Warren Buffett doesn't think too much of Wall Street analysts. His beloved Berkshire Hathaway (BRK.A -0.28%) (BRK.B -0.68%) doesn't hold regular quarterly calls with analysts as most publicly traded companies do. Buffett and his longtime business partner Charlie Munger have stated in the past that they typically ignore what Wall Street analysts have to say.
However, analysts definitely pay a lot of attention to Buffett. And they're especially excited about the prospects for some of the stocks in Berkshire's portfolio. Here are three Buffett stocks that can soar 33% to 60% over the next 12 months, according to Wall Street.
Image source: The Motley Fool.
1. Amazon.com
The consensus 12-month price target for Amazon.com (AMZN -1.64%) reflects an upside potential of 33%. Amazon would be able to get more than halfway toward achieving that target merely by recapturing its high from late last year.
There's one potential catalyst on the way that could help. Amazon plans to conduct a 20-for-1 stock split in June. Although the move doesn't change the company's valuation, it could attract more interest from retail investors who couldn't afford buying the stock at a price tag of more than $3,000 per share.
However, this upcoming stock split isn't the main reason why Wall Street (or Buffett) likes Amazon. They're almost certainly more focused on the strong growth of the company's Amazon Web Services cloud unit.
Analysts also could be optimistic about Amazon's prospects for its Prime Video business. The company recently closed its acquisition of MGM. Prime Video plans to debut the heavily anticipated The Lord of the Rings: The Rings of Power series in September as well.
2. RH
Wall Street is even more bullish about luxury home furnishings retailer RH (RH 1.32%). Analysts' average price target for the stock is nearly 58% above RH's current share price.
Increasing economic uncertainty has taken a toll on RH stock. Its shares have plunged more than 50% over the past six months. The good news, though, is that the decline has made RH's valuation much more attractive, with its shares now trading at only 13.5 times expected earnings.
Like Amazon, RH also has a stock split on the way that could serve as a catalyst. The company plans to conduct a 3-for-1 stock split this spring. RH decided to take the step in large part to help with the recruitment and retention of its staff.
But the primary reason to like RH is the company's long-term growth opportunities. RH is expanding operations in England, New York, and San Francisco this year. The company is also branching out into the North American housing market with its RH Residences luxury homes, condominiums, and apartments.
3. Snowflake
Wall Street's favorite Buffett stock of all appears to be cloud-based data infrastructure company Snowflake (SNOW 2.53%). The consensus price target for the stock reflects an upside potential of close to 60%.
Granted, Buffett probably didn't personally drive Berkshire's investment in Snowflake. One of his two investment managers likely chose to buy the stock at its initial public offering in 2020. However, Buffett didn't veto the decision.
Like many tech stocks, Snowflake has been hammered in recent months. It's now down more than 50% from its November 2021 peak. Analysts clearly think that a comeback could be on the way, though.
That confidence could be warranted based on Snowflake's business performance. The company's revenue more than doubled in the fourth quarter of 2021. Snowflake's net revenue retention rate is an astounding 178%.
The main downside for Snowflake is that it's priced for perfection even after the stock's steep decline. Shares trade at a whopping 51 times sales -- not earnings. Buffett definitely had to throw his value investor mentality out the window when he approved Berkshire's purchase of the stock.
