Selected stock price target news of the day - August 17, 2023

By: Matthew Otto

 

Q2 Fiscal 2024 Performance Propels TJX Growth Trajectory

The TJX Companies has delivered a financial performance in the second quarter of fiscal 2024. The company reported net sales of $12.8 billion, versus the consensus estimate of $12.4 billion, marking an 8% increase compared to the same period last year. This growth was fueled by a 6% rise in overall comparable store sales (comp sales), primarily driven by an upswing in customer traffic. The company’s gross margin witnessed a 260 basis point improvement, largely attributed to the advantage of lower freight costs and merchandise margins.

 

The company’s consolidated pre-tax margin reached 10.4%, reflecting a notable increase of 120 basis points compared to the previous year. Moreover, earnings per share surged by 23% to $0.85, surpassing expectations of $0.76. The consistent upward trajectory in customer traffic, coupled with meticulous cost management, played a role in driving profitability.

 

Analysts Raise Price Targets and Maintain Positive Ratings Amid Strong Performance

  • BMO Capital analyst Simeon Siegel maintained an Outperform rating and raised the price target from $85 to $95.
  • Wells Fargo analyst Ike Boruchow reiterated an Equal-Weight rating and increased the price target from $80 to $88.
  • Baird analyst Mark Altschwager kept an Outperform rating and raised the price target from $90 to $96.
  • BofA Securities analyst Lorraine Hutchinson held on to a Buy rating and upgraded the price target from $94 to $102.
  • Barclays analyst Adrienne Yih maintained an Overweight rating and increased the price target from $101 to $107.
  • Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and raised the price target from $95 to $100.

 

Analyst Gabriella Carbone (DEUTSCHE BANK) currently has the highest performing score on TJX with 14/14 (100%) price target fulfillment ratio. Her price targets carry an average of $10.75 (18.75%) potential upside. The TJX Companies stock price reaches these price targets on average within 380 days.

Paycor Reports Q4 Performance, Surpasses Earnings and Revenue Expectations

 

Paycor’s financial performance for the fourth quarter and fiscal year 2023 has reported earnings per share (EPS) of $0.08, surpassing analyst estimates by $0.03. Furthermore, Paycor’s revenue for the quarter reached $140 million, exceeding the consensus estimate of $136.51 million. Revenue surged by 26% in the quarter and a 29% for the entire fiscal year, reflecting the implementation of their growth strategies. This growth was driven by the expansion of sales coverage and a substantial increase in revenue per employee per month (PEPM), which rose by 7% to reach $48.

 

The company’s commitment to enhancing its suite of HCM solutions was evident through the introduction of new technologies, such as an AI-enabled job description generator and the Engage platform, aimed at boosting communication and motivation among teams.

 

Adjusted gross profit margin surged by nearly 300 basis points to 79.4%. Marketing expenditure remained steady at 33.8% of revenue. Research and Development (R&D) investment was $23 million, equivalent to 16.5% of revenue.

 

Paycor’s forward-looking stance remains optimistic, as the company anticipates sustained demand for its innovative HCM solutions. With a focus on capturing market share and expanding PEPM through innovative offerings, the company aims to achieve sustainable revenue growth of 20% or more in fiscal 2024.

Paycor Receives Mixed Analyst Ratings Amid Price Target Adjustments

  • BMO Capital analyst Daniel Jester maintained a Market Perform but lowered the price target from $27 to $24.
  • Mizuho analyst Siti Panigrahi reiterated a Neutral rating and lowered the price target from $24 to $22.
  • JMP Securities analyst Patrick Walravens maintained an Outperform rating while lowering the price target from $42 to $32.
  • Needham analyst Scott Berg reiterated a Buy rating and a $42 price target.

 

Analyst Brian Peterson (RAYMOND JAMES) currently has the highest performing score on PYCR with 2/4 (50%) price target fulfillment ratio. His price targets carry an average of $5.7 (22.76%) potential upside. Paycor stock price reaches these price targets on average within 67 days

Cisco’s Q4 Performance Is Back On Track

 

Cisco Systems has rebounded from disappointing guidance in its previous quarter, with a notable surge in product orders during its fiscal fourth quarter. This resurgence has reassured investors, with Evercore analyst Amit Daryanani praising Cisco’s commitment to operating leverage and consistent buybacks. As a result, Daryanani raised the target price of Cisco shares to $63 from $60. Deutsche Bank analyst Mathew Niknam, while maintaining a Hold rating and a $54 target price on the stock, underscored Cisco’s positive underlying demand commentary, highlighting its resilience across various end markets.

 

Amidst Cisco’s performance, attention is turning toward its potential growth in the realm of artificial intelligence (AI). The company has taken strategic steps by introducing multiple versions of its Silicon One networking chips, positioning them as potent solutions for AI workloads. Cisco’s recent report of $500 million in AI-related orders further underscores its commitment to this emerging field. Although the company expresses confidence in its Ethernet-based AI opportunities, KeyBanc’s Thomas Blakey notes that the anticipated demand inflection is more likely to materialize in the full-year 2025. Blakey maintains a Sector Weight rating for Cisco, acknowledging the current valuation of around 14 times its forward earnings, but also highlights the potential for an elevated valuation contingent upon consistent signs of share gains and improved order visibility during the ongoing fiscal year.

 

Analysts Maintain Mixed Outlook, Adjusting Price Targets Amid Optimism

  • Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and raised the price target from $55 to $56.
  • UBS analyst David Vogt reiterated a Neutral rating and increased the price target from $51 to $55.
  • Oppenheimer analyst Ittai Kidron reiterated an Outperform rating and a $58 price target.
  • Raymond James analyst Simon Leopold maintained an Outperform rating and raised the price target from $64 to $65.
  • Barclays analyst Tim Long kept an Equal-Weight rating while upgrading the price target from $51 to $53.

 

Analyst James Fish (PIPER SANDLER) currently has the highest performing score on CSCO with 24/24 (100%) price target fulfillment ratio. Her price targets carry an average of $6.95 (17.36%) potential upside. Cisco Systems stock price reaches these price targets on average within 360 days

Daily stock Analysts Top Price Moves Snapshot