Selected stock price target news of the day - May 16th, 2025

By: Matthew Otto

Applied Materials Posts Mixed Q2 Results Amid Export Challenges and Segment Weakness

Applied Materials reported second-quarter fiscal 2025 revenue of $7.10 billion, up 7% year over year but slightly below the consensus estimate of $7.12 billion. Earnings per share came in at $2.39, surpassing analyst expectations by $0.08.

Gross margin was 49.2%, and operating margin reached 30.7%, both up 1.7 percentage points from the prior year. Net income rose 24% to $2.14 billion. Applied Materials generated $1.57 billion in cash from operations and returned $2.00 billion to shareholders through $1.67 billion in share repurchases and $325 million in dividends.

The Semiconductor Systems segment delivered $5.26 billion in revenue, up from $4.90 billion a year earlier but below estimates of $5.32 billion. Revenue from China accounted for 25% of total sales, down from 43% last year, as U.S. export controls continued to weigh on results. The Display segment saw revenue rise to $259 million with a sharp increase in margin to 26.3% from 2.8%.

For the third quarter, Applied Materials expects earnings per share between $2.15 and $2.55, compared to the consensus of $2.31, and revenue in the range of $6.7 billion to $7.7 billion, versus the consensus of $7.2 billion.

Analysts Adjust Price Targets Following Q2 Beat and Cautious Outlook

Needham analyst Charles Shi reiterated a Buy rating and the price target at $195.
Citi analyst Atif Malik kept a Buy rating and raised his price target from $170 to $190.
Evercore ISI analyst Mark Lipacis lowered the price target to $209.
JPMorgan analyst Harlan Sur maintained a Buy rating but cut the price target from $240 to $210.
Morgan Stanley analyst Joseph Moore revised the price target down from $164 to $162.

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

Analyst Toshiya Hari (GOLDMAN SACHS) currently has the highest performing score on AMAT with 22/25 (88%) price target fulfillment ratio. His price targets carry an average of $30.74 (17.95%) potential upside. Applied Materials stock price reaches these price targets on average within 112 days.

Doximity Exceeds Q4 but Issues Below-Consensus Guidance for 2026

Doximity reported financial results with fourth quarter revenue up 17% year-over-year to $138.3 million, beating the consensus estimate of $134.03 million. Earnings per share of $0.38, surpassing analyst expectations of $0.27 by $0.11.

Subscription revenue for the quarter was $131.9 million, while net income grew to $62.5 million, up from $40.6 million a year ago. Adjusted EBITDA increased 24% year-over-year to $69.7 million, representing a margin of 50.4%. Operating cash flow reached $98.5 million, a 54% increase, and free cash flow came in at $97.0 million, up 56% from the prior year.

For fiscal year 2025, Doximity generated revenue of $570.4 million, up 20% from the previous year, with subscription revenue of $543.8 million. Net income rose to $223.2 million, representing a margin of 39.1%. Doximity reported adjusted EBITDA of $313.8 million, up 36% year-over-year, and free cash flow of $266.7 million, a 50% increase.

Looking forward, Doximity expects Q1 fiscal 2026 revenue between $139 million and $140 million, compared to the consensus estimate of $143.4 million. Full-year FY2026 revenue is projected to be in the range of $619 million to $631 million, below the consensus forecast of $639.4 million. Adjusted EBITDA guidance stands at $71 to $72 million for Q1 and $333 to $345 million for the full year.

Analysts Lower Price Targets Following Soft FY2026 Guidance

Canaccord Genuity analyst Richard Close reiterated a Hold rating but reduced the price target from $71 to $50.
Needham analyst Scott Berg maintained a Buy rating but lowered the price target from $82 to $67.
Raymond James analyst Brian Peterson cut the price target from $83 to $65.

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

Analyst Brian Peterson (RAYMOND JAMES) currently has the highest performing score on DOCS with 6/6 (100%) price target fulfillment ratio. His price targets carry an average of $3.77 (4.76%) potential upside. Doximity stock price reaches these price targets on average within 50 days.

Foot Locker Reports Q1 Preliminary Results and Agrees to $2.4 Billion Acquisition

Foot Locker released preliminary results for the first quarter ended May 3, 2025, reporting a net loss of $363 million, compared to a profit of $8 million in the same quarter last year. Noted a 2.6% drop in comparable sales, with North American same-store sales down 0.5%.

Earnings per share fell to a loss of $3.81, compared to earnings of $0.09 in the prior-year period. When excluding impairment and tax-related charges, Foot Locker estimates a smaller loss of $6 million, or $0.07 per share, versus adjusted earnings of $21 million, or $0.22 per share, in the year-ago quarter.

In a separate announcement, Foot Locker confirmed it has agreed to be acquired by DICK’S Sporting Goods in a deal valuing at approximately $2.4 billion. Shareholders will have the option to receive either $24.00 in cash or 0.1168 shares of DICK’S stock for each Foot Locker share. The transaction, unanimously approved by both boards, is expected to close in the second half of 2025.

Mixed Analyst Ratings Amid Acquisition and Earnings News

Barclays analyst Adrienne Yih downgraded from Overweight to Equal-Weight but raised the price target from $14 to $24.
Telsey Advisory Group analyst Cristina Fernandez maintained a Market Perform rating and increased the price target from $20 to $24.
Citi analyst Paul Lejuez raised the price target from $20 to $24.

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

Analyst Jay Sole (UBS) currently has the highest performing score on FL with 9/13 (69.23%) price target fulfillment ratio. His price targets carry an average of $3.63 (20.90%) potential upside. Foot Locker stock price reaches these price targets on average within 147 days.