Selected stock price target news of the day - January 5th, 2024

By: Matthew Otto

McDonald’s Faces Business Impact Amidst Middle East Conflict and Boycotts

In the wake of the Israel-Hamas conflict, McDonald’s CEO Chris Kempczinski has expressed concern over the meaningful business impact in several Middle Eastern markets and beyond due to grassroots boycott campaigns. The fast-food giant, along with other major Western chains like Starbucks, faces accusations of a pro-Israeli stance and alleged financial ties to Israel. The misinformation surrounding the brand is deemed disheartening and ill-founded, highlighting the challenges global corporations navigate amid polarized regional politics during times of war. McDonald’s, along with other Western brands, is feeling the impact of boycotts in countries like Egypt and Jordan, with the movement gaining momentum in Muslim-majority Malaysia.

Analyst Views Diverge as Ratings and Price Targets Fluctuate

Oppenheimer analyst Brian Bittner downgraded from Outperform to Perform.
Stifel analyst Chris O’Cull maintained a Hold rating and raised the price target from $285 to $322.
Evercore ISI analyst David Palmer reiterated an Outperform rating and raised the price target from $315 to $330.

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

Analyst John Ivankoe (JPMORGAN) currently has the highest performing score on MCD with 19/19 (100%) price target fulfillment ratio. His price targets carry an average of $17.39 (6.67%) potential upside. McDonald’s stock price reaches these price targets on average within 229 days.

Simply Good Foods Q1: Steady Growth and Brand Focus

Simply Good Foods Company has reported a steady performance in its fiscal first quarter of 2024, with net sales reaching $308.7 million, reflecting a 2.6% increase from the previous year. The company’s gross margin for the quarter stood at 37.3%, experiencing a 40 basis point rise primarily attributed to reduced ingredient and packaging costs. The adjusted EBITDA reached $62 million, marking a 2% increase compared to the same period in the prior year. The growth in retail takeaway, particularly in the nutritional snacking category, showcased an 8% surge.

Furthermore, the breakdown of retail takeaway within the IRI MULO + C-store universe revealed a 7.1% increase in Simply Good Foods’ performance, driven by a 20% growth in Quest volume. Quest, in particular, demonstrated its momentum by achieving nearly $700 million in net sales for fiscal 2023. While Atkins exhibited a stabilized retail takeaway performance, its long-term potential remains a focal point. Overall, Simply Good Foods Company maintains a positive outlook for fiscal 2024, reaffirming its commitment to sustained long-term growth and shareholder value.

Analysts Bullish as Price Targets Soar

DA Davidson analyst Brian Holland Maintained a Neutral rating and raised the price target from $42 to $44.
Needham analyst Matt McGinley Reiterated a Buy rating and increased the price target from $42 to $45.
Mizuho Securities analyst John Baumgartner Raised the price target from $42 to $50.
Stifel analyst Matthew Smith Raised the price target to $48.

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

Analyst Faiza Alwy (DEUTSCHE BANK) currently has the highest performing score on SMPL with 6/6 (100%) price target fulfillment ratio. Her price targets carry an average of $2.29 (5.77%) potential upside. Simply Good Foods stock price reaches these price targets on average within 174 days.

Snowflake Downgraded Amid Analyst Concerns Over Valuation and AI Hype

Snowflake finds itself under the skeptical gaze of Monness Crespi Hardt analyst Brian White, who recently downgraded from Neutral to Sell. White emphasizes that Snowflake’s revenue growth has decelerated for eight consecutive quarters, plummeting from 110% in the fiscal 2022 third quarter to 32% in the latest quarter. Additionally, Snowflake’s operating margin stands at 9.8%, the lowest among White’s enterprise software coverage, contributing to its unenviable position as the sector’s most highly valued company.

White remains cautiously pessimistic about Snowflake’s future prospects, pointing out the company’s thin margins, rich valuation, and dynamic competition in the enterprise software landscape. Despite acknowledging Snowflake’s long-term positioning in key secular trends like cloud computing, he believes the company faces challenges ahead, particularly amid an uncertain macroeconomic outlook. White contends that Snowflake’s enthusiastic embrace of generative AI has been overstated by some investors, challenging the company’s status as a pioneer or leading player in the generative-AI movement.

Analysts Offer Varied Perspectives with Mixed Ratings

RBC Capital analyst Matthew Hedberg initiated an Outperform rating and a Price Target of $230.
Monness, Crespi, Hardt analyst Brian White downgraded from Neutral to Sell and set a $160 price target.

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

Analyst Connor Murphy (CAPITAL ONE) currently has the highest performing score on SNOW with 2/2 (100%) price target fulfillment ratio. His price targets carry an average of $36.42 (22.97%) potential upside. Snowflake stock price reaches these price targets on average within 21 days.