Selected stock price target news of the day - August 29, 2023

By: Matthew Otto

 

JOANN Reports Cost Optimization in Q2 2024 Earnings

JOANN has reported its financial results for the second quarter of fiscal year 2024. The company’s net sales for the quarter totaled $453.8 million, representing a decline of 2.1% compared to the same period last year. Additionally, the company’s gross profit saw an 8% increase from the previous year, reaching $232 million, attributed to continuing improvement in import freight costs, which had an impact on gross margin.

 

In line with their strategy, JOANN capitalized on an market opportunities, employing an advanced data analytics-driven “read-and-react” approach. This enabled them to strategically pull forward their Halloween seasonal product assortment, resulting in a 90 basis point positive impact on comparable sales for the quarter. The financial results also shed light on JOANN’s ongoing cost reduction initiative called “Focus, Simplify and Grow,” designed to streamline operations and enhance efficiency. This initiative has exceeded its initial $200 million cost-saving target.

 

Analysts Maintain Ratings and Adjust Price Targets

  • Loop Capital analyst Laura Champine maintained a Hold rating and lowered price target from $2 to $1.
  • Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating and a price target of $1.5.

 

Analyst Joseph Feldman (TELSEY ADVISORY) currently has the highest performing score on JOAN with 3/13 (23.08%) price target fulfillment ratio. His price targets carry an average of $1.36 (34.98%) potential upside. JOANN stock price reaches these price targets on average within 46 days. 

 

 

 

Heico Reports Fiscal Third-Quarter Results 

Heico reported its fiscal third-quarter financial results, revealing better-than-expected sales and earnings. The sales for the quarter were approximately $723 million, representing a 27% increase year over year, surpassing Wall Street’s expectations of about $702 million. Additionally, earnings per share (EPS) came in at 74 cents, a 23% increase year over year, which was also higher than the Wall Street forecast of 73 cents.

 

Rob Stallard, an analyst at Vertical Research Partners noted that although double-digit revenue and earnings growth were achieved, investors were expecting more from Heico this quarter due to the high bar set by other aerospace aftermarket companies. He maintained a Buy rating on Heico shares and set a $200 price target for the stock.

 

Analyst Reiterated Buy Rating and Price Target 

  • Benchmark analyst Josh Sullivan reiterated a Buy rating and a $170 price target.

 

Analyst Robert Stallard (VERTICAL RESEARCH) currently has the highest performing score on HEI with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $10.04 (5.00%) potential upside. Heico stock price reaches these price targets on average within 2 days

 

 

 

3M Settles Defective Earplug Lawsuits with $6 Billion Agreement

3M has reached a $6 billion settlement to address approximately 260,000 lawsuits accusing the company of selling faulty combat earplugs that resulted in hearing loss among hundreds of thousands of current and former U.S. military personnel. The lawsuits centered around allegations that the combat earplugs, manufactured by 3M subsidiary Aearo Technologies, were defective and contributed to hearing impairments suffered by service members during training and combat missions between 2003 and 2015, including deployments in conflict zones like Afghanistan and Iraq.

 

The settlement will be dispersed over a period spanning from 2023 to 2029, involving a combination of $5 billion in cash and $1 billion in common stock. This resolution comes after 3M’s previous attempt to shift the lawsuits into bankruptcy court, a move aimed at limiting its potential financial liability, failed earlier this year. 

 

This settlement follows on the heels of 3M’s recent engagement in a tentative $10.3 billion agreement with several U.S. public water systems, aimed at resolving claims associated with water contamination caused by per- and polyfluoroalkyl substances (PFAS), commonly referred to as “forever chemicals.”

The  settlement will be recording a pre-tax charge of approximately $4.2 billion in the third quarter of 2023. 

 

Mixed Analyst Views on 3M Following Settlement

  • Mizuho analyst Brett Linzey reiterated a Neutral rating and a $120 price target.
  • Wolfe Research analyst Nigel Coe upgraded from Underperform to Peer Perform.

 

Analyst Joe O’dea (WELLS FARGO) currently has the highest performing score on MMM with 7/13 (53.85%) price target fulfillment ratio. His price targets carry an average of $8.95 (6.39%) potential upside. 3M stock price reaches these price targets on average within 28 days

 

 

Daily stock Analysts Top Price Moves Snapshot