Tech has been the runaway success story of investing for years now. Even with increased volatility, no other sector has quite matched big tech’s ability to deliver outsized returns over the long-run. It’s why many of the top mega-cap companies are simply dominated by technology-oriented firms on the S&P 500. But while the big dogs tend to grab the headlines, smaller tech stocks could be poised for even greater growth.
I’ll highlight three tech stocks that Wall Street analysts believe could see their share prices double by the end of 2024. Are they right? Who knows. Making bold predictions is part of an analyst’s job description. However, each stock highlighted looks attractively-valued relative to its growth prospects. And with large addressable markets that have been barely tapped, the long-term upside for these companies is mouth-watering if they’re able to execute.
Beyond the analyst takes, I’ll share my own perspective on the competitive dynamics facing each featured company. That’s because even with the rosiest of projections, things can go awry quickly in the world of tech if a company loses step with market trends or consumer demand.
Not all stocks here have “can’t miss” written all over them. But I’m intrigued enough by their risk-reward profiles. Let’s take a look!
Blade Air Mobility (BLDE)
Blade Air Mobility (NASDAQ:BLDE) runs an aviation network focused on short-distance flights in the North American and Indian markets. Whether helicoptering busy executives from Manhattan to the Hamptons or providing lifesaving organ delivery services, Blade intends to be the Uber (NYSE:UBER) of the skies.
I’ll admit the business model initially struck me as niche. But with urban air mobility initiatives gaining steam globally, Blade’s footprint in these key regions could prove to be invaluable down the line. The company also just hit slight profitability last quarter, validating its ability to monetize these air routes. Consistent profitability is still far away, but this company trades below 1-times forward sales and has over $173 million in cash. That’s enough to allow the company to operate for years with its current level of losses.
If Blade Air Mobility sustains its momentum as more cities adopt eco-friendly air transport, substantial share price gains could be possible by year end. Most of the dilution risk appears to be behind us, and I think analysts could indeed be right that Blade Air Mobility could double. Currently, the median price target on BLDE stock represents a 110% gain from its current price
As a 3D printing software and services leader, Materialise (NASDAQ:MTLS) enables customers across the healthcare, auto, and aerospace sectors to build innovative products using additive manufacturing. The company’s technology certainly holds incredible promise, once it’s refined further.
Bullish analysts see Materialise emerging as an indispensable 3D printing infrastructure player as enterprises increasingly incorporate additive manufacturing into product development cycles. And with 3D printing projected to grow into a massive $34.5 billion market by 2028, first movers like Materialize stand to benefit enormously.
Now, the company’s revenue growth is still expected to lag behind many of the names on this list at around 12% per year. However, Materialise generates positive cash flow today and is expected to generate earnings per share growth of around 60% in the coming years. If 3D printing reaches mainstream adoption faster than expected, analysts’ expectations of 106% upside from current levels seems reasonable.
Opera (NASDAQ:OPRA) builds lightweight mobile and desktop web browsers used by hundreds of millions of users globally. Impressively, the company has cultivated a loyal user base by incorporating privacy features like built-in VPNs and ad blockers. Notable traction has been seen among privacy-focused millennials and zoomers.
Despite robust growth, Opera trades at just 12-times forward earnings after sliding 55% from July 2023 highs. The company expects to see double-digit revenue growth through 2024 along with expanding margins. That’s thanks to its tech-enabled browser business model, which allows for significant operating leverage. Accordingly, OPRA stock looks significantly undervalued at these levels.
Strong cash generation has also enabled Opera to introduce new verticals like fintech apps. As the company’s active user count increases across key geographies, Opera’s adjusted earnings could prove to be far too low.
If growth initiatives gain momentum as expected, an advance toward last year’s peak valuation could deliver 80%+ upside for investors willing to tune out near-term noise. Currently, the highest analyst price target pegs the stock’s upside potential at 110%.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.