Analysts Stocks

      Weekly Update - October 30, 2022

      Selected stock price target news highlights of the week

      October 30, 2022

      By: Teni Nyca Antenor

      Logitech’s EPS Drops By 38%, Reaffirms FY23 Outlook

      Logitech International SA announced its Q2 FY 2023 results:

      • Sales were down to $1.15 billion.
      • Video Collaboration, Pointing Devices, Gaming, and Keyboard & Combos sales declined.
      • GAAP EPS dropped to $0.50 compared to last year’s $0.81.

      Bracken Darrell, Logitech’s president and chief executive officer, said that despite the global macroeconomic headwinds, the company will continue to “pursue operational excellence and deliver industry-leading innovation.” The company will announce 20 products that “tap into the long-term trends of hybrid work, video everywhere, gaming, and digital content creation.”

      The technology company also reaffirmed its FY2023 outlook in the same press release:

      • Sales growth will be between -4-8%.
      • Non-GAAP operating income will be between $650-750 million.

      Stock forecasts following the results:

      • DA Davidson analyst Franco Granda trimmed the tech stock’s price target to $65 (from $85) and kept a Buy rating.
      • Deutsche bank analyst Robert Sanders cut LOGI’s price target to $59 from $65 and maintained a Buy rating.

       

      UPST Funding, A Concern For MIZUHO

       

      Mizuho analyst Dan Dolev initiated coverage on Upstart Holdings Inc. Dolev gave a $17 price target and Underperform rating, citing a hard environment for funding loans.

       

      The company is an AI-powered lending platform. According to Press Reach, the lending market “gathers customer demand for loans by putting borrowers in touch with a network of banks and other lenders.”

       

      In the coming quarters, Dolev says, “greater hardship is expected.” This is because, historically, as interest and inflation increase, so do delinquencies.

       

      BOFA Securities Upgrades HIBB Over Same-Store Sales Upside Potential

       

      Bank of America analyst Alexander Perry upgraded Hibbett Sports Inc to Buy (from Neutral) with a $75 price target.

       

      According to Seeking Alpha, Perry thinks HIBB could have a same-store sales upside in the fiscal second half. This is thanks to its strong NKE footwear ties, as reported by CNBC. A better launch calendar, back-to-school delay, and sufficient holiday inventory are positives to HIBB.

       

      The BofA analyst calls Hibbett a retail sector standout. The sporting goods retailer’s consumer remains strong. Since most core buyers are not yet of household age, the demand is insulated from rising inflation.

       

      UPS’ Mixed Results Get Mixed Stock Forecast From Analysts

       

      United Parcel Service, Inc. posted mixed results for Q3 of 2022, as reported by Fxdailyreport.com:

      • Adjusted EPS of $2.99 beat analyst consensus of $2.84.
      • Adjusted revenue of $24.16 billion missed analyst consensus by 0.65%.

       

      The company also reiterated full-year 2022 financial targets:

      • $102 billion revenue
      • 13.7% adjusted operating margin
      • 30+% adjusted return on invested capital

       

      Stock forecasts following the results:

      • Stifel analyst Bruce Chan lowered the price target to $207 (from $227) and kept a Buy rating.
      • Credit Suisse analyst Ariel Rosa increased UPS price target to $204 (from $198) and kept an Outperform rating.
      • Citi analyst Christian Wetherbee cut the firm’s price target to $205 (from $210) and reiterated a Buy rating.
      • Raymond James analyst Patrick Brown upped the price target to $210 (from $205) and retained a Buy rating.
      • Wells Fargo analyst Allison Poliniak trimmed UPS price target to $207 (from $232) and maintained a Market Perform rating.
      • Cowen’s Helane Becker slashed the industrial stock‘s price target to $165 (from $160) and kept a Neutral rating.
      • Susquehanna analyst Bascome Majors raised the price target to $190 (from $225) and reiterated a Buy rating.
      • UBS analyst Thomas Wadewitz upped the price target to $196 (from $182) and reiterated a Buy rating.
      • Deutsche analyst Amit Mehrotra cut the price target to $197 (from $200) and kept a Hold rating.

