Selected stock price target news of the day - July 31, 2023

By Matthew Otto

 

Oatly comes short on Wall Street Expectations

Oatly Group announced its financial results for the second quarter and six months ended June 30, 2023. Although the company made steady progress towards its goal of achieving profitable growth by 2024, the financial results fell short of analysts expectations.

The company reported Q2 2023 earnings per share (EPS) of ($0.15), which was $0.03 worse than the analyst estimate of ($0.12). The reported revenue for the quarter was $196 million, significantly below the consensus estimate of $210.59 million.

Oatly reported a gross margin of 19.2% for the quarter, a substantial increase compared to the same period in the previous year. However, the company recorded a net loss attributable to shareholders of $86.7 million, which was an increase from a net loss of $72.0 million in Q2 2022.

During the quarter, Oatly successfully raised $465 million from financing transactions. The company also initiated a comprehensive improvement plan in Asia, a region where consumer behavior in the post-pandemic era did not align with the company’s expectations. Additionally, Oatly plans to simplify its corporate functions and decrease overhead in its Americas segment, an action expected to bring about savings of approximately $85 million in 2024.

The company now forecasts a revenue growth on a constant currency basis in the range of 7% to 12% compared to the full year 2022

Oatly Faces Analysts’ Downgrades and Price Target Adjustments Amid Q2 Performance

  • Barclays’ Andrew Lazar decided to retain his Overweight stance on Oatly, though he curtailed the price target from $3 to $2.
  • RBC Capitals Nik Modi adjusted his rating for Oatly, downgrading from Outperform to Sector Perform.
  • Truist Securities Bill Chappell revised his price target for Oatly downwards to $3.

 

Analyst John Baumgartner (MIZUHO) has currently the highest performing score on OTLY with 3/6 (50%) price target fulfillment ratio. His price targets carry on average an $1.69 (67.53%) potential upside. Oatly stock price reaches these price targets on average within 15 days.

Charter Reports Q2 2023 Earnings, Misses Analyst Estimates on EPS and Revenue

Charter Communications reported its financial and operating results for Q2 2023. Total residential and small and medium business (“SMB”) internet customers rose by 77,000 during the quarter, boosting Charter’s overall customer base to 30.6 million. Additionally, residential and SMB mobile lines saw a significant increase, with an added 648,000 lines leading to a total of 6.6 million mobile lines as of June 30, 2023.

Although Charter reported an EPS of $8.05, it fell short of analyst estimates by $0.02, which were expected to hit $8.07. Despite this minor deviation from projections, the company’s overall performance demonstrated a healthy expansion with robust revenue figures. However, Charter’s Q2 2023 revenue of $13.66 billion slightly underperformed the consensus estimate of $13.84 billion.

The company’s total Q2 revenue grew by 0.5% year-over-year, amounting to $13.7 billion. This expansion was primarily driven by residential internet revenue growth of 3.1%, residential mobile service revenue growth of 29.8%, and other revenue growth of 28.5%. The revenue surge was mainly attributed to higher mobile device sales. However, Charter’s net income attributable to shareholders for Q2 was $1.2 billion. During Q2 2023, Charter repurchased 1.1 million shares.

While Charter’s residential internet customer base saw growth, the residential video customer base experienced a decrease by 189,000 in the second quarter of 2023. This downtick contrasts with a decline of 240,000 in Q2 2022. As of June 30, 2023, Charter had 14.1 million residential video customers.

The company continues to evolve its services and is set to deploy Xumo-branded streaming devices in late 2023. Additionally, residential wireline voice customers saw a decline of 225,000 during the second quarter of 2023. As of June 30, 2023, Charter had 7.2 million residential wireline voice customers.

Multiple Analysts Adjust Price Targets on Charter Communications Following Q2 Earnings Report

  • Steven Cahall of Wells Fargo held steady with an Equal-Weight rating while elevating the price target from $410 to $450.
  • Barclays analyst Kannan Venkateshwar stood firm with an Underweight rating on Charter, but boosted the price target from $273 to $325.
  • Jessica Reif of BofA Securities advanced her price target to $450.
  • Brett Feldman from Goldman Sachs escalated his price target to $510.

 

Analyst Steven Cahall (WELLS FARGO) has currently the highest performing score on CHTR with 11/12 (91.67%) price target fulfillment ratio. His price targets carry on average an $16 (2.33% potential upside. Charter Communications stock price reaches these price targets on average within 66 days.

 

Procter & Gamble Beats Q4 Estimates Despite Challenges in China; U.S. Demand Remains Strong

Procter & Gamble delivered a better-than-expected performance in its Q4 report, despite the headwinds presented by weak demand in China. The company surpassed analysts’ sales and profit estimates, largely bolstered by several price increases it implemented.

China’s slower-than-anticipated recovery post-pandemic has impacted numerous global companies, including L’Oreal and Coca-Cola, which are experiencing slowing demand across various regions. For P&G, total volumes decreased by 1% in Q4, largely attributed to weak demand in Greater China, while the average prices across P&G’s products grew by 7%.

Interestingly, China, being P&G’s second largest market after the U.S., had cushioned volume declines in the third quarter. Jason Benowitz, Senior Portfolio Manager at CI Roosevelt, anticipates that the company’s business in China will continue to be a significant variable in fiscal 2024, given the current macroeconomic backdrop which brings increased forecasting difficulties.

Meanwhile, P&G is witnessing robust demand for its products such as Pampers diapers, Pantene shampoo, and Oral-B toothpaste in the U.S., where consumer sentiment is reaching a two-year peak as inflation eases. The company’s CFO, Andre Schulten, revealed a positive volume growth of 3% in the U.S. business.

P&G projects profit per share growth for fiscal 2024 to be in the range of 6% to 9%, which is approximately between $6.25 and $6.43, against analysts’ predictions of $6.38. Despite supply chain and input costs showing stability as fiscal 2024 commences.

Despite the challenges, P&G’s Q4 net sales increased by 5% to $20.55 billion, exceeding analysts’ expectations of $19.98 billion. On an adjusted basis, the company reported earnings of $1.37 per share, surpassing the estimate of $1.32.

Analysts Update Price Targets on P&G

 

  • Chris Carey from Wells Fargo maintains an Overweight rating, lifting the price target from $165 to $170.
  • Deutsche Bank’s Steve Powers holds a Buy position, revising the price target upward from $170 to $173.
  • Robert E. Ottenstein of Evercore ISI has increased the price target to $175.
  • RBC Capital analyst Nik Modi has raised the price target to $167.
  • Edward Lewis from Atlantic Equities retains an Overweight rating and nudges the price target from $175 to $176.

Analyst Peter Grom (UBS) has currently the highest performing score on PG with 2/5 (40%) price target fulfillment ratio. His price targets carry on average an $14.6 (10.62%) potential upside. Procter & Gamble stock price reaches these price targets on average within 40 days.

Daily stock Analysts Top Price Moves Snapshot