Selected stock price target news of the day - March 8th, 2024

By: Matthew Otto

Gap Reports Fourth Quarter Fiscal 2023 Earnings: Achieves Increase in Net Sales and Gross Margin Expansion

Gap delivered financial results in its Fourth Quarter Fiscal 2023 Earnings, reporting a 1% increase in net sales to $4.3 billion. Comparable sales remained flat during the quarter, with a 6% growth in Old Navy net sales, reaching $2.3 billion, and a 4% increase in Gap brand comparable sales. The company achieved a gross margin expansion of 130 basis points, totaling 38.9%, primarily attributed to a 500 basis point increase in merchandise margin.

For the full fiscal year 2023, Gap reported a 5% decline in net sales to $14.9 billion, with comparable sales down 2%. However, the company demonstrated gross margin expansion of 380 basis points, reaching 38.8%. Operating income for the year stood at $214 million in Q4, showing an improvement of $244 million compared to the same period last year. The strategic cost-saving measures resulted in a reduction of over $300 million in SG&A, leading to a 410 basis point improvement in adjusted operating margin for the full year, reaching 4.1%. The company ended the year with $1.9 billion in cash and equivalents, marking a 54% increase from the previous year.

Looking ahead to 2024, Gap expects roughly flat net sales, at least 50 basis points of gross margin expansion, and low-to-mid-teens growth in operating income.

Analysts Ratings and Price Target Updates Reflect Diverse Views

Evercore ISI Group analyst Michael Binetti maintained an Outperform rating and raised the price target from $22 to $24.
Wells Fargo analyst Ike Boruchow reiterated an Overweight rating and increased the price target from $24 to $25.
KGI Securities analyst Jenny Liu upgraded from Neutral to Outperform and set a price target of $25.2.
Baird analyst Mark Altschwager kept a Neutral rating and upgraded the price target from $19 to $23.
Barclays analyst Adrienne Yih kept an Overweight rating and upgraded the price target from $26 to $28.
Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $17 to $22.
BofA Securities analyst Lorraine Hutchinson reiterated an Underperform rating and increased the price target from $13 to $15.

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

Analyst Matthew Boss (JPMORGAN) currently has the highest performing score on GPS with 19/24 (79.17%) price target fulfillment ratio. His price targets carry an average of $0.64 (3.31%) potential upside. Gap stock price reaches these price targets on average within 242 days.

Marvell Faces Headwinds but Analysts Bullish on AI Growth Prospects

Marvell Technology Group encountered a turbulent start to the year as its fourth-quarter earnings report fell short of analysts’ expectations. With a projected revenue midpoint of $1.15 billion for the current quarter, below the $1.38 billion consensus estimate.

Analysts from Needham, Piper Sandler, and KeyBanc Capital Markets expressed confidence in Marvell’s long-term trajectory. Needham analyst, N. Quinn Bolton, raised its price target to $95 from $65, citing an accelerating AI-leveraged portfolio, while Piper Sandler’s Harsh Kumar increased its target to $100 from $70, emphasizing opportunities for investors to capitalize on the company’s resilience. Additionally, KeyBanc analyst, John Vinh, highlighted Marvell’s AI chip shipments to tech giants like Google and Amazon Web Services, leading to a target raise to $95 from $70, affirming an Overweight rating.

Marvell’s forward-looking stance and strategic investments position it well for the future, with analysts projecting a potential upside of over 45% from current levels.

Analysts Optimistic on Growth, Adjust Price Targets Upward

Roth MKM analyst Suji Desilva maintained a Buy rating and raised the price target from $60 to $95.
Piper Sandler analyst Harsh Kumar reiterated an Overweight rating and increased the price target from $70 to $100.
Morgan Stanley analyst Joseph Moore reiterated an Equal-Weight rating and lowered the price target from $84 to $71.
Wells Fargo analyst Gary Mobley maintained an Overweight rating and raised the price target from $80 to $90.
Jefferies analyst Mark Lipacis kept a Buy rating and upgraded the price target from $68 to $98.
BofA Securities analyst Vivek Arya kept a Buy rating and raised the price target from $80 to $95.
Goldman Sachs analyst Toshiya Hari maintained a Buy rating and raised the price target from $74 to $84.
Wolfe Research analyst Chris Caso maintained an Outperform rating and increased the price target from $70 to $90.
JP Morgan analyst Harlan Sur reiterated an Overweight rating and upgraded the price target from $70 to $90.
Deutsche Bank analyst Ross Seymore reiterated a Buy rating and raised the price target from $67 to $90.
Summit Insights Group analyst Kinngai Chan upgraded from Hold to Buy.
Keybanc analyst John Vinh kept an Overweight rating and raised the price target from $70 to $95.

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

Analyst Craig Ellis (B.RILEY) currently has the highest performing score on MRVL with 21/23 (91.3%) price target fulfillment ratio. His price targets carry an average of $15.65 (19.72%) potential upside. Marvell Technology Group stock price reaches these price targets on average within 187 days.

MongoDB Disappointing Guidance: Q1 Revenue Soars, Yet Falls Short of Expectations

MongoDB reported revenue of $458 million for the January quarter, reflecting a 27% year-over-year increase, and posting adjusted profits of 86 cents per share. MongoDB’s forecast for the April quarter indicates revenue ranging between $436 million and $440 million, with adjusted profits projected to be in the range of 34 to 39 cents per share. These figures disappointed analysts, who had anticipated revenue of $452 million and profits of 62 cents per share.

Looking further ahead to the fiscal year ending January 2025, MongoDB anticipates revenue in the ballpark of $1.9 billion to $1.93 billion, with adjusted profits expected to fall between $2.27 and $2.49 per share. However, these projections also lag behind analysts’ consensus forecasts of $2.04 billion in revenue and profits of $3.27 per share on an adjusted basis.

MongoDB attributed part of its forecasted decline to over $80 million in revenue recognized in fiscal 2024 from multiyear licenses that it does not expect to realize in fiscal 2025.

Analysts’ Rating and Price Target Adjustments Following Earnings

Truist Securities analyst Miller Jump reiterated a Buy rating and lowered the price target from $500 to $475.
Scotiabank analyst Patrick Colville maintained Sector Perform rating and lowered the price target from $400 to $385.
DA Davidson analyst Rudy Kessinger upgraded from Neutral to Buy and the price target from $405 to $430.
Wells Fargo analyst Andrew Nowinski kept an Overweight rating and decreased the price target from $500 to $450.
Mizuho analyst Matthew Broome maintained a Neutral rating and lowered the price target from $420 to $380.
Needham analyst Mike Cikos reiterated a Buy rating and downgraded the price target from $495 to $465.
Barclays analyst Raimo Lenschow reiterated an Overweight rating and lowered the price target from $478 to $458.
Piper Sandler analyst Brent Bracelin maintained an Overweight rating and decreased the price target from $500 to $480.

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

Analyst Brent Bracelin (PIPER SANDLER) currently has the highest performing score on MDB with 23/24 (95.83%) price target fulfillment ratio. His price targets carry an average of $112.58 (29.06%) potential upside. MongoDB stock price reaches these price targets on average within 114 days.