Selected stock price target news of the day - August 09, 2023

By: Matthew Otto

KKR’s Acquiring Auto Loan Portfolio Amidst Regional Bank Asset Shuffle

KKR has made a move by acquiring a $373 million portfolio of prime auto loans from Synovus Bank, a subsidiary of Georgia-based Synovus Financial. The deal, which was finalized in late July, sees private credit funds and accounts managed by KKR stepping in to purchase the auto loan portfolio. Dan Pietrzak, KKR’s global head of private credit, highlighted the allure of auto lending as a secured asset class, particularly the consumer performance, especially within the higher FICO score segment.

The purchase aligns with the broader landscape of regional banks’ asset sales, prompted by the challenges faced earlier in the year, beginning with the collapse of Silicon Valley Bank. Private credit firms like KKR have seized opportunities to acquire discounted portfolios of consumer debt. Pietrzak anticipates that the trend of asset sales will persist in the medium term, potentially opening doors for more partnerships between private equity firms and banks to explore diverse asset portfolios.

Analysts Boost Price Targets and Ratings for KKR

Piper Sandler’s Sumeet Mody raised to Overweight and the price target from $59 to $70.
Deutsche Bank’s Brian Bedell maintained a Buy rating and increased the price target from $67 to $74.
Oppenheimer’s Chris Kotowski reiterated an Outperform stance and increased the price target from $88 to $91.
Goldman Sachs’ Alexander Blostein maintained a Buy recommendation and raised the price target from $65 to $72.
Barclays’ Benjamin Budish sustained an Overweight view and boosted the price target from $68 to $73.

Analyst Michael Cyprys (MORGAN STANLEY) currently has the highest performing score on KKR with 30/35 (85.71%) price target fulfillment ratio. His price targets carry an average of $5.73 (15.22%) potential upside. KKR & Co. stock price reaches these price targets on average within 162 days.

Global-e Achieves Q2 2023 Results, Sustaining Growth Trajectory

Global-e has announced its financial results for the second quarter of 2023,. The company’s quarterly Gross Merchandise Volume (GMV) reached $825 million, marking a 54% year-on-year growth. Furthermore, revenues surged by 53%, reaching $133 million for the quarter against the consensus estimate of $128.64 million.

The company’s non-GAAP gross profit margin increased from the previous year, reaching 43.3% in Q2 2023. This also shed light on Global-e’s optimistic outlook for the future, with raised guidance for the full year of 2023, anticipating a GMV range of $3.48 billion to $3.64 billion and a revenue range of $570 million to $596 million.

Analysts Boost Price Targets and Ratings Amidst Positive Growth Outlook

Raymond James analyst Brian Peterson maintained an Outperform rating and raised the price target from $40 to $45.
Keybanc analyst Josh Beck reiterated an Overweight rating and increased the price target from $40 to $42.
Piper Sandler analyst Brent Bracelin kept an Overweight rating and the price target at $54.
Needham analyst Scott Berg maintained a Buy rating and raised the price target from $44 to $48.
Goldman Sachs Maintains Buy on Global E Online, Lowers Price Target to $44Analyst Upgrades
Goldman Sachs analyst Will Nance keeps a Buy but drops his price target from $50 to $44.
Morgan Stanley analyst James Faucette maintains an Equal-Weight and lowers the price target from $45 to $41.

Analyst Scott Berg (NEEDHAM) currently has the highest performing score on GLBE with 5/6 (83.33%) price target fulfillment ratio. His price targets carry an average of $8.53 (25.98%) potential upside. Global-e stock price reaches these price targets on average within 117 days

Restaurant Brands International Q2 2023 Earnings Growth Across its Iconic Brands

Restaurant Brands International reported its financial results for the second quarter of 2023 showcasing a revenue for the quarter at $8.31 billion versus the consensus estimate of $7.58 billion, 14% year-over-year growth in consolidated system-wide sales, driven by a 9.6% increase in comparable sales and 4.1% net restaurant growth. Adjusted EBITDA also experienced healthy growth at 10.3%, while adjusted EPS of $2.11, $0.13 better than the analyst estimate of $1.98, saw a 6.6% increase. The company’s focus on franchisee profitability and strategic initiatives aimed at enhancing operational efficiency and guest experiences were key drivers behind these numbers.

Tim Hortons, known for its coffee and baked goods, demonstrated a 12.5% comparable sales growth in Canada. Efforts to expand into the cold beverage and PM food categories, along with digital engagement improvements, contributed to this growth. Meanwhile, Burger King’s international markets had a 18.4% system-wide sales increase. Burger King U.S. saw 8.3% comparable sales growth, focused on operational enhancements and modernization strategies to bolster guest experiences.

Analysts Raise Price Targets Following Positive Outlook

TD Cowen analyst Andrew Charles maintained an Outperform rating and raised the price target from $85 to $90.
Stephens analyst Joshua Long reiterated an Equal-Weight rating and a price target of $77.
Baird analyst David Tarantino raised the price target to $80.
BofA Securities analyst Sara Senatore increased the price target to $79.
Truist Securities analyst Jake Bartlett raised the price target to $90.
Barclays analyst Jeffrey Bernstein increased the price target to $86.
Scotiabank analyst George Doumet raised the price target to $82.
Evercore ISI analyst David Palmer raised the price target to $88.
Morgan Stanley analyst John Glass increased the price target to $78.

Analyst John Glass (MORGAN STANLEY) currently has the highest performing score on QSR with 27/28 (96.43%) price target fulfillment ratio. His price targets carry an average of $8.76 (17.55%) potential upside. Restaurant Brands International stock price reaches these price targets on average within 484 days