Daily Update - Dec 22, 2022

Selected highlights of the day

By: Matthew Otto


Micron Technology reported financial results for their first quarter of fiscal 2023

Revenue was $4.09 billion with GAAP net loss at only $195 million or roughly 18 cents per share due to prudent cost-cutting measures and expense reductions. The company achieved an operating cash flow of nearly one billion dollars as compared to prior quarters. President Sanjay Mehrotra commented that they had “delivered revenue and earnings within guidance ranges” which speaks volumes about the success of Micron’s resource management amidst prevailing market conditions

The stock is trading at a 40% discount since it’s peak achieved in February this year.

  • Morgan Stanley analyst Joseph Moore maintains his Underweight since September and lowered his price target to $46 from $49.


Rite Aid Corporation has reported third quarter results for Fiscal 2023

With revenue of $6.1 billion compared to the prior year’s figure of $6.2 billion and an 8 percent increase in comparable same store acute prescriptions excluding COVID immunizations . The company also experienced a net loss per share of $1.23 as opposed to last year’s respective net loss per share at $0.67, whilst adjusted EBITDA declined from 154 million to 121 million – however Elixir saw promising growth up 39% (from 28 into 40). As such their outlook on Adjusted EBITDA is between 4- 440 million and Net Loss Per Share lowered notably around $2.

The stock has deleted more than %90 of its value in the last two years with seasoned analysts such as George Hill from Deutsche Bank and Rober Jones of JPMorgan showing no hope that the retail giant will go back to glory.


Canaccord adjusts lower on Tesla

  • Canaccord Genuity’s George Gianarikas is keeping up the bullish sentiment on Tesla, though with a slightly more conservative outlook. He maintains his Buy rating while reducing his stock forecast from $304 to $275.

Morgan Stanley boosts Fortinet

Morgan Stanley analyst Hamza Fodderwala reaffirmed his positive outlook on Fortinet, upgrading the stock from Overweight to a higher price target of $71. Fodderwala has kept his belief in the firm prospect since April of this year when he raised his price target from $48.


Carnival Cruise announced their fourth quarter 2022 performance

Revealing a US GAAP net loss of $1.6 billion, or $(1.27) diluted EPS and adjusted net losses of $1.1 billion (or $(0.85) adjusted EPS). Despite this the company reported that Adjusted EBITDA was within expected ranges at -$96 million in Q4; inclusive of increased investments in advertising to drive revenue for 2023 half-yearly Adjustment EBITDA stood at +$207 million.

  • Daniel Politzer of Wells Fargo has downgraded Carnival’s rating to Underweight and reduced his price target from $10 to $9.
  • Benjamin Chaiken at Credit Suisse maintained an Outperform with a lower target of $16, a positive outlook that he kept since early of 2022.

Prior to the global pandemic unfolding, shares of Carnival traded near sixty dollars – representing a stunning 90% decline in market value since then.