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

By: Matthew Otto

Rivian Faces Downgrade Amidst Disappointing Earnings and Shifting EV Landscape

Rivian Automotive is grappling with a downturn in its performance, in the wake of its fourth-quarter earnings. UBS analyst Joe Spak delivered a rare double downgrade, shifting the rating from Buy to Sell and slashing the price target to $8 per share from the previous $24.

Spak showed concerns about the evolving electric vehicle landscape in the U.S., where demand growth is slowing due to a lack of affordable options and an abundance of high-priced alternatives.

Spak now anticipates Rivian’s 2025 deliveries to reach around 75,000 units, a drop from the Wall Street consensus of 95,000, underlining the challenges the company faces in a competitive market. Additionally, J.P. Morgan analyst Ryan Brinkman joined the chorus of downgrades, shifting his rating to Hold from Buy, with a new price target of $11 per share, down from $20.

The company’s 2024 production outlook, indicating an expectation of around 57,000 units, fell short of Wall Street’s estimate of approximately 66,000 units. Only 57% of analysts now maintain a Buy rating on Rivian stock, compared to nearly 70% three months ago, and an average price target of $19.30 per share – a downward revision from almost $25 per share prior to the earnings report.

Analyst Downgrades as Price Targets Take a Hit

UBS analyst Joseph Spak downgraded from Buy to Sell and the price target from $24 to $8.
JP Morgan analyst Ryan Brinkman downgraded from Neutral to Underweight and the price target from $20 to $11.
DA Davidson analyst Michael Shlisky maintained a Neutral and lowered the price target from $19 to $17.
BofA Securities analyst John Murphy maintained a Buy and lowered the price target from $40 to $25.
Needham analyst Chris Pierce reiterated a Buy and downgraded the price target from $22 to $18.

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

Analyst Mark Delaney (GOLDMAN SACHS) currently has the highest performing score on RIVN with 6/7 (85.71%) price target fulfillment ratio. His price targets carry an average of $2 (13.33%) potential upside. Rivian Automotive stock price reaches these price targets on average within 36 days.

Block Soars as Financial Forecast Defies Market Expectations

Block is following its financial forecast for the current quarter. The payments firm anticipates adjusted core earnings for the quarter ending March 31 to be in the range of $570 million to $590 million, outpacing the Wall Street consensus of $511.76 million.

Furthermore, Block has raised its full-year profit guidance now projecting 2024 earnings to reach at least $2.63 billion. This represents a 15% growth compared to the previous year. This outlook comes as the company strategically implements cost-cutting measures, including job reductions and a reduction in its real estate footprint, with the expectation of significant improvements in operating margins throughout the year.

Block’s total net revenue growth of 24% to reach $5.77 billion in the fourth quarter. Excluding bitcoin revenue, which reached $3.25 billion, the company demonstrated 15% year-over-year increase. Despite these strides, Block reported a net loss of $0.02 cents per share, meeting analyst expectations.

Analysts Bullish as Upgrades Drive Positive Market Sentiment

Wedbush analyst Moshe Katri reiterated an Outperform rating and a $90 price target.
Wells Fargo analyst Andrew Bauch upgraded from Equal-Weight to Overweight and set a new price target of $95.
Seaport Global analyst Jeff Cantwell upgraded from Neutral to Buy and announced a $95 price target.

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

Analyst Moshe Katri (WEDBUSH) currently has the highest performing score on SQ with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $24.27 (36.92%) potential upside. Block stock price reaches these price targets on average within 51 days.

Cross Country Healthcare Reports Fourth Quarter Performance Amid Market Challenges

Cross Country Healthcare presented its financial performance for the Fourth Quarter 2023 reporting consolidated revenue of $414 million for the quarter. Despite a 6% sequential decline, the company achieved a gross margin of 21.9%. The Nurse and Allied segments reported revenue of $367 million, down 7% sequentially and 38% from the prior year. Travel nurse and allied business saw a 12% sequential decline and a 44% decrease over the prior year, influenced by a 4% sequential drop in bill rates and an 8% decline in billable hours.

Physician Staffing reported revenue of $47 million, marking a 26% year-over-year increase and a 3% sequential growth. The Education business also performed well, showing a 9% year-over-year growth and a 50% sequential increase following the new school year.

The company ended the year with $17 million in cash and no outstanding debt. Cross Country Healthcare’s proactive measures include ongoing cost management, with a goal to exit the year with a selling, general, and administrative expense of 15%, and continued investments in technology initiatives.

Analysts Maintain Differing Views, Adjust Price Targets

Truist analyst Tobey Sommer maintained a Hold rating and lowered the price target from $22 to $16.
Benchmark analyst Bill Sutherland reiterated a Buy rating and downgraded the price target from $24 to $21.

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

Analyst Tobey Sommer (TRUIST) currently has the highest performing score on CCRN with 7/10 (70%) price target fulfillment ratio. His price targets carry an average of $-0.99 (-5.83%) potential downside. Cross Country Healthcare stock price reaches these price targets on average within 69 days.