Selected stock price target news of the day - November 13th, 2023

By: Matthew Otto

 

Plug Power Faces Financial Struggles

Plug Power revealed its third-quarter earnings, reporting $200 million in sales for the quarter, aligning closely with Wall Street expectations. However, the company highlighted unprecedented supply challenges leading to hydrogen shortages and inflationary costs, contributing to its financial woes. Analysts, including Chris Dendrinos from RBC Capital Markets, estimate that Plug Power may require an additional $750 million or more in liquidity over the next 12 months. Dendrinos lowered the target price and changed the rating to Hold from Buy, emphasizing the need for a liquidity transaction in the near term.

 

Furthermore, Canaccord analyst George Gianarikas acknowledged the widespread supply-chain problems faced by many companies but emphasized the necessity for profitability proof points and operational stabilization before turning more positive on the stock. Plug Power is actively seeking financial support, including a potential loan from the Department of Energy worth $1.5 billion, corporate debt, and partnership deals. Despite these efforts, KeyBanc analyst Sangita Jain cautioned that even if the DOE loan is approved, it might not come soon enough to alleviate short-term liquidity concerns, possibly leading to increased financing costs for the company in the interim. 

 

Analyst Consensus Sours Amidst Financial Challenges

  • BMO Capital’s Ameet Thakkar maintained Market Perform rating and lowered the price target from $8 to $3.75.
  • Jefferies analyst Sam Burwell downgraded from Buy to Hold and set a new price target at $6.
  • Northland Capital Markets analyst Abhishek Sinha downgraded from Outperform to Market Perform and lowered the price target to $7.
  • Oppenheimer’s Colin Rusch downgraded from Outperform to Perform.
  • JP Morgan analyst Paul Coster lowered from Overweight to Neutral and the price target from $10 to $6.
  • Truist Securities’ Jordan Levy reiterated a Hold rating and lowered the price target from $8 to $6.
  • Susquehanna analyst Biju Perincheril maintained a Positive rating and reduced the price target from $13 to $9.

 

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

Analyst Colin Rusch (OPPENHEIMER) currently has the highest performing score on PLUG with 7/7 (100%) price target fulfillment ratio. His price targets carry an average of $0.43 (11.92%) potential upside. Plug Power stock price reaches these price targets on average within 209 days. 

 

 

 

2U Faces Financial Challenges Amidst Contract Terminations

2U reported a third-quarter net loss of $47.4 million, with an adjusted loss per share of 15 cents—exceeding analysts’ expectations of a 13 cent loss. The company revised its full-year revenue forecast to $965 million to $990 million, down from the initial guidance of $985 million to $990 million. Analysts from Cantor Fitzgerald, Brett Knoblauch, downgraded 2U’s stock rating to neutral from overweight, characterizing the company’s actions as a fire sale to stay afloat. The earnings report highlighted 2U’s heavy reliance on one-time payments from universities and the erosion of its core degree business.

 

The troubles for 2U extend beyond financial losses, with the company laying off 12% of its staff during the quarter. Furthermore, it grapples with a debt load, amounting to almost $880 million in long-term debt. Analyst Brett Knoblauch expressed apprehension about the company’s viability, noting that 2U’s path to profitability, built on the premise of increased degrees on its platform leading to substantial profits, appears to be faltering. The situation is exacerbated by the termination of contracts with universities, such as the University of Southern California, which is paying $40 million to end its relationship with 2U.

 

Analyst Downgrades as Challenges Mount in Online Education Sector

  • Citigroup analyst Thomas Singlehurst downgraded from Buy to Neutral.
  • Barrington Research analyst Alexander Paris downgraded from Outperform to Market Perform.
  • Morgan Stanley analyst Josh Baer maintained an Equal-Weight rating and lowered the price target from $3 to $2.
  • Needham analyst Ryan MacDonald reiterated a Buy rating and reduced the price target from $9 to $3.

 

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

Analyst George Tong (GOLDMAN SACHS) currently has the highest performing score on TWOU with 3/5 (60%) price target fulfillment ratio. His price targets carry an average of $5.18 (43.10%) potential upside. 2U stock price reaches these price targets on average within 23 days.

 

 

 

DoubleVerify’s Q3 Report: 28% YoY Revenue Growth

In the third quarter of 2023, DoubleVerify reported a performance of 28% year-over-year growth in total revenue, reaching $144 million. The growth was attributed to a surge in Advertiser revenue, which includes both Activation and Measurement revenue, growing by 32%. DoubleVerify’s Activation solutions, particularly its premium programmatic product, ABS, played a pivotal role in this success, contributing to a 40% year-over-year increase in revenue.

 

Social revenue witnessed a 56% year-over-year growth in the third quarter, with TikTok alone contributing double the revenue generated in the entirety of 2022. Moreover, DoubleVerify’s international business expansion showed results, with 62% Measurement revenue growth in Q3, bolstered by a 75% revenue surge in EMEA and a 46% increase in APAC. 

 

Analysts Adjust Price Targets Amid Market Dynamics 

  • JMP Securities analyst Andrew Boone maintained a Market Outperform and lowered the price target from $40 to $39.
  • Truist Securities analyst Youssef Squali reiterated a Buy and reduced the price target from $45 to $42.

 

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

Analyst Raimo Lenschow (BARCLAYS) currently has the highest performing score on DV with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $5.13 (18.09%) potential upside. DoubleVerify stock price reaches these price targets on average within 86 days.

 

 

 

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