Selected stock price target news of the day - September 28, 2023

By: Matthew Otto

Apple Faces Antitrust Lawsuit Over Apple Pay Monopoly Allegations

Apple is gearing up for a legal battle as a U.S. District Judge has greenlit a private antitrust lawsuit accusing the tech giant of monopolizing the market for tap-and-pay wallets on its iPhones, iPads, and Apple Watches through its Apple Pay service. The plaintiffs, including Illinois’ Consumers Co-op Credit Union and Iowa’s Affinity Credit Union and GreenState Credit Union, allege that Apple forces users of its devices into a corner, making it nearly impossible to opt for competing wallet services such as Google Pay or Samsung Pay. While the judge dismissed a tying claim, the ruling opens the door for the plaintiffs to make their case that Apple’s practices have suppressed competition and harmed both financial institutions and consumers.

The dispute lies in whether Apple has unfairly maintained a 100% monopoly over the domestic market for mobile wallets, which the plaintiffs argue has resulted in over $1 billion in excess fees for banks and credit unions that offer Apple Pay. Furthermore, the lawsuit contends that by limiting choice, Apple has stifled innovation in the mobile payment space and disincentivized the company from making Apple Pay more secure and user-friendly. This case adds to the mounting legal challenges Apple faces globally, including ongoing scrutiny from European Union antitrust regulators, who accused the company of abusing its dominance in iOS devices and mobile wallets in 2022.

Analysts Differing Views with Varying Price Targets

Evercore ISI Group Analyst Amit Daryanani Reiterated an Outperform rating and a $210 price target.
UBS Analyst David Vogt Reiterate a Neutral rating and a $190 price target.

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

Analyst Jeriel Ong (DEUTSCHE BANK) currently has the highest performing score on AAPL with 17/18 (94.44%) price target fulfillment ratio. His price targets carry an average of $4.81 (4.75%) potential upside. Apple stock price reaches these price targets on average within 35 days.

Norwegian Regulator Refers Privacy Fine Against Meta to European Authority

Norway’s data regulator, Datatilsynet, has taken a significant step in its ongoing dispute with Meta Platforms. Datatilsynet has decided to refer the fine it imposed on Meta to the European Data Protection Board (EDPB), escalating the battle over Meta’s privacy practices.

Meta has been facing a daily fine of $93,000 since August 14 for alleged privacy breaches, including data harvesting and targeted advertising without user consent. Datatilsynet’s decision to refer the case to the EDPB could potentially result in a permanent penalty and an extension of its enforcement to cover the European Union and the European Economic Area.

Meta expressed surprise and reiterated its commitment to adopting a consent-based advertising model in compliance with EU and EEA regulations. However, Datatilsynet remains concerned about the specifics of Meta’s consent-seeking plans, emphasizing the ongoing violation of user rights. The referral to the EDPB highlights the intensifying scrutiny of Meta’s data practices, affecting millions of users across Europe, and raises questions about how global tech giants navigate regional privacy regulations. The EDPB’s response and its potential implications for Meta will be closely monitored as the case progresses.

Analysts Reiterate Positive Ratings and Price Targets

Morgan Stanley analyst Brian Nowak reiterated an Overweight rating and a $375 price target.
JMP Securities analyst Andrew Boone maintained a Market Outperform rating and a $380 price target.
Keybanc analyst Justin Patterson reiterated an Overweight rating and a $356 price target.
Guggenheim analyst Michael Morris maintained a Buy rating and raised the price target from $375 to $380.

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

Analyst Daniel Salmon (BMO) currently has the highest performing score on META with 21/24 (87.5%) price target fulfillment ratio. His price targets carry an average of $20.42 (8.97%) potential upside. Meta Platforms stock price reaches these price targets on average within 81 days.

Paychex Q1 2024 Financial Report

Paychex has unveiled its financial performance for the first quarter of fiscal year 2024. Total revenue for the quarter surged by 7% to reach $1.3 billion.

Management Solutions, one of Paychex’s core offerings, experienced a 6% increase in revenue, primarily driven by a higher number of clients, product adoption, and price realization. Additionally, Paychex’s PEO and Insurance Solutions segment witnessed a 5% revenue uptick. This is driven by higher revenue per client and an increased number of worksite employees.

Interest on funds held for clients exhibited growth, with an 83% increase to $33 million. Paychex’s financial position was further underscored by operating income, which rose by 8% to $536 million, accompanied by operating margin expansion of 60 basis points year-over-year.

Analysts Offer Varied Perspectives with Revised Price Targets

Morgan Stanley analyst James Faucette maintained an Equal-Weight rating and raised the price target from $125 to $127.
TD Cowen analyst Bryan Bergin reiterated an Outperform rating and increased the price target from $130 to $131.
B of A Securities analyst Jason Kupferberg maintained an Underperform rating and increased the price target from $103 to $106.

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

Analyst Moshe Katri (WEDBUSH) currently has the highest performing score on PAYX with 4/5 (80%) price target fulfillment ratio. His price targets carry an average of $11.71 (14.56%) potential upside. Paychex stock price reaches these price targets on average within 253 days.