Selected stock price target news of the day - October 4th, 2024

By: Matthew Otto

RPM International Exceeds Q1 EPS Expectations, Reports Record Profitability Despite Revenue Miss

RPM International reported results for the first quarter of fiscal 2025, with net income of $227.7 million, an increase of 13.2% over the prior year, and diluted earnings per share (EPS) of $1.77. Adjusted diluted EPS grew by 12.2% to $1.84, which exceeded the analyst estimate of $1.74 by $0.10.

Despite this earnings beat, RPM’s revenue for the quarter came in at $1.97 billion, slightly below the consensus estimate of $2.01 billion, representing a 2.1% year-over-year decline. RPM also reported EBIT of $303.9 million, up 5.3%, with adjusted EBIT rising 6.3% to $328.3 million, driven by continued execution of its MAP 2025 operational improvement initiatives.

For the first quarter, RPM’s cash flow from operations remained at $248.1 million, though it was lower than the prior year’s $359.2 million. Despite the revenue shortfall, RPM maintained its fiscal 2025 outlook, expecting low-single-digit revenue growth and mid-single- to low-double-digit adjusted EBIT growth.

Analysts Raise Price Targets Amid Strong Q1 Results

Morgan Stanley analyst Vincent Sinisi maintained an Equal-Weight rating while increasing the price target from $107 to $125.
Seaport Global analyst Michael Harrison maintained a Buy rating and raised the price target from $140 to $150.
Wells Fargo analyst Michael Sison continued with an Equal-Weight rating, and lifted the price target from $125 to $134.
JP Morgan analyst Jeffrey Zekauskas retained a Neutral rating but boosted the price target from $120 to $126.
Deutsche Bank analyst David Huang upheld a Buy rating while moving the price target from $132 to $140.
BMO Capital analyst John McNulty reiterated an Outperform rating and elevated the price target from $139 to $149.
RBC Capital analyst Arun Viswanathan maintained a Sector Perform rating and raised the price target from $120 to $126.

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

Analyst Michael Sison (WELLS FARGO) currently has the highest performing score on RPM with 11/11 (100%) price target fulfillment ratio. His price targets carry an average of $7.44 (6.33%) potential upside. RPM International stock price reaches these price targets on average within 180 days.

Humana Faces $4 Billion Market Loss Amid Sharp Decline in Medicare Plan Ratings

Humana reported a decline in enrollments for its Medicare Advantage (MA) plans. Market value plunged by nearly $4 billion, driven by a reduction in the quality rating of one of its MA plans, which represents about half of its total Medicare memberships. The plan’s rating fell from 4.5 to 3.5 stars, based on the Centers for Medicare and Medicaid Services (CMS) evaluation.

The drop in star ratings has major implications for Humana’s revenue and bonus payments for 2026, as these ratings influence both customer enrollment and government reimbursement levels. Humana estimates that only 25% of its Medicare members, or approximately 1.6 million people, will be enrolled in plans with 4+ star ratings in 2025, a stark contrast to the 94% in 2024.

Stephens analyst Scott Fidel downgraded Humana from overweight to equal weight, describing the situation as a worst-case scenario result, driven by a narrow miss on the CMS’s higher industry benchmarks. Oppenheimer analyst Michael Wiederhorn commented that the ratings cut could reduce Humana’s bonus payments by around $3 billion and severely affect enrollment and profit margins by 2026.

Analysts Lower Ratings and Price Targets Following Setback

Piper Sandler analyst Jessica Tassan downgraded from Overweight to Neutral and the price target from $392 to $274.
Although Deutsche Bank analyst George Hill maintained a Hold rating and lowered the price target from $349 to $250.
Oppenheimer analyst Michael Wiederhorn kept an Outperform rating, yet decreased the price target from $400 to $280.
BofA Securities analyst Kevin Fischbeck downgraded Humana from Neutral to Underperform and the price target from $376 to $247.
Stephens & Co. analyst Scott Fidel cut rating from Overweight to Equal-Weight and the price target from $400 to $250.
Whit Mayo of Leerink Partners shifted from Outperform to Market Perform and the price target from $400 to $250.

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

Analyst George Hill (DEUTSCHE BANK) currently has the highest performing score on HUM with 10/13 (76.92%) price target fulfillment ratio. His price targets carry an average of $-14.62 (-4.02%) potential downside. Humana stock price reaches these price targets on average within 62 days.

Levi Strauss Q3 Results: EPS Exceeds Expectations While Revenue Falls Short

Levi Strauss reported adjusted earnings per share (EPS) of $0.33 for the third quarter of fiscal 2024, exceeding analyst expectations of $0.31 by $0.02. Revenues for the quarter reached $1.52 billion, falling short of the consensus estimate of $1.55 billion.

The Levi’s® brand experienced 5% global growth, with direct-to-consumer (DTC) sales up 10%, while wholesale revenue declined 6%. Despite the challenges in revenue growth, gross margin improved by 440 basis points to 60.0%, driven by lower product costs and favorable sales mix. Performance was mixed across regions, with the Americas down 1%, Europe up 6%, and Asia remaining flat.

For fiscal year 2024, Levi’s maintained its guidance for adjusted diluted EPS to be within the range of $1.17 to $1.27, with the midpoint at $1.22, slightly below the consensus of $1.25. Levi’s expects net revenue growth of approximately 1%, with constant-currency growth projected between 1.5% and 2%.

Analysts Weigh In: Price Targets Adjusted Amid Mixed Ratings

JP Morgan analyst Matthew Boss maintained a Neutral rating but raised the price target from $20 to $21.
TD Cowen analyst Oliver Chen maintained a Buy rating while lowering the price target from $25 to $23.
Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and the price target steady at $26.
Stifel analyst Drew Crum kept a Buy rating yet lowered the price target from $28 to $25.

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

Analyst Ike Boruchow (WELLS FARGO) currently has the highest performing score on LEVI with 8/10 (80%) price target fulfillment ratio. His price targets carry an average of $1.34 (7.18%) potential upside. Levi Strauss stock price reaches these price targets on average within 265 days.