Selected stock price target news of the day - March 14th, 2024

By: Matthew Otto

Rackspace Announces Fourth Quarter 2023 Earnings: Debt Reduction and Financial Performance

Rackspace Technology announced its Fourth Quarter 2023 Earnings. CEO Amar Maletira highlighted the completion of a private debt exchange transaction, resulting in over $800 million in total debt reduction and a net debt reduction of over $900 million since the start of 2023. With a cash infusion of $275 million and an extended revolver of over $375 million, the company’s current available liquidity exceeds $700 million.

In terms of financial performance, total company GAAP revenue for the fourth quarter of 2023 stood at $720 million, with net revenue at $413 million, representing a decline of 4% and a year-over-year decrease of 14%. Private Cloud revenue reached $285 million, while Public Cloud revenue totaled $435 million. Despite challenges, such as a 12% year-over-year decline in Private Cloud revenue and a 5% drop in Public Cloud services revenue, the company reported an operating profit of $48 million for the quarter, up 6% sequentially, with an operating margin of 7% of GAAP revenue and 12% of net revenue.

Looking ahead, Rackspace anticipates first-quarter GAAP revenue of $680 million to $690 million, with a loss per share of $0.12 to $0.14.

Analysts Maintain Ratings with Revised Price Targets

Raymond James analyst Frank Louthan maintained an Outperform rating but lowered the price target from $3.5 to $3.
RBC Capital analyst Daniel Perlin reiterated a Sector Perform rating and a $3 price target.
BMO Capital analyst Keith Bachman kept a Market Perform rating and raised the price target from $1.5 to $2.5.
Evercore ISI Group analyst Amit Daryanani maintained an In-Line rating but lowered the price target from $3 to $2.

Which Analyst has the best track record to show on RXT?

Analyst Keith Bachman (BMO) currently has the highest performing score on RXT with 5/8 (62.5%) price target fulfillment ratio. His price targets carry an average of $0.71 (39.66%) potential upside. Rackspace Technology stock price reaches these price targets on average within 40 days.

Dollar Tree’s Holiday Quarter Woes: Misses Market Expectations, Plans to Shutter 970 Stores

Dollar Tree reported results for the holiday quarter, with sales and profit falling short of market expectations by 9% and 12% respectively. The company announced plans to close a portion of its Family Dollar stores, totaling approximately 970 outlets, as part of a broader strategy to revamp its struggling business. This move follows a $594.4 million charge for a portfolio optimization review and a goodwill impairment charge of $1.07 billion incurred by Dollar Tree in the reported quarter. The company’s net loss amounted to $1.71 billion, compared to a profit of $452.2 million in the same period last year.

Looking ahead, Dollar Tree’s forecast for 2024 anticipates sales between $31 billion and $32 billion, falling short of Wall Street’s estimate of $31.65 billion. Similarly, the projected annual profit per share ranges between $6.70 and $7.30, slightly below analysts’ expectations of $7.04 per share.

Analysts Adjust Ratings and Targets Amidst Market Challenges

Truist Securities analyst Scot Ciccarelli maintained a Buy rating and lowered the price target from $149 to $147.
JP Morgan analyst Matthew Boss reiterated an Overweight rating and lowered the price target from $165 to $144.
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating and the price target at $160.

Which Analyst has the best track record to show on DLTR?

Analyst Joseph Feldman (TELSEY ADVISORY) currently has the highest performing score on DLTR with 8/23 (34.78%) price target fulfillment ratio. His price targets carry an average of $31.58 (24.59%) potential upside. Dollar Tree stock price reaches these price targets on average within 105 days.

UiPath’s Growth: Surpassing Expectations with Quarterly Results

UiPath showcased a staggering revenue of $405 million for the January quarter. This represents a 31% increase from the previous year. Annual recurring revenue soared to $1.464 billion, marking a 22% surge from the year prior. Additionally, non-GAAP operating income skyrocketed to $111 million, exceeding UiPath’s initial forecast of $78 million. Adjusted profits of 22 cents per share also outstripped the Street consensus of 16 cents.

Looking forward, UiPath projects revenue of $330 million to $335 million for the April quarter, with ARR expected to range between $1.408 billion and $1.513 billion. For the January 2025 fiscal year, the company anticipates revenue between $1.555 billion and $1.56 billion, with ARR projected to reach $1.725 billion to $1.73 billion.

Analysts Bullish: Price Targets Surge Following Positive Revisions

JP Morgan analyst Mark Murphy upgraded from Neutral to Overweight and the price target from $22 to $28.
Mizuho analyst Siti Panigrahi maintained a Neutral rating and raised the price target from $22 to $25.
Wells Fargo analyst Michael Turrin reiterated an Equal-Weight rating and increased the price target from $24 to $25.
BofA Securities analyst Brad Sills maintained a Buy rating and raised the price target from $26 to $30.
Needham analyst Scott Berg kept a Buy rating and upgraded the price target from $25 to $30..

Which Analyst has the best track record to show on PATH?

Analyst Kirk Materne (EVERCORE) currently has the highest performing score on PATH with 6/7 (85.71%) price target fulfillment ratio. His price targets carry an average of $1.48 (6.57%) potential upside. UiPath stock price reaches these price targets on average within 141 days.