Selected stock price target news of the day - December 8th, 2023

By: Matthew Otto

C3.ai Faces Setbacks Amidst Strategic Shifts

In the fiscal second quarter ended October 31, C3.ai reported a revenue of $73.2 million, marking a 17% YoY increase but falling below the company’s guidance range of $72.5 million to $76.5 million. Looking ahead to the January quarter, C3.ai projects a revenue range of $74 million to $78 million, with a non-GAAP operating loss expected to be between $40 million and $46 million. This forecast deviates from the Street consensus, which had previously anticipated revenue of $77.7 million and a non-GAAP operating loss of $21.1 million.

The full fiscal year guidance for C3.ai ending April 2024 remains consistent in terms of revenue, ranging between $295 million and $320 million. However, the company now forecasts a wider non-GAAP loss from operations, expecting it to be between $115 million and $135 million, compared to the earlier projection of a loss between $70 million and $100 million. This shift is attributed to C3.ai’s strategic decision to increase spending aggressively, utilizing a portion of its $800 million cash reserve.

Analyst Price Target Adjustments Amidst Market Evaluation

Piper Sandler’s Arvind Ramnani maintained a Neutral rating and lowered the price target from $28 to $27.
DA Davidson’s Gil Luria also reiterated a Neutral rating and adjusted the price target down from $30 to $28.
Canaccord Genuity’s Kingsley Crane kept a Hold recommendation and a price target of $27.

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

Analyst Patrick Walravens (JMP) currently has the highest performing score on AI with 5/5 (100%) price target fulfillment ratio. His price targets carry an average of $5.64 (36.80%) potential upside. C3.ai stock price reaches these price targets on average within 99 days.

Dollar General Charts a Recovery Path Amid Challenges

In the fiscal third quarter, Dollar General reported a net income drop from $526.2 million to $276.2 million compared to the same period last year. The company beats Wall Street expectations with earnings per share at $1.26 versus an expected $1.19 and revenue reaching $9.69 billion surpassing the anticipated $9.64 billion.

Amid a backdrop of more than $21 million in fines from the federal Occupational Safety and Health Administration for safety violations, Dollar General’s troubles extend beyond financial metrics. Shareholders have demanded an independent audit into worker safety, a resolution opposed by the company. Dollar General’s commitment to addressing these challenges includes significant investments in store labor hours, a reduction in the number of items offered which is currently between 11,000 and 12,000 per store, and a renewed focus on retail fundamentals. Despite these measures, the company anticipates same-store sales for the full year to range from a decline of about 1% to flat.

Analyst Perspectives Diverge as Price Targets See Varied Adjustments

Citigroup analyst Paul Lejuez maintained a Neutral rating and raised the price target from $115 to $138.
Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating and increased the price target from $124 to $135.
Deutsche Bank analyst Paul Trussell raised the price target to $148.
Truist Securities analyst Scot Ciccarelli lowered the price target to $117.
Guggenheim analyst John Heinbockel lowered the price target to $170.

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

Analyst Edward Kelly (WELLS FARGO) currently has the highest performing score on DG with 12/18 (66.67%) price target fulfillment ratio. His price targets carry an average of $14.77 (7.11%) potential upside. Dollar General stock price reaches these price targets on average within 154 days.

Lululemon Q3 2023 with Revenue Growth and Strategic Initiatives

For its third quarter of 2023, Lululemon Athletica witnessed a 19% increase in total net revenue, reaching $2.2 billion versus the consensus estimate of $2.19 billion, with a 14% rise in comparable sales. Notably, the e-commerce segment played a pivotal role, contributing $908.1 million or 41% of the total revenue. Lululemon’s global footprint expanded with the addition of 14 net new stores and eight optimizations during the quarter. The total store count now is 686 globally. The company’s focus on product innovation was evident in the women’s business, which surged by 19%, driven by the successful launch of the Wundermost collection. Furthermore, the men’s category recorded a 15% growth, emphasizing Lululemon’s commitment to diversifying its offerings.

Adjusted gross profit reached $1.28 billion, representing an increase in the adjusted gross profit rate by 220 basis points to 58.1%. This growth was fueled by a 250 basis point surge in product margin, primarily attributed to lower freight costs. The company’s prudence in expense management was evident in SG&A expenses, amounting to $843 million or 38.2% of net revenue.

Analysts Adjust Price Targets Following Assessments

Morgan Stanley’s Alexandra Steiger maintained an Overweight rating and increased the price target from $437 to $493.
Keybanc’s Noah Zatzkin also held an Overweight stance and raised the price target from $450 to $500.
Barclays analyst Adrienne Yih reiterated an Overweight rating and adjusted the price target upward to $530 from $480.
Needham’s Rick Patel kept a Buy rating and lifted the price target from $470 to $525.
Telsey Advisory Group’s Dana Telsey maintained an Outperform rating and raised the price target from $450 to $520.

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

Analyst Rick Patel (RAYMOND JAMES) currently has the highest performing score on LULU with 14/17 (82.35%) price target fulfillment ratio. His price targets carry an average of $32.07 (12.20%) potential upside. Lululemon Athletica stock price reaches these price targets on average within 135 days.