Selected stock price target news of the day - September 20, 2023

By: Matthew Otto

Disney Announces $60 Billion Investment in Parks and Resorts

Walt Disney is gearing up for an investment in its parks division, announcing plans to nearly double its capital expenditure to approximately $60 billion over the next decade. Disney’s parks, experiences, and products segment has shown steady growth, with a 6% annual expansion rate since fiscal 2017, generating $32.3 billion in operating income over the past year.

While domestic parks, especially Walt Disney World in Florida, faced attendance and occupancy challenges, the international parks thrived, contributing to a 13% revenue increase to $8.3 billion in the third quarter. Disney’s future park expansions aim to tap into untapped storytelling opportunities, with plans for “Frozen” and “Zootopia”-themed attractions in locations such as Hong Kong, Paris, Tokyo, and Shanghai.

This investment comes amid ongoing legal disputes between Disney and Florida Governor Ron DeSantis. Disney’s lawsuit against DeSantis alleges political retaliation, and while the legal battle continues, the entertainment giant remains committed to expanding its Florida theme park over the next decade, pledging $17 billion and the potential creation of 13,000 jobs.

Analysts Offer Mixed Views on Walt Disney’s Stock Outlook

Needham analyst Laura Martin maintained a Hold rating.
BofA Securities analyst Jessica Ehrlich maintained a Buy rating but lowered the price target from $135 to $110.
Truist Securities analyst Matthew Thornton reiterated a Buy rating and a $105 price target.

Analyst Matthew Thornton (TRUIST) currently has the highest performing score on DIS with 2/12 (16.67%) price target fulfillment ratio. His price targets carry an average of $21.82 (18.11%) potential upside. Walt Disney stock price reaches these price targets on average within 25 days.

AutoZone’s Fiscal Year 2023: Sales and Expansion Plans

AutoZone has reported financial results for its fiscal year 2023. The company reported a total sales growth of 7.4%, reaching $17.5 billion. Notably, their earnings per share (EPS) increased by 12.9%, underlining their consistent financial strength.

A key highlight was the growth in AutoZone’s domestic average weekly sales per store, which surged from $35,600 in 2019 to $47,300 in 2023, marking a 33% increase. This performance translated into a 61% growth in operating profit, totaling $3.474 billion in 2023, when adjusted for the 53rd week in 2019. AutoZone’s international segment also showed a 14.9% comp on a constant currency basis, signaling their successful expansion beyond the U.S. market.

Looking ahead to fiscal year 2024, AutoZone has outlined a strategy, with plans to accelerate its global store development. Over the next five years, the company aspires to open up to 500 new stores, with a focus on both domestic and international markets. Additionally, AutoZone aims to intensify its efforts to grow its domestic commercial business, leveraging its high returns on invested capital (ROIC) of over 50%.

Analysts Maintain Positive Outlook with Adjusted Price Targets

Morgan Stanley’s Simeon Gutman maintained an Overweight rating and lowered the price target from $2,835 to $2,750.
JP Morgan’s Christopher Horvers reiterated an Overweight rating and raised the price target from $2,950 to $2,975.
Barclays’ Seth Sigman kept an Overweight rating and increased the price target from $2,721 to $2,742.

Analyst Michael Baker (DAVIDSON) currently has the highest performing score on AZO with 34/39 (87.18%) price target fulfillment ratio. His price targets carry an average of $32 (4.23%) potential upside. AutoZone stock price reaches these price targets on average within 128 days.

Endava Reports Fiscal Year 2023 Results with $1.07 Billion in Revenue

Endava reported financial performance for its fiscal year 2023, achieving a revenue milestone of $1.07 billion USD. This represents a substantial 21.4% year-on-year increase from the previous fiscal year’s revenue of $884.2 million USD, highlighting the company’s growth trajectory.

Despite facing headwinds in specific sectors, such as banking and financial services, Endava remains confident in its long-term outlook. In preparation for fiscal year 2024, the company has strategically invested in key areas like artificial intelligence (AI) accelerators and synthetic data generation. For the upcoming fiscal year, Endava expects to continue its growth momentum, aiming for revenue in the range of $780 million to $795 million USD, reflecting a constant currency growth projection of 1% to 3%.

Analysts Adjust Price Targets for Endava Amid Market Dynamics

Morgan Stanley analyst James Faucette maintained an Overweight rating and lowered the price target from $72 to $68.
Needham analyst Mayank Tandon reiterated a Buy rating and revised the price target to $65 from the previous $68.

Analyst Bryan Keane (DEUTSCHE BANK) currently has the highest performing score on DAVA with 11/12 (91.67%) price target fulfillment ratio. His price targets carry an average of $-0.93 (0.88%) potential downside. Endava stock price reaches these price targets on average within 35 days.