Selected stock price target news of the day - June 05, 2023

By Matthew Otto

Five Below Upgraded Revenue and Profit Forecasts

Five Below has announced their first quarter financial results for fiscal 2023 last Friday. The Philadelphia-based company has shown growth across key areas:

Net Sales: Five Below’s net sales have seen an increase of 13.5%, rising from $639.6 million in Q1 2022 to $726.2 million in Q1 2023.
Comparable Sales: The company also recorded an increase of 2.7% in comparable sales, along with a 3.9% increase in comparable transactions.
EPS: The earnings per share (EPS) rose by 13.6% to $0.67.
Store Openings: Five Below opened 27 new stores in Q1 2023, ending the quarter with a total of 1,367 stores in 43 states, an 11.6% increase from Q1 2022.
Operating Income & Net Income: The company saw a slight increase in operating income to $42.4 million, and net income saw a more substantial rise from $32.7 million in Q1 2022 to $37.5 million in Q1 2023.
Effective Tax Rate: Five Below reported an effective tax rate of 18.6%, which is lower compared to the 22.3% from Q1 2022.

Joel Anderson, President and CEO, expressed satisfaction with the results, particularly highlighting the 3.9% comp transaction increase. Anderson also shared the company’s ambitious plans for the remainder of 2023, which include opening over 200 new stores and completing over 400 conversions to the new Five Beyond prototype.

For the second quarter of fiscal 2023, the company expects net sales to range from $755 million to $765 million, with net income projected to be between $44 million to $48 million. The full year outlook for fiscal 2023 indicates expected net sales in the range of $3.50 billion to $3.57 billion and net income between $297 million to $319 million.

Wall Street Action

Craig-Hallum analyst Jeremy Hamblin maintains a Buy rating, but has lowered the price target from $235 to $224.
Deutsche Bank analyst Krisztina Katai also maintains a Buy rating, raising the price target slightly from $238 to $239.
Roth MKM analyst David Bellinger continues to rate Five Below as a Buy, while adjusting the price target down from $240 to $225.
Truist Securities analyst Scot Ciccarelli holds a Buy rating but has reduced the price target from $224 to $222.
JP Morgan analyst Matthew Boss has a lower price target at $200, while Guggenheim analyst John Heinbockel reiterated a Buy rating with a $220 price target.

Not all analysts are positive on the Five Below stock. Anthony Chukumba of Loop Capital is more on the reserved side with a $200 price target and a hold rating

Analyst Scot Ciccarelli of Truist has currently the highest performing score on FIVE with 22/23 (95.65%) price target fulfillment ratio. His price targets carry on average an $39.45 (21.61%) potential upside and are fulfilled within an average of 116 days.

Anticipation of Apple’s Mixed-Reality Headset Launch and Potential AI Strategy Reveal

Apple prepares for several product launches, including the much-anticipated mixed-reality headset.

The mixed-reality headset, reported to include high-definition screens and high-powered cameras enabling user interaction with the real world, marks Apple’s significant venture into a technology sphere that has seen some disappointment. The hype around VR and metaverse technologies, highlighted by Facebook’s rebranding as Meta in 2021, hasn’t lived up to expectations in terms of sales and usage. However, given Apple’s extensive customer base, range of apps, variety of platforms, and track record for must-have products, their entry into the metaverse could prove pivotal.

Apple is also expected to unveil its VR/AR headset at the Worldwide Developers Conference. Some suggest this move might be a strategic play to compete with Meta Platforms if the metaverse concept proves to be the next big thing.

Interestingly, the market appears to be even more excited about Apple’s potential advancements in artificial intelligence (AI), despite the company not making any recent statements on this front.

Analysts Maintain Optimistic Outlook on Apple

Wedbush analyst Daniel Ives maintains an Outperform rating, keeping the price target at $205.
Bank of America Securities analyst Wamsi Mohan maintains a Neutral rating, but raises the price target from $176 to $190.
Evercore ISI Group analyst Amit Daryanani maintains an Outperform rating, increasing the price target from $190 to $210.
Morgan Stanley analyst Erik Woodring reiterates an Overweight rating, with a price target of $190.

Most analysts are bullish on the mega stock besides few such as Barclays analyst Tim Long who has an Equal Weight rating and a $145 price target.

Analyst David Vogt of UBS has currently the highest performing score on MDB with 17/22 (77.27%) price target fulfillment ratio. His price targets carry on average an $27.87 (19.75%) potential upside and are fulfilled within average of 90 days.

Day One Reports Positive Trial Results for Tovorafenib in Pediatric Brain Cancer

Day One Biopharmaceuticals has released new data from the registrational Phase 2 FIREFLY-1 trial evaluating tovorafenib (DAY101), an investigational drug developed for the treatment of pediatric low-grade glioma (pLGG). This type of brain tumor is the most common in children, and there are currently no approved systemic therapies for the majority of patients with pLGG.

The Phase 2 trial enrolled 77 patients aged 6 months to 25 years with relapsed or progressive pLGG. According to the data presented at the American Society of Clinical Oncology (ASCO) Annual Meeting 2023, the trial demonstrated promising results, with 67% overall response rate (ORR) by Response Assessment for Neuro-Oncology High-Grade Glioma (RANO-HGG) criteria.

Day One has also initiated a rolling New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA). This means that the company can submit parts of the regulatory application for review by the FDA as they become available, rather than waiting to complete the entire application. This process can expedite the review and potential approval of new drugs. The company expects the rolling NDA submission of tovorafenib to be complete by October 2023.

Analysts maintain optimism on Day One prospects

Wedbush analyst Robert Driscoll reiterated an Outperform rating and maintained a $38 price target.
Needham analyst Ami Fadia reaffirmed a Buy rating and kept the $40 price target.
HC Wainwright & Co. analyst Andres Maldonado maintained a Buy rating and raised the price target from $45 to $50.

Despite holding opinions that reflect over a 100% potential upside on average from the current stock price, it should be highlighted that no analyst’s price target for Day One Biopharmaceuticals has come to fruition since initiating coverage. Consequently, all analysts have a performance score of zero on AnaChart for the Day One Biopharmaceuticals stock.