Selected stock price target news of the day - February 7th, 2024

By: Matthew Otto

Chegg’s Q4 Performance Overshadowed by Guidance for Q1

Chegg performance in the December quarter posted revenue of $188 million, 8% down from the previous year but surpassing management’s forecast of $185 million to $187 million. Subscription services revenue for the same period landed at $166.3 million. A 6% decrease year-over-year but slightly above Chegg’s projection of $164 million to $166 million. Adjusted earnings before interest, taxes, depreciation, and amortization stood at $66.2 million, outpacing the estimated range of $62 million to $64 million. On an adjusted basis, Chegg earned 36 cents per share in the quarter, aligning with Street consensus.

Looking ahead, the company projected revenue between $173 million and $175 million, below the Street consensus of $180 million. The adjusted EBITDA outlook for the same period ranged between $43 million and $45 million, notably lower than the consensus call for $54.2 million. Despite these challenges, Chegg continues its strategic transformation, incorporating generative AI chatbots into its platform to build a personalized learning assistant.

Analysts Adjust Ratings and Price Targets Following Earnings Report

JP Morgan analyst Doug Anmuth maintained a Neutral rating and lowered the price target from $10 to $9.
BMO Capital analyst Jeffrey Silber reiterated a Market Perform rating and lowered the price target from $11 to $10.
Goldman Sachs analyst Eric Sheridan maintained a Sell rating and decreased the price target from $8 to $7.
Piper Sandler analyst Arvind Ramnani downgraded from Neutral to Underweight and the price target from $9 to $8.5.
Morgan Stanley analyst Josh Baer kept an Underweight rating and lowered the price target from $9 to $8.50.

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

Analyst Josh Baer (MORGAN STANLEY) currently has the highest performing score on CHGG with 12/19 (63.16%) price target fulfillment ratio. His price targets carry an average of $0.19 (1.94%) potential upside. Chegg stock price reaches these price targets on average within 95 days.

Symbotic’s Q1 2024: Revenue Surge and Accelerated System Deployments

Symbotic reported in its first quarter fiscal 2024 a revenue reaching $369 million, representing an increase of nearly 80% compared to the same quarter last year. This surge was primarily attributed to the accelerated pace of system deployments, with a total of 15 fully operational systems and 37 systems in various stages of deployment by the end of the quarter. Additionally, the company’s 45% year-on-year growth in recurring revenue streams, contributed to a sequential increase of nearly 12% in the first quarter alone. Moreover, Symbotic’s gross margin saw a sequential improvement of 90 basis points to 20%, driven primarily by enhancements in system gross margin.

Looking ahead, Symbotic expected a revenue with a range of between $400 million to $420 million for the second quarter of fiscal 2024. The company also anticipates an improved adjusted EBITDA margin, with figures projected to reach between $12 million to $15 million, reflecting an increase of over 700 basis points compared to the previous year. Symbotic also showcased a cash position which grew to $677 million including marketable securities and restricted cash.

Analyst Mixed Ratings with Varied Price Targets Amid Market Assessments

DA Davidson analyst Matt Summerville upgraded from Neutral to Buy and set a $50 price target.
Baird analyst Robert Mason maintained an Outperform rating and adjusted the price target from $54 to $52.
Goldman Sachs analyst Mark Delaney reiterated a Neutral rating and revised the price target from $51 to $44.
Cantor Fitzgerald analyst Derek Soderberg reiterated an Overweight rating and a $60 price target.
Needham analyst James Ricchiuti maintained a Buy rating and lowered the price target from $58 to $54.
Keybanc analyst Ken Newman maintained an Overweight rating and lowered the price target from $63 to $55.

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

Analyst James Ricchiuti (NEEDHAM) currently has the highest performing score on SYM with 10/11 (90.91%) price target fulfillment ratio. His price targets carry an average of $16.09 (42.44%) potential upside. Symbotic stock price reaches these price targets on average within 38 days.

FMC Stock Tumbles on Fiscal-Year Guidance and Analyst Concerns

Analyst Joel Jackson from BMO Capital Markets expressed his concerns, noting that the FMC 2024 guidance implies flat earnings for the year, and he gave the stock a Neutral rating with a $63 price target. FMC’s fiscal 2024 revenue is expected to range between $4.5 billion to $4.7 billion, falling short of the $4.7 billion anticipated by analysts surveyed by FactSet. Adjusted earnings before interest, taxes, depreciation, and amortization for the year are projected to be between $900 million to $1.05 billion, compared to analysts’ estimates of $1.08 billion.

The downgrade in guidance comes as a reversal from FMC’s outlook provided during its investor day on November 16, where the company had anticipated revenue between $4.65 billion to $4.85 billion and EBITDA between $1.03 billion to $1.13 billion. FMC’s stock has experienced a decline of 57% over the past 12 months, reflecting investor skepticism. Chief Executive Mark Douglas cited challenges such as continued channel destocking across regions and drought in Brazil, contributing to the company’s fourth-quarter earnings of $1.07 per share on revenue of $1.15 billion, which fell short of analysts’ expectations. Despite the concerns, KeyBanc Capital Markets analyst Aleksey Yefremov maintained an Overweight rating on the stock with a $63 price target, highlighting the anticipation of volume and margin improvements around mid-2024 as crucial factors for potential recovery.

Analysts Adjust Ratings and Price Targets Amid Market Uncertainty

BMO Capital analyst Joel Jackson maintained a Market Perform rating and lowered the price target from $63 to $61.
Exane BNP Paribas analyst Laurent Favre downgraded from Outperform to Neutral and announced a $56 price target.
Keybanc analyst Aleksey Yefremov reiterated an Overweight rating and lowered the price target from $80 to $76.
Mizuho analyst Christopher Parkinson maintained a Neutral rating and downgraded the price target from $59 to $55.

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

Analyst Steve Byrne (BAML) currently has the highest performing score on FMC with 4/5 (80%) price target fulfillment ratio. His price targets carry an average of $-0.04 (-0.07%) potential downside. FMC stock price reaches these price targets on average within 57 days.