Selected stock price target news of the day - August 24, 2023

By: Matthew Otto

Snowflake’s Q2 FY2024 Earnings Show Growth

Snowflake has announced financial results for the second quarter of fiscal year 2024 and reported a year-over-year growth of 37%, reaching $640 million. This growth was complemented by an expansion of non-GAAP product gross margin to 78%. Additionally, non-GAAP adjusted free cash flow stood at $88 million, reflecting a remarkable 50% year-over-year increase.

Snowflake’s Global 2000 customer base has expanded to 639, demonstrating its stronghold in the enterprise market. The company’s commitment to fostering AI and data strategies has resulted in 26% of Snowflake customers engaging in data sharing, a notable increase from the previous year. The successful adoption of Snowpark, with over 400 new customers and a 70% quarterly consumption growth, further highlights its appeal. The introduction of Document AI for natural language querying of unstructured data and the integration of Snowflake Container Services showcase the company’s efforts to leverage its data resources and meet evolving customer needs.

While acknowledging challenges with its largest customers, the company forecasts a product revenue growth range of 28% to 29% for the third quarter of fiscal year 2024. The full-year projection for product revenue anticipates an impressive 34% year-over-year growth, reaching approximately $2.6 billion.

Analysts Offer Varied Views with Revised Price Targets

Wells Fargo analyst Michael Turrin maintained an Overweight rating and raised the price target from $195 to $200.
Raymond James analyst Simon Leopold reiterated an Outperform rating and lowered the price target from $180 to $170.
Barclays analyst Raimo Lenschow kept an Overweight rating and downgraded the price target from $190 to $183.
Needham analyst Mike Cikos reiterated a Buy rating and a $216 price target.
Piper Sandler analyst Brent Bracelin maintained an Overweight rating and lowered the price target from $210 to $205.

Analyst Brad Reback (STIFEL) currently has the highest performing score on SNOW with 6/6 (100%) price target fulfillment ratio. His price targets carry an average of $-1.92 (2.68%) potential downside. Snowflake stock price reaches these price targets on average within 16 days.

Williams-Sonoma Delivers Second Quarter 2023 Performance Amid Industry Challenges

Williams-Sonoma has released its Second Quarter 2023 Earnings Report, and showcased a net revenues of $1.863 billion for the quarter, reflecting a negative 11.9% comp in revenue growth compared to the same period last year. However, the company’s two-year comp remained essentially flat, and its four-year comp to 2019 exhibited a positive growth of 39.7%. Despite the challenges posed by supply chain costs and inefficiencies, Williams-Sonoma managed to improve its operating margin to 14.6%.

The company has revised its fiscal ’23 outlook. It now expects net revenues for the full year to range from down 5% to down 10%, reflecting the ongoing uncertainty in the industry. Despite the softened revenue outlook, Williams-Sonoma is confident in its ability to maintain operating margins, projecting a range of 15% to 16%..

Analysts Update Ratings and Price Targets After Q2 Earnings Report

Barclays analyst Adrienne Yih maintained an Underweight rating and increased the price target from $115 to $123.
BofA Securities analyst Elizabeth Suzuki upgradedUnderperform to Neutral and the price target from $108 to $146.
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating for Williams-Sonoma and raised the price target from $146 to $170.

Analyst Peter Benedict (BAIRD) currently has the highest performing score on WSM with 7/9 (77.78%) price target fulfillment ratio. His price targets carry an average of $12.04 (9.91%) potential upside. Williams-Sonoma stock price reaches these price targets on average within 127 days

Analog Devices Reports Q3 Fiscal 2023

Analog Devices has released its financial report for the third quarter of fiscal year 2023. Despite headwinds, ADI reported revenue of nearly $3.1 billion, driven by growth in its Industrial and Automotive markets. The company maintained a gross margin of above 72% and an operating margin of nearly 48%.

The company highlights their Industrial segment, representing 53% of its revenue, saw a 4% year-over-year increase, with growth in sustainable energy and aerospace and defense. Automotive, comprising 24% of revenue, posted a robust 15% year-over-year growth.

Looking ahead, ADI’s financial guidance for the fourth quarter expects revenue to be $2.7 billion, with all markets projected to be down sequentially due to an industry-wide inventory correction.

Analysts Provide Varied Ratings and Price Targets Following Updates

Morgan Stanley’s Joseph Moore maintained an Equal-Weight rating and lowered the price target to $185 from $195.
Oppenheimer’s Rick Schafer reiterated an Outperform rating and a price target of $215.
Raymond James analyst Melissa Fairbanks kept an Outperform rating and revised the price target from $225 to $200.
Goldman Sachs’ Toshiya Hari maintained a Buy rating while adjusting the price target to $188 from $204.
Piper Sandler analyst Harsh Kumar downgraded from Overweight to Neutral and set a new price target of $190.

Analyst Gary Mobley (WELLS FARGO) currently has the highest performing score on ADI with 3/3 (100%) price target fulfillment ratio. His price targets carry an average of $10.4 (6.17%) potential upside. Analog Devices stock price reaches these price targets on average within 175 days