Selected stock price target news of the day - May 24, 2023

By Matthew Otto

 

Agilent Technologies Exceeds Expectations but cuts outlook

Agilent Technologies has reported an impressive Q2 2023, exceeding analyst estimates.

The company posted a revenue of $1.72 billion for the quarter ending April 30, 2023, up 6.8% YoY or 9.5% on a core basis. The GAAP net income was $302 million, corresponding to an EPS of $1.02, a 12% increase YoY. Non-GAAP net income was even higher at $377 million, equating to an EPS of $1.27, also up 12% from Q2 2022.

Looking at the company’s individual sectors, we see strong growth across the board. The Life Sciences and Applied Markets Group (LSAG) experienced a 10% core growth to $968 million, the Agilent CrossLab Group (ACG) reported a 13% core growth to $387 million, while the Diagnostics and Genomics Group (DGG) saw a 3% core growth to $362 million.

However, the company’s guidance for the remainder of 2023 appears cautious. It predicts full-year revenue to fall in the range of $6.93 billion to $7.03 billion, and non-GAAP EPS to be between $5.60 to $5.65. Q3 2023 is expected to see revenues between $1.640 billion to $1.675 billion and a non-GAAP EPS of $1.36 to $1.38.

Wall Street Action

• Matthew Sykes from Goldman Sachs reiterated his Buy rating but reduced the price target from $165 to $141.
• Derik De Bruin from B of A Securities also sustained his Buy rating, but decided to lower the price target from $164 to $144.
• Catherine Schulte at Baird continued to endorse Agilent with an Outperform rating, despite trimming the price target from $174 to $144.
• Daniel Arias from Stifel kept his Hold rating, however, he reduced the price target from $153 to $135.
• Dan Leonard of Wells Fargo continued his Overweight rating, albeit with a price target lowered from $170 to $160. Taking over as street high.
• Patrick Donnelly at Citigroup retained his Neutral stance, but decided to decrease the price target from $150 to $130.
• Jack Meehan from Barclays maintained his Equal-Weight rating, while adjusting the price target from $140 to $135.
• Paul Knight from Keybanc downgraded Agilent from Overweight to Sector Weight.

Looking at AnaChart we see that today’s recommendation changes are a collective capitulation on the Agilent  near term prospects. A similar occurrence happened exactly a year ago after which the stock rebounded and then dropped again.

 

Palo Alto Networks Records Strong Q3 2023 Performance with 24% Revenue Growth, Raises Full-Year Guidance

 

In Q3 of fiscal year 2023, Palo Alto Networks exceeded expectations with an EPS of $1.10, notably higher than the $0.93 predicted by analysts. The company’s revenue for the quarter, at $1.7 billion, was slightly below the consensus estimate of $1.72 billion. Despite this, shares surged by 4% in response.

Looking forward, the company’s outlook for Q4 2023 suggests it aims to outperform consensus estimates once again. Palo Alto Networks anticipates an EPS between $1.26 and $1.30, compared to the forecast of $1.20, and revenue in the range of $1.937 billion to $1.967 billion, versus a consensus estimate of $1.95 billion.

As for the entirety of fiscal year 2023, Palo Alto Networks is also expected to surpass the consensus with an EPS forecast of $4.25 to $4.29, against an estimated $4.02, and projected revenue between $6.88 billion and $6.91 billion, slightly exceeding the consensus of $6.89 billion.

GAAP net income for the quarter was $107.8 million, or $0.31 per share, a substantial improvement compared to the net loss of $73.2 million, or $0.25 per share, for the same quarter in 2022. Non-GAAP net income was $359.4 million or $1.10 per diluted share.

