Selected stock price target news of the day - May 29th, 2024

By: Matthew Otto

American Airlines Lowers Profit Forecast Amid Weaker Pricing Power and Market Challenges

American Airlines revised its second-quarter profit forecast downward on Tuesday, citing weakened pricing power. Adjusted earnings per share is now forecasted to be between $1.00 and $1.15, down from the previous forecast of $1.15 to $1.45. Also adjusted its revenue expectations, predicting a 5% to 6% decline in total revenue per available seat mile compared to the same quarter last year. A change from the previously anticipated 1% to 3% decline. Additionally, the adjusted operating margin forecast has been lowered by 1 percentage point to a range of 8.5% to 10.5% from 9.5% to 11.5% previously.

American Airlines provided updated guidance for the second quarter of 2024, estimating the average fuel price to be between $2.70 and $2.80 per gallon, a slight decrease from the previous estimate of $2.75 to $2.95. Cost per available seat mile excluding fuel is expected to be flat to up 1% year-over-year.

Analyst Ratings Shift for Amid Profit Forecast Downgrade

Seaport Global analyst Daniel McKenzie downgraded the stock from Buy to Neutral.
BofA Securities analyst Andrew Didora maintained an Underperform rating and lowered the price target from $12 to $11.
Jefferies analyst Sheila Kahyaoglu downgraded the stock from Buy to Hold and reduced the price target from $17 to $12.
Bernstein SocGen Group analyst David Vernon lowered the price target from $22 to $18.
Deutsche Bank analyst Michael Linenberg reiterated a Buy rating with a price target of $17.

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

Analyst Daniel Mckenzie (SEAPORT) currently has the highest performing score on AAL with 2/6 (33.33%) price target fulfillment ratio. His price targets carry an average of $5.8 (27.36%) potential upside. American Airlines stock price reaches these price targets on average within 426 days.

Palomar Enhances Reinsurance Coverage Against Natural Disasters

Palomar Holdings has announced the completion of its latest reinsurance programs, fortifying its coverage against earthquake and hurricane events. Approximately $400 million is secured in incremental limit. This elevated its total reinsurance coverage to $3.06 billion for earthquake events, $735 million for Hawaii hurricane events, and $117.5 million for continental United States hurricane events.

Notably, Palomar’s per occurrence event retention has been adjusted, reducing it to $15.5 million for hurricane events and maintaining it at $20 million for earthquake events, levels carefully managed within one quarter’s adjusted net income and less than 5% of the company’s surplus on an after-tax basis.

Moreover, Palomar sourced $420 million of its earthquake limit through a new catastrophe bond, Torrey Pines Re Series 2024-1, marking its fifth Insurance Linked Securities transaction. Palomar’s multi-year ILS capacity now stands at $895 million, providing diversified collateralized reinsurance capital.

Despite a challenging quarter, Palomar Holdings reported earlier this month in its Q1 earnings call an earnings per share of $1.09, surpassing analyst estimates by $0.16. However, revenue for the quarter came in at $118.54 million, falling short of the consensus estimate of $321.92 million.

Looking ahead to the full year 2024, Palomar is increasing its guidance range, expecting an adjusted net income of $113 million to $118 million. This revised range includes $3.4 million of catastrophe losses incurred during the first three months of 2024.

Analysts Maintain Optimism, Lift Price Targets

Truist Securities analyst Mark Hughes maintained a Buy rating and raised the price target from $97 to $100.
Evercore ISI Group analyst David Motemaden maintained an In-Line rating and increased the price target from $88 to $89.
Keefe, Bruyette & Woods analyst Meyer Shields maintained an Outperform rating and raised the price target from $93 to $96.
Piper Sandler analyst Nicole Miller Regan raised the price target from $90 to $99.

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

Analyst Matthew Carletti (JMP) currently has the highest performing score on PLMR with 8/9 (88.89%) price target fulfillment ratio. His price targets carry an average of $21.54 (33.94%) potential upside. Palomar Holdings stock price reaches these price targets on average within 85 days.

Celsius Holdings Suffers Decline in Years as Analysts Offer Diverging Views

Celsius Holdings took a downturn, experiencing their steepest decline in years as Wall Street analysts weighed in on the company’s performance.

Despite Stifel analysts, Mark Astrachan, raising the price target to $95 from $85 and maintaining a Buy rating, their adjustment of the sales outlook triggered further decline. While Astrachan remains optimistic about 30% to 40% U.S. sales growth through 2024, they cautioned that second-quarter sales might suffer due to inventory adjustments within PepsiCo’s system, which acquired an 8.5% stake in Celsius for $550 million in August 2022.

Morgan Stanley analyst, Eric Serotta, offered a more cautious stance, noting a slowdown in year-over-year sales growth for Celsius in the two weeks. Although sales growth remained steady on a two-year basis, market share, excluding powders, saw a dip from 10.8% to 10.5% over the latest week. Despite these concerns, Morgan Stanley maintained an Equal-Weight rating with a $75 price target.

Analysts Offer Differing Views Amid Price Target Adjustments

BofA Securities analyst Jonathan Keypour maintained a Neutral rating and raised the price target from $80 to $84.
Morgan Stanley analyst Eric Serotta reiterated an Equal-Weight rating and a $75 price target.
Stifel analyst Mark Astrachan maintained a Buy rating and raised the price target from $85 to $95.

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

Analyst Peter Grom (UBS) currently has the highest performing score on CELH with 2/4 (50%) price target fulfillment ratio. His price targets carry an average of $14.87 (19.28%) potential upside. Celsius Holdings stock price reaches these price targets on average within 26 days.