Selected stock price target news of the day - January 16th, 2024

By: Matthew Otto

 

Albertsons-Kroger Merger Faces Delay Amid Regulatory Scrutiny

Albertsons faces a setback in its proposed $24.6 billion merger with Kroger as the companies announce a delay in the deal closure to the first half of Kroger’s fiscal 2024, rather than the initially anticipated early 2024. The merger, first revealed in October 2022, has triggered concerns among U.S. lawmakers and prompted an investigation by the Federal Trade Commission (FTC) due to potential antitrust issues. Critics worry that the merger could result in adverse consequences for consumers, including higher prices, store closures, and job losses.  Albertsons, alongside Kroger, pledges to invest $500 million to reduce prices and an additional $1.3 billion to enhance the overall customer experience. Albertsons is actively engaged in ongoing discussions with regulators, including the FTC and state attorneys general, as they navigate the regulatory landscape and work towards securing approval for the merger. 

 

Analysts Maintain Positive Ratings for Albertsons 

  • RBC Capital analyst Steven Shemesh reiterated an Outperform rating and a $24 price target.
  • Tigress Financial analyst Ivan Feinseth maintained a Buy rating and a $27 price target.

 

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

Analyst Simeon Gutman (MORGAN STANLEY) currently has the highest performing score on ACI with 6/10 (60%) price target fulfillment ratio. His price targets carry an average of $3.79 (18.75%) potential upside. Albertsons stock price reaches these price targets on average within 119 days. 

 

 

 

Vertex Withdraws Tender Offer for Pagero

Vertex has announced the withdrawal of its public tender offer for 100% of the shares of Pagero Group AB. This decision comes in light of two competing offers and the acquisition of more than 10 percent of Pagero’s shares by a rival bidder. The cancellation of the issuance of a new series of Convertible Preferred Stock in the amount of $500 million is also confirmed, and Pagero shareholders who had committed to Vertex’s tender offer have been released from their obligations.

 

Divergent Analyst Views on Vertex

  • Citigroup analyst Steven Enders maintained a Neutral rating and lowered the price target from $29 to $27.
  • Needham analyst Joshua Reilly reiterated a Buy rating and a $35 price target.

 

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

Analyst Stan Zlotsky (MORGAN STANLEY) currently has the highest performing score on VERX with 8/9 (88.89%) price target fulfillment ratio. His price targets carry an average of $2.83 (10.42%) potential upside. Vertex stock price reaches these price targets on average within 59 days.

 

 

 

Boeing Downgraded Amid FAA Scrutiny

Boeing faces a challenging start to 2024 as Wells Fargo analyst Matthew Akers downgrades the aerospace giant’s shares to Hold, accompanied by a revised price target of $225 per share. The downgrade is triggered by the January 5 incident involving an Alaska Air-operated 737 MAX 9. The FAA promptly grounded 171 MAX 9 jets after an emergency door plug blew out midair, leading to an emergency landing. This event, coupled with the FAA’s subsequent announcement of an audit on the Boeing 737-9 MAX production line and its suppliers, has intensified concerns about potential production and delivery delays. Analysts highlight the significant risk posed by Boeing’s historical quality issues, making a favorable audit outcome less probable and adding to the headwinds faced by the company.

 

Boeing’s recent woes compound the troubled history of the 737 MAX series. Two deadly crashes in 2019 linked to a software design flaw, the aircraft faced a global grounding until November 2020. In 2023, Boeing disclosed quality problems in 737 MAX parts supplied by Spirit AeroSystems, though these issues did not result in accidents or further groundings. Despite Wall Street’s initial optimism for Boeing in 2024, with projections of delivering approximately 700 planes, up from 530 in 2023, and an expected increase in free cash flow from $3 billion to $6 billion, the recent events have prompted a reevaluation.

 

Analyst Downgrades to Equal-Weight and Slashes Price Target

  • Wells Fargo analyst Matthew Akers downgraded from Overweight to Equal-Weight and the price target from $280 to $225.

 

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

Analyst Ronald Epstein (BAML) currently has the highest performing score on BA with 18/26 (69.23%) price target fulfillment ratio. His price targets carry an average of $66.25 (28.34%) potential upside. Boeing stock price reaches these price targets on average within 201 days.

 

 

 

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