Selected stock price target news of the day - April 4th, 2024

By: Matthew Otto

GE’s Breakup: A $100 Billion Transformation Towards Aerospace Success

General Electric has successfully concluded its breakup into three separate entities, marking the culmination of its 132-year tenure as a conglomerate. GE underwent a transformation, slashing over $100 billion in debt and quadrupling its free cash flow since 2018. This overhaul propelled the company’s market capitalization to soar by approximately $100 billion, reaching $192 billion.

The split resulted in the emergence of GE Aerospace and GE Vernova as independent companies, with GE Aerospace showcased a market value estimated at over $100 billion post-spinoff.

Morningstar equity analyst Nicolas Owens predicts that GE Aerospace’s engine business will “spin off decades of profitable growth,” highlighting the company’s potential to thrive independently. GE Aerospace is also forecasted to achieve an operating profit of about $10 billion by 2028, underscoring its potential for sustained growth and profitability.

The aerospace division, which generates more than 70% of its revenue from services, is poised to benefit from a surge in demand due to jet delivery delays by industry giants Boeing and Airbus.

Analysts Adjust Price Targets Amid Market Realignment

Wells Fargo analyst Matthew Akers maintained an Overweight rating yet lowered the price target from $200 to $165.
RBC Capital analyst Ken Herbert reiterated an Outperform rating and decreased the price target from $180 to $160.
Barclays analyst Julian Mitchell kept an Overweight rating but downgraded the price target from $181 to $175.
Deutsche Bank analyst Scott Deuschle maintained a Buy rating and lowered the price target from $210 to $190.
JP Morgan analyst Seth Seifman reiterated an Overweight rating and decreased the price target from $180 to $148.

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

Analyst Seth Seifman (JPMORGAN) currently has the highest performing score on GE with 3/4 (75%) price target fulfillment ratio. His price targets carry an average of $-27.36 (-15.60%) potential downside. General Electric stock price reaches these price targets on average within 30 days.

Levi Strauss Beats Earnings Expectations, Positive Start to Fiscal Year 2024 Amid Strategic Shift

Levi Strauss & Co. has started fiscal year 2024 outpacing earnings expectations and offering an optimistic forecast for the year ahead. Experiencing an 8% decrease in year-over-year revenue, totaling $1.6 billion for the fiscal first quarter, Levi’s exceeded analyst projections, which had anticipated $1.5 billion in revenue.

Adjusted earnings per share stood at 26 cents, surpassing Wall Street’s consensus of 21 cents per share, even after accounting for a significant 33-cent-per-share charge related to restructuring expenses. This restructuring, part of Levi’s cost-saving initiative dubbed Project Fuel, incurred total charges of $116 million in the quarter, primarily attributed to severance and post-employment benefit expenses.

Looking ahead, Levi’s has slightly raised its earnings guidance for fiscal 2024, now projecting adjusted earnings per share to range between $1.17 and $1.27, up from the previously forecasted $1.15 to $1.25 per share. While revenue projections remain unchanged, with expected sales growth between 1% and 3% year-over-year.

Analysts Bullish as Price Targets Get Raised Amid Positive Outlook

Wells Fargo analyst Ike Boruchow maintained an Equal-Weight rating yet raised the price target from $17 to $20.
TD Cowen analyst Oliver Chen reiterated a Buy rating and increased the price target from $19 to $23.
Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating and increased the price target from $22 to $24.

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

Analyst Kimberly Greenberger (MORGAN STANLEY) currently has the highest performing score on LEVI with 9/9 (100%) price target fulfillment ratio. His price targets carry an average of $-0.06 (-0.43%) potential downside. Levi Strauss & Co. stock price reaches these price targets on average within 186 days.

Acuity Brands Reports Fiscal Q2 2024: Margin Expansion and EPS Growth Amidst Declining Net Sales

Acuity Brands announced its fiscal Q2 2024 financial results, reflecting a 4% decline in net sales to $905.9 million compared to the prior year. On the other hand, operating profit surged by 6% to $118.1 million, with an adjusted operating profit of $140.1 million, marking a 6.1% increase year-over-year. Diluted earnings per share rose by 11% to $2.84, while adjusted diluted EPS climbed by the same percentage to $3.38. Notably, Acuity Brands repurchased approximately 370,000 shares of common stock, totaling approximately $68 million in the year-to-date period.

Acuity Brands Lighting and Lighting Controls reported net sales of $843.5 million, experiencing a 5.3% decrease year-over-year. However, operating profit increased by 1.9% to $126.0 million, with an adjusted operating profit of $136.4 million, up by 2.3%.

On the other hand, the Intelligent Spaces Group saw growth, with net sales reaching $68.1 million, representing a robust 17.0% increase over the prior year. ISG’s operating profit surged by 30.8% to $9.1 million, while adjusted operating profit soared by 32.6% to $14.3 million.

Analysts Increased Price Targets Amid Positive Performance

Oppenheimer analyst Christopher Glynn maintained an Outperform rating and raised the price target from $250 to $315.
Wells Fargo analyst Joseph O’Dea reiterated an Overweight rating and increased the price target from $260 to $295.

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

Analyst Timothy Wojs (BAIRD) currently has the highest performing score on AYI with 30/32 (93.75%) price target fulfillment ratio. His price targets carry an average of $18.16 (6.78%) potential upside. Acuity Brands stock price reaches these price targets on average within 399 days.