Selected stock price target news of the day - August 28, 2023

By: Matthew Otto

Hibbett Q2 Fiscal 2024 Earnings Amid Economic Challenges

Hibbett announced its second-quarter fiscal 2024 earnings in the face of economic challenges. The second-quarter results revealed a 4.6% decrease in total net sales, amounting to $374.9 million, compared to the same period in the previous fiscal year. The comp sales declined by 7.3%, with brick-and-mortar sales down 7.7% and e-commerce sales down 5.2%. Gross margin was affected, primarily due to lower average product margins and higher store occupancy costs, which led to an overall decrease of approximately 160 basis points.

While acknowledging the challenging economic environment and cautious consumer sentiment, the company’s strategic investments continue to focus on enhancing the consumer experience both in-store and online, expanding their store footprint, and maintaining their competitive advantage. The management emphasized that the long-term outlook remains positive despite the uncertainties and reiterated their fiscal 2024 guidance. This guidance includes expectations of flat to slightly increased net sales, a decline in comparable sales, and a continued aggressive promotional environment.

Analyst Views Diverge on Hibbett’s Prospects as Price Targets Adjust

Baird analyst Peter Benedict maintained an Outperform rating and raised the price target from $50 to $56.
B. Riley Securities analyst Anna Glaessgen maintained a Neutral stance and increased the price target from $37 to $45.
Benchmark analyst John Lawrence reiterated a Buy rating and the price target at $80.
B of A Securities analyst Alexander Perry maintained an Underperform rating but raised the price target from $35 to $40.
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform stance and a $60 price target.

Analyst Sam Poser (WILLIAMS TRADING) currently has the highest performing score on HIBB with 18/20 (90%) price target fulfillment ratio. His price targets carry an average of $5.94 (23.22%) potential upside. Hibbett stock price reaches these price targets on average within 275 days.

Boston Scientific’s Delivers Atrial Fibrillation Treatment Result

Boston Scientific has released 12-month findings from its ADVENT clinical trial of the FARAPULSE™ Pulsed Field Ablation (PFA) System, a nonthermal treatment for patients with atrial fibrillation (AF). The study, presented at ESC Congress 2023 and published in The New England Journal of Medicine, compared the FARAPULSE PFA System to standard-of-care ablation methods. Results demonstrated noninferiority in efficacy and safety endpoints. The FARAPULSE PFA System showed a 73.3% single-procedure treatment success rate compared to 71.3% with standard methods. Safety data showed adverse event rates of 2.1% with FARAPULSE and 1.5% with standard methods. The system received CE Mark in 2021 and has treated over 25,000 patients worldwide.

The trial involved 607 patients in the U.S. with paroxysmal AF who had previously been unsuccessfully treated with anti-arrhythmic drugs. Notably, the FARAPULSE PFA System exhibited shorter ablation times and less variability compared to standard methods. Dr. Vivek Reddy, the study’s principal investigator, highlighted the system’s clinical performance and safety. Boston Scientific plans to further investigate the system’s potential for treating persistent AF in the ADVANTAGE AF clinical trial.

Analysts Maintain Positive Ratings and Price Targets

RBC Capital analyst Shagun Singh reaffirmed an Outperform and a $58 price target.
Needham analyst Mike Matson maintained a Buy rating and a $61 price target.
Citigroup analyst Joanne Wuensch reiterated a Buy rating and a $63 price target.

Analyst Vijay Kumar (EVERCORE) currently has the highest performing score on BSX with 3/3 (100%) price target fulfillment ratio. His price targets carry an average of $2.53 (8.68%) potential upside. Boston Scientific stock price reaches these price targets on average within 139 days

Hawaiian Electric Faces Wildfire Lawsuits

Hawaiian Electric vowed to defend itself against a series of lawsuits stemming from devastating wildfires that swept through Hawaii earlier this month. The wildfires triggered a chain of events that led the company to suspend its dividend, a move aimed at bolstering its cash reserves in the face of financial strain. The Maui County took a significant step by filing a lawsuit, alleging the utility company’s negligence in failing to power down equipment despite warnings from the National Weather Service. The lawsuit’s claims suggest that Hawaiian Electric’s actions or lack thereof contributed to the severity of the wildfires and the extensive damages they caused.

Hawaiian Electric’s CEO, Shelee Kimura, expressed a mix of surprise and disappointment at the county’s decision to pursue legal action before the conclusion of a comprehensive investigation. The company contends that the allegations are both factually and legally unfounded. Kimura conveyed the company’s stance that the lawsuit may compel them to engage in the legal process to demonstrate their responsibility for the events of that fateful day. The legal battle between Hawaiian Electric and Maui County has now taken center stage, with implications not only for the company but also for the broader discourse on corporate accountability in the face of natural disasters.

Analyst Sticks with Underperform Rating

BofA Securities analyst Julien Dumoulin-Smith has reaffirmed an Underperform rating and a price target of $8.5.

Analyst Neil Kalton (WELLS FARGO) currently has the highest performing score on HE with 5/7 (71.43%) price target fulfillment ratio. His price targets carry an average of $0.3 (-2.02%) potential downside. Hawaiian Electric stock price reaches these price targets on average within 18 days.