Selected stock price target news of the day - February 16th, 2024

By: Matthew Otto

Dropbox Q4 2023 Earnings: Mixed Results Amidst Growth and Challenges

Dropbox’s Fourth Quarter 2023 Earnings Conference Call, the company reported total revenue of $635 million for Q4 2023, versus the estimate of $631.57 million. Revenue came in a 6% year-over-year increase. However, Dropbox faced headwinds, including a decline of approximately 50,000 paying users, resulting in 18.12 million paying users by the end of the quarter.

Despite these challenges, Dropbox achieved operating margins of over 32%, generating more than $750 million of free cash flow, with $190 million generated in Q4 alone. Additionally, the company repurchased nearly 4 million shares, totaling approximately $106 million, leaving approximately $1.4 billion remaining under its current repurchase authorizations.

Looking ahead to 2024, Dropbox provided guidance for Q1 2024 expecting a revenue in the range of $627 million to $630 million. Furthermore, Dropbox anticipates diluted weighted average shares outstanding to be in the range of 342 million to 347 million shares.

For the full year 2024, revenue is expected to be in the range of $2.535 billion to $2.550 billion, with a gross margin expected to be in the range of 83% to 83.5%. Additionally, the company aims for operating margins in the range of 32% to 32.5%, with free cash flow projected to be in the range of $910 million to $950 million, inclusive of several one-time items totaling $47 million.

Analysts Downgraded Amidst Market Concerns

B of A Securities analyst Michael Funk downgraded from Buy to Underperform and the price target from $34 to $28.
JMP Securities analyst Patrick Walravens lowered from Market Outperform to Market Perform.
JPMorgan analyst Mark Murphy shifted from Overweight to Neutral.

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

Analyst Steve Enders (CITI) currently has the highest performing score on DBX with 6/6 (100%) price target fulfillment ratio. His price targets carry an average of $3.43 (12.91%) potential upside. Dropbox stock price reaches these price targets on average within 98 days.

EPAM Systems Q4 2023 Earnings: Revenue Declines Amidst Global Challenges

EPAM Systems reported its Q4 2023 earnings, showcasing a revenue of $1.16 billion, versus the estimate of $1.14 billion. But the revenue marked a 6% decrease year-over-year. The company’s geographic revenue distribution revealed that the Americas, constituting 58% of Q4 revenues, experienced a 7.6% decline year-over-year, while the EMEA region remained flat.

EPAM successfully stabilized its operations, concluding the year with $4.69 billion in total revenues, reflecting a 2.8% decrease compared to 2022. The company’s income from operations for Q4 was $122 million, representing 10.6% of revenue, and for the full year, it amounted to $501 million, constituting 10.7% of the total revenue.

In terms of operational metrics, EPAM ended Q4 with more than 47,350 employees, witnessing a 10.4% decline compared to the same period in 2022. The company’s utilization rate for Q4 reached 74.4%. Cash flow from operations for Q4 stood at $171 million, while free cash flow amounted to $161 million.

Looking ahead to 2024, EPAM projects a revenue growth range of 1% to 4%.

Analysts Bullish, Raise Price Targets Following Positive Updates

Scotiabank analyst Divya Goyal upgraded from Sector Perform to Sector Outperform and set a price target of $350.
Piper Sandler analyst Arvind Ramnani maintained an Overweight rating and raised the price target from $339 to $369.
Needham analyst Mayank Tandon reiterated a Buy rating and increased the price target from $295 to $350.

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

Analyst Mayank Tandon (NEEDHAM) currently has the highest performing score on EPAM with 24/30 (80%) price target fulfillment ratio. His price targets carry an average of $48.77 (16.19%) potential upside. EPAM Systems stock price reaches these price targets on average within 127 days.

Shake Shack Q4 Results, Plans Expansion for 2024

Shake Shack’s financial report for the fourth quarter of 2023 showcased a total revenue hitting $286.2 million, marking a 20% uptick from the preceding year. The company outstripped analysts’ expectations, reporting earnings of two cents per share, surpassing the projected one cent per share. This performance was buoyed by expansion strategies, the inauguration of 41 new company-operated eateries across the United States and an additional 44 licensed outlets abroad, contributed to a staggering 21.4% surge in systemwide sales to a cumulative $442.1 million for the quarter. Furthermore, Shake Shack’s same-store sales demonstrated resilience, with a 2.8% year-over-year growth, attributed to both elevated prices and augmented foot traffic, both offline and online.

Looking forward, Shake Shack plans to double its presence from five years prior by launching 80 new locations in 2024. The company forecasts a revenue growth of 11% to 15% uptick to a range of $1.21 billion to $1.25 billion for the upcoming year. Adjusted EBITDA is anticipated to escalate by 21% to 29%, reaching a range of $160 million to $170 million.

Analysts Raise Price Targets as Growth Prospects Shine

Wedbush analyst Nick Setyan maintained a Neutral rating and raised the price target from $80 to $100.
TD Cowen analyst Andrew Charles reiterated a Market Perform rating and increased the price target from $73 to $91.
Barclays analyst Jeffrey Bernstein raised the price target to $92.
Baird analyst David Tarantino increased the price target to $102.

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

Analyst David Tarantino (BAIRD) currently has the highest performing score on SHAK with 10/10 (100%) price target fulfillment ratio. His price targets carry an average of $4.38 (5.64%) potential upside. Shake Shack stock price reaches these price targets on average within 159 days.