Selected stock price target news of the day - August 20th, 2024

By: Matthew Otto

Palo Alto Networks Exceeds Q4 Expectations, Provides In-Line FY2025 Guidance

Palo Alto Networks has reported earnings for the fourth quarter, posting Q4 earnings per share (EPS) of $1.51, which was $0.10 higher than the analyst consensus estimate of $1.41. Also reported quarterly revenue of $2.2 billion, surpassing the consensus estimate of $2.16 billion.

Palo Alto Networks saw a 43% growth in Next-Generation Security (NGS) Annual Recurring Revenue (ARR), reaching $4.2 billion, which now constitutes more than half of its fiscal year 2024 revenue. This growth was driven by the increasing adoption of its platformization strategy, which saw over 90 new platformizations in Q4, bringing the total to over 1,000 among the largest customers. Additionally, the company reported a 10% sequential increase in average ARR per platformized customer.

In addition, progress in network security, particularly through its software-driven approach and Secure Access Service Edge (SASE) solutions, contributed to a 17% growth in firewall platform billings for fiscal year 2024. Palo Alto Networks also made strides in cloud security with its Prisma Cloud offerings, reaching $700 million in ARR. Palo Alto Networks introduced several key innovations, including the Prisma Access browser, AI Access for secure AI tool usage, and new capabilities in Prisma Cloud to address the evolving threat landscape.

Looking ahead, Palo Alto Networks expressed its long-term goal of achieving $15 billion in NGS ARR by fiscal year 2030. Furthermore, for Q1 2025, Palo Alto Networks expects EPS to range between $1.47 and $1.49, higher than the consensus estimate of $1.43. Revenue for the quarter is anticipated to be between $2.1 billion and $2.13 billion, in line with the consensus of $2.1 billion.

For the full fiscal year 2025, Palo Alto Networks projects EPS to be between $6.18 and $6.31, compared to the consensus estimate of $6.22. Revenue for FY2025 is expected to range between $9.1 billion and $9.15 billion, matching the consensus forecast of $9.1 billion..

Q4 Performance Spurs Analyst Optimism with Price Target Increases

DA Davidson analyst Rudy Kessinger maintained a Buy rating and raised the price target from $380 to $415.
Wells Fargo analyst Andrew Nowinski kept an Overweight rating while increasing the price target from $385 to $416.
RBC Capital analyst Matthew Hedberg reiterated an Outperform rating and raised the price target from $390 to $410.
BTIG analyst Gray Powell held a Buy rating and boosted the price target from $366 to $395.
Stifel analyst Adam Borg maintained a Buy rating and lifted the price target from $360 to $385.
Bernstein analyst Peter Weed continued with an Outperform rating and elevated the price target from $364 to $399.
Baird analyst Shrenik Kothari kept an Outperform rating and raised the price target from $375 to $385.
Piper Sandler analyst Rob Owens maintained a Neutral rating but raised the price target from $300 to $330.
Needham analyst Alex Henderson retained a Buy rating and increased the price target from $345 to $385.
Evercore ISI Group analyst Peter Levine maintained an Outperform rating while raising the price target from $385 to $395.
Keybanc analyst Eric Heath maintained an Overweight rating and lifted the price target from $380 to $400.
Deutsche Bank analyst Brad Zelnick kept a Buy rating and raised the price target from $330 to $395.
BMO Capital analyst Keith Bachman reiterated an Outperform rating and elevated the price target from $334 to $390.
Cantor Fitzgerald analyst Yi Fu Lee reiterated an Overweight rating and a $350 price target.

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

Analyst Yun Kim (LOOP CAPITAL) currently has the highest performing score on PANW with 16/16 (100%) price target fulfillment ratio. His price targets carry an average of $38.03 (14.52%) potential upside. Palo Alto Networks stock price reaches these price targets on average within 86 days.

Estée Lauder’s Cautious Outlook and Leadership Changes Raise Concerns Despite Strong Q4

Estée Lauder reported stronger-than-expected fiscal fourth-quarter results, posting adjusted earnings of $0.64 per share on revenue of $3.87 billion, surpassing analyst expectations of $0.26 per share and $3.81 billion in revenue.

