Selected stock price target news of the day - September 26th, 2024

By: Matthew Otto

AutoZone Reports Q4 Sales Growth but Misses EPS and Revenue Expectations

AutoZone reported fourth-quarter net sales of $6.2 billion, representing a 9% increase year-over-year, but below the consensus estimate of $6.23 billion. Adjusted sales growth, excluding the extra week in this year’s quarter, was 2.6%. Same-store sales saw an increase, with domestic stores growing by 0.2%, and international stores rising 4.9%.

Gross profit margin for the quarter decreased to 52.5%, driven by a 53-basis-point non-cash LIFO impact. Operating expenses as a percentage of sales were 31.6%, up from 31.2% last year, primarily due to increased payroll costs. Operating profit improved by 6.1% to $1.3 billion, while net income rose to $902.2 million, up 4.3%. Despite the growth, AutoZone’s earnings per share (EPS) came in at $48.11, missing the analyst estimate of $53.61 by $5.50.

For the full fiscal year, AutoZone achieved $18.5 billion in sales, up 5.9% from the previous year, with gross profit margin improving to 53.1%. AutoZone repurchased 244,000 shares during the quarter for $710.6 million, contributing to a total annual repurchase of $3.2 billion. Additionally, AutoZone opened 117 new stores during the quarter, bringing its total store count to 7,353.

Analysts Adjust Price Targets Following Q4 Earnings Miss and Sales Growth

Citigroup analyst Steven Zaccone maintained a Buy rating but lowered the price target from $3,787 to $3,500.
Guggenheim analyst Steven Forbes maintained a Buy rating and raised the price target from $3,225 to $3,350.
Mizuho analyst David Bellinger held an Outperform rating and increased the price target from $3,280 to $3,350.
UBS analyst Michael Lasser continued with a Buy rating while raising the price target from $3,340 to $3,500.
Evercore ISI Group analyst Greg Melich retained an Outperform rating, though lowered the price target from $3,350 to $3,300.
Truist Securities analyst Scot Ciccarelli kept a Buy rating but reduced the price target from $3,394 to $3,341.
Morgan Stanley analyst Simeon Gutman maintains an Overweight rating and lifts the price target from $3,038 to $3,125.

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

Analyst Seth Basham (WEDBUSH) currently has the highest performing score on AZO with 34/37 (91.89%) price target fulfillment ratio. His price targets carry an average of $159.91 (5.26%) potential upside. AutoZone stock price reaches these price targets on average within 157 days.

Duolingo Unveils New AI-Powered Features and Expands Music Education at Duocon 2024

At Duocon 2024, Duolingo announced product innovations aimed at enhancing its learning platform for its 74 million monthly active users. The new AI-powered Video Call feature, available for Duolingo Max subscribers, enables real-time language practice with the character Lily in English, Spanish, and French.

This feature is designed to adapt to users’ skill levels, offering a personalized and low-pressure practice environment. In addition, Duolingo introduced the Adventures feature, a game-like experience where learners can apply language skills in realistic scenarios, such as navigating passport control or ordering coffee..

Duolingo also expanded its music education offerings through a partnership with Loog, a musical instrument brand. Together, they will release a three-octave digital piano, priced at $249, to support Duolingo’s growing Music course. Additionally, Duolingo partnered with Sony Music to allow users to practice along with popular songs, broadening the appeal of its music curriculum.

Analyst Ratings and Target Increases Following Product Innovations

JP Morgan analyst Bryan Smilek maintained an Overweight rating and raised the price target from $255 to $303.
BofA Securities analyst Nat Schindler kept a Buy rating while increasing the price target from $292 to $298.
JMP Securities analyst Andrew Boone continued a Market Outperform rating and raised the price target from $260 to $275.
Needham analyst Ryan MacDonald maintained a Buy rating, but raised the price target from $245 to $310.

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

Analyst Nat Schindler (BAML) currently has the highest performing score on DUOL with 6/6 (100%) price target fulfillment ratio. His price targets carry an average of $71.72 (41.39%) potential upside. Duolingo stock price reaches these price targets on average within 133 days.

Meta Platforms Strengthens Partnership with EssilorLuxottica through Symbolic Investment

Meta Platforms is poised to make an investment in EssilorLuxottica to strengthen their ongoing collaboration in the development of smart eyewear. Meta CEO Mark Zuckerberg highlighted the partnership’s long-term significance in a recent interview with The Verge, noting that while the investment won’t be substantial, it serves as a gesture of commitment.

This partnership has been in place since 2019, resulting in the successful launch of two generations of Ray-Ban-branded smart glasses. According to reports, there were discussions about Meta acquiring a 5% stake in the French-Italian eyewear giant, which aligns with Zuckerberg’s optimistic outlook on EssilorLuxottica’s potential to evolve into a leading technology firm.

Zuckerberg stated that anticipated sales were underestimated by a factor of three to five times compared to the first version. The current shortage of Ray-Ban Metas indicates a market demand, prompting Meta to expand its manufacturing capabilities.

Analyst Ratings Reflect Optimism Amid Partnership

Wedbush analyst Scott Devitt reiterated an Outperform rating and a $600 price target.
Baird analyst Colin Sebastian maintained an Outperform rating while raising the price target from $530 to $605.
JMP Securities analyst Andrew Boone kept a Market Outperform rating and increased the price target from $550 to $635.
Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating and a $660 price target.
Citigroup analyst Ronald Josey retained a Buy rating and raised the price target from $580 to $645.

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

Analyst Thomas Champion (PIPER SANDLER) currently has the highest performing score on META with 19/22 (86.36%) price target fulfillment ratio. His price targets carry an average of $77.26 (15.52%) potential upside. Meta Platforms stock price reaches these price targets on average within 243 days.