Selected stock price target news of the day - January 19th, 2024

By: Matthew Otto

Variety of Outlooks Surrounds Netflix Ahead of Earnings Report

As Netflix prepares to announce its fiscal fourth-quarter results, analysts are offering varied perspectives. Citi analyst Jason Bazinet takes a cautious stance, maintaining a Neutral rating and a $500 price target. Bazinet raises concerns about potentially overstated 2024 revenue estimates, the likelihood of content investments exceeding expectations in 2025, and the uncertainty surrounding potential acquisitions. Despite a 53% climb in Netflix over the past 12 months, Bazinet suggests that the current risk-reward balance appears relatively neutral.

In contrast, other analysts express optimism about Netflix’s future. Seaport analyst David Joyce raised his price target to $541, citing the positive impact of continued growth in ad-tier signups. Netflix recently confirmed a surge in global monthly active users for its ad-based plan, reaching over 23 million. BofA Securities analyst Jessica Reif Ehrlich echoes the positive sentiment, noting that Netflix’s success in the streaming wars positions it for further subscriber growth, especially with lower-priced options attracting budget-conscious viewers.

Mixed Analyst Sentiment on Netflix: Bullish and Cautious Views

Seaport Global analyst David Joyce maintained a Buy rating and raised the price target from $482 to $541.
Piper Sandler analyst Matt Farrell reiterated a Neutral rating and increased the price target from $400 to $475.
UBS analyst John Hodulik kept a Buy rating and raised the price target from $500 to $560.
Benchmark analyst Matthew Harrigan, with a Sell rating, raised the price target from $350 to $425.
Citi analyst Jason Bazinet maintained a Neutral rating and a $500 price target.

Which Analyst has the best track record to show on NFLX?

Analyst Benjamin Swinburne (MORGAN STANLEY) currently has the highest performing score on NFLX with 40/46 (86.96%) price target fulfillment ratio. His price targets carry an average of $63.88 (13.14%) potential upside. Netflix stock price reaches these price targets on average within 171 days.

Discover Financial Q4 2023: Results and Outlook

Discover Financial Services reported its fourth-quarter 2023 financial results, revealing a net income of $388 million, a decrease from the prior year’s $1 billion. The company experienced a 13% revenue growth, driven by a 15% increase in loans, partially offset by slight net interest margin compression. Expenses surged by 19% year-over-year, totaling $280 million, attributed to heightened investments in compliance and risk management, increased marketing expenses to support a national Cashback Debit campaign, and a reserve for customer remediation. Discover’s net interest margin for the quarter ended at 10.98%, representing a 29 basis points decline from the previous year but showing a 3 basis points sequential increase. Despite these fluctuations, the full-year net interest margin held steady at 11.07%.

In terms of credit performance, Discover reported total net charge-offs at 4.11%, marking an increase of 198 basis points from the prior year and a 59 basis points rise from the previous quarter. The company bolstered its reserves by $618 million, leading to a 17 basis points increase in the reserve rate, reaching just over 7.2%. Discover’s outlook for 2024 anticipates relatively flat end-of-period loan growth, with a net interest margin projected between 10.5% to 10.8%. Operating expenses are expected to rise by a mid-single-digit percent, factoring in compliance-related costs of approximately $500 million. The company aims for a net charge-off range of 4.9% to 5.3%.

Analyst Price Target Adjustments

RBC Capital’s Jon Arfstrom maintained an Outperform rating and lowered the price target from $130 to $117.
Goldman Sachs analyst Ryan Nash kept a Buy rating and revised down the price target from $139 to $121.
HSBC analyst Saul Martinez downgraded from Buy to Hold and the price target from $121 to $107.
Barclays analyst Mark Devries reiterated Equal-Weight rating and decreased the price target from $124 to $112.
JPMorgan analyst Richard Shane lowered the price target to $110.
UBS analyst Eric Wasserstrom lowered the price target to $106.

Which Analyst has the best track record to show on DFS?

Analyst James Fotheringham (BMO) currently has the highest performing score on DFS with 13/16 (81.25%) price target fulfillment ratio. His price targets carry an average of $18.47 (22.65%) potential upside. Discover Financial Services stock price reaches these price targets on average within 183 days.

KeyCorp’s Q4 2023 Financial Highlights

In KeyCorp’s Q4 2023 earnings report, the bank posted net income of $30 million, equivalent to $0.03 per share. Expenses totaling $209 million or $0.22 per share were incurred during the quarter. Despite the challenging financial landscape, KeyCorp successfully reduced loans by $7 billion and achieved a deposit growth of $3 billion in 2023. The common equity Tier 1 ratio concluded the year at 10%, a 90 basis points increase from the previous year and well above the targeted range of 9% to 9.5%. The bank also implemented significant cost-cutting measures, freeing up over $400 million on an annualized basis.

Looking forward to 2024, KeyCorp projects an estimated $500 million net interest income benefit throughout the year as short-term swaps and treasuries reprice. The bank anticipates a decrease of 5-7% in average loans but aims for moderate positive operating leverage, expecting stable non-interest expenses at approximately $4.4 billion. Net charge-offs are expected to modestly increase to the 30-40 basis point range, maintaining a strong credit quality position.

Analysts Mixed Ratings and Price Target Adjustments

Keefe, Bruyette & Woods analyst David Konrad maintained an Outperform rating and lowered the price target from $17 to $16.
RBC Capital analyst Gerard Cassidy reiterated an Outperform rating and raised the price target from $13 to $15.
Wedbush analyst David Chiaverini kept a Neutral rating and lowered the price target from $16 to $14.
Barclays analyst Jason Goldberg remained with Equal-Weight rating and lowered the price target from $17 to $16.

Which Analyst has the best track record to show on KEY?

Analyst Ken Usdin (JEFFERIES) currently has the highest performing score on KEY with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $2.41 (16.52%) potential upside. KeyCorp stock price reaches these price targets on average within 258 days.