Selected stock price target news of the day - September 27, 2023

By: Matthew Otto

Costco’s Fiscal Year 2023: A Year of Growth

Costco Wholesale Corporation has released its financial results for fiscal year 2023, reporting a net income of $2.16 billion for the 17-week fourth quarter, compared to $1.868 billion in the previous year’s 16-week fourth quarter. This increase in net income translated to earnings of $4.86 per diluted share, up from $4.20 per share year-over-year.

Costco’s performance extended to its net sales, which reached $77.43 billion in the fourth quarter, reflecting 9.4% increase compared to the previous year’s 16-week fourth quarter sales of $70.76 billion. Membership fee income also showed a 13.7% growth to $1.509 billion in the fourth quarter. Moreover, Costco continued to expand its paid membership base, ending the fiscal year with 71.0 million paid household members, a 7.9% increase from the previous year. The executive membership program, representing approximately 73% of the company’s worldwide sales.

Analysts Raise Price Targets for Costco Amid Positive Outlook

Deutsche Bank’s Krisztina Katai maintained a Buy rating and raised the price target from $651 to $652.
JP Morgan’s Christopher Horvers maintained an Overweight rating and raised the price target from $525 to $571.
Raymond James analyst Bobby Griffin reaffirmed an Outperform rating and increased the price target from $570 to $580.
Telsey Advisory Group’s Joseph Feldman reiterated an Outperform rating and a $575 price target.

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

Analyst Simeon Gutman (MORGAN STANLEY) currently has the highest performing score on COST with 27/28 (96.43%) price target fulfillment ratio. His price targets carry an average of $30.36 (11.14%) potential upside. Costco Wholesale stock price reaches these price targets on average within 152 days.

TD Synnex Reports Q3 Fiscal 2023 Results with Double-Digit Growth

TD Synnex has released its financial results for the third quarter of fiscal 2023, reporting a total gross billings of $18.6 billion. Despite some regional challenges, TD Synnex achieved growth in strategic segments such as cloud, security, and data analytics, with these areas experiencing double-digit year-over-year revenue increases. The company surpassed its target by achieving $50 million in cost savings during the quarter.

Furthermore, TD Synnex repurchased $103 million worth of shares during the quarter. Year-to-date, the company has returned $278 million to shareholders through share repurchases and dividends, with approximately $740 million remaining under its current share repurchase authorization. The company’s free cash flow generation has reached approximately $1.1 billion year-to-date, well ahead of its original fiscal year 2023 target of $1 billion.

As TD Synnex looks ahead to the fourth quarter of fiscal 2023, it anticipates continued recovery in the PC segment, with expectations of smaller year-over-year declines. The company expects gross billings to range from $18.5 billion to $19.7 billion, a 3% sequential improvement from the third quarter, while total revenue is projected to be in the range of $14 billion to $15 billion.

Analysts Offer Varied Views, Adjusting Ratings and Price Targets

JP Morgan analyst Joseph Cardoso maintained an Overweight rating but lowered the price target from $118 to $112.
Goldman Sachs analyst Michael Ng reiterated a Buy rating and raised the price target from $100 to $112.
Barclays analyst Tim Long maintained an Equal-Weight rating and raised the price target from $98 to $99.

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

Analyst Matthew Sheerin (STIFEL) currently has the highest performing score on SNX with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $14.05 (26.46%) potential upside. TD Synnex stock price reaches these price targets on average within 231 days.

Intercept Pharmaceuticals Agrees to $794 Million Acquisition

Intercept Pharmaceuticals is poised for a change as it enters into a $794 million all-cash acquisition agreement with Italy’s Alfasigma S.p.A. Intercept’s flagship drug, Ocaliva, designed to treat primary biliary cholangitis, is forecasted to generate sales between $320 million and $340 million this year. The company decided to pivot its strategic focus after its NASH (non-alcoholic steatohepatitis) drug failed to gain approval from the U.S. health regulator earlier this year.

In response to the NASH setback, Intercept made changes to its operations, including reducing its workforce by approximately one-third and discontinuing all NASH-related investments. The acquisition by Alfasigma, offering a premium of 82% at $19 per Intercept share, aims to capitalize on Ocaliva’s revenue potential. This acquisition provides Intercept with the financial backing and resources of a larger pharmaceutical entity to advance its portfolio in the realm of rare and serious liver diseases, reshaping its trajectory within the pharmaceutical industry.

Analysts Downgrades and Adjusts Price Target

HC Wainwright & Co. analyst Ed Arce has downgraded Intercept Pharma’s rating from Buy to Neutral and set a price target of $19.
Canaccord Genuity analyst Edward Nash has also downgraded Intercept Pharma from Buy to Hold and revised the price target down from $20 to $19.

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

Analyst Edward Nash (CANACCORD) currently has the highest performing score on ICPT with 2/8 (25%) price target fulfillment ratio. His price targets carry an average of $16.37 (61.27%) potential upside. Intercept Pharmaceuticals stock price reaches these price targets on average within 53 days.