Selected stock price target news of the day - October 18th, 2024

By: Matthew Otto

CSX Misses Q3 Earnings and Revenue Estimates Despite Operating Income Growth

CSX announced its third-quarter 2024 financial results, reporting operating income of $1.35 billion, a 7% increase from $1.27 billion in the same period of 2023. Net earnings reached $894 million, or $0.46 per diluted share, compared to $828 million, or $0.41 per diluted share, in the prior year.

Despite these gains, CSX’s earnings fell short of expectations, with its EPS of $0.46 missing the analyst estimate of $0.48 by $0.02. Revenue for the quarter came in at $3.62 billion, slightly below the consensus estimate of $3.68 billion. Total volume for the quarter increased by 3% year-over-year, reaching 1.59 million units. CSX’s operating margin improved to 37.4%, representing a 180 basis-point increase from the previous year.

Analysts Price Targets Lowered Amid Earnings Miss

Stephens & Co. analyst Daniel Imbro maintained an Overweight rating but lowered the price target from $41 to $39.
TD Cowen analyst Jason Seidl kept a Hold rating and reduced the price target from $36 to $35.
Wells Fargo analyst Allison Poliniak Cusic maintained an Equal-Weight rating while cutting the price target from $35 to $34.
Susquehanna analyst Bascome Majors continued with a Positive rating but adjusted the price target down from $42 to $40.
Stifel analyst Benjamin Nolan reaffirmed a Buy rating, yet lowered the price target from $39 to $37.
Loop Capital analyst Rick Paterson held a Buy rating and decreased the price target from $43 to $42.
RBC Capital analyst Walter Spracklin reiterated with a Sector Perform rating and trimmed the price target from $36 to $35.
Evercore ISI Group analyst Jonathan Chappell kept an Outperform rating, though lowered the price target from $38 to $37.
BMO Capital analyst Fadi Chamoun maintained an Outperform rating and reduced the price target from $40 to $39.

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

Analyst David Vernon (BERNSTEIN) currently has the highest performing score on CSX with 5/6 (83.33%) price target fulfillment ratio. His price targets carry an average of $2.61 (7.82%) potential upside. CSX stock price reaches these price targets on average within 106 days.

Synchrony Financial Exceeds Q3 Earnings, Reports Loan Growth and Lower-than-Expected Deposits

Synchrony Financial reported third quarter 2024 results, with earnings per share (EPS) of $1.94, surpassing the analyst estimate of $1.80 by $0.14. Achieved net earnings of $789 million, with a return on average assets of 2.6% and a return on tangible common equity of 24.3%.

Synchrony added 4.7 million new accounts and generated $45 billion in purchase volume, despite facing a modest pullback in consumer spending. Platform-level purchase volume growth declined between 3% and 7% year-over-year, while ending receivables grew by 4%. Dual and co-branded cards accounted for 43% of total purchase volume, showing a 2% decrease as consumers moderated their spending.

From a financial standpoint, Synchrony’s loan receivables grew 4% year-over-year to $102 billion. Net revenue increased by 10% to $3.8 billion, primarily due to higher interest, fees, and lower RSA. Net interest income rose by 6% to $4.6 billion, bolstered by a 7% growth in interest and fees alongside a higher loan receivable yield. While total deposits were reported at $82.28 billion, slightly below the consensus estimate of $83.69 billion, Synchrony returned $399 million to shareholders through $300 million in share repurchases and $99 million in common stock dividends.

Analysts Raise Price Targets Following Strong Q3 Performance

TD Cowen analyst Moshe Orenbuch maintained a Buy rating and raised the price target from $60 to $62.
Wells Fargo analyst Donald Fandetti kept an Equal-Weight rating while raising the price target from $53 to $60.
Barclays analyst Mark Devries continued with an Equal-Weight rating and lifted the price target from $49 to $59.
Jefferies analyst John Hecht reaffirmed a Buy rating and increased the price target from $60 to $65.
RBC Capital analyst Jon Arfstrom held a Sector Perform rating and raised the price target from $55 to $62.
Morgan Stanley analyst Betsy Graseck maintained an Underweight rating and revised the price target from $37 to $40.
JMP Securities analyst David Scharf reiterated a Market Outperform rating while increasing the price target from $60 to $68.
Deutsche Bank analyst Mark Devries reiterated with a Buy rating and boosted the price target from $58 to $68.
Compass Point analyst David Rochester maintained a Buy rating and raised the price target from $56 to $60.

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

Analyst Richard Shane (JPMORGAN) currently has the highest performing score on SYF with 15/17 (88.24%) price target fulfillment ratio. His price targets carry an average of $4.33 (9.08%) potential upside. Synchrony Financial stock price reaches these price targets on average within 265 days.

Abbott Laboratories Q3 Earnings Beat and Annual Profit Forecast Boost Driven by Glucose Monitor Demand

Abbott Laboratories reported third-quarter earnings per share (EPS) of $1.21, which surpassed the analyst consensus estimate of $1.20. Revenue for the quarter totaled $10.6 billion, slightly exceeding the consensus forecast of $10.56 billion.

Abbott attributed its performance to a 21% organic growth in sales of continuous glucose monitors (CGMs), reaching over $1.6 billion. This growth was driven by increased awareness of diabetes care and a shift towards devices that do not require finger pricks.

According to the International Diabetes Federation, approximately 537 million adults worldwide were living with diabetes in 2021, a number projected to rise to 783 million by 2045. Additionally, a study published in the journal Diabetes Technology & Therapeutics found that patients using CGMs experienced a 38% reduction in hypoglycemia compared to traditional finger-prick methods, emphasizing the clinical benefits of these devices.

According to a report by Grand View Research, the global continuous glucose monitoring market is expected to reach $24.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 21.4%. This growth is further supported by expanded insurance coverage; a recent survey indicated that 58% of patients now have insurance plans that fully cover CGMs, compared to just 39% in 2018.

For the upcoming quarter, Abbott provided guidance of Q4 2024 EPS ranging from $1.31 to $1.37, compared to the consensus estimate of $1.34. Abbott’s revised full-year profit forecast now ranges from $4.40 to $4.50 per share.

Analysts Market Sentiment Drives Multiple Price Target Increases

Bernstein analyst Lee Hambright maintained an Outperform rating and raised the price target from $133 to $138.
UBS analyst Danielle Antalffy continued with a Buy rating while increasing the price target from $143 to $146.
Jefferies analyst Matthew Taylor held a Hold rating and lifted the price target from $120 to $125.
Mizuho analyst Anthony Petrone kept a Neutral rating and raised the price target from $115 to $130.
Piper Sandler analyst Adam Maeder maintained an Overweight rating and increased the price target from $131 to $133.
Morgan Stanley analyst David Lewis held an Equal-Weight rating and adjusted the price target from $107 to $117.

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

Analyst Matt Miksic (BARCLAYS) currently has the highest performing score on ABT with 13/23 (56.52%) price target fulfillment ratio. His price targets carry an average of $38.23 (36.49%) potential upside. Abbott Laboratories stock price reaches these price targets on average within 310 days.