Google, Xiaomi, Chevron: Freedom Broker updates picks for third quarter

Freedom Broker has fully refreshed its picks with the most promising stocks across 13 key sectors on a one-year time horizon, as laid out in its third-quarter strategy update (seen by Oninvest). The selection spans global tech leaders like Alphabet and Xiaomi, as well as narrowly focused companies in real estate, health care, mining, and even warehouse leasing.

Alphabet (communications): Freedom Broker set a target price of $210 per share, implying upside of nearly 18% over the next twelve months. Alphabet continues to generate the majority of its revenue from online advertising, with search accounting for 56% of total sales and YouTube contributing another 11%. Google Cloud represents a further 11% of revenue. Freedom expects the global online advertising market to grow at about 10% a year, with Alphabet remaining the main beneficiary due to its control of more than 90% of the search segment, despite competitive pressure and ongoing antitrust scrutiny. Analysts also point to the integration of AI across Alphabet’s core products and sustained investment in infrastructure as factors that reinforce long-term growth potential in both advertising and newer business lines.

Visa (financials): Freedom assigned Visa a target price of $403 per share, implying 13.5% upside versus the July 1 close. It highlights Visa’s consistently strong financial performance and expansion into digital technologies, ranging from instant payments to blockchain-based settlement. Visa already works with stablecoin issuers such as USDC and processes hundreds of millions of dollars in digital-asset transactions. Freedom argues that the long-term potential of this infrastructure is comparable to Visa’s traditional card payments business. After reports that Amazon and other large retailers may issue their own stablecoins triggered a 10% selloff in Visa shares, Freedom described the move as excessive and viewed it as an opportunity to have the stock on weakness.

Salesforce (IT): Freedom set a target price of $360 per share for Salesforce, implying upside of roughly a third. Analysts describe Salesforce as one of the main beneficiaries of the digital transformation and view the stock as undervalued versus peers. The company’s platform remains a core solution for sales, marketing, and customer service, while the integration of AI tools and data cloud functionality continues to strengthen its competitive position. Freedom expects Salesforce to deliver 9-10% annual growth in both revenue and free cash flow on a sustainable basis. 

Xiaomi (China tech): Freedom estimates more than 20% upside for Xiaomi’s depositary receipts. It argues that easing trade tensions between the U.S. and China reduce risks to consumer demand in China and improve sales prospects for Xiaomi products without putting pressure on prices or margins. Continued government support for domestic manufacturers is also expected to help Xiaomi strengthen its position in the smartphone market. Another catalyst is the launch of the company’s own electric SUV, with sales expected to begin in the summer, which Freedom views as a potential growth driver in the EV segment.

General Motors (automotive): General Motors has moved into second place in U.S. electric-vehicle sales, driven by new Chevrolet, GMC, and Cadillac models. In the first quarter, demand for GM’s EVs rose 94% year over year, lifting its market share to 10.4%. The company continues to roll out new EV models in 2025 while maintaining leadership in pickup trucks and SUVs, supporting revenue and cash flow. It is also investing $4 billion in capex to expand manufacturing operations in the U.S., which Freedom says will help mitigate pressure from Trump's tariffs. The bank sees 11% upside in GM shares.

Chevron Corporation (energy): Freedom’s target price of $165 per share implies 14% upside. Analysts favor Chevron as a stable and diversified oil and gas company in an uncertain macro environment. Chevron continues to return capital to shareholders through buybacks, spending nearly $4 billion in the first quarter of 2025 and $15.2 billion over full-year 2024.

Target Corporation (consumer staples): Freedom set a target price of $145 per share, implying 43.5% upside. Target shares have fallen to a five-year low amid weaker financial and operational performance. From a valuation standpoint, however, analysts describe the stock as oversold. The shares trade at a price/earnings multiple of 12, the cheapest in the sector.

Macy's (consumer discretionary): Freedom estimates 30% upside from current levels. Macy’s market value has fallen by roughly a third year to date, which analysts view as a good entry point. Comparable sales declined 2% year over year in the first quarter of 2025, but key financial metrics exceeded both consensus expectations and the company’s own guidance. Macy’s has paid dividends consistently since 2003.

First Solar (renewable energy): Despite a sharp selloff following reports of potential cuts to U.S. tax incentives for solar panels, Freedom expects First Solar shares to recover as early as the third quarter. Analysts cite the company’s sizable order backlog, which supports revenue stability even if some projects are canceled or delayed. Freedom forecasts 14% revenue growth in 2025 to $4.8 billion, 7.5% growth in earnings per share to $13, and 10.5% upside in the stock over the next year.

Incyte Corporation (health care): Freedom describes Incyte as a growing and profitable biotech developing therapies for oncology and autoimmune diseases. Analysts expect the company to beat revenue forecasts in coming quarters, driven by sales of its blood cancer and inflammation drugs, Jakafi and Opzelura, respectively. The bank considers the shares undervalued and sees 20% upside over the next 12 months.

Leidos Holdings (industrials): Freedom highlights Leidos as a key provider of defense IT services to the U.S. Department of Defense, particularly in command-and-control systems. Demand for cybersecurity and defense IT services is expected to grow, while the company is also developing ground-based systems to counter drones and missiles, which can be used in Israel's Iron Dome, for example. Freedom’s target price of $170 per share implies 5.5% upside.

EastGroup Properties (real estate): Freedom views EastGroup Properties as one of the leaders in U.S. industrial real estate. The company’s focus on small warehouses with rapid tenant turnover allows it to respond quickly to shifts in demand and reduces operational risk. Stable cash flow, high occupancy rates, and ongoing development underpin 13% upside for the shares, according to the bank.

Idaho Strategic Resources (mining): Freedom describes Idaho Strategic Resources as undervalued, operating at the intersection of gold and rare earth metals mining. Analysts point to a strong financial position, positive cash flow, nearly $10 million in cash, and no debt. The company also controls exploration assets at Lemhi Pass (Idaho), one of the largest rare earth deposits in the U.S., supporting expectations of 25% upside for the shares.