Selected stock price target news of the day - October 11th, 2024

By: Matthew Otto

Costco Reports 9% Sales Growth in September, Boosted by Hurricane Demand and E-Commerce

Costco Wholesale Corporation reported net sales of $24.62 billion for the five weeks ending October 6, 2024, representing a 9.0% increase compared to $22.59 billion during the same period last year.Total comparable sales rose by 6.7%, with the U.S. seeing a 6.5% increase, Canada a 5.7% rise, and Other International regions growing by 8.5%.

E-commerce sales surged by 22.9%, reflecting continued strength in online demand. Excluding the impacts of gasoline prices and foreign exchange, total comparable sales grew by 8.9%, with U.S. sales up 9.3%, Canada by 6.3%, and Other International by 9.6%. Costco noted that approximately 2% of the U.S. sales growth and 1.5% of the global increase were influenced by heightened consumer activity related to Hurricane Helene and east coast port strikes.

Citi analyst, Paul Lejuez, acknowledged the positive impact of recent events but maintained a Neutral rating on the stock, citing concerns over valuation at 31x FY25 EBITDA. Telsey Advisory Group analyst, Joseph Feldman, however, maintained an Outperform rating, noting that U.S. traffic increased by 7.6%, with non-food categories such as jewelry, gift cards, and home furnishings seeing sales growth in the low teens. Food and sundries grew by high single digits, while fresh foods rose by low double digits.

Analysts Adjust Price Targets Amid Strong Sales Performance

Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating and a $1,000 price target.
DA Davidson analyst Michael Baker kept a Neutral rating and an $880 price target.
Oppenheimer analyst Rupesh Parikh reaffirmed an Outperform rating and raised the price target from $955 to $980.
Evercore ISI Group analyst Greg Melich upheld an Outperform rating and increased the price target from $985 to $990.
Stifel analyst Mark Astrachan maintained a Buy rating and lifted the price target from $925 to $935.

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

Analyst Krisztina Katai (DEUTSCHE BANK) currently has the highest performing score on COST with 17/19 (89.47%) price target fulfillment ratio. His price targets carry an average of $87.57 (10.43%) potential upside. Costco Wholesale Corporation stock price reaches these price targets on average within 147 days.

PepsiCo Exceeds Earnings Expectations but Lowers Full-Year Revenue Outlook Amid Sales Decline

PepsiCo reported its third-quarter earnings with adjusted earnings per share (EPS) of $2.31, exceeding analyst expectations of $2.29. However, revenue came in at $23.32 billion, falling short of the $23.9 billion estimate.

PepsiCo’s net income for the quarter was $2.93 billion, or $2.13 per share, compared to $3.09 billion, or $2.24 per share, in the same period last year. Organic revenue increased by 1.3%, but overall net sales decreased by 0.6%.

PepsiCo revised its 2024 organic revenue growth outlook to a low-single-digit increase, down from its previous forecast of 4%. Despite this, PepsiCo maintained its projection for at least 8% core constant currency EPS growth.

PepsiCo’s North American beverage and snack volumes fell by 3% and 2%, respectively, with a notable 13% drop in Quaker Foods North America due to the impact of recalls. International markets also faced disruptions due to geopolitical tensions. For the full fiscal year 2024, PepsiCo anticipates core EPS of at least $8.15, slightly above the $8.14 consensus.

Analysts Downgrade Amid Revenue Miss and Lowered Outlook

TD Cowen analyst Robert Moskow downgraded from Buy to Hold and the price target from $190 to $183.
Barclays analyst Lauren Lieberman maintained an Overweight rating, yet lowered the price target from $186 to $183.
JP Morgan analyst Andrea Teixeira maintained a Neutral stance while reducing the price target from $185 to $183.
Deutsche Bank analyst Steve Powers kept a Hold rating, but lowered the price target from $180 to $179.
RBC Capital analyst Nik Modi reiterated a Sector Perform rating and the price target at $176.

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

Analyst Kaumil Gajrawala (JEFFERIES) currently has the highest performing score on PEP with 11/15 (73.33%) price target fulfillment ratio. His price targets carry an average of $38.1 (23.53%) potential upside. PepsiCo stock price reaches these price targets on average within 169 days.

Applied Digital Exceeds Revenue and EPS Estimates Amid Robust Growth Initiatives

Applied Digital Corporation reported revenue of $60.7 million for the fiscal first quarter 2024. This marks a 67% increase compared to the same period last year and exceeding the consensus estimate of $54.85 million.

Despite the revenue growth, Applied Digital incurred a net loss of $4.2 million, translating to a net loss per share of $0.03. The adjusted net loss for the quarter was $21.6 million, with an adjusted net loss per diluted share of $0.15, which included $4.4 million in expenses for facilities and equipment that had not yet begun generating revenue.

Notably, the reported EPS of ($0.15) was $0.12 better than the analyst estimate of ($0.27). Adjusted EBITDA for the quarter was reported at $20.0 million, compared to $9.9 million in the previous fiscal year.

Operationally, Applied Digital raised $160 million from institutional investors, including NVIDIA and Related Companies. This funding is expected to enhance capabilities in high-performance computing (HPC), particularly with the recent addition of two new clusters to its Cloud Services Business, raising the total to six clusters, each equipped with 1,024 GPUs.

Applied Digital is also finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW HPC facility currently under construction in Ellendale, North Dakota, which aims to support artificial intelligence applications. Data center facilities in Jamestown and Ellendale were operating at full capacity, and Applied Digital plans to increase its HPC capacity to 400 MW with two additional buildings in the design phase.

Analyst Positive Upgrades and Price Target Increases

Lake Street analyst Rob Brown maintained a Buy rating and raised the price target from $7 to $11.
Roth MKM analyst Darren Aftahi reiterated a Buy rating and the price target at $10.
Craig-Hallum analyst George Sutton maintained a Buy rating and increased the price target from $10 to $12.
Needham analyst John Todaro reiterated a Buy rating and the price target at $11.

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

Analyst John Todaro (NEEDHAM) currently has the highest performing score on APLD with 3/14 (21.43%) price target fulfillment ratio. His price targets carry an average of $4.42 (67.17%) potential upside. Applied Digital Corporation stock price reaches these price targets on average within 34 days.