However, guidance for fiscal 2025 projected earnings between $2.75 and $2.95 per share, well below the consensus estimate of $3.97. Sales are expected to range from a 1% decline to a 2% increase year-over-year. The outlook reflects ongoing challenges in key markets, particularly China, where sales in the Asia/Pacific region dropped 7% in the fourth quarter and 6% for the full year. In the Americas, sales decreased by 5% due to weaker department store sales, heightened competition, and a broader slowdown in prestige beauty product sales.

Despite the disappointing guidance, Rupesh Parikh from Oppenheimer noted that the realistic guidance “sets a lower bar,” which could make it easier for Estée Lauder to surpass expectations in subsequent quarters. However, concerns remain about the company’s market share, with Stifel analyst Mark Astrachan noting that Estée Lauder appears to be losing ground in various categories and regions. Estée Lauder is also undergoing leadership changes, with CEO Fabrizio Freda and CFO Tracey Travis set to retire in 2025.

Analyst Cuts Price Target Triggered by Downward Guidance

Evercore ISI Group analyst Robert Ottenstein maintained an Outperform rating but lowered the price target from $180 to $130.
Canaccord Genuity analyst Susan Anderson kept a Hold rating and a price target at $100.
UBS analyst Peter Grom kept a Neutral rating while lowering the price target from $115 to $104.
Wells Fargo analyst Christopher Carey maintained an Overweight rating yet reduced the price target from $130 to $117.
Stifel analyst Mark Astrachan retained a Buy rating and adjusted the price target from $165 to $125.
Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating and cut the price target from $115 to $105.
DA Davidson analyst Linda Bolton Weiser kept a Buy rating but slashed the price target from $191 to $130.
Deutsche Bank analyst Steve Powers maintained a Hold rating and lowered the price target from $108 to $105.
Telsey Advisory Group analyst Dana Telsey reaffirmed a Market Perform rating and the price target at $115.

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

Analyst Susan Anderson (CANACCORD) currently has the highest performing score on EL with 4/4 (100%) price target fulfillment ratio. Her price targets carry an average of $-3.94 (-2.92%) potential downside. Estée Lauder stock price reaches these price targets on average within 13 days.

Globant Exceeds Q2 Revenue and EPS Estimates; Provides Mixed Guidance for Q3 and Full Year 2024

Globant delivered its financial performance for Q2 2024, reporting EPS of $1.51, surpassing the analyst estimate of $1.49. Revenue for the quarter was $587.5 million, exceeding the consensus estimate of $586.68 million. This represents an 18.1% increase year-over-year and a nearly 3% rise quarter-over-quarter.

Globant’s adjusted operating margin improved to 15.1%, while adjusted net income for the quarter was $66.9 million, reflecting an 11.4% adjusted net profit margin. Globant’s AI-related revenues surged approximately 130% in the first half of 2024, with over $150 million in revenue derived from AI workloads.

Looking ahead, Globant projects EPS in the range of $1.60 to $1.64, compared to the consensus of $1.61, and anticipates revenue between $611 million and $617 million, below the consensus of $618.3 million. Guidance for th

e full fiscal year 2024 estimates revenue between $2.407 billion and $2.421 billion, implying a 14.8% to 15.5% year-over-year growth, and a Non-IFRS Adjusted Profit from Operations Margin of 15.0% to 15.5%. The full-year Non-IFRS Adjusted Diluted EPS is expected to be between $6.30 and $6.50, compared to the consensus of $6.34.

Analyst Ratings Shift After Q2 2024 Report

UBS analyst Leonardo Olmos downgraded from Buy to Neutral, though raises the price target from $225 to $235.
TD Cowen analyst Bryan Bergin maintained a Buy rating and increased the price target from $220 to $230.
JP Morgan analyst Tien-Tsin Huang kept an Overweight rating while lifting the price target from $218 to $226.
Keybanc analyst Thomas Blakey reiterated an Overweight rating and raised the price target from $220 to $235.

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

Analyst Mayank Tandon (NEEDHAM) currently has the highest performing score on GLOB with 7/8 (87.5%) price target fulfillment ratio. His price targets carry an average of $39.07 (24.28%) potential upside. Globant stock price reaches these price targets on average within 60 days.