While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
So what: Along with the upgrade, analyst Jason Helfstein planted a price target of $419 on Netflix and $78 on Yelp, representing upside of 24% and 19%, respectively, to Friday's close. So while momentum traders might be turned off by the tech sector's weakness in recent weeks, Helfstein's call could reflect a growing sense on Wall Street that it's starting to offer some attractively priced opportunities.
Now what: According to Oppenheimer, both Netflix and Yelp have favorable near-term technical support. "In our view, the recent sell-off in high-beta Internet and technology stocks has created a buying opportunity in certain stocks in our coverage universe," said Helfstein. "As we view near-term fundamentals as unchanged, we are upgrading the shares of NFLX and YELP to Outperform from Perform." More important, with both Netflix and Yelp boasting a rock-solid balance sheet and attractive long-term growth prospects, the downside might be limited enough to buy into that bullishness.
3 stocks poised to be multi-baggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multi-bagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.