Selected stock price target news of the day - June 29, 2023

By Matthew Otto

Micron Releases Positive Q3 Results,Upbeats Q4 Forecast

Micron Technology reported a better-than-expected Q3 fiscal performance and issued an upbeat outlook for Q4. Despite facing significant headwinds due to recent decisions by the Cyberspace Administration of China, the company has managed to post an adjusted loss of $1.43 per diluted share on a revenue of $3.75 billion, surpassing analysts’ predictions of a $1.59 loss per share on a revenue of $3.67 billion.

Looking ahead, Micron estimates an adjusted Q4 loss of around $1.19 per diluted share and anticipates a revenue of about $3.90 billion. The optimistic outlook, which exceeds Wall Street’s predictions, arises from the company’s assertion that the memory industry has surpassed its lowest point in revenue. The company anticipates improved margins as the industry supply-demand balance is gradually restored, despite the ongoing challenges associated with China’s recent regulatory actions.

Wall Street Action

Needham analyst Rajvindra Gill maintains a Buy rating and raises the price target from $71 to $80.
Raymond James analyst Srini Pajjuri maintains an Outperform rating and raises the price target from $70 to $76.
Piper Sandler analyst Harsh Kumar upgrades from Underweight to Neutral and the price target from $45 to $70.
Keybanc analyst John Vinh maintains an Overweight rating and raises the price target from $70 to $80.
Barclays analyst Tom O’Malley raised the price target to $75, up from $70.

Analyst Brian Chin (STIFEL) has currently the highest performing score on MU with

3/4 (75%) price target fulfillment ratio. His price targets carry on average an $1.65 (3.59%) potential upside and are fulfilled within an average of 15 days.

Walgreens Misses Earnings Expectations, Faces Stock Downgrade and Multiple Business Challenges

Walgreens didn’t perform well in the fiscal third quarter, with its earnings not meeting expectations. As a result, the company lowered its full-year guidance. This was mainly attributed to fewer Covid-19 related visits and the economic stress experienced by consumers. These factors led to a significant drop in Walgreens’ share price over two days, reaching its lowest value since 2010.

In addition, Deutsche Bank analyst, George Hill, who had previously been supportive of Walgreens and considered it a strong buy, admitted his misjudgment and downgraded the stock to a Hold status. Hill listed multiple issues within the company, including reduced guidance in the Healthcare business, ongoing difficulties in the Pharmacy unit, dividend concerns, and potential overestimations in Covid vaccine demand, which might negatively impact the 2024 guidance if the anticipated profitability in Healthcare does not happen.

Analysts Provide Mixed Outlook for Walgreens Boots Alliance with Price Target Adjustments

Mizuho analyst Ann Hynes reiterates a Neutral rating and a $35 price target.
JP Morgan analyst Lisa Gill maintains a Neutral rating and lowers the price target from $40 to $35.
Barclays analyst Steve Valiquette remains with an Equal-Weight rating and lowers the price target from $38 to $32.
Credit Suisse analyst Jonathan Yong maintains a Neutral rating and lowers the price target from $41 to $33.
Deutsche Bank analyst George Hill downgrades from Buy to Hold and the price target from $46 to $34.

Analyst Elizabeth Anderson (EVERCORE) has currently the highest performing score on WBA with 2/3 (66.67%) price target fulfillment ratio. Her price targets carry on an average of $2.38 (5.76%) potential upside and are fulfilled within an average of 7 days.

Synnex Shares Plunges as Q2 Fiscal 2023 Results Miss Expectations

Synnex’s Q2 fiscal 2023 results missed expectations, with non-GAAP earnings of $2.43 per share falling short of the estimated $2.50 per share. Revenue fell 7.9% YoY to $14.1 billion, missing the consensus mark of $14.37 billion. This decline is largely due to reduced demand for Endpoint Solutions, but was partially offset by increased sales from the Advanced Solutions portfolio.

Looking forward, Synnex issued a weak outlook for the third quarter of fiscal 2023, expecting revenues between $13.5 billion and $14.5 billion, lower than the consensus estimate of $14.8 billion. Non-GAAP net income is projected to range between $206 million and $253 million, and Q3 non-GAAP earnings per share are expected to be between $2.20 and $2.70, below the consensus estimate of $2.69 per share.

Analysts Lower Price Targets for Synnex and Maintained Mixed Recommendations

Barrington Research analyst Vincent Colicchio maintains an Outperform rating and lowers the price target from $120 to $115.
RBC Capital analyst Ashish Sabadra remains a Sector Perform rating and lowers the price target from $110 to $98.
Barclays analyst Tim Long maintains an Equal-Weight rating and lowers the price target from $103 to $98.
Credit Suisse analyst Shannon Cross reiterates a Neutral rating and lowers the price target from $106 to $90.
Raymond James analyst Adam Tindle maintains a Strong Buy rating and lowers the price target from $125 to $120.

Analyst Shannon Cross (CREDIT SUISSE) has currently the highest performing score on SNX with 3/6 (50%) price target fulfillment ratio. Her price targets carry on average an $11.12 (11.77%) potential upside and are fulfilled within an average of 76 days.