       

      MEDP Reports Better-Than-Expected Q3, FY22 Guidance Above Estimates

       

      Medpace Holdings reported better-than-expected Q3:

      • EPS was $2.05 vs. the analyst consensus of $1.47.
      • Revenue was $383.7 million vs. the analyst consensus of $357.17 million

       

      The healthcare stock also guided higher:

      • FY2022 EPS is estimated at $6.88-$7 vs. the analyst estimate of $6.15.
      • FY2022 revenue is estimated at $1.44-$1.46 billion vs. the analyst estimate of $1.41 billion.

       

      “Almost unbelievable,” commented Jefferies analyst David Windley as reported by Investors.com

       

      Stock forecast following the results:

      • Baird analyst Eric Coldwell lifted the price target to $217 (from $200) and kept a Neutral rating.
      • UBS analyst John Sourbeer increased MEDP price target to $238 (from $142) and upgraded the rating to Neutral (from Sell).

       

      EDU Reports Strong Q2 FY2023 Earnings

       

      New Oriental Education & Technology Group Inc reported solid quarterly earnings, beating analyst estimates:

      • EPS was $0.48 vs. analyst consensus of $0.31.
      •  Revenue was $744.8 million vs. analyst consensus of $689.08 million.

      CLSA analyst Jeffrey Chan updated his stock forecast following the news. Chan upgraded the consumer defensive stock’s rating to Buy (from Outperform).

       

      Barclays Calls A Buy Rating On NEX After Q3 Earnings

       

      NexTier Oilfield Solutions Inc reported mixed Q3 earnings results:

      • EPS was $0.52 vs. analyst estimate of $0.42.
      • Revenue was $896 million vs. analyst consensus of $924.6 million.

       

      Robert Drummond, president, and CEO of NexTier said that they have changed strategy this cycle. The energy company has abandoned the “growth-at-all-cost strategy the industry has taken in prior cycles.”

       

      According to InvestorsObserver, the lower revenue growth to earnings indicated that the Energy stock was “able to reduce costs and improve its profit margin overall.”

       

      Barclays analyst David Anderson reiterated a Buy rating with an $18 price target following the result.

       

      Analysts Cut Spotify Price Target After Earnings Narrowly Beat Analyst Expectations

       

      Spotify Technology S.A narrowly beat analyst expectations in their Q3 earnings report as reported by CNBC:

      • Loss per share was $0.99 vs. analyst estimate of $0.85
      • Revenue was $3.04 billion vs. analyst estimate of $3.02 billion.

      Analysts expressed worry about near-term risks looming hence the price target cuts. According to Pivotal Research as reported by Yahoo, “Investors will have to play the long game amid near-term risks.”

       

      Raymond James analyst Andrew Marok said the same thing in a note to clients, “We envision a longer-than-expected road to margin expansion.”

       

      Stock forecast following the report:

      • Pivotal Research analyst Jeffrey Wlodarczak cut the price target to $100 (from $105) and kept a Hold rating.
      • KeyBanc analyst Justin Patterson trimmed SPOT price target to $125 (from $135) and reiterated an Overweight rating.
      • Raymond James analyst Andrew Marok slashed the price target to $110 (from $150) and maintained an Outperform rating.
      • Morgan Stanley analyst Benjamin Swinburne lowered the price target to $115 (from $120) and kept an Overweight rating.
      • Benchmark analyst Mark Zgutowicz dropped SPOT price target to $125 (from $155) and maintained a Buy rating.
      • Wells Fargo analyst Steven Cahall cut the firm’s price target to $121 (from $132) and repeated an Equal Weight rating.
      • Evercore’s Mark Mahaney decreased Spotify’s price target to $175 (from $230) and reiterated an Outperform rating.
      • Citi analyst Jason Bazinet lowered his price target to $140 (from $145) and kept a Buy rating.
      • Truist analyst Matthew Thornton slashed the price target to $115 (from $125) and maintained a Buy rating.