Selected stock price target news of the day - August 23, 2023

By: Matthew Otto

Baidu’s Q2 2023 Report Highlights Revenue Growth and AI Focus

Baidu has announced its second-quarter 2023 financial results, reporting a 15% year-over-year increase in total revenue, reaching $4.71 billion. Baidu Core’s online marketing revenue stood at $2.73 billion, marking a 15% YoY growth. The AI Cloud division witnessed a 5% YoY increase in revenue, reaching $620 million, and maintained positive non-GAAP operating profit. Baidu’s commitment to AI development was evident in its R&D expenses, which amounted to $811 million, accounting for 23% of Baidu Core revenue.

Operating expenses for Baidu amounted to $1.75 billion, reflecting a 14% YoY increase, driven by investments in channel spending, promotional marketing, and cloud-related expenses. Baidu Core’s non-GAAP operating income reached $894 million, contributing to a non-GAAP operating margin of 25%. Net income attributable to Baidu was $715 million, with diluted earnings per ADS at $1.95. Baidu’s financial stability was further highlighted by its cash and short-term investments, which stood at $27.7 billion, supporting its ongoing AI initiatives and strategic investments.

Analysts Gives Upbeat Ratings and Price Target Adjustments

BofA Securities analyst Eddie Leung maintained a Buy rating and lowered the price target from $228 to $222.
Citigroup analyst Alicia Yap reiterated a Buy rating and raised the price target from $181 to $182.
Jefferies analyst Thomas Chong increased the price target to $216.
Credit Suisse analyst Kenneth Fong kept an Outperform rating and increased the price target from $175 to $182.

Analyst Gary Yu (MORGAN STANLEY) currently has the highest performing score on BIDU with 3/5 (60%) price target fulfillment ratio. His price targets carry an average of $14.68 (13.83%) potential upside. Baidu stock price reaches these price targets on average within 21 days.

Urban Outfitters Posts Q2 2023 Sales and Earnings Growth

Urban Outfitters reported its financial results for the three and six months ending July 31, 2023. The company showcased performance, with net income reaching $104.1 million and earnings per diluted share at $1.10 for the three-month period. Over the six-month duration, net income stood at $156.9 million, accompanied by earnings per diluted share of $1.67. Notably, the company’s total net sales surged by 7.5% to $1.27 billion for the three months and increased by 6.7% to $2.39 billion for the six-month period, driven by growth across various segments and brands.

The Retail segment’s net sales increased by 5.9% for the three months and 5.1% for the six months, with growth driven by both retail store sales and digital channel sales. The report highlighted a notable 26.9% increase in comparable net sales for the Free People Group, along with a growth in the Anthropologie Group, albeit a decrease in Urban Outfitters’ comparable net sales by 14.1%. Additionally, the Nuuly segment experienced significant growth due to an 85% increase in subscribers compared to the previous year.

The company’s gross profit rate saw an increase of 416 basis points for the three months and 343 basis points for the six months, driven by higher initial merchandise markups and reduced merchandise markdowns.

Analysts Offer Varied Perspectives as Price Targets Adjust

BMO Capital analyst Simeon Siegel maintained a Market Perform and raised his price target from $31 to $35.
UBS analyst Jay Sole reiterated a Sell rating and increased his price target from $20 to $21.
BofA Securities analyst Lorraine Hutchinson kept a Buy rating and upgraded her price target from $35 to $42.
Baird analyst Mark Altschwager remained a Neutral rating and raised his price target from $32 to $38.
Wells Fargo analyst Ike Boruchow maintained an Equal-Weight rating and raised his price target from $30 to $36.
Barclays analyst Adrienne Yih maintained an Overweight and increased the price target from $45 to $47.
Telsey Advisory Group analyst Dana Telsey reiterated an Outperform and raised the price target from $41 to $42.

Analyst Jay Sole (UBS) currently has the highest performing score on URBN with 15/16 (93.75%) price target fulfillment ratio. His price targets carry an average of $3.09 (10.30%) potential upside. Urban Outfitters stock price reaches these price targets on average within 112 days.

DICK’S Sporting Goods Q2 2023 Financial Report Highlights

DICK’S Sporting Goods has released its financial results for the second quarter of 2023, showcasing a 3.6% increase in total sales, amounting to $3.22 billion against the consensus estimate of $3.24 billion. The company reported a 1.8% growth in comparable store sales, attributed to a strong rise in transaction volume. Despite this positive momentum, the company’s gross margin saw a decline, primarily due to higher inventory shrink and organized retail crime impacting profitability.

The company reported earnings before tax (EBT) of $325.9 million, constituting 10.1% of net sales, a decrease from the 13.73% EBT margin recorded in the same period of the previous year. Despite the growth in sales, the decline in gross margin impacted the company’s earnings per diluted share (EPS), which stood at $2.82 compared to a non-GAAP EPS of $3.68 in the same quarter last year and it is $0.99 short of the analyst estimate of $3.81. The company’s revised non-GAAP EPS guidance for 2023 ranged from $11.50 to $12.30, considering the impact of Q2 results and revised expectations for gross margin for the remainder of the year. .

Analysts Adjust Price Targets Amidst Varied Ratings

Simeon Gutman from Morgan Stanley kept an Overweight rating and decreased the price target from $175 to $150.
UBS analyst Michael Lasser maintained a Neutral rating and lowered the price target from $160 to $130.
Stifel analyst Jim Duffy kept a Hold rating and reduced the price target from $141 to $123.
Oppenheimer’s Brian Nagel reiterated an Outperform rating and reduced the price target from $175 to $145.
Wells Fargo’s Kate Fitzsimons maintained an Equal-Weight and lowered the price target from $140 to $115.
Wedbush analyst Seth Basham downgraded from Outperform to Neutral and the price target from $155 to $115.
BofA Securities’ Robert Ohmes downgraded from Buy to Neutral and the price target from $180 to $125.
Citigroup’s Paul Lejuez remained a Neutral rating and reduced the price target from $153 to $118.
Barclays analyst Adrienne Yih kept an Overweight rating and lowered the price target from $174 to $139.
Baird analyst Justin Kleber maintained a Neutral rating and lowered the price target from $140 to $125.
Telsey Advisory Group’s Joseph Feldman reiterated an Outperform rating and decreased the price target from $160 to $140.

Analyst Anthony Chukumba (LOOP CAPITAL) currently has the highest performing score on DKS with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $4.08 (3.23%) potential upside. DICK’S Sporting Goods stock price reaches these price targets on average within 8 days