Selected stock price target news of the day - December 23rd, 2024

By: Matthew Otto

FedEx Reports Q2 Results, Announces $20 Billion Freight Spin-Off, and Lowers FY2025 Guidance

FedEx released its second-quarter fiscal 2025 results, reporting earnings per share (EPS) of $4.05, aligning with analysts’ estimates. Quarterly revenue came in at $22.0 billion, slightly below the consensus estimate of $22.17 billion. Operating income was $1.05 billion, $1.38 billion on an adjusted basis, while operating margin stood at 4.8% and 6.3% adjusted. Net income for the quarter reached $0.74 billion, $0.99 billion adjusted.

FedEx announced the planned spin-off of its FedEx Freight division, targeting completion within 18 months. This strategic move aims to unlock up to $20 billion in shareholder value by allowing the freight business, which reported an 11% year-over-year revenue decline to $2.17 billion.

Despite this market reaction, FedEx lowered its full-year fiscal 2025 guidance. Adjusted EPS is now projected at $19.00 to $20.00, down from the prior forecast of $20.00 to $21.00. Diluted EPS before MTM retirement plan adjustments is forecasted at $16.45 to $17.45, compared to a previous range of $17.90 to $18.90.

Analyst Ratings Boost Outlook Amid Q2 Results and Spin-Off

Raymond James analyst Patrick Tyler Brown yesterday maintained an Outperform rating and increased the price target from $305 to $320.
BofA Securities analyst Ken Hoexter yesterday retained a Buy rating and boosted the price target from $325 to $348.
Stephens & Co. analyst Daniel Imbro yesterday upheld an Overweight rating though lowered the price target from $350 to $345.
BMO Capital analyst Fadi Chamoun yesterday held a Market Perform rating yet raised the price target from $300 to $330.
JP Morgan analyst Brian Ossenbeck yesterday sustained an Overweight rating while raising the price target from $366 to $370.
Stifel analyst J. Bruce Chan yesterday continued with a Buy rating and lifted the price target from $321 to $368.
UBS analyst Thomas Wadewitz yesterday kept a Buy rating and raised the price target from $311 to $350.
Wells Fargo analyst Christian Wetherbee yesterday maintained an Equal-Weight rating but increased the price target from $305 to $320.

Which Analyst has the best track record to show on FDX?

Analyst Ken Hoexter (BAML) currently has the highest performing score on FDX with 26/35 (74.29%) price target fulfillment ratio. His price targets carry an average of $72.12 (26.14%) potential upside. FedEx stock price reaches these price targets on average within 367 days.

Cintas Beats EPS Estimates in Q2 FY2025, Raises Full-Year Guidance

Cintas announced its financial results for the fiscal 2025 second quarter, reporting revenue of $2.56 billion, meeting the consensus estimate. Diluted earnings per share (EPS) of $1.09, exceeding analyst expectations of $1.01 by $0.08, representing a 21.1% year-over-year increase in EPS.

Gross margin improved by 11.8% to $1.28 billion, accounting for 49.8% of revenue compared to 48.0% in the prior year. Operating income rose by 18.4% to $591.4 million, or 23.1% of revenue, up from 21.0% in the second quarter of fiscal 2024.

Net income for the quarter grew 19.7% to $448.5 million, and Cintas raised its full-year guidance, projecting fiscal 2025 EPS of $4.28 to $4.34, exceeding the consensus estimate of $4.24. Revenue guidance was updated to a range of $10.255 billion to $10.320 billion, representing growth of up to 7.5% year-over-year despite fiscal 2025 having two fewer workdays.

Analyst Ratings Reflect Mixed Sentiment After Q2 Results

Goldman Sachs analyst George Tong yesterday reiterated a Buy rating but revised the price target downward from $236 to $211.
Truist Securities analyst Jasper Bibb yesterday maintained a Buy rating while lowering the price target from $225 to $215.
UBS analyst Joshua Chan yesterday kept a Buy rating and adjusted the price target from $240 to $218.
RBC Capital analyst Ashish Sabadra yesterday reiterated a Sector Perform rating and the $215 price target.
Wells Fargo analyst Jason Haas yesterday maintained an Underweight rating and reduced the price target further from $191 to $184.

Which Analyst has the best track record to show on CTAS?

Analyst Shlomo Rosenbaum (STIFEL) currently has the highest performing score on CTAS with 11/12 (91.67%) price target fulfillment ratio. His price targets carry an average of $10.25 (5.42%) potential upside. Cintas stock price reaches these price targets on average within 76 days.

Accenture Beats Q1 Estimates, Boosted by AI Demand, Raises 2025 Revenue Outlook

Accenture reported first-quarter results, surpassing Wall Street’s expectations with revenue of $17.7 billion and earnings per share of $3.59. These figures beat analysts’ consensus estimates of $17.1 billion and $3.42, respectively.

Accenture’s growth was driven by increased demand for its services, particularly in AI adoption, with generative AI contributing significantly to the performance. Accenture’s GenAI business saw new bookings of $1.2 billion, and its overall new bookings totaled $18.7 billion, up 1% from the previous year.

Accenture also announced an increase in its AI and data workforce to 69,000, with plans to reach 80,000 by 2026. This demand for AI services is reflected in Accenture’s raised revenue growth forecast for fiscal 2025, now expected to be between 4% and 7%, up from an earlier estimate of 3% to 6%.

Despite these results, Accenture’s outlook for the second quarter shows a slight dip, with projected revenue between $16.2 billion and $16.8 billion, lower than analysts’ consensus estimate of $16.63 billion. Also lowered its full-year earnings per share guidance to a range of $12.43 to $12.79, below the anticipated $12.73.

Analysts Lower Price Targets Following Disappointing Guidance

BMO Capital analyst Keith Bachman yesterday maintained a Market Perform rating while raising the price target from $390 to $425.
Jefferies analyst Surinder Thind yesterday kept a Hold rating and increased the price target from $355 to $385.
UBS analyst Kevin McVeigh yesterday maintained a Buy rating and lifted the price target from $450 to $455.

Which Analyst has the best track record to show on ACN?

Analyst Dan Dolev (MIZUHO) currently has the highest performing score on ACN with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $28.82 (8.57%) potential upside. Accenture stock price reaches these price targets on average within 53 days.