Selected stock price target news of the day - July 14, 2023

By Matthew Otto

 

Alcoa Faces Downgrades Amid Concerns Over Falling Commodity Prices

J.P. Morgan analyst Bill Peterson downgraded Alcoa from Buy to Hold, with a lowered price target of $36 per share compared to the previous target of $54. About 47% of analysts still rating the stock as Buy, but the average analyst price target has dropped.

Peterson expressed caution about the near-term outlook for aluminum base metal due to planned restarts in China and a seasonal demand lull. As China accounts for nearly 60% of global aluminum production, any changes in output have an impact on aluminum prices worldwide. About 47% of analysts still rating the stock as Buy, but the average analyst price target has dropped.

Falling commodity prices have been a concern for the company, with benchmark aluminum prices declining approximately 10% over the past year and about 20% from January highs.

Analysts Issue Mixed Ratings for Alcoa Stock

 

  • JP Morgan analyst Bill Peterson downgrades from Overweight to Neutral and the price target from $54 to $36.
  • Morgan Stanley analyst Carlos De Alba maintains an Underweight rating and the price target at $33.
  • Wolfe Research analyst Timna Tanners downgrades from Peer Perform to Underperform and sets a price target of $25.
  • Goldman Sachs analyst Emily Chieng keeps a Buy rating on Alcoa but lowers the price target from $54 to $46.

 

Analyst Alexander Hacking (CITI) currently has the highest performing score on AA with 18/20 (90%) price target fulfillment ratio. His price targets carry an average $9.29 (22.44%) potential upside and are fulfilled within an average of 256 days.

 

Leslie’s Reports Preliminary Q3 2023 Results and Revises Fiscal Year Outlook

Leslie’s announced preliminary financial results for the third quarter of Fiscal 2023. Sales for the quarter are expected to be $611 million, with a comparable sales decline of 12%. Gross profit is projected to be $249 to $251 million, and gross margin is expected to be around 41%. Net income is estimated to be $70 to $73 million, and adjusted EBITDA is anticipated to be $124 to $128 million. The company’s CEO, Mike Egeck, acknowledged that the third-quarter results were below expectations due to traffic declines and increased consumer price sensitivity.

The company’s fiscal third-quarter earnings were $0.68 per share, missing the analyst estimate of $0.74, while revenue for the quarter came in at $673.6 million, below the consensus estimate of $696.45 million.

The company is revising its Fiscal 2023 outlook based on the third-quarter results. Net sales for the fiscal year are now expected to be $1,430 to $1,450 million or $0.90 and $0.96 per share, lower than the consensus of $1.06, and down from the previous guidance of $1.02 to $1.10 per share, with gross profit projected to be $549 to $559 million.

Net income is expected to range from $33 to $40 million, and adjusted EBITDA is projected to be $170 to $180 million. Adjusted net income is anticipated to be $52 to $59 million, and adjusted diluted earnings per share are expected to be $0.28 to $0.32.

Higher product costs, increased distribution-related expenses, and fixed-cost deleverage affected the company’s gross margins.

Analysts Downgrade Leslie’s and Lower Price Targets

 

  • William Blair Ryan Merkel has downgraded from Outperform to Market Perform.
  • Guggenheim Steven Forbes has lowered the rating from Buy to Neutral.
  • Telsey Advisory Dana Telsey maintains a Market Perform rating but has lowered the price target from $11 to $8.5.
  • Piper Sandler Peter Keith has downgraded from Overweight to Neutral and has lowered the price target from $16 to $7.

Analyst Garik Shmois (LOOP CAPITAL) currently has the highest performing score on LESL with 6/9 (66.67%) price target fulfillment ratio. His price targets carry an average $3.51 (18.22%) potential upside and the stock reaches them within an average of 14 days.

 

Acadia Expands Licensing Agreement with Neuren for Trofinetide and NNZ-2591

Acadia Pharmaceuticals has expanded its licensing agreement with Neuren Pharmaceuticals, granting Acadia ex-North American rights to trofinetide and global rights to Neuren’s developmental candidate NNZ-2591 for Rett syndrome and Fragile X syndrome for an upfront payment of $100 million. This move strengthens Acadia’s position by addressing the unmet needs of individuals with Rett syndrome.

Trofinetide, launched by Acadia as DAYBUE, is the first FDA-approved treatment for Rett syndrome.Fragile X syndrome (FXS) affects both males and females, with an estimated prevalence of approximately 1 in 7,000 males and 1 in 11,000 females diagnosed with FXS. Intelligence quotient (IQ) scores decline with age, with adolescents and adults consistently scoring lower on IQ tests than young children. Boys with FXS have an average IQ score under 55, significantly lower than the general population’s average IQ score of 100. The average age of FXS diagnosis is around 35 to 37 months for boys and 42 months for girls.

Analysts Maintain ACADIA Ratings and Raise Price Targets

 

  • JMP Securities analyst Jason Butler maintains a Market Outperform rating and raises the price target from $31 to $39.
  • Oppenheimer analyst Jay Olson remains in a Perform rating and raises the price target from $20 to $23.
  • HC Wainwright analyst Andrew Fein reiterates a Buy rating and raises the price target from $28 to $33.
  • Morgan Stanley analyst Jeffrey Hung maintains an Equal-Weight rating and raises the price target from $20 to $21.

Analyst Jay Olson (OPPENHEIMER) currently has the highest performing score on ACAD with 8/9 (88.89%) price target fulfillment ratio. His price targets carry an average $1.09 (6.20%) potential upside and are the stock reaches them within an average of 39 days.

 

Daily stock Analysts Top Price Moves Snapshot