Selected stock price target news of the day - July 11, 2023

By Matthew Otto

 

Amazon’s Stock May Benefit from Prime Day Sales Boost

Amazon’s Prime Day is scheduled for July 11-12 this year. It is an exclusive sales event for Amazon Prime members. The event offers discounts on various products, such as smart security cameras, beauty products, clothing, and personal electronics.

Prime Day is a significant contributor to Amazon’s business success, with record-breaking sales reported in previous years. In 2022, Prime members purchased over 300 million items during the event, setting a new company record. Analysts anticipate even better results this year.

BofA Securities analyst Justin Post expects a strong Prime Day, potentially surpassing the 12% growth estimate compared to Prime Day last July. This could potentially lead to increased gross merchandise value for Amazon in the third quarter.

Consumers’ cost-consciousness has been heightened due to factors like high inflation and rising interest rates. Although the consumer confidence index increased in June, reaching its highest level since January 2022, the expectations index, which reflects consumers’ short-term outlook for income, remains low, indicating concerns about a future recession. Given these circumstances, analysts believe the timing is favorable for Prime Day 2023, as consumers continue to seek deals and cost-conscious options. Retailers, including Amazon, have acknowledged consumers’ increased focus on affordability this year.

Analysts Offer Positive Ratings and Price Targets for Amazon.com

 

  • JMP Securities analyst Nicholas Jones reiterates with a Market Outperform rating and a $140 price target.
  • DBS Bank analyst Sachin Mittal initiates coverage with a Buy rating and a $150 price target.
  • BofA analyst Justin Post maintains Buy rating and increases the price target from $139 to $154.

 

Analyst Laura Martin (NEEDHAM) has currently the highest performing score on AMZN with  16/19 (84.21%) price target fulfillment ratio. Her price targets carry on average an $22.55 (20.08%) potential upside and are fulfilled within an average of 136 days.

PVH Announces Further Job Cuts, Aiming to Boost Annual Savings

PVH has announced additional layoffs, expanding on a reduction strategy disclosed last year. In August 2022, PVH had announced plans to decrease personnel costs by roughly 10% across its global offices by the end of 2023. This move resulted in a pretax cost of $20 million due to severance payments in 2022. However, the company anticipates it will lead to annual savings exceeding $100 million.

While the number of new job cuts remains unspecified, PVH expects the latest round of severances to cost about $50 million.

Analysts Adjust PVH Price Targets Following Layoff Announcement

 

  • TD Cowen’s analyst John Kernan maintains a Market Perform rating and has reduced the price target from $95 to $92.
  • BMO Capital’s Simeon Siegel gives a Market Perform rating and increases the price target from $81 to $90.
  • Dana Telsey from the Telsey Advisory Group reiterates an Outperform rating and a price target of $102.

Analyst Matthew Boss (JPMORGAN) has currently the highest performing score on PVH with  16/19 (84.21%) price target fulfillment ratio. His price targets carry on average an $7.21 (8.44%) potential upside and are fulfilled within an average of 175 days.

 

Apple’s Eyes $3 Trillion Market Cap Despite Spending Dip

Apple, despite briefly achieving a $3 trillion market capitalization in June, saw its market cap slide back down. KeyBanc Capital Markets analysts have set a new price target of $200 per share, indicating potential for Apple to regain its peak valuation. This optimistic outlook persists despite predictions of an upcoming spending slowdown on Apple products.

Brandon Nispel examined data from 1.8 million unique credit and debit card customers, revealing a 23% month-over-month rise in Apple transactions of $400 or more in June. However, the same data also showed a 15% quarter-over-quarter drop, which Nispel said could lead to below-average growth in the third quarter of 2023. The decline is worse than the three-year historical average of 9% for the June-ending quarter.

Regardless of these potential headwinds, the KeyBanc analysts maintain their positive stance on Apple’s stock. Factors contributing to this outlook include new product releases and the company’s reputation as a stable investment in a volatile market. Despite softer direct channel sales and pressure on domestic iPhone sales from slowing U.S. carrier activity and lower upgrade rates, the analysts assert that Apple’s status and investor sentiment will sustain its elevated stock price.

Differing Analyst Perspectives on Apple’s Stock Outlook

 

  • KeyBanc analyst Brandon Nispel maintains an Overweight rating and raises the price target from $180 to $200.
  • UBS analyst David Vogt reiterates a Neutral rating and a price target of $190.
  • Citigroup analyst Jim Suva initiates coverage with a Buy rating and a price target of $240.

Analyst David Vogt (UBS) has currently the highest performing score on AAPL with 24/24 (100%) price target fulfillment ratio. His price targets carry on average an $25.77 (18.23%) potential upside and are fulfilled within an average of 143 days.

 

Daily stock Analysts Top Price Moves Snapshot