Wall Street Action

• Baird’s Shrenik Kothari sustained an Outperform rating and lifted the price target from $230 to $235.
• Evercore ISI Group’s Peter Levine kept his Outperform rating, while boosting the price target from $215 to $240.
• Wedbush’s Daniel Ives continued an Outperform rating, along with an increase in the price target from $210 to $225. Yesterday Ives kept his $210 in anticipation for the results.
• Credit Suisse’s Sami Badri retained an Outperform rating and escalated the price target from $235 to $260.
• BMO Capital’s Keith Bachman persevered with an Outperform rating and hiked the price target from $228 to $235.
• RBC Capital’s Matthew Hedberg reaffirmed an Outperform rating and incremented the price target from $216 to $232.
• Stifel’s Adam Borg upheld a Buy rating and elevated the price target from $225 to $240.
• Mizuho’s Gregg Moskowitz reiterated a Buy rating, while advancing the price target from $220 to $230.
• BTIG’s Gray Powell sustained a Buy rating and propelled the price target from $240 to $253.
• Wells Fargo’s Andrew Nowinski maintained an Overweight rating and ramped up the price target from $250 to $265, a street high.
• Raymond James’ Adam Tindle held his Outperform rating, along with a rise in the price target from $215 to $230.
• UBS’s Roger Boyd kept a Neutral rating and heightened the price target from $200 to $220.
• JMP Securities’ Trevor Walsh continued a Market Outperform rating and augmented the price target from $230 to $255.
• Barclays’ Saket Kalia preserved an Overweight rating and amplified the price target from $235 to $245.

Looking at AnaChart we see that the stock is enjoying a nice boost in 2023 with most analysts lifting their price targets in advance in February this year or later.

DICK’S Sporting Goods Beats Q1 Earnings Estimates, Stock Rises; Maintains 2023 Outlook

DICK’S Sporting Goods reported higher than expected earnings for the quarter ending on April 29, 2023. The adjusted earnings of $3.40 per share exceeded the consensus estimate of $3.18 per share. The same-store sales matched analysts’ expectations with a gain of 3.4%.

The retailer, specializing in sports equipment and apparel, retained its forecast of earnings per share between $12.90 and $13.80 for this year. The consensus among analysts was for an EPS of $13.38.

 

The company retired a total of $59 million under the Convertible Senior Notes, and it continues to forecast full-year earnings per diluted share to be within the range of $12.90 to $13.80 for the year 2023, which includes approximately $0.20 for the 53rd week. In terms of comparable store sales, DICK’S Sporting Goods expects a range of flat to positive 2.0%.

The company also reported total net sales of $2,842 million, a 5.3% increase from $2,700 million in the previous year. Net income increased by 17% to $305 million from $261 million.

DICK’S Sporting Goods, Inc. reaffirmed its outlook for 2023, anticipating capital expenditures between $670 to $720 million on a gross basis and $550 to $600 million on a net basis. The company is forecasting a flat to 2.0% positive change. The number of stores under the DICK’S Sporting Goods and specialty concept stores categories is 728 and 135, respectively, making a total of 863 stores.

 

Wall Street Action

 

• Loop Capital analyst Anthony Chukumba has maintained a Hold rating but lowered his price target from $150 to $135.
• TD Cowen analyst John Kernan has maintained an Outperform rating and raised the price target from $160 to $171.
• Wells Fargo analyst Kate Fitzsimons has maintained an Equal-Weight rating and lowered the price target from $146 to $140.
• Citigroup analyst Paul Lejuez has maintained a Neutral rating however he lowered his price target from $144 to $135.
• Baird analyst Justin Kleber has maintained a Neutral rating and kept the price target at $140.
• Telsey Advisory Group analyst Joseph Feldman has reiterated an Outperform rating and maintained the price target at $160.
• UBS analyst Michael Lasser has maintained a Neutral rating and lowered the price target from $155 to $150.

 

Opinions on the retail stocks are varied when looking at AnaChart with half of the price targets are at Neutral rating and carry no potential upside while the other half are optimistic. Analyst Warren Cheng from Evercore carries the street high at $200 and Christopher Horvers is the most reserved at $148

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