Selected stock price target news of the day - August 21, 2023

By: Matthew Otto

 

Nvidia’s Q2 Earnings Awaited Amidst Expectations

As Nvidia gears up to release its second-quarter earnings report, it propelled both the S&P 500 and Nasdaq indexes, and established itself as a key beneficiary of the AI frenzy. With the earnings report on the horizon, Wall Street analysts are echoing a chorus of bullish expectations, raising the question of whether the highly anticipated “beat-and-raise” scenario is already priced into the stock.

 

Quoted on Barron’s, Wedbush analyst Dan Ives highlighted the significance of Nvidia’s CEO, Jensen Huang, often referred to as the “Godfather of AI.” Ives expects a bullish outlook from Nvidia, which could potentially serve as a driving force behind the ongoing tech rally. KeyBanc analysts, led by John Vinh, echoed this sentiment, projecting results and guidance that exceed consensus expectations due to demand and increased production capacity. Vinh emphasized the favorable risk/reward profile and reiterated an “Overweight” stance on the stock.

 

However, as analysts predict a potential “beat-and-raise” scenario, the heightened expectations also bring about the challenge of meeting or surpassing already optimistic projections. The market’s bullish sentiment and the company’s pivotal position in the AI domain underscore the significance of Nvidia’s Q2 results. With record levels of both earnings per share and revenue forecasted by analysts surveyed by FactSet, and numerous analysts raising their price targets in recent days, all eyes are on Nvidia’s financial report..

Analysts Upgrade Nvidia Price Targets and Raise Expectations

  • HSBC analyst Frank Lee maintained a Buy rating and raised the price target from $600 to $780.
  • KeyBanc analyst John Vinh reaffirmed an Overweight rating and increased the price target from $550 to $620.
  • Wedbush analyst Matt Bryson reiterated an Outperform rating and a $490 price target.

 

Analyst Richard Shannon (CRAIG HALLUM) currently has the highest performing score on NVDA with 17/20 (85%) price target fulfillment ratio. His price targets carry an average of $7.42 (4.55%) potential upside. Nvidia stock price reaches these price targets on average within 59 days.

Palo Alto Networks’ Outlook Sparks Cybersecurity Sector Rebound

 

Palo Alto Networks report exceeded expectations. The company anticipates a 17%-19% compound annual growth rate in both revenue and billings over the next three years. This guidance comes as a relief for the cybersecurity industry, which has been sensitive to macroeconomic uncertainties.

 

The cybersecurity sector’s response underscores the industry-wide impact of Palo Alto’s report. Moreover, analysts are paying close attention to Palo Alto’s performance in large deals, which showed an uptick of 42% in sales worth over $20 million compared to the previous year. This trend underscores the company’s healthy momentum and resilience.

 

Peter Levine, an analyst at Evercore, expressed confidence in Palo Alto’s trajectory, raising the stock’s target price from $240 to $295 while maintaining an Overweight rating. The cybersecurity sector’s rebound, led by Palo Alto’s positive outlook, not only highlights the company’s strategic resilience but also demonstrates the sector’s capacity to weather market uncertainties. 

 

Analysts Express Confidence with Increased Price Targets

  • JMP Securities Analyst Trevor Walsh Reiterated a Market Outperform and a $300 price target.
  • Morgan Stanley Analyst Hamza Fodderwala Sustained with Overweight rating and increased the price target from $302 to $304.
  • Oppenheimer Analyst Ittai Kidron Reiterated an Outperform rating and a $290 price target.
  • RBC Capital Analyst Matthew Hedberg Maintained an Outperform rating and raised the price target from $250 to $281.
  • BMO Capital Analyst Keith Bachman Sustained with Outperform and lifted the price target from $235 to $275.
  • UBS Analyst Roger Boyd Held a Neutral rating and Raised the price target from $220 to $260.
  • BofA Securities Analyst Tal Liani Maintained a Buy rating and raised the price target from $270 to $290.
  • Raymond James Analyst Adam Tindle Continued at Outperform and adjusted the price target from $230 to $250.
  • JP Morgan Analyst Brian Essex Retained an Overweight rating and raised the price target from $251 to $268.
  • Deutsche Bank Analyst Brad Zelnick Kept a Buy and revised price target from $225 to $270.

 

Analyst Walter Pritchard (CITI) currently has the highest performing score on PANW with 18/18 (100%) price target fulfillment ratio. His price targets carry an average of $7.89 (11.18%) potential upside. Palo Alto Networks stock price reaches these price targets on average within 193 days

XPeng’s Positive Cash Flow Projection Sparks Investor Interest

 

Chinese electric vehicle manufacturer XPeng is garnering attention in the market following its recent financial developments. The company’s stock received an upgrade from BofA Securities analyst Ming Hsun Lee, who raised the stock’s rating from Hold to Buy and set a new price target of $22 per share, up from the previous $16.30. This shift in sentiment comes on the heels of XPeng’s surprise $700 million investment from Volkswagen in July. This investment not only bolsters XPeng’s financial position but also serves as an endorsement of its self-driving technology, according to Lee. The analyst anticipates that the partnership will enable XPeng to generate profits and achieve positive free cash flow as early as 2025.

 

XPeng’s ambition to achieve this milestone aligns it with industry giants such as Tesla, BYD, and Li Auto, which consistently generate free cash flow and have collectively amassed a market value exceeding $800 billion. In contrast, XPeng still has to generate free cash flow. However, the VW investment, combined with XPeng’s cash reserves of nearly $5 billion, positions the company to progress towards its goal.

 

Analyst Upgraded Xpeng Amidst Positive Growth Predictions

  • BofA Securities analyst Ming Hsun Lee upgraded from Neutral to Buy and the price target from $16.3 to $22.

 

Analyst Nick Lai (JPMORGAN) currently has the highest performing score on XPEV with 

2/4 (50%) price target fulfillment ratio. His price targets carry an average of $7.23 (30.06%) potential upside. Xpeng stock price reaches these price targets on average within 19 days

 

Daily stock Analysts Top Price Moves Snapshot