Selected stock price target news of the day - January 29th, 2024

By: Matthew Otto

Capital One’s Q4 2023: Resilient Domestic Card Growth

Capital One reported its financial results for the fourth quarter of 2023, showcasing a mixed performance across its business segments. The company earned $706 million, equivalent to $1.67 per diluted common share, with full-year earnings reaching $4.9 billion or $11.95 per share. Adjusted for special assessments, earnings per share stood at $2.24 for the quarter and $12.52 for the year. The Domestic Card business witnessed a 4% increase in purchase volume and a $16 billion rise in ending loan balances, reflecting a 12% year-over-year growth. Consumer Banking saw a 9% year-over-year increase in federally insured consumer deposits, yet revenue dipped by approximately 17%, primarily driven by lower auto loan balances and heightened deposit costs.

Capital One observed stabilization in delinquency rates across segments. The charge-off rate for the Domestic Card business, for instance, rose by 213 basis points year-over-year to 5.35%, while the 30-plus delinquency rate increased by 118 basis points to 4.61%. However, the company anticipates a stabilization in charge-off rates, projecting a movement more in line with seasonal patterns over the near term. Operating efficiency also improved by 99 basis points for the full year 2023.

Analysts Mixed Signals as Price Targets and Ratings Adjusts

Wolfe Research analyst Bill Carcache upgraded from Underperform to Peer Perform.
Piper Sandler analyst Kevin Barker maintained a Neutral rating and raised the price target from $123 to $126.
JP Morgan analyst Richard Shane reiterated a Neutral rating and increased the price target from $131 to $134.
RBC Capital analyst Jon Arfstrom kept a Sector Perform rating and adjusted the price target from $140 to $142.
BofA Securities analyst Mihir Bhatia maintained a Buy rating and lowered the price target from $149 to $146.
BMO Capital analyst James Fotheringham raised the price target to $125.

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

Analyst Mihir Bhatia (BAML) currently has the highest performing score on COF with 3/3 (100%) price target fulfillment ratio. His price targets carry an average of $15.23 (13.39%) potential upside. Capital One stock price reaches these price targets on average within 99 days.

Norfolk Southern Q4 2023: Safety Progress Amid Revenue Challenges

Norfolk Southern Corporation reported its fourth-quarter 2023 earnings with total revenues reaching $3.1 billion, representing a nearly 5% decline compared to the same period in the previous year. The company experienced a 42% reduction in its mainline accident rate for the year. Despite facing challenges such as the Eastern Ohio derailment and network disruptions, Norfolk Southern managed a 3% increase in overall volume during the fourth quarter, with intermodal volume growing by 5%. Additionally, the company revealed a strategic focus on cost efficiency by implementing a program to reduce management headcount by approximately 7%, aligning with its broader transformation initiatives.

In the context of the Eastern Ohio incident, Norfolk Southern incurred $137 million in soil remediation costs during the fourth quarter, with a total cash outflow of $652 million for 2023, partially offset by $76 million in insurance recoveries. Operational expenses for the quarter were up $59 million, excluding fuel, driven by factors such as employment growth, increased technology spend, and repairs in preparation for growth opportunities in 2024. The company’s adjusted operating ratio for the quarter was 68.8%, reflecting a sequential improvement of 30 basis points from the third quarter.

Analysts Adjust Ratings and Price Targets Amid Market Shifts

BMO Capital’s Fadi Chamoun maintained a Market Perform rating and lowered the price target from $250 to $245.
TD Cowen’s Jason Seidl downgraded from Outperform to Market Perform and raised the price target from $233 to $236.
Stifel’s Benjamin Nolan downgraded from Buy to Hold and the price target from $250 to $233.
Morgan Stanley’s Ravi Shanker downgraded from Equal-Weight to Underweight and the price target from $185 to $175.
RBC Capital’s Walter Spracklin lowered the price target to $207.

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

Analyst Walter Spracklin (RBC) currently has the highest performing score on NSC with 15/15 (100%) price target fulfillment ratio. His price targets carry an average of $17.02 (9.25%) potential upside. Norfolk Southern Corporation stock price reaches these price targets on average within 58 days.

American Airlines Gains Wall Street Favor Following Q4 Earnings

American Airlines is gaining favor on Wall Street after its fourth-quarter earnings report. Citi analysts, Stephen Trent, recently upgraded the stock to Buy from Neutral. Trent pointing out that mainline airlines have positioned themselves in the post pandemic environment. This is due to diversified revenue streams and premium offerings. The airline’s ongoing focus on deleveraging, low capital expenditures, and industry capacity constraints have contributed to the positive outlook. Additionally, other analysts, including TD Cowen and Seaport Research, have also upgraded the stock, emphasizing American Airlines’ regained momentum, achievable 2024 guidance, and compelling earnings trajectory.

Wall Street sentiment towards American Airlines is notably shifting, with 43% of analysts covering the shares now rating them as Buy, the highest level since November 2019. The sentiment follows the airline’s announcement of 2024 results, forecasting full-year earnings between $2.25 and $3.25 based on current demand trends.

Analysts Diverge Amidst Varied Outlooks

Citigroup analyst Stephen Trent upgraded from Neutral to Buy and the price target from $14 to $20.
Barclays analyst Brandon Oglenski maintained an Underweight rating and raised the price target from $13 to $14.
JP Morgan analyst Jamie Baker reiterated an Overweight rating and raised the price target from $19 to $22.
Seaport Global analyst Daniel McKenzie upgraded from Neutral to Buy.
TD Cowen analyst Helane Becker upgraded from Market Perform to Outperform and the price target from $14 to $21.

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

Analyst Duane Pfennigwerth (EVERCORE) currently has the highest performing score on AAL with 5/7 (71.43%) price target fulfillment ratio. His price targets carry an average of $2.27 (15.41%) potential upside. American Airlines stock price reaches these price targets on average within 6 days.