Selected stock price target news of the day - July 11th, 2024

By: Matthew Otto

Kura Sushi USA Q3 Fiscal 2024 Earnings: Sales and EPS Fall Short of Expectations

During its Fiscal Third Quarter 2024 Earnings Call, Kura Sushi USA reported a total sales of $63.1 million. This reflects a 0.6% increase in comparable sales and a 0.3% rise in traffic. However, this figure fell short of the consensus estimate of $64.81 million. EPS reported to be $0.00, missing the analyst estimate of $0.12. Despite not meeting sales expectations due to macroeconomic headwinds, Kara Sushi maintained a restaurant-level profit margin of 20%.

From a financial standpoint, Kara Sushi’s cost of goods sold improved by 80 basis points to 29.2% due to supply chain efforts. Labor costs as a percentage of sales increased to 32.3% from 29.2% in the prior year, primarily due to sales deleverage and wage increases. Operating loss for the quarter was $1.2 million, compared to an operating income of $1.3 million in the same period last year. Net loss stood at $0.6 million, or $0.05 per share, versus net income of $1.7 million, or $0.16 per share, in the previous year. Adjusted EBITDA was $4.5 million, down from $5.1 million in the prior year. As of the end of the fiscal third quarter, Kura Sushi had $59.4 million in cash and cash equivalents and no debt.

Looking forward, Kura Sushi reaffirmed its fiscal year 2024 guidance, expecting total sales between $235 million and $237 million, aligning closely with the consensus estimate of $236.7 million. Additionally, Kura Sushi plans to open 14 new units with average net capital expenditures of approximately $2.4 million per unit.

Analysts Lower Price Targets Following Q3 Fiscal 2024 Earnings

Piper Sandler analyst Brian Mullan maintained a Neutral rating and lowered the price target from $89 to $63.
Citigroup analyst Jon Tower maintained a Neutral rating and lowered the price target from $79 to $68.
Barclays analyst Jeffrey Bernstein reiterated an Equal-Weight rating and downgraded the price target from $65 to $60.
Lake Street analyst Mark Smith kept a Hold rating and lowered the price target from $72 to $64.
Craig-Hallum analyst Jeremy Hamblin reiterated a Buy rating and downgraded the price target from $120 to $85.
Roth MKM analyst George Kelly reiterated a Buy rating and lowered the price target from $90 to $70.
Benchmark analyst Todd Brooks kept a Buy rating and a $90 price target.

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

Analyst Jeremy Hamblin (CRAIG HALLUM) currently has the highest performing score on KRUS with 14/17 (82.35%) price target fulfillment ratio. His price targets carry an average of $56.91 (90.20%) potential upside. Kara Sushi USA stock price reaches these price targets on average within 63 days.

Costco Announces First Membership Fee Hike in Seven Years, Boosting Benefits and Revenue Outlook

Costco Wholesale announced on Wednesday that it will increase its annual membership fees for U.S. and Canada customers, effective September 1st. This marks the first hike in seven years.

The new fees will see gold star and business members paying $65 annually, up from $60, while executive members will see their fees increase to $130 from $120. In addition to the fee increase, the maximum annual 2% reward for executive members will rise from $1,000 to $1,250. Costco’s memberships provide various benefits, including free samples, discounts on food, gas, home insurance, travel, and groceries, along with the annual reward on qualified purchases.

The fee hike will impact approximately 52 million members, with over half being executive members. This change follows a 7.6% rise in membership fee revenue in the third quarter ending May 12, contributing 1.9% to Costco’s total revenue for fiscal 2023. Separately, Costco reported a 7.4% increase in net sales, reaching $24.48 billion for the retail month of June.

Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, noted that the market had anticipated a membership fee increase, as Costco historically raises rates every 5 to 6 years. He added that this move should provide a significant boost to both revenue and the stock price.

Analysts Raise Price Targets, Expecting Continued Growth

Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating and raised the price target from $900 to $925.
BofA Securities analyst Robert Ohmes maintained a Buy rating and raised the price target from $874 to $962.
Baird analyst Peter Benedict maintained an Outperform rating and increased the price target from $850 to $975.

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

Analyst Joseph Feldman (TELSEY ADVISORY) currently has the highest performing score on COST with 38/38 (100%) price target fulfillment ratio. His price targets carry an average of $34.61 (4.24%) potential upside. Costco Wholesale stock price reaches these price targets on average within 178 days.

Amazon Faces Scrutiny Over Compliance with UK Grocery Code

In 2024, Britain’s Groceries Code Adjudicator (GCA) raised concerns over Amazon’s compliance with the Groceries Supply Code of Practice (GSCOP), threatening a formal investigation unless improvements are implemented.

According to the GCA’s annual survey, less than half of Amazon’s direct suppliers reported consistent or mostly compliant behavior from Amazon. This marks a notable decline for Amazon, with its compliance score plummeting to 47% from 59% the previous year, positioning it at the bottom among major retailers evaluated.

The GSCOP, which aims to safeguard suppliers by regulating contract changes and termination procedures, applies to Amazon since 2022. Despite Amazon’s initiatives such as clearer cost increase explanations and enhanced dispute resolution mechanisms, the GCA remains vigilant. Mark White, the GCA’s spokesperson, emphasized the potential for financial penalties amounting to 1% of Amazon’s UK turnover if compliance deficiencies persist.

Analysts Remain Bullish, Adjusting Price Targets Amid Market Dynamics

TD Cowen analyst John Blackledge reiterated a Buy rating and raised the price target from $225 to $245.
Roth MKM analyst Rohit Kulkarni maintained a Buy rating with a price target of $210.
Needham analyst Laura Martin also reiterated a Buy rating and a price target of $205.

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

Analyst Barton Crockett (ROSENBLATT) currently has the highest performing score on AMZN with 9/10 (90%) price target fulfillment ratio. His price targets carry an average of $41 (22.91%) potential upside. Amazon.com stock price reaches these price targets on average within 133 days.