Selected stock price target news of the day - July 21, 2023

By Matthew Otto

Blackstone’s Comes Close to Wall Street Expectations

Blackstone held its second quarter conference call, reporting GAAP net income of $1.2 billion and distributable earnings of $1.2 billion or $0.93 per share on $2.35 billion in revenue vs the Refinitiv expected earnings per share of 92 cents and $2.43 billion in revenue. They also declared a dividend of $0.79 per share. The company reached a milestone by surpassing $1 trillion of assets under management, making it the first alternative manager to do so. They highlighted their focus on long-term committed capital, which allows them to weather market volatility and avoid forced selling during unfavorable periods. Blackstone also emphasized their strong investment performance across various sectors and the growth potential in areas like private credit, insurance, infrastructure, energy transition, life sciences, and Asian markets.

Blackstone Receives Mixed Analyst Ratings with Higher Price Targets

BMO Capital analyst Rufus Hone maintains a Market Perform rating and raises the price target from $93 to $97.
Wells Fargo analyst Timothy O’Shea reiterates an Overweight rating and upgrades the price target from $104 to $118.
JP Morgan analyst Kenneth Worthington downgrades from Overweight to Neutral rating but increases price target from $102 to $111.
BofA Securities analyst Craig Siegenthaler remains with a Buy rating and raises the price target from $105 to $117.
Evercore ISI Group analyst Glenn Schorr maintains Outperform rating while increasing the price target from $110 to $118.
Piper Sandler analyst Sumeet Mody stays at an Overweight rating while upgrading the price target from $107 to $115.
Barclays analyst Benjamin Budish reiterates an Equal-Weight rating and raises the price target from $101 to $110.
UBS analyst Adam Beatty maintains a Buy rating and increases the price target from $102 to $120.
Citigroup analyst Chris Allen maintains a Buy rating and raises the price target from $98 to $116.
Morgan Stanley analyst Michael Cyprys reiterates an Overweight rating while raising the price target from $115 to $116.

Analyst Finian O’shea (WELLS FARGO) currently has the highest performing score on BX with 12/15 (80%) price target fulfillment ratio. His price targets carry an average of $12.86 (20.46%) potential upside. Blackstone stock price reaches these price targets on average within 160 days.

Discover Reports Q2 Earnings Despite Regulatory Challenges

Discover Financial Services reported its second-quarter earnings, revealing a net income of $901 million or $3.54 per share, analysts expected earnings of $3.67 per share on revenue of $3.89 billion.. The quarter showcased asset and deposit growth, with credit performance aligning with expectations. Notably, the company relaunched its cash back debit product, attracting over 30,000 new accounts and planning a national marketing campaign in the future. Additionally, Discover expanded its Discover Global Network through strategic partnerships in the Asia Pacific region and the UK, aiming to enhance international acceptance.

However, the company faced regulatory challenges concerning the misclassification of certain card accounts. Discover established a $365 million liability to compensate affected merchants and acquirers and acknowledged deficiencies in corporate governance and risk management.

Financially, Discover reported robust results, with net interest income up $567 million or 22% year-over-year and non-interest income increased $98 million or 16%. The company experienced loan growth and deposit growth, aiming to increase funding from deposits to over 70%. Operating expenses increased due to investments in compliance management systems, but Discover maintains disciplined cost management with an efficiency ratio target in the high 30s.

Analysts Adjust Price Targets for Discover Amid Market Performance Concerns

BMO Capital analyst James Fotheringham maintains a Market Perform and lowers the price target from $103 to $99.
Citigroup analyst Arren Cyganovich maintains a Neutral and lowers the price target from $119 to $108.
Piper Sandler analyst Kevin Barker downgrades from Overweight to Neutral and the price target from $130 to $112.
Stephens & Co. analyst Vincent Caintic reiterates with an Equal-Weight and a $124 price target.

Analyst Mihir Bhatia (BAML) currently has the highest performing score on DFS with 8/8 (100%) price target fulfillment ratio. His price targets carry an average of $11.65 (14.64%) potential upside. Discover Financial Services stock price reaches these price targets on average within 183 days

CSX Reports Solid Q2 Performance Despite Challenges, Focused on Long-Term Growth and Sustainability Efforts

CSX reports in the second quarter of 2023.the company’s key financial highlights for the second quarter include moving over 1.5 million carloads, a 3% growth in merchandise volume and 4% growth in coal volume, generating $3.7 billion in revenue (3% lower than the previous year) which is lower than the $3.74 billion consensus estimate from Refinitiv.

Operating income decreased 13% year-over-year to $1.5 billion, resulting in an EPS decrease of 9% to $0.49 which came in line with consensus. They also discussed their safety efforts and focus on improving service to customers in various markets like automotive, minerals, metals, and coal.

Analysts Provide Mixed Recommendations for Goldman Sachs Group

Benchmark analyst Nathan Martin reiterates a Buy rating and $37 price target.
Susquehanna analyst Bascome Majors maintains a Neutral rating and lowers the price target from $38 to $36.
BMO Capital analyst Fadi Chamoun reiterates an Outperform rating and $37 price target.
Citigroup analyst Christian Wetherbee remains on a Buy rating while lowering the price target from $39 to $38.

Analyst Walter Spracklin (RBC) currently has the highest performing score on CSX with 21/22 (95.45%) price target fulfillment ratio. His price targets carry an average of $2.57 (19.31%) potential upside. CSX stock price reaches these price targets on average within 411 days