Selected stock price target news of the day - October 23rd, 2024

By: Matthew Otto

Zions Bancorporation Reports 21% Year-Over-Year Earnings Growth and Strategic Branch Acquisition

Zions Bancorporation reported net earnings applicable to common shareholders for the third quarter of 2024 totaling $204 million, or $1.37 per diluted common share. This marks a 21% increase from the $168 million, or $1.13 per share, reported for the same period in 2023 and a 7% rise from the $190 million, or $1.28 per share, reported for the second quarter of 2024.

Net interest margin increased to 3.03%, up from 2.93% in the prior year. Operating costs rose by 1%, while average noninterest-bearing demand deposits decreased by 1.7% compared to the previous quarter but remained flat from the prior quarter’s ending balance. Tangible common equity grew 28% year-over-year and 8% quarter-over-quarter.

Zions also reported a 66% increase in classified loans, mainly due to softer performance in multi-family residential loans, though credit losses remained low, with realized total credit losses at an annualized rate of 0.02% of loans.

Additionally, Zions announced an agreement to acquire four branches from FirstBank in California’s Coachella Valley, adding approximately $730 million in deposits and $420 million in loans. Upon regulatory approval, these branches will become part of California Bank & Trust.

Analysts Raise Price Targets Following Growth and Expansion

Barclays analyst Jason Goldberg maintained an Underweight rating and raised the price target from $47 to $52.
Morgan Stanley analyst Ken Zerbe kept an Equal-Weight rating and increased the price target from $54 to $56.
Wells Fargo analyst Mike Mayo continued with an Equal-Weight rating while lifting the price target from $50 to $54.
Wedbush analyst David Chiaverini held a Neutral rating and boosted the price target from $52 to $55.
Keefe, Bruyette & Woods analyst Christopher Mcgratty maintained a Market Perform rating and increased the price target from $53 to $56.
Goldman Sachs analyst Ryan Nash reiterated a Neutral rating and raised the price target from $52 to $59.
Stephens & Co. analyst Terry McEvoy maintained an Equal-Weight rating and upgraded the price target from $53 to $55.
RBC Capital analyst Jon Arfstrom kept a Sector Perform rating and lifted the price target from $55 to $57.
Baird analyst David George held a Neutral rating and upgraded the price target from $52 to $55.

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

Analyst Steven Alexopoulos (JPMORGAN) currently has the highest performing score on ZION with 14/19 (73.68%) price target fulfillment ratio. His price targets carry an average of $5.79 (12.01%) potential upside. Zions Bancorporation stock price reaches these price targets on average within 243 days.

CDC Links E. Coli Outbreak to McDonald’s Quarter Pounder; 49 Cases Reported Across 10 States

The Centers for Disease Control and Prevention (CDC) has linked an E. coli outbreak to McDonald’s Quarter Pounder burgers, resulting in 49 reported cases across 10 states, with most illnesses occurring in Colorado and Nebraska.

The outbreak has led to 10 hospitalizations, one death, and one case of hemolytic uremic syndrome, a severe condition that can cause kidney failure. The CDC stated that the actual number of cases is likely higher, as some people recover without seeking medical care or testing. The outbreak occurred between September 27 and October 11, and the investigation is ongoing.

In response, McDonald’s has temporarily removed slivered onions, which are suspected to be the source of contamination, from Quarter Pounders in affected areas. McDonald’s is also pausing sales of the Quarter Pounder in several Western states, including Colorado, Kansas, Utah, and Wyoming, while working with suppliers to replenish ingredients. Other menu items, such as the Big Mac and cheeseburger, remain unaffected as they use a different onion product.

Mixed Analyst Reactions: Downgrades and Adjusted Price Targets

Guggenheim analyst Gregory Francfort downgraded from Buy to Neutral and announced a $285 price target.
Baird analyst David Tarantino downgraded from Outperform to Neutral and the price target from $320 to $290.
Wedbush analyst Nick Setyan reiterated an Outperform rating and a $295 price target.
TD Cowen analyst Andrew Charles reiterated a Hold rating and a $300 price target.
BofA Securities analyst Gregory Francfort maintained a Neutral rating but lowered the price target from $322 to $321.
Barclays analyst Jeffrey Bernstein maintained an Overweight rating and raised the price target from $300 to $325.

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

Analyst John Ivankoe (JPMORGAN) currently has the highest performing score on MCD with 24/25 (96%) price target fulfillment ratio. His price targets carry an average of $-6.69 (-2.25%) potential downside. McDonald’s stock price reaches these price targets on average within 213 days.

W. R. Berkley Reports Q3 2024 Results with Record Net Income and Revenue Exceeding Estimates

W.R. Berkley Corporation reported a 9.6% increase in net income for the third quarter of 2024, reaching $365.6 million, up from $333.6 million in the same period last year. Earnings per share (EPS) came in at $0.91, slightly below the analyst estimate of $0.92.

Net investment income grew by 19.5% to $323.8 million, benefiting from higher interest rates and favorable equity markets. Net premiums written rose by 7.3% to $3.06 billion, reflecting business demand and easing recession concerns. Revenue for the quarter totaled $3.4 billion, exceeding the consensus estimate of $2.93 billion. Return on equity (ROE) stood at 19.6%, with an operating return on equity of 20.0%.

The combined ratio for the quarter was 90.9%, up slightly from 90.2% a year ago, demonstrating continued underwriting performance despite a modest 3.3 loss ratio points from catastrophe events. Gross premiums written grew 8.4% year-over-year to $3.63 billion.

Analysts Upgrades and Target Adjustments Amid Q3 Performance

B of A Securities analyst Joshua Shanker maintained a Buy rating and raised the price target from $73 to $76.
Wells Fargo analyst Elyse Greenspan kept an Overweight rating while increasing the price target from $63 to $68.
UBS analyst Brian Meredith maintained a Buy rating and lifted the price target from $67 to $69.
RBC Capital analyst Scott Heleniak has a Sector Perform rating and raised the price target from $57 to $63.
Keefe, Bruyette & Woods analyst Meyer Shields retained a Market Perform rating but lowered the price target from $59 to $58.
Evercore ISI Group analyst David Motemaden maintained an In-Line rating and increased the price target from $57 to $60.

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

Analyst Michael Zaremski (BMO) currently has the highest performing score on WRB with 6/6 (100%) price target fulfillment ratio. His price targets carry an average of $6.5 (12.62%) potential upside. W. R. Berkley Corporation stock price reaches these price targets on average within 138 days.