Selected stock price target news of the day - October 06, 2023

By: Matthew Otto

Microsoft Set to Seal Acquisition of Activision Blizzard

Microsoft is reportedly aiming to finalize its $69 billion acquisition of gaming giant Activision Blizzard on October 13, pending approval from Britain’s antitrust regulator, according to sources cited by the Verge. The initial deadline for the deal was set for October 18, but an extension was granted to allow more time for securing approval from UK authorities. Microsoft had previously gained preliminary approval from the Competition and Markets Authority after Activision agreed to sell its streaming rights to Ubisoft Entertainment. If successful, this acquisition would mark the largest deal in the gaming industry, combining Microsoft’s console dominance with Activision’s blockbuster titles like Call of Duty and World of Warcraft. Both Microsoft and Activision Blizzard have not provided immediate comments in response to Reuters’ requests for statements on the matter.

Analyst Bullish on Microsoft, Reiterated Buy Rating

UBS analyst Karl Kierstead reiterated Buy rating and set a $400.00 price target.

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

Analyst Gil Luria (D.A. DAVIDSON) currently has the highest performing score on MSFT with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $59.02 (20.76%) potential upside. Microsoft stock price reaches these price targets on average within 62 days.

Disney Explores Potential Sale of Streaming Business Amidst Growing Competition

Disney is reportedly in talks with Indian billionaires Gautam Adani and Kalanithi Maran, along with private equity firms, to explore the possibility of selling its streaming and television business in India. The discussions are said to be in the early stages, and various options are being considered, including selling some of its Indian operations or a mix of assets from the unit. The move comes amid increasing competition in the Indian streaming market, particularly from Reliance Industries’ JioCinema, which has gained traction through its marketing strategies, including offering free access to the Indian Premier League cricket tournament.

According to Bloomberg News, Disney’s India streaming operations, which were its largest globally by users last year, reported a loss of $41.5 million on revenue of $390 million for the year ending March 2022. The company is facing challenges in the Indian market, and the talks with potential buyers or partners reflect its efforts to adapt and thrive in a rapidly evolving streaming landscape. It remains to be seen how these discussions will unfold and whether a deal will materialize for Disney’s streaming and television business in India.

Analysts Bullish with Buy Ratings and Optimistic Price Targets

Seaport Global analyst David Joyce initiated coverage with a Buy rating and set a Price Target of $93.
Bernstein analyst Laurent Yoon initiated coverage with an Outperform rating and announced a Price Target of $103.

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

Analyst Matthew Thornton (TRUIST) currently has the highest performing score on DIS with 2/11 (18.18%) price target fulfillment ratio. His price targets carry an average of $42 (37.30%) potential upside. Walt Disney Company stock price reaches these price targets on average within 26 days.

Constellation Brands Reports Q2 2024 Earnings

Constellation Brands has reported financial results for the second quarter of fiscal year 2024, showcasing performance in its beer business. The beer segment experienced a 12% increase in net sales, amounting to a $253 million uplift, primarily driven by an 8.7% growth in volume. Modelo Especial achieved double-digit volume growth in tracked channels and an 8.6% increase in depletions, solidifying its position as the leading brand in the U.S. beer market. Overall, the beer business displayed double-digit net sales and operating income growth during the quarter.

On the Wine and Spirits front, Constellation Brands navigated the transformation of its portfolio towards a higher-end market. Despite a decline of 11% in organic net sales for the Wine and Spirits business, strategic investments in premium brands such as Meiomi, Kim Crawford, The Prisoner Wine Company, and Mi Campo proved fruitful. The company remains optimistic about the outlook for Wine and Spirits, expecting an acceleration in net sales growth and operating income growth in the second half of fiscal year 2024, supported by a consumer-led premiumization trend.

Financially, Constellation Brands showcased its commitment to disciplined capital allocation priorities. The company reduced its net leverage ratio to approximately 3.2 times and is on track to achieve its target of around three times. Interest expense for the full year is anticipated to be lower than previous guidance, resulting in higher reported and comparable earnings per share. The company generated free cash flow of $1 billion in the second quarter, despite a 15% decrease compared to the prior year, due to increased capital expenditures related to brewery expansions. Constellation Brands raised its fiscal year 2024 reported EPS guidance to between $9.60 and $9.80 and comparable EPS guidance, excluding Canopy equity and earnings, to be between $12 and $12.20.

Analysts Bullish on Constellation Brands as Price Targets Get Lifted

JP Morgan analyst Andrea Teixeira Affirmed an Overweight rating and increased price target from $307 to $309.
Wedbush analyst Gerald Pascarelli Reiterated an Outperform rating and a $300 price target.
HSBC analyst Carlos Laboy Maintained a Buy rating and raised the price target from $280 to $290.

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

Analyst Carlos Laboy (HSBC) currently has the highest performing score on STZ with 7/8 (87.5%) price target fulfillment ratio. His price targets carry an average of $39.17 (22.62%) potential upside. Constellation Brands stock price reaches these price targets on average within 386 days.