Selected stock price target news of the day - September 07, 2023

By: Matthew Otto

First Solar’s Financial Performance and Analyst Confidence

First Solar is stepping into the spotlight as it prepares for its first analyst day in five years. In its recent second-quarter earnings report, First Solar surpassed Wall Street expectations with an earnings per share (EPS) of $1.60, outpacing the consensus estimate of $0.97. The quarter also saw the company rake in $1.46 billion in revenue, driven by increased sales volumes and higher average selling prices, which showcased a substantial year-over-year growth.

Analysts are buoyed by these strong financial indicators, with Baird Equity’s Ben Kallo naming First Solar his “favorite name in the solar space.” He maintains an Outperform rating on the stock and has set a price target of $229. Meanwhile, Morgan Stanley’s Andrew Percoco upgraded First Solar from Underweight to Equal Weight, accompanied by a raised price target of $206, emphasizing the significance of the company’s contract backlog in de-risking its earnings profile through 2026.

Positive Analyst Feedback with Upgraded Price Targets

Morgan Stanley analyst Andrew Percoco has upgraded from Underweight to Equal-Weight and the price target from $180 to $206.
Roth MKM analyst Philip Shen has reiterated a Buy rating and a $230 price target.

Analyst Gordon Johnson (GLJ) currently has the highest performing score on FSLR with 4/9 (44.44%) price target fulfillment ratio. His price targets carry an average of $-24.36 (-23.55%) potential downside. First Solar stock price reaches these price targets on average within 54 days.

Roku Announces Workforce Reduction and Cost-Cutting Measures to Enhance Financial Health

Roku has announced significant workforce reductions, affecting approximately 10% of its employees, equivalent to about 360 people. This cost-cutting move is part of Roku’s ongoing efforts to curtail its operating expenses. The company disclosed these measures in a regulatory filing, emphasizing their intent to reduce year-over-year operating expense growth. Despite these layoffs, Roku seems optimistic about its financial prospects, raising its adjusted third-quarter revenue outlook to a range of $835 million to $875 million, up from the previous estimate of $815 million. Furthermore, Roku has adjusted its third-quarter guidance for adjusted EBITDA to a range of negative $40 million to negative $20 million.

In addition to the job cuts, Roku plans to execute various cost-saving strategies, including consolidating office space, slowing new hiring initiatives, and reducing external service expenses. The company anticipates incurring impairment and restructuring charges in the third quarter, totaling up to $330 million, with a significant portion linked to office facilities and job reductions. Furthermore, Roku plans to remove select licensed and produced content from its TV streaming platform, in line with a “strategic review of its content portfolio,” resulting in an impairment charge of $55 million to $65 million. Roku anticipates the workforce reduction to be largely completed by the end of its fiscal fourth quarter. With 3,600 full-time employees as of December 2022, Roku’s latest cost-cutting measures are aimed at pivoting towards profitability and attracting potential investors.

Analysts Offer Mixed Outlooks and Price Target Updates

Loop Capital’s Alan Gould downgraded from Buy to Hold and set a price target of $85.
Needham analyst Laura Martin maintained a Buy rating and increased the price target from $85 to $100.
Truist Securities analyst Matthew Thornton reiterated a Hold rating and a price target of $80.
Oppenheimer’s Jason Helfstein maintained an Outperform rating and raised the price target from $90 to $110..

Analyst Jason Helfstein (OPPENHEIMER) currently has the highest performing score on ROKU with 22/27 (81.48%) price target fulfillment ratio. His price targets carry an average of $28.1 (20.49%) potential upside. Roku stock price reaches these price targets on average within 94 days.

Verint Systems Q2 2024 Earnings and Operational Highlights

Verint Systems recently disclosed its Q2 Fiscal 2024 financial results during an earnings conference call, providing key financial metrics. The company reported quarterly revenue of $210 million, and with their gross margins expanded by over 70 basis points compared to the previous year.

In terms of Software as a Service (SaaS) metrics, Verint announced New SaaS Annual Contract Value (ACV) bookings of $26.5 million for the quarter, reflecting growth in their cloud-based services. This highlights the increasing demand for their AI-powered solutions. Additionally, the company reported that SaaS Annual Recurring Revenue (ARR) grew by 17% year-over-year.

Verint expects to maintain their earnings guidance and anticipate mid-single-digit growth in both diluted EPS and adjusted EBITDA for the full year. Furthermore, they project continued growth in SaaS revenue, with a full-year outlook of 18% to 20% growth, driven by new bookings and substantial renewals scheduled for Q4.

Analysts Adjust Ratings and Price Targets Amidst Market Trends

Wedbush analyst Daniel Ives maintained an Outperform rating but lowered the price target from $45 to $35.
Evercore ISI Group analyst Peter Levine downgraded from Outperform to In-Line and the price target from $50 to $28.
RBC Capital analyst Dan Bergstrom maintained an Outperform rating and lowered the price target from $46 to $38.
Needham analyst Ryan MacDonald reiterated a Buy rating and reduced the price target from $50 to $40.
Oppenheimer analyst Shaul Eyal downgraded from Outperform to Perform.

Analyst Ryan Macdonald (NEEDHAM) currently has the highest performing score on VRNT with 9/16 (56.25%) price target fulfillment ratio. His price targets carry an average of $8.24 (24.43%) potential upside. Verint Systems stock price reaches these price targets on average within 111 days.