Selected stock price target news of the day - October 25th, 2023

By: Matthew Otto

TransUnion Q3 2023: Growth Despite Challenges

In its recent Third Quarter Earnings Conference Call, TransUnion disclosed a 3% organic growth for Q3 2023. In the US Financial Services sector, September witnessed a 5% decline after a 3% and 1% growth in July and August, respectively. On the international front, TransUnion demonstrated resilience with a 11% revenue growth in constant currency, led by India’s 31% growth and double-digit growth in Canada and Asia Pacific.

While insurance experienced low single-digit growth, tenant and employment screening saw a decline as the company recalibrated solutions for long-term competitiveness. The public sector, media, tech, retail, and e-commerce verticals, however, showcased growth. Neustar, despite facing macroeconomic headwinds, achieved a 7% revenue growth in the quarter. The company is actively managing its cost structure, having prepaid $225 million of debt in the first nine months of 2023.

Analyst Mixed Ratings and Revised Targets Reflect Market Uncertainty

Goldman Sachs analyst Toni Kaplan Maintained Neutral rating and lowered the price target from $85 to $73.
Morgan Stanley analyst Toni Kaplan Reiterated Overweight rating and reduced the price target from $93 to $70.
Evercore ISI Group analyst David Togut Downgraded from Outperform to In-Line.
BofA Securities analyst Heather Balsky: Downgraded from Buy to Underperform and the price target from $95 to $44.
Needham analyst Kyle Peterson Maintained Buy rating and lowered price target from $92 to $75.

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

Analyst Ashish Sabadra (RBC) currently has the highest performing score on TRU with 7/11 (63.64%) price target fulfillment ratio. His price targets carry an average of $10.7 (13.34%) potential upside. TransUnion stock price reaches these price targets on average within 139 days.

Microsoft’s Q1 Earnings with $56.52B Revenue

Microsoft’s fiscal first-quarter earnings reported an earnings per share of $2.99 exceeded the LSEG consensus estimate of $2.65. Additionally, Microsoft surpassed revenue expectations, reporting $56.52 billion compared to the consensus estimate of $54.50 billion.

The Intelligent Cloud segment, which includes Azure, reported revenue of $24.26 billion, marking a 19% year-over-year growth. Azure’s revenue alone, although not disclosed in dollars, experienced a 29% increase during the quarter. Deutsche Bank analyst Brad Zelnick commended Microsoft’s consistent execution and emphasized the significance of the anticipated full launch of Microsoft’s AI product, Copilot, in November. Zelnick raised the price target from $380 to $395, citing results and Microsoft’s operating discipline in delivering AI solutions.

While Barclays analyst Raimo Lenschow acknowledged Microsoft’s first-quarter results as good as it can get, he adjusted the price target slightly from $425 to $421. Lenschow pointed to the impact of higher capital expenditures on Microsoft’s estimated free cash flow. However, he highlighted the growing contribution of AI to Azure’s second-half growth as a crucial discussion point.

Analysts Offer Varied Outlooks on Microsoft

Barclays analyst Raimo Lenschow Maintained an Overweight rating and lowered the price target from $425 to $421.
Wedbush analyst Daniel Ives Reiterated an Outperform rating and a $400 price target.
Oppenheimer analyst Timothy Horan Reiterated an Outperform rating and a $410 price target.
Goldman Sachs analyst Heather Bellini Kept a Buy rating and raised the price target from $400 to $450.
Piper Sandler analyst Brent Bracelin Maintained an Overweight rating and increased the price target from $400 to $425.

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

Analyst Andrew Marok (RAYMOND JAMES) currently has the highest performing score on MSFT with 6/7 (85.71%) price target fulfillment ratio. His price targets carry an average of $41.89 (16.08%) potential upside. Microsoft stock price reaches these price targets on average within 94 days.

Texas Instruments’ Semiconductor Challenges and U.S. Manufacturing Bet

Texas Instruments faces a challenging market as it revealed a revenue forecast for the current quarter between $3.93 billion to $4.27 billion—below the consensus estimate of $4.5 billion. It has seen an 11% decrease year-to-date, reflecting concerns over semiconductor demand. KeyBanc analyst John Vinh noted continued weakness in end markets, particularly in industrial sectors and communications equipment, while maintaining an Overweight rating but lowering the target price from $200 to $180. Vinh’s optimism, however, hinges on Texas Instruments’ strategic investment in 300 mm semiconductor wafers, aiming to reduce manufacturing costs.

Despite the long-term optimism, there are reservations among analysts, notably Bernstein, which reiterated an Underperform rating due to potential overcapacity. Texas Instruments is making a bet on American-made chips with an investment of up to $30 billion in manufacturing facilities in Texas. Oppenheimer analyst Rick Schafer maintained a Perform rating with no target price, citing concerns about underutilization, depreciation, and pricing pressure impacting gross margins in the near to medium-term.

Analyst RatingsReflect Divergent Views Amidst Challenges

Barclays analyst Blayne Curtis Maintained an Equal-Weight rating and lowered the price target from $175 to $165.
Benchmark analyst Cody Acree Reiterated a Buy rating and a price target of $210.
Goldman Sachs analyst Toshiya Hari Kept a Sell rating and lowered the price target from $157 to $137.
Morgan Stanley analyst Joseph Moore Maintained an Underweight rating and reduced the price target from $156 to $138.
Keybanc analyst John Vinh Reiterated an Overweight rating and lowered the price target from $200 to $180.

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

Analyst Vijay Rakesh (MIZUHO) currently has the highest performing score on TXN with 22/25 (88%) price target fulfillment ratio. His price targets carry an average of $10.07 (10.07%) potential upside. Texas Instruments stock price reaches these price targets on average within 119 days.