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

By Matthew Otto

Rivian to Use Electric Vehicle Tesla’s Charging Infrastructure

Rivian Automotive has recently revealed a new agreement with Tesla, signaling a collaboration to enhance the charging infrastructure for electric vehicles. Under this agreement, Rivian drivers will gain access to Tesla’s Supercharger network across the United States and Canada, complementing Rivian’s own charging network known as the Rivian Adventure Network. The agreement will provide Rivian drivers access to Tesla’s Supercharger network marks an important step in expanding the charging infrastructure for electric vehicles. By joining forces, these companies aim to facilitate the adoption of electric vehicles and contribute to the mission of decarbonizing transportation.

Analysts Reiterate Buy Ratings for Rivian Automotive with Varying Price Targets

Canaccord Genuity analyst George Gianarikas reiterates a Buy rating and a $40 price target.
Truist Securities analyst Jordan Levy remains in a Buy rating and maintains a $28 price target.
Vijay Rakesh from Mizuho Securities maintained a Buy rating with a price target of $27.

Analyst Mark Delaney (GOLDMAN SACHS) has currently the highest performing score on RIVN with 3/5 (60%) price target fulfillment ratio. His price targets carry on an average of $-6.8 (4.77%) potential downside and are fulfilled within an average of 14 days.

Civitas Resources to Acquire Permian Basin Oil and Gas Operations

Civitas Resources has announced its plan to acquire oil and gas operations in the Permian basin managed by NGP Energy Capital Management, a private equity firm. The acquisition will be made for a total of $4.7 billion. This move signifies a significant expansion for Civitas, which has previously operated exclusively in Colorado’s Denver-Julesburg basin.

Civitas Resources Receives Positive Analyst Ratings

Roth MKM analyst Leo Mariani reiterates Buy rating and maintains a $74 price target.
Truist analyst Neal Dingmann maintains a Buy rating and sets a price target of $91.

Analyst Leo Mariani (MKM) has currently the highest performing score on CIVI with 8/9 (88.89%) price target fulfillment ratio. His price targets carry on an average of $10.66 (22.02%) potential upside and are fulfilled within an average of 168 days.

FedEx Reports Better-than-Expected Q4 Earnings Amid Cost-Cutting Initiatives

FedEx reported better-than-expected adjusted fiscal Q4 earnings per share of $4.94, on sales of $21.9 billion, compared to Wall Street predictions of $4.85 EPS from sales of $22.5 billion. However, these results didn’t meet investors’ expectations, leading to a decline in FedEx stock in after-hours trading.

The company observed a 10% YoY decrease in daily package volumes in the Express business, and a 14% YoY drop in average daily freight pounds shipped. Despite these figures, FedEx is optimistic about the coming fiscal year, expecting earnings between $16.50 and $18.50 a share, up from nearly $15 a share earned in fiscal year 2023. This forecast, however, falls short of Wall Street’s expected $18.30 a share.

FedEx CEO, Raj Subramaniam, stated that the company is making significant progress in its global transformation efforts. It has become a more adaptable, efficient, and data-driven organization, despite the dynamic demand environment, a phrase often used to describe recessionary periods.

FedEx is also undergoing a restructuring effort known as DRIVE, initiated late in 2022. The program aims to consolidate the Express and Ground networks, reduce costs by eliminating route overlaps, and improve profitability. By the end of fiscal 2025, FedEx is targeting about $4 billion in profit-margin improvements through the DRIVE initiative.

In fiscal year 2023, DRIVE contributed to $1.8 billion in gains while other factors presented a $1 billion profit headwind. Full-year operating profit came in at $6.2 billion, up from $5.4 billion in fiscal year 2022. Despite the improved results, the company expects business conditions to remain uncertain in the coming period.

Analysts Adjust FedEx Price Targets Amid Economic Uncertainty Despite Earnings Beat

Stifel analyst J. Bruce Chan keeps a Buy rating and lowers the price target from $264 to $259.
JP Morgan analyst Brian Ossenbeck maintains a Neutral rating and raises the price target from $228 to $251.
Morgan Stanley analyst Ravi Shanker reiterates an Equal-Weight rating and raises the price target from $180 to $186.
Stephens & Co. analyst Jack Atkins keeps an Overweight rating and a $290 price target.
Raymond James analyst Patrick Tyler Brown maintains an Outperform rating but lowers the price target from $280 to $270.
Wolfe Research analyst Scott Group has lowered the price target to $284.
Bernstein analyst David Vernon has raised the price target to $284.

Analyst Fadi Chamoun (BMO) has currently the highest performing score on FDX with 13/18 (72.22%) price target fulfillment ratio. His price targets carry on an average of $37.21 (21.08%) potential upside and are fulfilled within an average of 307 days.