Selected stock price target news of the day - November 26th, 2024

By: Matthew Otto

MicroStrategy Boosts Bitcoin Holdings with Largest Purchase to Date

MicroStrategy continued its Bitcoin acquisition strategy, purchasing $5.4 billion worth of the cryptocurrency from November 18 to November 24. This acquisition was financed through a $3 billion convertible debt issuance and $2.46 billion in new equity sales.

According to its 8-K filing on Monday, MicroStrategy acquired approximately 55,500 Bitcoin, marking its largest single purchase and bringing its total holdings to 386,700 Bitcoin. At current Bitcoin prices of $95,000, this positions MicroStrategy as the largest corporate holder of the cryptocurrency.

MicroStrategy has invested nearly $12 billion in Bitcoin since October 31, facilitated by equity sales through nine securities firms and the convertible bond offering. MicroStrategy now owns nearly 2% of the 20 million Bitcoin in circulation.

MicroStrategy’s valuation remains, standing at approximately $101 billion based on its 230.5 million outstanding shares. Including $7 billion in debt, MicroStrategy’s adjusted valuation is about 2.7 times the value of its Bitcoin holdings.

Analysts Raise Price Targets Amid Bitcoin Acquisition

TD Cowen analyst Lance Vitanza maintained a Buy rating while raising its price target from $392 to $525.
Barclays analyst Ramsey El-Assal reiterated an Overweight rating and lifted the price target from $275 to $515.
Benchmark analyst Mark Palmer reaffirmed a Buy rating but also increased the price target from $450 to $650.
Bernstein analyst Gautam Chhugani upheld an Outperform rating and raised the price target from $290 to $600.
Canaccord Genuity analyst Joseph Vafi kept a Buy rating and revised the price target from $300 to $510.

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

Analyst Mark Palmer (BENCHMARK) currently has the highest performing score on MSTR with 11/11 (100%) price target fulfillment ratio. His price targets carry an average of $35 (8.43%) potential upside. MicroStrategy stock price reaches these price targets on average within 237 days.

Summit Materials Faces Scrutiny Over $11.5 Billion Sale to Quikrete

Summit Materials announced it has entered into a definitive agreement to be acquired by Quikrete Holdings for $52.50 per share in cash. This transaction values Summit at approximately $11.5 billion, including debt, representing a 36% premium to Summit’s unaffected 90-day volume-weighted average price (VWAP) and a 29% premium to its unaffected share price.

The deal, unanimously approved by both companies’ boards, will combine Summit’s cement and ready-mix concrete operations with Quikrete’s concrete and cement-based products portfolio. Upon completion, expected in the first half of 2025, Summit will become a privately held subsidiary of Quikrete. Cementos Argos, Summit’s largest shareholder, has committed to voting its shares in favor of the transaction.

However, questions have been raised regarding the fairness of the sale price. Legal firm Wohl & Fruchter LLP is investigating the transaction, citing the minimal 1.6% premium to Summit’s last closing price of $51.66 on November 22, 2024. Additionally, the $52.50 per share sale price falls below pre-announcement price targets set by several top analysts: Philip Ng at Jefferies – $58, Garik Shmois at Loop Capital – $54, and Michael Dahl at RBC Capital – $54.

While Summit’s management highlights the value created since implementing its “Elevate” strategy in 2020, which delivered a 34.6% annualized return, the investigation questions whether the board acted in shareholders’ best interests and fully disclosed all relevant details.

Analyst Downgrades Signal Concerns Over Acquisition

Citigroup analyst Anthony Pettinari downgraded from Buy to Neutral while lowering the price target at $52.50, from $55.
Loop Capital analyst Garik Shmois shifted his rating from Buy to Hold and reduced the price target from $54 to $52.50.
Longbow Research analyst David Macgregor downgraded from Buy to Neutral.
JP Morgan analyst Adrian Heurta downgraded from Overweight to Neutral but raised the price target from $43 to $52.50.
RBC Capital analyst Mike Dahl downgraded from Outperform to Sector Perform and the price target from $54 to $52.50.

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

Analyst Brent Thielman (D.A. DAVIDSON) currently has the highest performing score on SUM with 10/10 (100%) price target fulfillment ratio. His price targets carry an average of $1.46 (3.69%) potential upside. Summit Materials stock price reaches these price targets on average within 199 days.

Semtech Corporation Exceeds Q3 FY2025 Estimates and Provides Upbeat Q4 Guidance

Semtech Corporation reported net sales of $236.8 million for the third quarter of fiscal year 2025, ending October 27, 2024. This represents a 10% sequential increase and a 17.9% year-over-year rise, exceeding the consensus estimate of $232.89 million. Data center net sales reached a record $43.1 million, up 58% sequentially.

Semtech reported a GAAP gross margin of 51.1%, up 210 basis points from the prior quarter, and a non-GAAP gross margin of 52.4%, reflecting an improvement of 200 basis points. Adjusted EBITDA was $51.1 million, yielding a margin of 21.6%, up 280 basis points.

Operating expenses totaled $103.2 million on a GAAP basis and $80.6 million on a non-GAAP basis, while interest expenses were $20.3 million on GAAP and $18.4 million on non-GAAP. Non-GAAP diluted EPS was $0.26, surpassing the analyst estimate of $0.23, while GAAP diluted loss per share was $0.10.

For Q4 FY2025, Semtech projects revenue between $245 million and $255 million, compared to a consensus forecast of $242.2 million. Non-GAAP gross margin is expected to be 52.8% ± 50 basis points, with operating expenses anticipated at $82.8 million ± $1.0 million. Non-GAAP diluted EPS is forecasted in the range of $0.29 to $0.35, above the consensus estimate of $0.27. Semtech also expects an adjusted EBITDA margin of 22.8% ± 70 basis points.

Analysts Raise Price Targets Following Q3 FY2025 Results

Stifel analyst Tore Svanberg maintained a Buy rating and increased the price target from $58 to $65.
Piper Sandler analyst Harsh Kumar reaffirmed an Overweight rating and raised the price target from $60 to $75.
Northland Capital Markets analyst Gus Richard kept an Outperform rating while lifting the price target from $46 to $60.
Needham analyst Quinn Bolton maintained a Buy rating and increased the price target from $50 to $70.
Roth MKM analyst Scott Searle held a Buy rating and raised the price target from $50 to $60.

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

Analyst Tore Svanberg (STIFEL) currently has the highest performing score on SMTC with 13/14 (92.86%) price target fulfillment ratio. His price targets carry an average of $7.57 (17.84%) potential upside. Semtech Corporation stock price reaches these price targets on average within 221 days.