Selected stock price target news of the day - September 19th, 2024

By: Matthew Otto

Ferguson plc Reports Q4 Revenue Miss and Full Year EPS Decline

Ferguson plc reported full-year financial results, with net sales totaling $29.6 billion, reflecting a slight decline of 0.3% compared to the previous year. This dip was primarily driven by a 2.4% decline in organic sales, partially offset by a 1.8% increase from acquisitions.

Ferguson achieved a gross margin of 30.5%, an improvement of 10 basis points, and maintained an operating margin of 8.9%. Adjusted operating margin for the year stood at 9.5%, down 30 basis points. Ferguson declared total dividends of $3.16 per share, a 5% increase over the prior year, while repurchasing $634 million worth of shares, leaving a repurchase balance of $900 million.

In the fourth quarter, Ferguson’s earnings per share (EPS) of $2.98 exceeded analyst expectations of $2.89 by $0.09. Reported revenue of $7.9 billion, slightly below the consensus estimate of $8.06 billion. Despite a 2% deflation in certain commodity categories, quarterly sales rose by 1.4%.

Operating margin improved to 10.2%, up 20 basis points, while adjusted EPS increased by 7.6%. Ferguson completed four acquisitions during the quarter, contributing to a total investment of $260 million in acquisitions throughout the fiscal year, generating $400 million in annualized revenue. For fiscal 2025, Ferguson anticipates growth, projecting low single-digit sales increases and an adjusted operating margin of 9.0% to 9.5%.

Analysts Adjust Price Targets Following Earnings Beat and Revenue Miss

Wells Fargo analyst Sam Reid maintained an Overweight rating but lowered the price target from $250 to $225.
Citigroup analyst Anthony Pettinari maintained a Neutral rating and raised the price target from $203 to $221.
Barclays analyst Matthew Bouley kept an Overweight rating while increasing the price target from $229 to $245.
UBS analyst John Lovallo maintained a Buy rating and raised the price target from $228 to $236.
RBC Capital analyst Mike Dahl held an Outperform rating and increased the price target from $211 to $219.
Baird analyst David Manthey continued with an Outperform rating and raised the price target from $222 to $225.

Which Analyst has the best track record to show on FERG?

Analyst Zachary Fadem (WELLS FARGO) currently has the highest performing score on FERG with 20/28 (71.43%) price target fulfillment ratio. His price targets carry an average of $28.13 (8.74%) potential upside. Ferguson Plc stock price reaches these price targets on average within 87 days.

Electronic Arts Unveils Long-Term Strategy at First Investor Day in Eight Years

Electronic Arts conducted its first investor day in eight years, where it outlined its long-term strategy and vision. Key highlights from the presentation included plans for The Sims franchise and Battlefield series.

Electronic Arts announced intentions to double annual bookings for The Sims over the next five years, supported by new projects such as a spinoff for a younger audience, a mobile version, and a movie in collaboration with Amazon MGM Studios. The film’s production, led by Margot Robbie’s LuckyChap Entertainment, could drive additional game sales.

For Battlefield, Electronic Arts is preparing a large-scale community test for a new installment set in a modern-day setting, scheduled for early next year. This release will be the first under the leadership of Vince Zampella, known for his work on Call of Duty and Modern Warfare.

TD Cowen analyst Doug Creutz estimates that combined bookings from Electronic Arts’ football titles, Madden NFL and College Football, could exceed $1 billion this fiscal year, compared to $600 million from Madden alone last year. Electronic Arts also anticipates future revenue contributions from upcoming releases in the Star Wars and Marvel franchises.

Analyst Ratings Reflect Diverging Views Amid New Strategic Initiatives

Roth MKM analyst Eric Handler maintained a Neutral rating and set a price target of $154.
Baird analyst Colin Sebastian kept an Outperform rating with a price target of $170.
Morgan Stanley analyst Brian Nowak held an Equal-Weight rating and a price target of $150.
Deutsche Bank analyst Benjamin Soff retained a Hold rating and set a price target of $160.
Benchmark analyst Mike Hickey reiterated a Buy rating with a price target of $163.

Which Analyst has the best track record to show on EA?

Analyst Michael Ng (GOLDMAN SACHS) currently has the highest performing score on EA with 4/4 (100%) price target fulfillment ratio. His price targets carry an average of $-0.94 (-0.62%) potential downside. Electronic Arts stock price reaches these price targets on average within 82 days.

AspenTech Projects Double-Digit Growth and Reaffirms Financial Outlook at 2024 Investor Day

Aspen Technology hosted its 2024 Investor Day, outlining its strategic priorities and financial outlook. CEO Antonio Pietri emphasized AspenTech’s role in assisting customers with the global energy transition and sustainability goals, highlighting ongoing investments in Industrial AI and product adoption.

AspenTech’s multi-year financial outlook projects high-single to double-digit annual contract value (ACV) growth, an ACV margin of 45-47%, and mid-teens free cash flow growth for fiscal 2025.

Financially, AspenTech is positioned to leverage a $15-$16 billion addressable market, focusing on expanding software revenue and improving margins. AspenTech’s recent partnership with Emerson is expected to drive new opportunities and strengthen its R&D capabilities.

Analysts Boost Price Targets Highlight Growth Prospects

Loop Capital analyst Mark Schappel maintained a Buy rating and raised the price target from $204 to $260.
BofA Securities analyst Andrew Obin maintained a Buy rating and increased the price target from $225 to $260.
Piper Sandler analyst Clarke Jeffries kept a Neutral rating but raised the price target from $200 to $217.

Which Analyst has the best track record to show on AZPN?

Analyst Weston Twigg (PIPER SANDLER) currently has the highest performing score on AZPN with 4/5 (80%) price target fulfillment ratio. His price targets carry an average of $-7.2 (-3.54%) potential downside. Aspen Technology stock price reaches these price targets on average within 60 days.