility with operations in MA, CT & NH.” The firm added: “We think successful execution on the simplification strategy could prompt a multiple re-rate of up to 10%.”