Selected stock price target news of the day - September 21, 2023

By: Matthew Otto

FedEx Reports Q1 Performance with Focus on Efficiency and Profitability

FedEx Corporation has reported financial results for the first quarter of fiscal year 2024, showcasing the growth in adjusted operating income, particularly in the FedEx Ground segment, where adjusted operating income soared by 61%, reaching a record high on an adjusted basis. FedEx Express also demonstrated its efficiency with a 14% increase in adjusted operating income, despite a decline in revenue. Overall, the first-quarter performance has prompted FedEx to raise the low end of its full-year adjusted earnings per share (EPS) outlook by $0.50, now expecting adjusted EPS in the range of $17 to $18.50.

FedEx Ground reported a 3% year-over-year increase in revenue for the first quarter, driven by a 1% rise in volume and a 3% increase in yield. FedEx Express, however, experienced a 9% decline in revenue, primarily due to volume pressures and yield challenges. The international export package volumes at FedEx Express increased by 3% year-over-year. FedEx Freight managed its costs diligently amidst a dynamic volume environment, with an operating margin remaining at 21%, despite a 16% revenue decline.

FedEx’s fiscal year 2024 outlook focuses on improved margins and returns through its DRIVE initiatives and the integration of Network 2.0. The company has demonstrated capital allocation and shareholder returns, with $7.1 billion in cash reserves, continued capital expenditure discipline, and plans to repurchase $1.5 billion in common stock during the fiscal year.

Analysts Raise Price Targets for FedEx on Positive Outlook

Raymond James analyst Patrick Tyler Brown maintained an Outperform rating and raised the price target from $270 to $279.
Citigroup analyst Christian Wetherbee reiterated a Buy rating and increased the price target from $295 to $300.

Analyst Ravi Shanker (MORGAN STANLEY) currently has the highest performing score on FDX with 28/37 (75.68%) price target fulfillment ratio. His price targets carry an average of $-6.34 (-3.76%) potential downside. FedEx Corporation stock price reaches these price targets on average within 285 days.

Darden Restaurants Reports Q1 Earnings, Beat Revenue Expectations

Darden Restaurants has posted first-quarter results reporting an earnings per share of $1.78, beating analysts’ expectations of $1.74, while its revenue for the quarter was $2.73 billion, slightly higher than the expected $2.71 billion. Darden’s same-store sales, excluding Ruth’s Chris, increased by 5% in the quarter. On the other hand, LongHorn reported an 8.1% growth in same-store sales and Olive Garden meeting expectations with a 6.1% increase.

In contrast, Darden’s fine-dining restaurants, which include The Capital Grille and Eddie V’s, saw a decline in same-store sales of 2.8%, wider than the expected 1.8% decline. Darden also reiterated its outlook for fiscal 2024, forecasting net sales of $11.5 billion to $11.6 billion, same-store sales growth of 2.5% to 3.5%, and adjusted earnings per share from continuing operations of $8.55 to $8.85.

Analyst Reiterates Rating and Price Target

Stephens & Co. Analyst Joshua Long Reiterated Overweight Rating with $170 Price Target

Analyst Andrew Strelzik (BMO) currently has the highest performing score on DRI with 21/22 (95.45%) price target fulfillment ratio. His price targets carry an average of $10.2 (18.43%) potential upside. Darden Restaurants stock price reaches these price targets on average within 187 days.

2023 Lululemon Global Wellbeing Report

Lululemon‘s 2023 Global Wellbeing Report reveals figures about the state of wellbeing worldwide. The Global Wellbeing Index has remained stagnant at a score of 66 since 2021. One in three respondents reports their wellbeing is at an all-time low, indicating a persistent Wellbeing Dilemma. Barriers to improvement include 30% lacking time for wellbeing, 51% deprioritizing it due to financial concerns, and 39% feeling societal pressures negatively impact their mental wellbeing. The impact is evident with 58% unable to perform at their best, an average of five workdays and seven school days missed due to low wellbeing, and 48% of men finding it challenging to discuss their mental health. Despite challenges, 77% believe they play a significant role in their wellbeing, and 74% feel institutions should do more, with over half preferring to support brands promoting societal wellbeing.

Analyst Maintains Rating and Price Target

Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating for and a $450 price target.

Analyst Rick Patel (RAYMOND JAMES) currently has the highest performing score on LULU with 14/17 (82.35%) price target fulfillment ratio. His price targets carry an average of $33.6 (13.85%) potential upside. Lululemon stock price reaches these price targets on average within 133 days