Analysts Stocks

      Daily Update - Jan 19, 2023

      Selected highlights of the day

      By: Matthew Otto

      J.B Hunt Transport Services

      Announced yesterday their financial results at the close of 2022 . Revenue increased 4% to $3.65 billion in Q4 while Operating Income declined 13%. Earnings per share also decreased 16%, reported as $1.92 vs its prior quarter’s earning of $2.28 despite this dip overall numbers were strong showing Year-on-Year revenue growing 22% to a remarkable $14 billion 810 million compared to last year’s earnings of $11 billion 797 million resulting in EPS (Earnings Per Share) rising 29% from $714 to 921 .

      • Morgan Stanley’s Ravi Shanker raised his price target from $178 to $180 while maintaining an Equal-Weight rating.
      • Cowen & Co.’s Jason Seidl moved his stock forecast from $196 down to $193 and maintained Market Perform rating.
      • Raymond James analyst Patrick Tyler Brown increased his price target for JBHT to $203 with an Outperform rating.
      • Barclays’ Brandon Oglenski boosted his price target to $200 with an Overweight rating.
      • Credit Suisse’s Ariel Rosa raised her target price from $194 to$195 with Neutral rating.
      • Susquehanna analyst Bascome Majors increased his price target from $168 to $180 while maintaining a neutral rating.

      TSLA Power Move

      Tesla took advantage of the new U.S Tax Credit by drastically reducing prices on its vehicles in both Canada and the United States, slashing them up to 20%. Analysts at Piper Sandler have responded favorably with a ‘Overweight’ rating -while lowering their price target from $340 to an even more attractive $300.

       

      Alcoa Corporation’s Fourth Quarter and Full Year 2022 Results.

      The company generated revenue of $2.7 billion and paid a cash dividend of $0.10 per share totaling $17 million for its shareholders. They also saw success with their power purchase agreement in Spain, plus the restarting of smelting capacity at Portland Aluminium joint venture in Australia which resulted in an overall successful end to 2022. Reporting strong revenue of $12.5 billion and Adjusted EBITDA excluding special items at an impressive $2.2 billion while returning cash to stockholders through share repurchases and dividend payments totaling over half-a-billion dollars with an adjusted loss of 70 cents a share from the $2.7 billion in sales reported – surpassing Wall Street’s expectation of 81 cent losses on $2.6 billion revenue for the same period. Despite coming up to analyst forecasts, Alcoa still saw their income dip by 20%, as weaker prices amidst market downturns weighed down profits for the year ahead.

      • Citigroup’s Alexander Hacking adjusted his target from $45 to $55 while maintaining Neutral rating.
      • B Riley Securities analyst Lucas Pipes raised his stock forecast from $41 to $42 with a Neutral rating.
      • BMO Capital’s David Gagliano cut his price target from $55 to $50 whilst still adhering to a Market Perform rating.

      JPM keeps Apple at Outperform but adjusts price target lower

      Samik Chatterjee, JP Morgan analyst, is standing by Apple with an Overweight rating despite a challenging outlook ahead of earnings. He reduced the price target from $190 to $180 citing supply chain issues as potential headwinds for this tech giant.

       

      Microsoft

      • Analyst Kirk Materne of Evercore announced a lower target at $280 while still maintaining an Outperform rating.
      • Tyler Radke of Citigroup lowered set a $280 price target with Buy rating.
      • Derrick Wood also kept an Outperform rating.

      The stock caught headlines this week after its announcement to cut its workforce by ten thousand in the near term.

       

      PNC

      • Morgan Stanley’s Betsy Graseck lowered her price target from $178 to $163 while maintaining an underweight rating.
      • Baird analyst David George adjusted his price target from $210 to 205 and retained an outperform rating.
      • Credit Suisse’s Susan Roth Katzke shifted her stock forecast for PNC stock down from $170 into $165 while keeping a neutral rating.

      Yesterday PNC reported solid financial results for the full year 2022, with a total revenue of $5.8 billion and net income of $6.1 billion – an increase in both metrics compared to 2021 numbers. The increased profits were due mainly to higher interest-earning asset yields (2.92%) which resulted in greater net interest margin despite elevated funding costs during this period.