Selected stock price target news of the day - April 3rd, 2024

By: Matthew Otto

 

Challenges Mount for Humana: Medicare Advantage Woes Spark Investor Concerns

Humana has witnessed a decline in its outlook. Since November 2023, concerns have escalated due to healthcare service utilization among Medicare Advantage members being higher than expected. This has had an impact on Humana’s profitability, particularly as it faces the aftermath of the Centers for Medicare and Medicaid Services’ (CMS) recent announcement on payment rates for 2025. Humana’s revision of its 2025 earnings targets, from an initial estimate of $37 per share to a range between $22 and $26 per share, underscores the situation.

In response, analysts like Bank of America’s Kevin Fischbeck have recalibrated their assessments of Humana’s prospects. Fischbeck’s decision to downgrade Humana’s rating to Neutral from Buy, alongside revising its stock price objective down to $342 from $470, reflects mounting concerns about the company’s future earnings potential. With the CMS’s announcement anticipated to result in a 0.2% decrease in funding on average for Medicare Advantage plans industry-wide, there’s apprehension regarding the potential repercussions on benefit offerings and enrollment rates.

 

Analysts Adjustments Amid Medicare Advantage Uncertainties

  • Barclays analyst Andrew Mok maintains Humana with an Equal-Weight rating and lowers the price target from $356 to $310.
  • TD Cowen analyst Gary Taylor maintains Humana with a Buy rating and lowers the price target from $427 to $396.
  • BofA Securities analyst Kevin Fischbeck downgrades Humana from Buy to Neutral and lowers the price target from $470 to $342.

 

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

Analyst George Hill (DEUTSCHE BANK) currently has the highest performing score on HUM with 9/12 (75%) price target fulfillment ratio. His price targets carry an average of $4.64 (1.31%) potential upside. Humana stock price reaches these price targets on average within 68 days. 

 

 

 

Microvast Holdings Reports Fiscal Growth for FY 2023, Eyes Continued Expansion in 2024

Microvast Holdings disclosed its fiscal achievements for the fourth quarter and full year ended December 31, 2023. Annual revenue soared to $306.6 million, reflecting a 49.9% increase compared to the previous year’s $204.5 million. Gross margin rising from 4.4% in 2022 to 18.7% in 2023. Quarterly gross margin of 22.0% in Q4 2023 compared to 3.4% in Q4 2022. Operating expenses were reported at $165.9 million for the full year, slightly down from $170.7 million in 2022, while adjusted operating expenses rose to $107.1 million from $96.5 million in the prior year.

Microvast managed to reduce its net loss to $106.4 million, down from $158.2 million in 2022, with a non-GAAP adjusted net loss of $41.6 million compared to $77.3 million in the previous year. Adjusted EBITDA showed improvement, moving from negative $56.7 million in 2022 to negative $19.6 million in 2023. However, capital expenditures increased to $186.8 million from $150.9 million in 2022, largely due to investments in manufacturing capacity expansions in Huzhou, China, and Clarksville, Tennessee. Cash position declined to $93.8 million as of December 31, 2023, from $327.7 million in the previous year, mainly due to significant capital expenditure towards PP&E in the U.S. and Huzhou, China.

Looking ahead, Microvast is targeting a revenue growth of 40% to 60% year over year for Q1 2024, with revenue guidance set at $65 million to $75 million, alongside an operational focus on achieving a company gross margin target of 20% to 25%. 

 

Analysts Mixed Ratings and Price Target Adjustments

  • HC Wainwright & Co. analyst Amit Dayal maintained a Buy rating yet lowered the price target from $8 to $3.
  • Janney Montgomery Scott analyst Sean Milligan downgraded from Buy to Neutral and the price target from $11 to $3.
  • Oppenheimer analyst Colin Rusch reiterated an Outperform rating and lowered the price target from $8 to $4.

 

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

Analyst Adam Jonas (MORGAN STANLEY) currently has the highest performing score on MVST with 1/2 (50%) price target fulfillment ratio. His price targets carry an average of $1.77 (79.37%) potential upside. Microvast Holdings stock price reaches these price targets on average within 39 days.

 

 

 

Intel’s Foundry Business: Facing Operating Losses and Strategic Shifts

Intel’s foundry business reported operating losses totaling $7 billion in 2023, an increase from the previous year’s $5.2 billion. This decline in performance was accompanied by a decrease in revenue, plummeting by 31% to $18.9 billion from $27.49 billion in the prior year. CEO Pat Gelsinger has acknowledged the severity of the situation, predicting that 2024 will witness further operational challenges, with the company expecting to break even on an operating basis only by approximately 2027.

In response to these setbacks, Intel has initiated strategic shifts, including embracing extreme ultraviolet (EUV) machines from ASML to enhance cost-effectiveness in its chip manufacturing process. Additionally, the company aims to reduce its reliance on external contract manufacturers like Taiwan Semiconductor Manufacturing Company, having outsourced approximately 30% of its total number of wafers. With plans to invest $100 billion in expanding chip factories across four U.S. states.

 

Analysts Offer Mixed Ratings Amidst Operating Challenges

  • Benchmark analyst Cody Acree reiterated a Buy rating and a $62 price target.
  • Truist Securities analyst William Stein maintained a Hold rating and a $45 price target.
  • Cantor Fitzgerald analyst C J Muse reiterated a Neutral rating and a $50 price target.
  • Wedbush analyst Matthew Bryson kept a Neutral rating and a $40 price target.
  • Stifel analyst Ruben Roy maintained a Hold rating and a $45 price target.

 

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

Analyst Matthew Bryson (WEDBUSH) currently has the highest performing score on INTC with 9/12 (75%) price target fulfillment ratio. His price targets carry an average of $-3.51 (-8.07%) potential downside. Intel stock price reaches these price targets on average within 128 days.

 

 

 

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