Analysts Stocks

      Daily Update - May 16, 2023

      Selected stock price target highlights of the day

       

      By Matthew Otto

       

      MNDY

      monday.com has announced its first quarter results for 2023, showing a year-over-year growth of 50% with revenue totaling $162.3 million. The number of customers with an Annual Recurring Revenue (ARR) over $50k also grew by 75% YoY.

      The company has achieved record levels of quarterly revenue and free cash flow, and announced the introduction of monday AI, integrating artificial intelligence into their platform.

      The co-CEOs, Roy Mann and Eran Zinman, expressed confidence in the company’s momentum with the company having seen growth in their enterprise-level customer base, now exceeding 1,600. Eliran Glazer, the CFO, highlighted the records set for free cash flow and revenue in Q1 and increased the full-year guidance, expecting to achieve non-GAAP operating profitability in FY’23, two years ahead of their initial expectations.

      Further financial details include a GAAP operating loss of $22.8 million, reduced from a loss of $67.5 million in the first quarter of 2022. The non-GAAP operating loss was also significantly reduced, from $43.8 million in Q1 2022 to just $0.3 million in Q1 2023.

      Looking ahead, monday.com expects total revenue for Q2 2023 to be between $168 million and $170 million, representing a YoY growth of 36-37%. For the full year 2023, they anticipate total revenue of $702 million to $706 million, a YoY growth of 35-36%, and a non-GAAP operating income of $8 million to $12 million.

      Wall Street Action

      • Oppenheimer’s analyst George Iwanyc maintained an Outperform rating and raised the price target from $160 to $170.
      • Needham’s analyst Scott Berg reiterated a Buy rating and a price target of $230.
      • Jefferies’ analyst Brent Thill maintained a Hold position on the company but raised the price target from $140 to $150.
      • Goldman Sachs’ analyst Kash Rangan raised the price target to $240, a street high.

      Looking at AnaChart we see that although the stock had lost approximately 75% if its market value from the end of 2021, Monday.com was able to stabilize with most analysts having a positive outlook on the stock prospects besides analysts David Hynes of Canaccord and Robert Simmons of Davidson.

      CARA

      Cara Therapeutics which is  focused on pruritus (itching) treatments, has announced its Q1 2023 financial results:

      • The company reported total revenue of $6.2 million for Q1 2023, including $2.8 million from the company’s share of profit from KORSUVA injection sales.
        • In Q1 2023, KORSUVA injection generated net sales of $5.7 million and collaborative revenue of $2.8 million. Wholesalers shipped 45,720 vials to dialysis centers, most of which were Fresenius clinics, during Q1 2023.
      • Kapruvia, another product from Cara Therapeutics, generated $1.2 million in net sales and $125,000 in royalty revenue associated with sales in Europe.
      • Their three late-stage clinical programs for oral difelikefalin are progressing well, with the internal readout of Part A of the KIND 1 AD trial expected for Q4 2023.
      • The company’s net loss for Q1 2023 was $26.7 million, or $0.49 ($0.02 better than what analysts census estimated) compared to a net loss of $27.7 million, or $0.52 in 2022.
      • In terms of revenue, Cara Therapeutics generated $6.17 million for the quarter, surpassing the consensus estimate of $4.95 million.

       

      Wall Street Action

      Although doing better than expected, Wall Street reaction was not positive.

      • BofA Securities analyst Jason Gerberry has maintained an Underperform rating and has lowered the price target from $6 to $4.
      • Needham analyst Joseph Stringer has reiterated a Buy rating and has maintained a price target of $22.
      • H.C. Wainwright analyst Oren Livnat has lowered the price target for Cara Therapeutics to $15.

      Looking at AnaChart we see that the stock lost half of its value in the last two months yet most analysts besides the above mentioned Jason Gerberry still think that Cara Therapeutics has significant potential and have not adjusted their stock forecasts to the latest drop.

      DOX

      Amdocs Limited reported its Q2 2023 results last week

      • The company recorded revenue of $1.22 billion, up 6.8% YoY as reported and 8.2% YoY in constant currency. This was above the midpoint of the guidance range ($1.2 billion – $1.24 billion).
      • North American revenue was $829 million (up 7.4%) and European revenue was $172 million (up 16.6%).
      • GAAP diluted EPS was $1.23, above the midpoint of the guidance range ($1.18 – $1.26). Non-GAAP diluted EPS was $1.47.
      • Free cash flow for the quarter was $259 million. The company reiterated its full year fiscal 2023 free cash outlook of $700 million.
      • The company repurchased $106 million of ordinary shares during the quarter.
      • A record twelve-month backlog of $4.11 billion was reported, up 5.7% YoY.
      • The Board of Directors approved a definitive agreement to acquire the service assurance business of TEOCO for approximately $90 million in cash.

      Outlook

      For Q3 2023, the company expects revenue between $1.215 billion and $1.255 billion, and GAAP diluted EPS between $1.16 and $1.26.

      For full year fiscal 2023, Amdocs has tightened its revenue growth outlook to 6%-8%. The company expects GAAP diluted EPS to grow between 3.0% and 10.0%.

      Wall Street Action

      The results reported were in line with analysts expectations.

       

      • Today, Barclays analyst Tavy Rosner upgrades Amdocs from Equal-Weight to Overweight and lifts  the price target from $100 to $115.

       

      Looking at AnaChat we see that the analyst had previous success with his stock forecast in 2022 when he raised his price target to $95 four months in advance before the prediction was fulfilled.

       

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