Selected stock price target news of the day - July 10, 2023

By Matthew Otto

Analyst is Optimistic on AI Growth Opportunities of Nvidia

Tigress Financial Partners is optimistic about Nvidia‘s potential in the artificial intelligence (AI) sector. Analyst Ivan Feinseth believes that Nvidia’s innovative abilities and industry-leading position will allow it to benefit from the accelerating adoption of AI in various technologies and applications, including autonomous vehicles, healthcare, and other emerging opportunities.

Nvidia’s products have an exposure to generative AI, which has gained popularity this year. This technology involves using brute-force methods to create content by ingesting text, images, and videos. The interest in generative AI was sparked by OpenAI’s release of ChatGPT, a language model that utilizes similar techniques.

Ivan Feinseth also notes that Nvidia stands to benefit from a shift in technology infrastructure spending away from traditional server processors towards Nvidia’s chips. These semiconductors are better suited to handle the computations required for advanced AI products.

Analysts Remain Bullish on NVIDIA, Raise Price Targets

Tigress Financial analyst Ivan Feinseth maintains a Buy rating and raises the price target from $320 to $560.
Daiwa Capital analyst Louis Miscioscia upgrades from Neutral to Outperform and the price target from $408 to $475.
Goldman Sachs analyst Toshiya Hari raises the price target to $495 from $440 while maintaining a Buy rating.

Analyst Richard Shannon (CRAIG HALLUM) has currently the highest performing score on NVDA with 17/20 (85%) price target fulfillment ratio. His price targets carry on average an $7.42 (4.55%) potential upside and are fulfilled within an average of 59 days.

Fisker Stock Rises as Company Announces $300 Million Fundraising Plan

Fisker announced plans to raise $300 million in convertible notes. The convertible notes can potentially lead to the issuance of around 100 million additional Fisker shares, diluting the existing shares. However, investors do not need to make interest payments on the notes. Fisker’s ability to access capital is seen as a positive factor, especially considering the challenges faced by other electric vehicle start-ups like Lordstown Motors.

Unlike owning a manufacturing plant, Fisker has opted for a more capital-efficient approach by partnering with Magna International for the production of its first vehicle, the Ocean SUV. Although Fisker had approximately $650 million in cash at the end of the first quarter, it is expected to spend an additional $300 million in the remaining three quarters of 2023. Raising funds preemptively is considered a prudent move by Fisker to ensure it has adequate resources before the need becomes critical.

Analysts Hold Different Views on Fisker’s Performance

Wolfe Research analyst Rod Lache downgrades from Peer Perform to Underperform and sets a $6 price target.
RF Lafferty analyst Jamie Perez maintains a Buy rating but lowers the price target from $15 to $12.

Analyst Jaime Perez (LAFFERTY) has currently the highest performing score on FSR with 3/6 (50%) price target fulfillment ratio. His price targets carry on average an $5.71 (59.14%) potential upside and are fulfilled within an average of 18 days.

FMC Faces Unprecedented Inventory Reductions, Affects Revenue Outlook for Q2 and Full Year

FMC experienced unexpected and significant reductions in channel inventory by customers in North America, Latin America, and EMEA (Europe, the Middle East, and Africa) at the end of May. This led to a sharp decline in volume in three out of four operating regions. FMC’s CEO, Mark Douglas, stated that channel partners rapidly reduced inventory levels, resulting in unforeseen volume declines.

As a result, FMC has adjusted its financial outlook. Second-quarter revenue is now expected to be between $1 billion and $1.03 billion, down from the previous estimate of $1.42 billion to $1.48 billion. The full-year revenue forecast has also been revised downwards to between $5.2 billion and $5.4 billion, compared to the earlier projection of $6.08 billion to $6.22 billion.

FMC’s stock has fallen by 16% in 2023 so far. To address the impact of these challenges, FMC has implemented cost mitigation measures, resulting in a reduction of operating expense estimates by $60 million to $70 million in the second half of the year.

Analyst Maintain Buy Ratings for FMC

Morgan Stanley analyst Vincent Andrews reiterates Overweight rating and a price target of $145.
Chris Parkinson from Mizuho Securities maintains a Buy rating and sets a price target of $150.

Analyst Vincent Andrews (MORGAN STANLEY) has currently the highest performing score on FMC with 8/10 (80%) price target fulfillment ratio. His price targets carry on average an $15.27 (15.41%) potential upside and are fulfilled within an average of 144 days.