Analysts Stocks

      Selected stock price target news of the day - May 18, 2023

      By Matthew Otto

       

      JACK

      Jack in the Box reported better than expected earnings for the second quarter of 2023, with EPS of $1.47 versus an analyst estimate of $1.21, and revenue for the quarter of $395.7 million, exceeding the consensus estimate of $385.29 million. The company also updated its guidance for the full year, expecting an EPS of $5.90-$6.10, versus the consensus of $5.89.

      For the Jack in the Box brand, the same-store sales increased by 9.5%, with a growth in both average check and traffic for company-operated restaurants. The franchise restaurants had a growth in average check, though it was partially offset by a decline in traffic. For the second quarter, the systemwide sales increased by 9.8%.

      Furthermore, Jack in the Box signed 4 development agreements for 33 future restaurants in Q2, with a significant development agreement for 22 future restaurants in Mexico. They also re-franchised 17 Del Taco restaurants and entered new development agreements to expand both Jack in the Box and Del Taco into Montana and Wyoming for the first time.

      Wall Street Action

      • Loop Capital’s Alton Stump maintains a Buy rating and raises the price target from $114 to $125.
      • Oppenheimer’s Brian Bittner reiterates an Outperform rating and maintains a $108 price target.
      • Stifel’s Chris O’Cull maintains a Hold rating and raises the price target from $86 to $98.
      • Morgan Stanley’s Brian Harbour maintains an Equal-Weight rating and lifts the price target from $90 to $96.
      • Baird’s David Tarantino maintains a Neutral rating and lowers the price target from $88 to $100.
      • Citigroup’s Jon Tower maintains a Neutral rating and raises the price target from $97 to $102.
      • Credit Suisse’s Lauren Silberman maintains an Underperform rating and raises the price target from $80 to $88.
      • Barclays’ Jeffrey Bernstein maintains an Equal-Weight rating and raises the price target from $84 to $99.
      • Wedbush’s Nick Setyan reiterates a Neutral rating and maintains a $95 price target.
      • TD Cowen’s Andrew Charles reiterates a Market Perform rating and maintains a $95 price target.
      • Truist Securities’ Jake Bartlett raised the price target to $111.
      • Citi’s Jon Tower upgrades the price target to $102.
      • Credit Suisse’s Lauren Silberman raised the price target to $88.

      Looking at AnaChart we see that this is change of trend from most the analysts who beforehand kept their price targets closer to the stock price in the recent year.

       

      DT

      Dynatrace. reported their Q4 earnings per share at $0.31, which was $0.09 higher than what analysts had estimated ($0.22). Their revenue for the quarter was $314 million, exceeding the predicted amount of $304.9 million by $9.1 million.

       

      For the Q4 fiscal 2023, total annual recurring revenue (ARR) was $1,247 million with an adjusted ARR growth of 29% YoY. The total revenue stood at $314 million, marking a 27% increase on a constant currency basis. Subscription Revenue was $293 million, marking a 28% increase on a constant currency basis. The GAAP Operating Income was $19 million with non-GAAP Operating Income of $78 million.

      For the full fiscal year 2023, the total revenue was $1,159 million, marking a 29% increase. Subscription revenue was $1,083 million, marking a 29% increase. Operating Income was $93 million and Non-GAAP Operating Income was $292 million. EPS was $0.37 and non-GAAP EPS was $0.97, on a dilutive basis. Operating Cash Flow was $355 million, and the Free Cash Flow was $333 million.

      Wall Street Action

      • Joel Fishbein from Truist Securities maintains a Buy rating and raises the price target from $50 to $55.
      • Matthew Hedberg from RBC Capital reiterates an Outperform rating and maintains a price target of $52.
      • Jake Roberge from William Blair reinstates an Outperform rating.
      • Pinjalim Bora from JP Morgan maintains an Overweight rating and raises the price target from $48 to $53.
      • Yun Kim from Loop Capital maintains a Hold rating and raises the price target from $40 to $50.
      • Andrew Nowinski from Wells Fargo maintains an Overweight rating and raises the price target from $54 to $60 which is a street high.
      • Erik Suppiger from JMP Securities reiterates a Market Outperform rating and maintains a $50 price target.
      • Kingsley Crane from Canaccord Genuity keeps a Buy rating and raises the price target from $51 to $53.
      • Kash Rangan from B of A Securities maintains a Buy rating and raises the price target from $54 to $58.
      • William Power from Baird keeps an Outperform rating and raises the price target from $49 to $53.
      • Gray Powell from BTIG upgrades Dynatrace from Neutral to Buy and announces a $57 price target.
      • Raimo Lenschow from Barclays maintains an Equal-Weight rating and raises the price target from $41 to $48.
      • Mike Cikos from Needham keeps a Buy rating and lifts the price target from $52 to $56.

      Overall a positive reaction with even more conservative looking analysts such as Yun Kim from Loop Capital adjusting higher.

      CSCO

      Cisco Systems reported solid financial results for its fiscal third quarter ending April 29, 2023. The company posted a revenue of $14.6 billion, marking a 14% increase from the same period last year, and adjusted profits of $1 per share, outperforming the expected 11% to 13% revenue growth and earnings of 96 to 98 cents per share on a non-GAAP basis.

      For the fiscal fourth quarter, Cisco has forecasted revenue growth between 14% to 16%, and non-GAAP profits of $1.05 to $1.07 a share, which surpasses Wall Street’s projection of 14.1% growth and profits of $1.04 a share. Full-year revenue is now expected to increase by 10% to 10.5%, and non-GAAP profits are projected at $3.80 to $3.82 a share. This guidance improves on the previous forecast of a 9% to 10.5% growth and profits of $3.73 to $3.78 a share.

      Despite these encouraging results, a 23% decrease in orders was reported, along with a record performance in revenue, cash flow, and profitability. CEO Chuck Robbins emphasized their strong quarter and record revenue growth in software and subscription revenue.

      The company also purchased $1.25 billion of its stock in the quarter and plans to maintain a similar level in the coming July quarter and beyond.

      As for the company’s view on the artificial intelligence (AI) market, Herren noted that AI is already incorporated into many of their security products, collaboration, and networking software. They foresee their networking capabilities playing a key role in training large language models which demand significant computing power. However, he also acknowledged that the AI sector is still in its early stages of development.

      Wall Street Action

      • Piper Sandler – Analyst James Fish maintains a Neutral rating and has reduced the price target from $53 to $51.
      • Oppenheimer – Analyst Ittai Kidron has reiterated an Outperform rating and a price target of $58.
      • Credit Suisse – Analyst Sami Badri continues with an Outperform rating, but has reduced the price target from $69 to $65.
      • Raymond James – Analyst Simon Leopold maintains an Outperform rating and has increased the price target from $63 to $64.
      • Barclays – Analyst Tim Long keeps an Equal-Weight rating, lowering the price target from $52 to $51.
      • Jefferies – Analyst George Notter has lowered the price target for Cisco to $54.

       

      Looking at AnaChart we see that Cisco is struggling to rebound from last years lows of $41, however mosts analysts have their price targets above the stock price which represents a potential upside with Ingo Verman from DZ bank at street high of $100 while analyst James fish of Piper Snadler as mentioned above as the least optimistic look.

       

      Daily stock Analysts Top Price Moves Snapshot