Selected stock price target news of the day - October 16th, 2023

By: Matthew Otto

Tesla Faces Earnings Challenge as Profit Margins Decline

Tesla is set to release its third-quarter earnings report, with Wall Street expecting earnings per share of approximately 73 cents, down from the earlier estimate of 77 cents. Despite delivering 435,000 vehicles in Q3, Tesla fell short of Wall Street estimates by about 20,000 units. Piper Sandler analyst Alexander Potter reducing the target on Tesla stock to $290 from $300. The long-range Model Y’s price is down roughly 25%, contributing to a decline in automotive gross profit margins from 30% in Q1 2022 to 18% in Q2. Analyst Dan Ives anticipates automotive gross profit margins to be around 17% for Q3.

Tesla Price Targets Reflect Divergent Analyst Views

Piper Sandler’s Alexander Potter maintained a Buy rating and reduced price target from $300 to $290.
Wedbush’s Dan Ives held a Buy rating and a $350 price target.

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

Analyst George Galliers (GOLDMAN) currently has the highest performing score on TSLA with 7/8 (87.5%) price target fulfillment ratio. His price targets carry an average of $-4.27 (-4.03%) potential downside. Tesla stock price reaches these price targets on average within 81 days.

Pfizer’s Guidance Cut Amidst Covid Challenges

Pfizer revised its revenue guidance for the year, now anticipating a range between $58 billion and $61 billion, down from the previous estimate of $67 billion to $70 billion. This adjustment follows a significant decline in vaccination rates, impacting the demand for Pfizer’s Covid-19 treatments. The company has announced a noncash charge of $5.5 billion in the third quarter, with $4.6 billion allocated to writing off Paxlovid and $900 million to other inventory.

BMO Capital Markets analyst Evan David Seigerman, have revised Pfizer’s price target to $33 from $44. Seigerman maintained an Outperform rating on the stock but highlighted the need for management to clarify its strategy in light of the evolving Covid-related business landscape. Meanwhile, analysts Andrew Baum at Citi maintained a Neutral rating. Baum viewed the guidance revision as a potentially significant event for the stock. Wells Fargo analysts, led by Mohit Bansal, noted that while weaker demand might surprise investors, the guidance adjustment is seen as a step toward recovery for Pfizer.

Analyst Sentiments Diverge on Pfizer

Jefferies analyst Akash Tewari upgraded from Hold to Buy rating and the price target of $39, up from $38.
BMO Capital’s Evan David Seigerman maintained an Outperform rating and revised the price target down to $33 from $44.
Wells Fargo analyst Mohit Bansal lowered the price target to $35.
Citi’s Andrew Baum maintained a Neutral rating.

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

Analyst Carter Gould (BARCLAYS) currently has the highest performing score on PFE with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $3.15 (8.56%) potential upside. Pfizer stock price reaches these price targets on average within 90 days.

Netflix Faces Pricing Dilemma: Analysts React

UBS analyst John Hodulik revised his target price for Netflix from $525 to $500 while maintaining a Buy rating on the stock. Hodulik anticipates that Netflix will announce the addition of approximately six million subscribers in the third quarter, projecting growth for the fourth quarter. However, he cautioned that margin expansion might be moderate, pointing to an expectation of flat Average Revenue Per User (ARPU) for Q3 due to limited price increases. Hodulik suggests that growth may accelerate in the coming year with the accretion from paid sharing and potential new price adjustments.

Netflix’s pricing strategy is under scrutiny as it treads the fine line between margin expansion and the risk of subscriber loss. Last week, Wolfe Research analyst Peter Supino downgraded Netflix, expressing concerns that higher prices could impact growth in 2024-25. Consumer sentiment appears to be shifting, with data from HundredX suggesting that rising streaming costs have led some customers to reconsider cable providers. The net favorability ratings for cable TV have seen an improvement since May, coinciding with a decline in favorability toward Netflix and Disney’s Disney+ based on pricing considerations.

Analyst Adjusts Netflix Target Price

UBS Analyst John Hodulik Maintained a Buy Rating and Lowered Price Target to $500.

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

Analyst Matthew Thornton (TRUIST) currently has the highest performing score on NFLXwith 27/29 (93.1%) price target fulfillment ratio. His price targets carry an average of $59.38 (15.39%) potential upside. Netflix stock price reaches these price targets on average within 195 days.