Selected stock price target news of the day - August 11, 2023

By: Matthew Otto

Alibaba Posts Q2 2023 Results with Robust Revenue Growth

Alibaba Group has announced EPS of $2.4, $0.38 better than the analyst estimate of $2.02, for the second quarter of 2023. The company’s revenue reached $32.36 billion against the consensus estimate of $31.01 billion, marking a 14% year-over-year increase.

The Taobao app experienced rapid user base expansion, with a consistent month-over-month growth rate of 6% or higher. The company’s “putting users first” strategy, coupled with investments in technology-driven innovation, resulted in close to $11.05 billion in customer management revenue, reflecting a 10% increase year-over-year.

Alibaba International Digital Commerce Group achieved a 41% overall revenue growth, primarily attributed to the performance of its retail business. Alibaba Cloud reported a 4% increase in revenue, while Alibaba’s digital media and entertainment segment achieved a milestone with its first-ever profitable quarter.

Analysts Remain Bullish on Alibaba Group Holding, Lift Price Targets

Bank of America Securities analyst Eddie Leung maintained a Buy rating and raised his price target from $137 to $142.
Baird analyst Colin Sebastian reiterated at Outperform and increased the price target from $115 to $120.
Bernstein analyst Robin Zhu remained at Market Perform and raised the price target from $98 to $100.
Truist analyst Youssef Squali kept a Buy and raised his price target from $130 to $135

Analyst Colin Sebastian (BAIRD) currently has the highest performing score on BABA with 36/48 (75%) price target fulfillment ratio. His price targets carry an average of $28.22 (20.91%) potential upside. Alibaba Group stock price reaches these price targets on average within 139 days.

Capri Holdings’ Q1 Fiscal 2024 Results Show Resilience Amidst Industry Challenges

Capri Holdings has unveiled its financial results for the first quarter of Fiscal 2024, which ended on July 1, 2023. The company reported a 9.6% decrease in revenue on a reported basis and a 9.3% decrease in constant currency. Despite the challenges, Capri Holdings achieved an adjusted operating margin of 9.0%, with adjusted earnings per share coming in at $0.74. The company also revealed its planned acquisition by Tapestry, emphasizing the consolidation of its iconic brands—Versace, Jimmy Choo, and Michael Kors—into a more diversified entity.

The financial breakdown reveals a total revenue of $1.23 billion, marking a 9.6% decrease from the previous year, which was further reduced to 9.3% on a constant currency basis. Despite the revenue decline, Capri Holdings maintained a gross margin of 66.1%, contributing to a $812 million gross profit. While income from operations stood at $80 million with a 6.5% operating margin, the adjusted income from operations showed a higher 9.0% operating margin, amounting to $111 million. Notably, net income for the quarter was $48 million, translating to $0.41 per diluted share, whereas adjusted net income reached $88 million, equivalent to $0.74 per diluted share.

Moreover, the individual brand performances varied throughout the quarter. Versace reported a 5.8% revenue decrease on both reported and constant currency basis, resulting in an operating margin of 1.2%. Jimmy Choo, on the other hand, experienced a revenue increase of 6.4%, or 7.0% on a constant currency basis, with an operating margin of 8.7%. Michael Kors faced a challenge with a 13.8% revenue decrease, or 13.4% in constant currency, accompanied by an operating margin of 16.5%.

Analysts Offer Mixed Ratings Amidst Price Target Adjustments

Raymond James analyst Rick Patel downgraded from a Strong Buy to Market Perform.
Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $41 to $57.
Guggenheim analyst Robert Drbul downgraded from Buy to Neutral.
UBS analyst Jay Sole downgraded from Buy to Neutral and raised the price target from $55 to $57.
Citigroup analyst Paul Lejuez lowered the rating from Buy to Neutral and announced a $56 price target.

Analyst Alexandra Walvis (GOLDMAN) currently has the highest performing score on CPRI with 6/6 (100%) price target fulfillment ratio. Her price targets carry an average of $2.1 (5.16%) potential upside. Capri Holdings stock price reaches these price targets on average within 24 days

CyberArk Software Surpasses Expectations in Q2 2023 Financial Performance

CyberArk Software has reported financial results for the second quarter of 2023 showing the company’s focus on its Identity Security platform has driven growth, with subscription Annual Recurring Revenue (ARR) surging by an impressive 77% to reach $451 million. Total ARR also saw an increase of 40%, reaching $653 million. This growth was bolstered by a noteworthy net new ARR of $49 million, indicating a demand for CyberArk’s offerings.

The company’s operating expenses increased by 17% year-on-year, along with revenue growth of 24%, resulting in a non-GAAP operating loss of $6 million and non-GAAP earnings per share of $0.03, $0.16 better than the analyst estimate of ($0.13). Revenue for the quarter came in at $175.8 million versus the consensus estimate of $173.46 million

Analysts Raise Price Targets Reflecting Positive Outlook

Morgan Stanley analyst Hamza Fodderwala maintained an Overweight rating and raised the price target from $173 to $180.
Canaccord Genuity analyst T. Michael Walkley reiterated a Buy rating and increased his price target from $174 to $185.
Barclays analyst Saket Kalia maintained an Overweight rating and raised the price target from $178 to $180.
Wolfe Research analyst Joshua Tilton remained in Outperform rating and increased his price target from $165 to $175.
Keybanc analyst Michael Turits maintained an Overweight rating and raised the price target from $194 to $196.
Needham analyst Alex Henderson reiterated a Buy rating and raised the price target from $185 to $190.
DA Davidson analyst Rudy Kessinger kept a Buy rating and raised his price target from $185 to $200.
JP Morgan analyst Brian Essex maintained a Neutral rating and lifted his price target from $175 to $182.

Analyst Jonathan Ruykhaver (CANTOR FITZGERALD) currently has the highest performing score on CYBR with 4/8 (50%) price target fulfillment ratio. His price targets carry an average of $30.7 (23.29%) potential upside. Goldman Sachs stock price reaches these price targets on average within 72 days