Selected stock price target news of the day - September 06, 2023

By: Matthew Otto

 

Amgen’s Acquisition of Horizon Therapeutics Impacts Future Pharmaceutical Industry Deals

The Federal Trade Commission (FTC) recently allowed Amgen to proceed with its $27.8 billion acquisition of Horizon Therapeutics under a settlement agreement. This decision has prompted various responses from analysts and experts in the pharmaceutical industry.

 

According to William Blair analyst Matt Phipps, the settlement is seen as beneficial for the proposed $43 billion acquisition of cancer drug developer Seagen by Pfizer. He anticipates that this acquisition may now proceed more smoothly, with a potential closing at the end of the year or early 2024. Truist analyst Robyn Karnauskas also views the settlement as positive for the overall mergers and acquisitions (M&A) space within the pharmaceutical sector.

 

However, some analysts and M&A experts remain cautious. They believe that the settlement agreement might not dissuade the FTC from scrutinizing other large buyouts in the industry in the future. Additionally, there is speculation that the restrictions imposed on Amgen as part of the settlement could set a precedent for similar rules in upcoming pharmaceutical deals. The FTC’s increased activity in challenging unlawful practices and its commitment to antitrust scrutiny within the pharmaceutical sector have raised questions about the potential impact on future M&A transactions.

 

Analysts Offer Differing Views on Amgen’s Outlook

  • HSBC analyst Morten Herholdt initiated a Buy rating and a Price Target of $320.
  • Truist Securities analyst Robyn Karnauskas reiterated a Hold rating and a $260 price target.

 

Analyst Gregory Renza (RBC) currently has the highest performing score on AMGN with 12/12 (100%) price target fulfillment ratio. His price targets carry an average of $9.5 (5.69%) potential upside. Amgen stock price reaches these price targets on average within 190 days. 

 

 

 

Zscaler Reports Financial Performance in Q4 and FY 2023

Zscaler has announced its fiscal year 2023 fourth-quarter and full-year earnings, revealing its financial growth. In Q4, the company reported a 43% increase in revenue, reaching $455 million, with a balanced growth rate across all verticals, customer segments, and geographies. For the entire fiscal year, Zscaler’s revenue surged by 48% to $1.6 billion, accompanied by a 37% growth in billings, which crossed the $2 billion mark. These results reflect Zscaler’s strong unit economics, boasting an 80% gross margin and a record 19% operating profit margin.

 

The company added a record number of $1 million ARR customers in the quarter. Moreover, Zscaler’s focus on emerging products, such as ZDX and Zscaler for Workloads, contributed to 18% of new business in fiscal 2023, with expectations of this contribution increasing to over 20% in fiscal 2024. These emerging products are seen as vital drivers of future growth, along with the company’s growing data protection segment, which is approaching a $0.25 billion annual recurring revenue (ARR).

 

Zscaler’s guidance for fiscal 2024 includes an expected revenue range of $2.05 billion to $2.065 billion, representing year-over-year growth of approximately 27% to 28%. The company also anticipates further improvements in operating margin and earnings per share, demonstrating its commitment to delivering value to both shareholders and customers.

 

Analysts Bullish as Price Targets Rise with Positive Ratings

  • Stephens & Co. analyst Brian Colley reaffirmed an Overweight rating and a price target of $190.
  • BMO Capital analyst Keith Bachman maintained an Outperform rating and raised the price target from $175 to $180.
  • Oppenheimer analyst Ittai Kidron reiterated an Outperform rating and increased the price target from $180 to $190.
  • Needham analyst Alex Henderson reiterated a Strong Buy rating and a $210 price target.

 

Analyst Alex Henderson (NEEDHAM) currently has the highest performing score on ZS with 15/27 (55.56%) price target fulfillment ratio. His price targets carry an average of $48.46 (33.73%) potential upside. Zscaler stock price reaches these price targets on average within 69 days.

 

 

 

Asana’s Q2 Fiscal Year 2024 Earnings Report: Revenue Growth and Positive Free Cash Flow

Asana’s financial results for the second quarter of fiscal year 202 reported a total revenues of $162.5 million, reflecting a 20% year-over-year growth. Revenues from customers spending $5,000 or more on an annualized basis grew by 24% year-over-year, representing 74% of the company’s total revenues. Additionally, Asana had 553 customers spending $100,000 or more annually, with this cohort experiencing a 20% year-over-year growth.

 

Operating loss for the quarter was $10.4 million, with an operating loss margin of 6%, showing a substantial 40 percentage point improvement compared to the same period the previous year. The company also achieved its first positive free cash flow quarter since going public, with positive free cash flow amounting to $14.6 million, equivalent to a margin of 9%.

 

Asana Receives Mixed Analyst Ratings and Price Targets

  • Oppenheimer analyst George Iwanyc maintained an Outperform rating and a price target of $28.
  • Piper Sandler analyst Brent Bracelin reiterated a Neutral rating and a price target of $24.

 

Analyst Brent Bracelin (PIPER SANDLER) currently has the highest performing score on ASAN with 13/17 (76.47%) price target fulfillment ratio. His price targets carry an average of $5.06 (22.45%) potential upside. Asana stock price reaches these price targets on average within 53 days.

 

 

 

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