Selected stock price target news of the day - August 30, 2023

By: Matthew Otto

Box Reports Mixed Q2 Earnings Amid Economic Challenges

Box’s second-quarter fiscal year 2024 revenue reached $261.4 million, marking a 6% increase, or 9% after accounting for foreign exchange adjustments. This performance slightly exceeded the Street consensus prediction of $261.1 million. Despite the positive revenue growth, the company’s billings in the quarter dropped by 1% compared to the same period last year, falling short of the anticipated low single-digit growth.

In addition to its revenue figures, Box also provided guidance for the upcoming quarters. The company projected Q4 revenue in the range of $261 million to $263 million, missing the Street’s consensus estimate of $265.6 million. Furthermore, Box’s adjusted profit forecast for the same period, ranging from 37 to 38 cents a share, was slightly lower than the market consensus of 39 cents. The company’s outlook for the entire fiscal year 2024 revealed a revenue range of $1.04 billion to $1.044 billion, signifying a 5% growth compared to the prior fiscal year. However, this forecast was narrower than the previous range of $1.045 billion to $1.055 billion. Adjusted profits were also revised to between $1.46 and $1.50 a share, reflecting a more constrained range compared to the earlier estimate.

Analysts Maintain Ratings and Price Targets Amidst Shifting Landscape

RBC Capital analyst Rishi Jaluria reiterated an Underperform rating and a $21 price target.
JMP Securities analyst Erik Suppiger maintained a Market Outperform rating and a $32 price target.
Oppenheimer analyst George Iwanyc kept an Outperform rating and maintains a $35 price target.
Keybanc analyst Thomas Blakey maintained an Overweight rating and adjusted price target from $35 to $33.

Analyst Rishi Jaluria (RBC) currently has the highest performing score on BOX with 8/12 (66.67%) price target fulfillment ratio. His price targets carry an average of $-0.26 (1.54%) potential downside. Box stock price reaches these price targets on average within 203 days.

Ambarella Reports Q2 2024 Revenue in Line with Guidance

In Q2 2024, Ambarella reported revenue of $62.1 million, which was in line with their prior guidance and flat compared to the previous quarter. However, this figure represented a decline of 23% year-over-year. Non-GAAP gross margin for the same period was 64.6%, surpassing their earlier guidance range.

Ambarella’s non-GAAP operating expenses for Q2 were $46 million, which was below their projected range of $48 million to $50 million. In terms of net interest and other income, they recorded $700,000, while the non-GAAP tax provision amounted to $800,000. Consequently, Ambarella reported a non-GAAP net loss of $6 million for the quarter, translating to a loss of $0.15 per diluted share, consistent with the previous quarter.

For the fiscal third quarter ending October 31, 2023, Ambarella projects a decline in revenue to approximately $50 million, plus or minus 4%, for this quarter. This outlook falls significantly below the $67.5 million estimated by analysts surveyed by FactSet.

Analysts Adjust Ratings and Price Targets Amidst Challenging Outlook

Susquehanna analyst Christopher Rolland maintained a Positive rating and lowered the price target from $92 to $80.
TD Cowen analyst Matthew Ramsay downgraded from Outperform to Market Perform and the price target from $90 to $65.
Needham analyst Quinn Bolton reiterated a Buy rating and lowered the price target from $100 to $90.

Analyst Ross Seymore (DEUTSCHE BANK) currently has the highest performing score on AMBA with 26/31 (83.87%) price target fulfillment ratio. His price targets carry an average of $-1.93 (3.13%) potential downside. Ambarella stock price reaches these price targets on average within 180 days.

nCino Reports Q2 Fiscal 2024 Financial Results and Growth Outlook

nCino has reported its second-quarter fiscal year 2024 financial results showcasing a total revenue of $117.2 million for the quarter. Demonstrating an 18% year-over-year increase. Subscription revenues also saw an 18% YoY growth, accounting for $99.9 million of the total revenues. The company’s non-GAAP operating income for the same period turned positive at $11.2 million, marking an improvement from the $2.8 million loss reported in the second quarter of the previous fiscal year.

nCino’s international expansion efforts have yielded results, with non-U.S. revenues growing by 47% YoY. The company maintains its fiscal year 2024 guidance with total revenues projected to be between $475 million and $478.5 million, while focusing on achieving the Rule of 30 objective.

Analysts Maintain Varied Ratings and Price Targets Following Q2 Results

Stephens & Co. analyst Charles Nabhan maintained an Overweight rating and the price target at $34.
BofA Securities analyst Brad Sills reiterated a Buy rating and raised the price target from $28 to $33.
Needham analyst Mayank Tandon kept a Buy rating and adjusted the price target from $33 to $34.
Piper Sandler analyst Brent Bracelin maintained a Neutral rating and lowered the price target from $32 to $30.

Analyst Charles Nabhan (STEPHENS) currently has the highest performing score on NCNO with 4/7 (57.14%) price target fulfillment ratio. His price targets carry an average of $5.8 (16.95%) potential upside. nCino stock price reaches these price targets on average within 21 days.