Selected stock price target news of the day - August 25, 2023

By: Matthew Otto

Workday Q2 FY ’24 Report: Growth and AI Innovation

Workday released its financial report for the second quarter of fiscal year 2024, reporting subscription revenue of $1.62 billion, marking a 19% increase year-over-year. Total revenue for the quarter reached $1.79 billion versus the consensus estimate of $1.77 billion, reflecting a 16% growth. Workday is further highlighted by its 24-month subscription revenue backlog, which stood at $10.27 billion, representing a 23% growth. The company’s international expansion efforts are also gaining traction, with revenue outside the U.S. accounting for 25% of the total revenue and growing by 15% in Q2.

Workday’s non-GAAP operating margin for the quarter was 23.6%, exceeding expectations due to revenue outperformance and cost management. The company’s AI initiatives are integrated into its core platform, with more than 3,000 customers opting to share their data for ML models, resulting in over 50 million ML inferences per day. Looking ahead, Workday maintains a positive outlook, raising its full-year FY ’24 subscription revenue guidance to a range of $6.57 billion to $6.59 billion, representing an 18% year-over-year growth.

Analysts Show Confidence in Workday with Raised Price Targets

Barclays analyst Raimo Lenschow maintained an Overweight rating and raised the price target from $258 to $262.
Deutsche Bank analyst Brad Zelnick reiterated a Hold rating and increased the price target from $215 to $235.
Needham analyst Scott Berg kept a Buy rating and upgraded the price target from $220 to $250.
Keybanc analyst Michael Turits maintained an Overweight rating and raised the price target from $290 to $295.
Piper Sandler analyst Brent Bracelin maintained an Overweight rating and raised the price target from $280 to $288.

Analyst Stefan Slowinski (BNP) currently has the highest performing score on WDAY with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $30.85 (13.04%) potential upside. Workday stock price reaches these price targets on average within 38 days.

Intuit’s Financial Reports Reflect Growth Amid Uncertainty

Intuit unveiled its financial performance for the fourth quarter of fiscal year 2023 reporting an EPS of $1.65, $0.22 better than the analyst estimate of $1.43. Revenue also increased by 12%, reaching $2.7 billion during the quarter against the consensus estimate of $2.64 billion. Notably, Intuit’s full-year revenue experienced a 13% growth. The company also highlighted the performance of the Small Business and Self-Employed Group, which recorded a 21% revenue growth during the quarter, driven by a range of services including payroll, payments, capital, and time tracking.

The company’s Consumer Group fiscal year 2023 revenue reached $4.1 billion, marking a 6% increase. While each tax season has brought unique challenges due to the pandemic, the Consumer Group’s average annual growth of 10% over the past four years underscores its performance. Furthermore, the acquisition of Credit Karma contributed to Intuit’s overall revenue, accounting for 11% of the total in fiscal year 2023, even though Credit Karma’s revenue experienced an 11% decline in the fourth quarter due to macroeconomic headwinds in several product categories.

Analysts Bullish on Growth Potential, Raise Price Targets

Credit Suisse analyst Rich Hilliker maintained an Outperform rating and raised the price target from $500 to $570.
Oppenheimer analyst Scott Schneeberger reiterated an Outperform rating and increased the price target from $476 to $530.
Deutsche Bank analyst Brad Zelnick maintained a Buy rating and raised the price target from $525 to $575.
Keybanc analyst Josh Beck kept an Overweight rating and upgraded the price target from $525 to $535.
Piper Sandler analyst Arvind Ramnani reiterated an Overweight rating and upgraded the price target from $497 to $528.

Analyst Josh Beck (KEYBANK) currently has the highest performing score on INTU with 25/30 (83.33%) price target fulfillment ratio. His price targets carry an average of $52.31 (14.42%) potential upside. Intuit stock price reaches these price targets on average within 97 days

Strategic Initiatives Propel Hain Celestial Group Forward in Fiscal Year 2023

The Hain Celestial Group held its fourth quarter fiscal year 2023 earnings call. Despite challenges posed by the industry-wide supply constraints and inflation, the company reported with consolidated net sales reaching $447.8 million, representing a 2% decrease from the previous year. Notably, the company’s adjusted gross margin witnessed an increase of 330 basis points. In addition, the company’s adjusted EBITDA stood at $43.5 million, at the high end of their guidance range.

In North America, despite a 5.1% decline in reported net sales due to non-repeated customer promotions and personal care softness, the adjusted gross margin improved by 270 basis points. The international segment demonstrated growth for the second consecutive quarter, with a 3.7% increase in reported net sales, buoyed by the performance in the U.K. and stabilization of non-dairy beverages in Continental Europe.

Analysts Lower Price Targets amid Neutral Ratings

Stifel analyst Matthew Smith reiterated a Hold rating and lowered the price target from $16 to $13.
Mizuho analyst John Baumgartner maintained a Neutral rating and lowered the price target from $14 to $12.

Analyst Michael Lavery (PIPER SANDLER) currently has the highest performing score on HAIN with 6/13 (46.15%) price target fulfillment ratio. His price targets carry an average of $2.73 (12.69%) potential upside. The Hain Celestial Group stock price reaches these price targets on average within 17 days