Daily Update - Dec 21, 2022

Selected stock price targets highlights of the day

By: Matthew Otto

 

Highlight of today belongs to NIKE

Which reported noteworthy financials yesterday for its Fiscal 2023 Second Quarter with impressive revenue growth of 17%, and 25% currency-neutral basis. NIKE Direct sales experienced an increase of 16%, or 25% in a currency-neutral fashion; Brand Digital sales saw even greater heights as they increased by 34%. Wholesale revenues rose 19 percent on a reported basis and 30 percent upon adjusting to neutral currencies while diluted earnings per share were up 2%.

  • Cowen’s John Kernan raised the target from $122 to  $131 while maintaining an ‘Outperform’ rating.
  • Goldman Sachs’s Kate McShane improved the mark up to $133 with a ‘Buy’ recommendation.
  • Credit Suisse’s Michael Binetti issued his own upgrade of the same amount and kept ‘Outperform’.
  • RBC Capital analyst Piral Dadhania increased his price target slightly lower to $$127 and held her call of Outperform.
  • UBS Jay Sole set at$146 and remained with a ‘Buy’.
  • Wells Fargo Kat Fitzsimons went from $130 to $135 while holding an Overweight rating.

FedEx has reported its second quarter results, showcasing fiscal 2023

Cost reduction initiatives that have been accelerated and a projected $400 million reduction in capital spending for the year. Furthermore, FedEx estimates earnings per diluted share of $12.50 to $13.50 before MTM retirement plans accounting adjustments are taken into account while excluding estimated costs related to business optimization initiatives; they also forecast an effective tax rate (ETR)of 25% -26%. Finally, their outlook on capital spending is currently set at$5 .9 billion ,a number lower than initially anticipated ($6 .3 billion).

Weak results reported this second quarter due to the continued demand downturn, mainly affecting FedEx Express. Despite these challenges, they were still able to grow their operating income by 24% year-over-year thanks in part to an 8% package yield increase and cost reduction measures at both FedEx Ground and Express. However, other expenses such as higher purchased transportation rates posed a challenge for ground operations alongside lower volume contributing as well.

  • Evercore ISI Group analyst Jonathan Chappell decreased his price target for the stock from $202 to $196 while maintaining an Outperform rating.
  • Susquehanna’s Bascome Majors upgraded his price target from $165 to a new level of 170 and retained a Neutral rating.
  • Credit Suisse analyst Ariel Rosa reduced theirs from  213 down to 211 but kept his company’s outlook at “Outperform”.
  • UBS’ Thomas Wadewitz increased his estimate on the share price up by one$10, pegging it at 225 dollars as he repeated with a “Buy” opinion.
  • JP Morgan’s Brian Ossenbeck dialed back from $184 downwards toward $179 with  maintaining a neutral rating.

 

General Mills reported strong fiscal 2023 second-quarter results

With net sales increasing 4% to $5.2 billion, an 11 % surge in organic net sales, and a 12% increase in adjusted diluted EPS. The company experienced 5 point headwind from divestiture and acquisition activity as well as one point of unfavorable foreign exchange rate effects but was able to maintain its growth trajectory by delivering positive price realization and mix gains despite lower pound volume.

  • Credit Suiss analyst Robert Moskow raising his target price from $77 to $82
  • RBC Capital Nik Modi upgraded his prediction from Sector Perform at $72 to $76.

 

Deutsche adjusts on Tesla

  • Deutsche Bank analyst Emmanuel Rosner lowered his stock forecast on Tesla Motors from $355 to $270 while maintaining a Buy rating. The correction is another concession made by the analyst following the decline from top it reached at the beginning of the year at $400 per share last year.