Selected stock price target news of the day - June 27, 2023
By Matthew Otto
Carnival Surpasses Q2 2023 Expectations,
In Q2 2023, Carnival Cruise had an adjusted EBITDA of $681 million, driven by a revenue increase from higher ticket prices. However, higher fuel prices and currency impacts, as well as adjusted cruise costs, offset the revenue favorability.
The company prepays $1.4 billion of variable rate debt, reducing their interest expense by over $80 million this year. They forecasted an adjusted EBITDA of $4.10 billion to $4.25 billion for full-year 2023. The SEA Change Program has improved the financial position, with projected total debt at year-end under $33 billion. The company predicted average annual adjusted free cash flow of over $3 billion from 2024 to 2026 to reduce debt, aiming for over $10 billion of debt reduction, transferring enterprise value from debt holders to shareholders and positioning Carnival to approach investment grade leverage metrics by the end of 2026.
Carnival Receives Mixed Analyst Ratings and Price Targets
- Stifel analyst Steven Wieczynski reiterated a Buy rating and a $18 price target.
- Truist Securities analyst Patrick Scholes maintains a Sell rating and a target price of $11.
- Deutsche Bank analyst Chris Woronka lowered the price target to $14.
- Susquehanna analyst Christopher Stathoulopoulos raised the price target to $17.
- Wells Fargo analyst Daniel Politzer increased the price target to $15.
- Barclays analyst Brandt Montour raised the price target to $19 while maintaining an Overweight rating.
Analyst James Ainley (CITI) has currently the highest performing score on CCL with 4/5 (80%) price target fulfillment ratio. His price targets carry on an average of $4.23 (20.95%) potential upside and are fulfilled within an average of 22 days.
Alaska Airlines Expands Travel Options with New International Flights
Alaska Airlines is expanding its international flights to include the Bahamas and Mexico. This marks the airline’s first-ever flights to the Bahamas, with nonstop journeys from both Los Angeles and Seattle, while it increases its service to Mexico with new routes from Las Vegas to both Cabo San Lucas and Puerto Vallarta. These new routes are set to commence in mid-December.
The move comes as a response to strong demand for travel to leisure destinations. The addition of more 737-9 aircraft to the Alaska Airlines fleet allows for longer distances to be covered, facilitating trips like Seattle to Nassau.
Analysts Raise Price Targets for Alaska Air Group, Maintaining Positive Outlook
- BofA Securities analyst Andrew Didora maintains a Buy rating and raises the price target from $58 to $62.
- Raymond James analyst Savanthi Syth maintains a Strong Buy rating on Alaska Air Group and raises the price target from $70 to $75.
Analyst Brandon Oglenski (BARCLAYS) has currently the highest performing score on ALK with 29/36 (80.56%) price target fulfillment ratio. His price targets carry on average an $7.82 (27.99%) potential upside and are fulfilled within average of 264 days.
Snowflake Partners With NVIDIA to Enable Custom Generative AI Applications
Snowflake and NVIDIA have announced a partnership to enable businesses to develop customized generative AI applications using their proprietary data within the Snowflake Data Cloud. This collaboration combines NVIDIA’s NeMo platform and GPU-accelerated computing with Snowflake’s secure data platform to empower enterprises of all sizes. With the ability to create and fine-tune custom language models, businesses can leverage their data to build advanced generative AI services such as chatbots and search functionalities.
The joint effort between Snowflake and NVIDIA provides businesses with an opportunity to leverage their own data while ensuring security and governance. By integrating AI capabilities within the Snowflake Data Cloud, enterprises can build generative AI applications where their data resides, reducing costs and latency.
Analysts Reiterate Positive Outlook for Snowflake and Raise Price Targets
- JMP Securities analyst Joe Goodwin maintains a Market Outperform rating and the price target at $200.
- Deutsche Bank analyst Brad Zelnick maintains a Buy rating and raises the price target from $170 to $185.
Analyst Brad Reback (STIFEL) has currently the highest performing score on SNOW with 6/6 (100%) price target fulfillment ratio. His price targets carry on an average of $-1.92 (2.68%) potential downside and are fulfilled within an average of 16 days.
Lordstown Motors Restructuring after Failed Foxconn Partnership
In a strategic restructuring effort, Lordstown Motors aims to capitalize on the value of its assets: the Endurance all-electric (EV) pickup truck and its corresponding intellectual property, platform, and development team. This move comes after the recent breakdown of the partnership with Hon Hai Technology Group (Foxconn).
The suit claims Foxconn acted fraudulently and failed to meet its commercial and financial commitments to Lordstown, resulting in significant harm to the company and its future prospects.
Lordstown is initiating a marketing and sale process for the Endurance vehicle and related assets in response to the damage caused by Foxconn. To facilitate this process and provide prospective buyers with an asset free from legacy issues, Lordstown is restructuring under Chapter 11 of the U.S. Bankruptcy Code.
The lawsuit against Foxconn centers around a strategic partnership aimed to combine Lordstown’s resources with Foxconn’s established automotive capabilities. However, the suit alleges that Foxconn never intended to uphold its commitments and used the partnership to further its own business interests at the expense of Lordstown.
Wall Street Reaction
No new analyst recommendations were given at this moment.
Analyst Emmanuel Rosner (DEUTSCHE BANK) has currently the highest performing score on RIDE with 4/4 (100%) price target fulfillment ratio. His price targets carry on average an $-0.31 (3.53%) potential downside and are fulfilled within average of 40 days.