Selected stock price target news of the day - May 20th, 2024

By: Matthew Otto

Copa Holdings Reports Strong Q1 Financial Results, Exceeds Revenue and EPS Estimates

Copa Holdings reported financial performance in the first quarter of 2024, with a net profit of $176.1 million, or $4.19 per share. The figure surpassed the analyst estimate of $3.36 by $0.83. Revenue for the quarter totaled $893.47 million, also beating the consensus estimate of $869.41 million. This performance came despite the partial grounding of its Boeing 737 MAX 9 fleet in January, which negatively impacted the results by approximately $44 million.

Operating profit stood at $216 million with an operating margin of 24.2%, an increase of 1.9 percentage points from the previous year. Capacity increased by 8% year-over-year to 7.1 billion available seat miles, while the load factor remained at 86%. However, passenger yields decreased by 3.8% to $0.14, and unit revenue dropped by 4.6% to $0.125. Despite these declines, unit costs improved by 6.9% to $0.095, driven primarily by lower jet fuel prices, maintenance, and distribution costs. Excluding fuel, CASM decreased by 2% to $0.061.

Copa Holdings’ balance sheet reported a total assets close to $5.2 billion and cash, short-term, and long-term investments totaling over $1.1 billion, representing 32% of the last 12 months’ revenues. Debt stands at $1.7 billion, with an adjusted net debt to EBITDA ratio of 0.5 times and an average debt cost of 3.5%.

Looking ahead, Copa plans to expand its network to 85 destinations in 32 countries, with new routes launching to Raleigh-Durham, Tulum, and Florianópolis. Copa reaffirms its full-year guidance, expecting an operating margin of 21% to 23% and a 10% growth in capacity. Additionally, Copa announced a $1.61 per share dividend to be paid on June 14 and executed $40 million of its share repurchase program in Q1.

Analysts Raise Price Targets Following Q1 Earnings

TD Cowen analyst Helane Becker maintained a Buy rating and increased the price target from $145 to $160.
Raymond James analyst Savanthi Syth maintained a Strong Buy rating and raised the price target from $165 to $168.
Evercore ISI Group analyst Duane Pfennigwerth maintained an Outperform rating and upgraded the price target from $150 to $165.

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

Analyst Duane Pfennigwerth (EVERCORE) currently has the highest performing score on CPA with 3/4 (75%) price target fulfillment ratio. His price targets carry an average of $55.64 (50.88%) potential upside. Copa Holdings stock price reaches these price targets on average within 87 days.

DXC Technology’s Disappointing Fourth Quarter Results Signal Continued Struggles Ahead

DXC Technology has released its fourth-quarter earnings report. While it managed to beat analyst expectations with an EPS of $0.97, exceeding the forecasted $0.83 by $0.14, its revenue for the quarter came in at $3.39 billion, only marginally surpassing the consensus estimate of $3.37 billion. This slight revenue uptick fails to mask the broader challenges faced by DXC Technology, as it grapples with a 5.7% year-over-year decline in revenue.

Looking forward, DXC Technology’s guidance for the first quarter of fiscal year 2025 anticipates an EPS forecast between $0.55 and $0.60, lower than the consensus estimate of $0.76. Revenue expectations ranging from $3.1 billion to $3.15 billion also fall short of market consensus of $3.02 billion.

Moreover, DXC Technology’s full-year 2025 projections fall short of market expectations, with an EPS between $2.50 and $3.00, compared to the consensus estimate of $3.30, and revenue projections ranging from $12.67 billion to $12.95 billion, trailing the consensus estimate of $13.65 billion.

Analysts Lower Price Targets Amid Concerns Over Performance

Morgan Stanley analyst James Faucette maintained an Equal-Weight rating but lowered the price target from $21 to $18.
RBC Capital analyst Daniel Perlin maintained a Sector Perform rating and lowered the price target from $24 to $18.
BMO Capital analyst Keith Bachman reiterated a Market Perform rating and downgraded the price target from $23 to $17.5.
Susquehanna analyst James Friedman reiterated a Neutral rating and downgraded the price target from $22 to $15.
Stifel analyst David Grossman maintained a Hold rating yet lowered the price target from $21 to $19.

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

Analyst David Grossman (STIFEL) currently has the highest performing score on DXC with 6/8 (75%) price target fulfillment ratio. His price targets carry an average of $2.48 (15.01%) potential upside. DXC Technology stock price reaches these price targets on average within 64 days.

Gambling.com Q1 Earnings Beat Expectations, But Revenue Falls Short Amidst Uncertainties

Despite reporting earnings that exceeded analyst expectations, Gambling.com Group Limited faced challenges in the first quarter of 2024. While Gambling.com achieved an EPS of $0.20, surpassing the analyst estimate of $0.14 by $0.06, its revenue of $29.2 million fell slightly short of the consensus estimate of $28.69 million.

Gambling.com efforts to attract New Depositing Customers, with over 107,000 acquired, the growth rate of 22% is slower than in previous periods. Additionally, revenue growth was uneven across regions, with North American revenue, the company’s primary market, only managing a 5% increase, while other regions such as Europe and Rest of the World saw an increase of 39% and 29% respectively.

Looking forward, Gambling.com Group Limited’s guidance for fiscal year 2024 offers a cautious outlook, with projected revenue in the range of $129 million to $133 million. Although this forecast exceeds the consensus estimate of $130.9 million, the narrower-than-expected range may indicate uncertainties in the company’s growth trajectory.

Analysts Lower Price Targets Amidst Market Uncertainties

B. Riley Securities analyst David Bain maintained a Buy rating while lowering the price target from $14.5 to $13.
Craig-Hallum analyst Ryan Sigdahl maintained a Buy rating and lowered the price target from $15 to $12.
Stifel analyst Jeffrey Stantial reiterated a Buy rating and downgraded the price target from $16 to $13.

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

Analyst Jeffrey Stantial (STIFEL) currently has the highest performing score on GAMB with 2/4 (50%) price target fulfillment ratio. His price targets carry an average of $5 (62.50%) potential upside. Gambling.com Group Limited stock price reaches these price targets on average within 127 days.