Selected stock price target news of the day - January 15th, 2025

By: Matthew Otto

Signet Jewelers Revises Guidance After Holiday Sales Shortfall

Signet Jewelers reported a 2% decline in same-store sales for the 10-week period ending January 11, 2025. This performance fell short of prior expectations for flat to 3% growth, driven by softer consumer demand during the peak selling days before Christmas.

Average Unit Retail increased approximately 5%, reflecting growth in bridal and fashion categories, although these gains were offset by a decline in overall traffic and conversion rates. Adjusted operating income for the fiscal fourth quarter is now expected to range between $337 million and $347 million, down from the prior estimate of $397 million to $427 million.

Total sales for the fourth quarter are projected to be between $2.32 billion and $2.335 billion, compared to the earlier guidance of $2.38 billion to $2.46 billion. Similarly, adjusted EBITDA guidance was revised to $381 million to $391 million, a reduction from the previous range of $441 million to $471 million. Merchandise margins expanded but fell short of expectations due to a higher mix of promotional items and a weaker fashion gifting segment.

Analysts Mixed Sentiment Following Revised Guidance

Wells Fargo analyst Ike Boruchow maintained an Overweight rating, yet lowered the price target from $110 to $95.
BofA Securities analyst Lorraine Hutchinson reiterated a Neutral rating while cutting the price target from $95 to $65.
Telsey Advisory Group analyst Dana Telsey kept a Market Perform rating but reduced the price target from $87 to $65.

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

Analyst Dana Telsey (TELSEY ADVISORY) currently has the highest performing score on SIG with 21/28 (75%) price target fulfillment ratio. Her price targets carry an average of $-0.21 (-0.24%) potential downside. Signet Jewelers stock price reaches these price targets on average within 106 days.

Applied Digital Surpasses Q2 Earnings, Reports Strong Revenue Growth and Strategic Advancements

Applied Digital announced its fiscal second-quarter results for the period ending November 30, 2024, reporting revenue of $63.9 million, a 51% year-over-year increase, exceeding the consensus estimate of $63.39 million. Additionally, the reported adjusted earnings per share (EPS) of ($0.06) surpassed analyst expectations of ($0.14) by $0.08. Adjusted EBITDA reached $21.4 million, reflecting a 93% growth compared to the same period last year.

Net loss for the quarter was $138.7 million, heavily influenced by $87.2 million in losses from changes in the fair value of debt and $25.4 million in losses on debt conversion. Adjusted net loss was $12.6 million. Operating expenses increased due to expansion initiatives, with selling, general, and administrative costs rising to $29.8 million, up from $20.3 million in the prior year.

Applied Digital finalized a $5.0 billion perpetual preferred equity financing agreement with Macquarie Asset Management (MAM) to fund its HPC operations. This includes up to $900 million allocated for the Ellendale HPC Campus, with the potential for MAM to invest an additional $4.1 billion in future data center projects. Applied Digital retains an 85% ownership stake in its HPC segment.

Applied Digital generated $27.7 million in revenue from its Cloud Services segment during the quarter, a 523% increase from the previous year, while its Data Center Hosting business contributed $36.2 million in revenue.

Analyst Ratings Signal Confidence Despite Adjusted Price Targets

Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating but adjusted the price target from $15 to $14.
Lake Street Capital Markets analyst Rob Brown reiterated a Buy rating.
Needham analyst John Todaro reaffirmed a Buy rating and the price target at $11.

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

Analyst John Todaro (NEEDHAM) currently has the highest performing score on APLD with 11/17 (64.71%) price target fulfillment ratio. His price targets carry an average of $4.2 (61.76%) potential upside. Applied Digital stock price reaches these price targets on average within 91 days.

Netflix Expands Strategy with Live Sports and Exclusive Content to Drive Subscriber Growth

Netflix’s 2025 strategy focuses heavily on live sports and exclusive content, aiming to attract new subscribers and boost its ad-supported service.

Netflix has already broadcast high-profile events such as the Jake Paul-Mike Tyson boxing match, two NFL Christmas games, and WWE’s Monday Night Raw, which began airing in January 2025. Additionally, Netflix secured the exclusive U.S. broadcasting rights for the 2027 and 2031 FIFA Women’s World Cup tournaments.

These moves are expected to draw viewership, which, according to BMO Capital Markets analyst Brian J. Pitz, will help attract new subscribers to Netflix’s ad-supported plans, now projected to reach 90 million by the end of 2025, up from the previous estimate of 60 million.

Pitz expects about $3 billion in global advertising spending to shift to Netflix by the end of 2025. This increase in advertising revenue is anticipated to grow further, with more contributions expected in 2026 and beyond. Netflix’s continued focus on high-profile live events and popular original content is central to its strategy of expanding its subscriber base, particularly for its ad-supported service, which is priced at $6.99 per month.

Analysts Adjust Price Targets Amid Content Strategy

BMO Capital Markets analyst Brian Pitz maintained an Outperform rating and raised the price target to from $825 to $1,000.
Oppenheimer analyst Jason Helfstein reiterated an Outperform rating and lowered his price target from $1,065 to $1,040.
KeyBanc analyst Justin Patterson kept an Overweight rating and his price target at $1,000.

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

Analyst Stephen Ju (CREDIT SUISSE) currently has the highest performing score on NFLX with 9/10 (90%) price target fulfillment ratio. His price targets carry an average of $134.64 (14.87%) potential upside. Netflix stock price reaches these price targets on average within 43 days.