Selected stock price target news of the day - October 31st, 2023

By: Matthew Otto

XPO Q3 2023 Delivers Growth and Strategic Milestones

XPO financial performance in the third quarter of 2023 reported a year-over-year revenue increase, reaching $2 billion, a 2% rise. Adjusted EBITDA reached $278 million, marking a 6% growth. XPO’s strategic focus on LTL 2.0 has yielded improvements in key performance metrics. Customer service enhancements were evident in the quarter, with the claims ratio for damages dropping to 0.4%, a marked improvement from the 1.2% recorded at the launch of LTL 2.0 two years ago. On-time performance soared with an eight-percentage-point improvement compared to the previous year.

Investments in the network have been strategic and impactful, with additions such as 10,000 trailers, 2,000 tractors, and over 500 net new doors. The commitment to network expansion is evident in the allocation of more than two-thirds of the 2023 CapEx to increase fleet capacity. This has resulted in a tangible reduction in third-party linehaul miles, with a 21% year-over-year decrease in purchase transportation costs.

Analysts Raise Price Targets for Costco Amid Positive Outlook

BMO Capital’s Fadi Chamoun maintained an Outperform rating and raised the price target from $87 to $100.
Morgan Stanley’s Ravi Shanker reiterated an Equal-Weight rating and increased the price target from $68 to $70.
Stephens & Co.’s Jack Atkins maintained an Equal-Weight rating and raised the price target for XPO from $80 to $86.
Jefferies analyst Stephanie Moore upgraded from Hold to Buy and the price target from $81 to $95.

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

Analyst Fadi Chamoun (BMO) currently has the highest performing score on XPO with 5/7 (71.43%) price target fulfillment ratio. His price targets carry an average of $10.1 (20.12%) potential upside. XPO Logistics stock price reaches these price targets on average within 23 days.

Pinterest’s Q3 Earnings: Revenue and User Growth

Pinterest has reported financials in its Q3 2023 Earnings Report with a total revenue reaching $763 million, showcasing an 11% increase on both reported and constant currency bases. Monthly active users also surged by 8% year-over-year, hitting an all-time high of 482 million. The success is attributed to the platform’s strategic initiatives, including a focus on making Pinterest more shoppable and deepening user engagement.

The company’s adjusted earnings per share for Q3 stood at 28 cents, surpassing the Wall Street consensus of 21 cents. Pinterest’s outlook for the fourth quarter remains positive, with anticipated revenue growth in the range of 11% to 13% year-over-year. This guidance positions the company to potentially achieve a Q4 revenue of $982 million, marking a continued trajectory of accelerated year-over-year revenue growth throughout 2023. The company’s commitment to cost discipline is evident in its adjusted EBITDA margin expansion, reaching 24% in Q3, a notable improvement of 13 percentage points from the previous year.

Analyst Gives Mixed Ratings as Price Targets Adjust

Morgan Stanley’s Brian Nowak maintained at Equal-Weight and raised the price target from $24 to $25.
Wedbush analyst Scott Devitt kept at Neutral Rating and adjusted the price target upward from $30 to $32.
BofA Securities analyst Justin Post upgraded from Neutral to Buy and set a new price target of $37.
Keybanc analyst Justin Patterson maintained an Overweight rating and increased the price target from $35 to $37.

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

Analyst Barton Crockett (ROSENBLATT) currently has the highest performing score on PINS with 5/7 (71.43%) price target fulfillment ratio. His price targets carry an average of $2.31 (8.58%) potential upside. Pinterest stock price reaches these price targets on average within 23 days.

McDonald’s Global Sales Surge Amidst California Wage Hike Challenges

McDonald’s has surpassed Wall Street expectations in its Q3 2023 Earnings Call results, reporting a global comparable sales growth of 8.8% for the quarter ending September 30, 2023. This figure exceeded analysts’ predictions of a 7.36% rise, according to LSEG data. Despite facing challenges related to minimum wage increases in California, where wages for restaurant workers are set to rise to $20 per hour next year, McDonald’s remains optimistic about its sales momentum and has expanded the availability of smaller, budget-friendly meal bundles.

The introduction of menu items like the Cheesy Jalapeno Bacon quarter pounder and the return of the Spicy Chicken McNuggets has contributed to McDonald’s performance. Analysts, including Wells Fargo’s Zachary Fadem, acknowledge the company’s solid setup for 2024, emphasizing the value, affordability, and consistency that the McDonald’s brand brings to consumers. Adjusted per-share profit of $3.19, beating estimates of $3.00, further underscores the financial outlook for the fast-food giant.

Analysts Offer Varied Perspectives, Adjusting Ratings and Price Targets

BMO Capital analyst Andrew Strelzik maintained an Outperform rating and lowered the price target from $340 to $325.
DZ Bank analyst Katharina Schmenger upgraded from Hold to Buy and announced a new price target of $300.
Wedbush analyst Nick Setyan reiterated an Outperform rating and the price target at $310.
Stephens & Co. analyst Joshua Long maintained an Overweight rating and lowered the price target from $325 to $300.

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

Analyst Joshua Long (STEPHENS) currently has the highest performing score on MCD with 7/9 (77.78%) price target fulfillment ratio. His price targets carry an average of $26.67 (12.01%) potential upside. Mcdonald’s stock price reaches these price targets on average within 163 days.