Selected stock price target news of the day - November 5th, 2024

By: Matthew Otto

Charter Communications Reports 1.6% Revenue Growth and Strong Cash Flow in Q3 2024

Charter Communications reported third-quarter revenue growth of 1.6%, reaching $13.8 billion, above analyst expectations of $13.66 billion. Adjusted EBITDA grew 3.6% year-over-year, while net income attributable to Charter shareholders remained steady at $1.3 billion.

Despite the challenging environment, Charter reported fewer-than-expected broadband losses, with a decline of 110,000 internet customers, well below the 267,020 forecasted. Spectrum Mobile continued its growth trajectory, adding 545,000 new lines, while the video segment saw a decline of 294,000 subscribers, alongside a reduction of 288,000 in wireline voice customers.

Charter’s capital expenditures for the quarter totaled $2.6 billion, down approximately $400 million from last year, as Charter revised its full-year forecast to $11.5 billion. Free cash flow increased to $1.6 billion, marking an improvement of around $520 million year-over-year.

Charter also repurchased nearly 850,000 shares for $260 million, averaging $311 per share. Leverage ratio remained at 4.22 times net debt to last 12-month adjusted EBITDA, with total debt standing at $95.1 billion.

Analysts Raise Price Targets Amid Revenue Growth and Customer Shifts

Deutsche Bank analyst Bryan Kraft maintained a Hold rating, while raising the price target from $340 to $365.
RBC Capital analyst Jonathan Atkin reiterated a Sector Perform rating and raised the price target from $345 to $390.
JP Morgan analyst Sebastiano Petti held a Neutral stance, with an increased price target from $385 to $400.
Wells Fargo analyst Steven Cahall kept an Equal-Weight rating but lifted the price target from $350 to $400.
Barclays analyst Kannan Venkateshwar maintained an Underweight rating and raised the target from $300 to $315.
Morgan Stanley analyst Benjamin Swinburne retained an Equal-Weight rating while increasing the price target from $360 to $415.
BofA Securities analyst Jessica Ehrlich upgraded from Neutral to Buy and the price target from $385 to $450.

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

Analyst Steven Cahall (WELLS FARGO) currently has the highest performing score on CHTR with 12/14 (85.71%) price target fulfillment ratio. His price targets carry an average of $-27.36 (-7.25%) potential downside. Charter Communications stock price reaches these price targets on average within 58 days.

Wayfair Misses Revenue Growth Target in Q3 Despite Beating EPS Expectations

Wayfair reported its third-quarter 2024 financial results, with an EPS of $0.22, surpassing analyst estimates of $0.13 by $0.09. Total net revenue for the quarter reached $2.9 billion, slightly above the consensus estimate of $2.87 billion. This revenue marks a 2.0% decline from the previous year’s $2.94 billion.

The U.S. segment contributed $2.5 billion, a 2.3% year-over-year decrease, while international revenue remained stable at $372 million. Gross profit amounted to $873 million, or 30.3% of total net revenue, compared to $917 million in Q3 2023.

Wayfair recorded a net loss of $74 million, showing improvement from the $163 million net loss in the prior year, with Non-GAAP Adjusted EBITDA reaching $119 million, up from $100 million in Q3 2023.

Wayfair’s active customer base was 21.7 million as of September 30, 2024, a decrease of 2.7% year-over-year, while LTM net revenue per active customer increased by 1.3% to $545. Repeat customers accounted for 79.9% of all orders delivered, slightly above last year’s 79.7%.

Average order value rose to $310, up from $297 in the previous year, while the total number of orders delivered dropped 6.1% to 9.3 million. Net cash provided by operating activities was $49 million, although Free Cash Flow remained negative at $9 million. With a cash position of $1.3 billion and additional revolving credit, Wayfair reported total liquidity of $1.9 billion.

Analysts Adjust Ratings as Price Targets Drop Amid Q3 Revenue Challenges

Deutsche Bank analyst Lee Horowitz maintained a Buy rating but lowered the price target from $69 to $46.
RBC Capital analyst Steven Shemesh continued with a Sector Perform rating and adjusted the price target from $53 to $50.
Wedbush analyst Seth Basham maintained an Outperform rating and lowered the price target from $50 to $45.
BMO Capital analyst Brian Pitz held a Market Perform rating while reducing the price target from $58 to $50.
Citigroup analyst Ygal Arounian kept a Buy rating yet cut the price target from $70 to $54.
Stifel analyst Mark Kelley maintained a Hold rating and downgraded the price target from $55 to $47.
Truist Securities analyst Youssef Squali held a Buy rating and decreased the price target from $60 to $55.
Mizuho analyst David Bellinger retained an Outperform rating, adjusting the price target from $65 to $60.
Baird analyst Colin Sebastian maintained a Neutral rating and lowered the price target from $56 to $50.
Needham analyst Bernie McTernan maintained a Buy rating, revising the price target down from $60 to $50.

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

Analyst Simeon Gutman (MORGAN STANLEY) currently has the highest performing score on W with 21/25 (84%) price target fulfillment ratio. His price targets carry an average of $18.63 (26.10%) potential upside. Wayfair stock price reaches these price targets on average within 105 days.

Waters Corporation Exceeds Q3 Expectations, Raises Full-Year EPS and Sales Guidance

Waters Corporation announced financial results for the third quarter of 2024, reporting sales of $740 million, a 4% increase from $712 million in the same quarter last year. This revenue figure exceeded the consensus estimate of $713.01 million. Waters also delivered earnings with a GAAP diluted earnings per share (EPS) of $2.71 and a non-GAAP EPS of $2.93. This surpassed analyst expectations by $0.25, as analysts had projected EPS of $2.68.

This growth was supported by performance across all reported regions and end markets, particularly in the Pharmaceutical and Industrial sectors, which saw sales increases of 2% and 9%, respectively. Additionally, recurring revenue, combining service and precision chemistries, grew by 6% as reported and 7% in constant currency.

Looking ahead, Waters Corporation has raised its full-year sales guidance, projecting a decline of between -0.8% to -0.2% in reported sales, which includes a 1.3% contribution from the Wyatt acquisition. Waters anticipates fourth-quarter constant currency sales growth of 5% to 7%, with reported sales growth expected between 3.3% and 5.3%. For the full year 2024, Waters expects non-GAAP EPS to range from $11.67 to $11.87, exceeding the consensus estimate of $11.60, reflecting a 3% headwind from foreign exchange.

Analyst Ratings Reflect Positive Momentum with Increased Price Targets

Deutsche Bank analyst Justin Bowers maintained a Hold rating while raising the price target from $310 to $325.
Bernstein analyst Eve Burstein maintained a Market Perform rating, yet raised the price target from $345 to $360.
TD Cowen analyst Dan Brennan kept a Hold rating and increased the price target from $363 to $410.
Stifel analyst Daniel Arias maintained a Hold rating and lifted the price target from $332 to $360.
JP Morgan analyst Rachel Vatnsdal held a Neutral rating, raising the price target from $340 to $380.
Wells Fargo analyst Brandon Couillard maintained an Overweight rating and increased the price target from $380 to $415.
Barclays analyst Luke Sergott maintained an Underweight rating and raised the price target from $330 to $360.

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

Analyst Daniel Arias (STIFEL) currently has the highest performing score on WAT with 4/4 (100%) price target fulfillment ratio. His price targets carry an average of $8.2 (2.53%) potential upside. Waters Corporation stock price reaches these price targets on average within 50 days.