Selected stock price target news of the day - June 23, 2023

By Matthew Otto

Darden beats revenue, disappoints on outlook

Darden Restaurants has reported Q4 earnings exceeding Wall Street’s estimates, largely due to strong sales at LongHorn Steakhouse. The company announced net income of $315.1 million or $2.58 per share (which was $0.04 better than the analyst estimate of $2.54), up from $281.7 million or $2.24 per share from the previous year, with net sales increasing by 6.4% to $2.77 billion.

LongHorn Steakhouse contributed to this increase with a 7.1% same-store sales growth, which surpassed StreetAccount estimates of 4.9%. However, the company’s forecast for fiscal 2024 disappointed investors, with predicted adjusted earnings per share from continuing operations between $8.55 and $8.85, lower than analysts’ expectations of $8.79 per share. Olive Garden, responsible for approximately 45% of Darden’s sales, also underperformed with same-store sales growth of 4.4%, compared to an expected 5%.

The fine dining segment, which includes The Capital Grille and Eddie V’s, experienced same-store sales declines of 1.9%. The company also announced that former CEO Gene Lee is set to step down as board chair.

Analysts Adjusts Darden Outlook Amid AI Partnerships

DChristopher Carril from RBC Capital has maintained his Outperform rating but adjusted the price target down from $185 to $183.
Brian Nowak from Morgan Stanley has kept his Overweight rating, lifting the price target from $168 to $171.
Andrew Strelzik from BMO Capital has retained his Market Perform rating and increased the price target from $150 to $160.
Brian Bittner from Oppenheimer has reaffirmed his Outperform rating, keeping the price target at $185.
Nick Setyan from Wedbush has maintained his Outperform rating, boosting the price target from $175 to $178.
Andrew Charles from TD Cowen has reiterated his Outperform rating, raising the price target from $160 to $175.
Joshua Long from Stephens has held onto his Overweight rating, keeping the price target steady at $170.
Jon Tower from Citi has increased Darden’s price target to $195.
Jeffrey Bernstein from Barclays has lifted the price target to $177.

Analyst David Tarantino (BAIRD) has currently the highest performing score on DRI with 18/20 (90%) price target fulfillment ratio. His price targets carry on average an $18.27 (22.34%) potential upside and are fulfilled within an average of 310 days.

MongoDB Launches AI Innovators Program to Accelerate Generative AI in Business Operations

MongoDB has announced the AI Innovators Atlas Program during its developer conference. This program aims to provide organizations creating AI technology with resources to hasten their innovation and reach the market faster.

Generative AI is transforming technology stacks across different areas. Amid rapid innovation, both startups and well-established companies are keen to leverage generative AI to revolutionize business operations and disrupt industries. The MongoDB AI Innovators Program aims to provide these organizations a clearer path to innovation, using the best tools for the job, partnering with subject matter experts, and identifying ways to bring their AI-powered applications to market quickly.

Analysts Raise MongoDB Price Targets Following AI Innovators Program Announcement

Brent Bracelin from Piper Sandler reasserted his Overweight rating and held steady with a $400 price target.
Needham analyst Mike Cikos reiterated his Buy rating and kept his price target at $430.
Brad Reback from Stifel raised his price target from $375 to $420 while preserving a Buy rating.
Kash Rangan from Goldman Sachs elevated the price target from $420 to $440.
Matthew Broome of Mizuho Securities increased the price target to $240.
Sanjit Singh of Morgan Stanley lifted the price target to $440.
Rishi Jaluria from RBC Capital heightened the price target to $445.
Truist Securities analyst Miller Jump boosted the price target to $420.

Analyst Brent Bracelin (PIPER SANDLER) has currently the highest performing score on MDB with 20/24 (83.33%) price target fulfillment ratio. His price targets carry on an average of $46.21 (20.64%) potential upside and are fulfilled within an average of 84 days.

FDA Grants Accelerated Approval to Sarepta’s Gene Therapy for Duchenne Muscular Dystrophy

The US Food and Drug Administration (FDA) has granted accelerated approval for Sarepta Therapeutics‘ one-time gene therapy treatment, Elevidys, for children with Duchenne muscular dystrophy (DMD). The approval, the first of its kind for a gene therapy to treat DMD, allows the drug to be sold based on lab measures anticipated to predict clinical benefit, rather than direct evidence of benefit.

However, the approval is confined to children between 4 and 5 years old who can still walk, narrower than Sarepta’s initial request for approval in all DMD patients able to walk. This approval comes after the FDA had reportedly planned to reject the application.

DMD is a progressive disease that leads to muscle atrophy, disability, and death. Sarepta’s drug enables DMD patients to produce a protein related to muscle growth, which their bodies are otherwise unable to do. However, the company is yet to provide clear evidence that the gene therapy can halt muscle decline in patients.

The company’s decision to seek approval for the drug prior to the completion of an ongoing Phase 3 trial took Wall Street by surprise last year. This trial is expected to yield top-line results later this year. The FDA plans to review these results upon availability and may consider revising the drug’s indication or withdrawing Elevidys.

Analysts Respond with Mixed Revisions to Price Targets

Matthew Harrison from Morgan Stanley reaffirmed an Overweight rating on Sarepta Therapeutics, persisting with a price target of $183.
Brian Abrahams from RBC Capital restated an Outperform rating and sustained a price target of $218.
Judah Frommer from Credit Suisse continued with a Neutral rating and stuck with a price target of $141.
Gavin Clark-Gartner from Evercore ISI Group downgraded Sarepta Therapeutics from Outperform to Neutral and set a price target of $139.
Gil Blum from Needham endorsed a Buy rating again and held his price target of $185.
Goldman Sachs escalated its price target on Sarepta Therapeutics to $215.
Gena Wang from Barclays also elevated her price target to $193.

Analyst Brian Skorney (BAIRD) has currently the highest performing score on SRPT with 38/50 (76%) price target fulfillment ratio. His price targets carry on an average of $38.05 (75.14%) potential upside and are fulfilled within an average of 305 days.