Weekly Updates - Nov 6, 2022

Selected stock price target news highlights of the week

By: Matthew Otto

Qualcomm

Earnings for the quarter that ended on September 25, 2022 came in at $3.13 per share on an adjusted basis, which is exactly what analysts were expecting according to Refinitiv. Revenue was also as expected at $11.39 billion. According to a statement, Qualcomm saw an overall revenue growth of 22% year over year. Given the current economic climate, Qualcomm has updated its guidance for handset volumes in calendar year 2022. They are now expecting a low double-digit percentage decline where they previously forecasted a mid-single-digit percentage decline. This change is due to the rapid deterioration in demand and easing of supply constraints across the semiconductor industry, which has resulted in elevated channel inventory according to the report. Finally, revenue in Qualcomm CDMA Technologies, or QCT, was $4.89 billion for the quarter.

Wall street stock forecasts have dropped as a result across the board

Cowen analyst Matthew Ramsay lowered his price target from $185 to $165 while keeping a rating of Outperform.
Wells Fargo’s Gary Mobley lowered his price target from $125 to $105 while keeping a rating of Equal-Weight.
Canaccord Genuity’s Michael Walkley lowered his price target from $225 to $165 while keeping a rating of Buy.
Morgan Stanley’s Joseph Moore lowered his price target from $147 to $125 while keeping a rating of Overweight.
Deutche Bank’s Ross Seymore lowered his price target from $160 to $150 while keeping a rating of Buy.
Rosenblatt’s Kevin Cassidy lowered his price target from $220 to $170 while keeping a rating of Buy.
Mizuho’s Vijay Rakesh lowered his price target from $175 to $150 while keeping a rating of Buy.
Key Bank’s John Vinh lowered his price target from $170 to $150 while keeping a rating of Overweight.

Fidelity National Information

Announced quarterly earnings for the third quarter ended September 30, 2020. Gary Norcross, FIS Chairman and Chief Executive Officer, made the following stateme

“Despite deteriorating macroeconomic conditions, FIS delivered third quarter revenue and earnings in-line with its prior outlook. We are taking actions to ensure the company is well positioned to drive profitable growth as we continue to face an uncertain macro-environment.”

FIS posted revenues of $3.6 billion for the quarter ended September 30, 2020, compared to $3.5 billion for the same period last year. Net income for the quarter was $568 million, or $1.74 per diluted share, compared to $565 million, or $1.73 per diluted share, for the same period last year. Adjusted net income for the quarter was also $1.74 per diluted share. Analysts polled by Thomson Reuters expected the company to report earnings of $1.70 per share on revenues of $3.57 billion for the quarter. Analysts’ estimates typically exclude special items.

“We delivered strong performance in our Merchant Solutions and Banking segments this quarter,” continued Norcross. “In Merchant Solutions, double-digit year-over-year revenue growth in eCommerce and integrated payments more than offset slower spending at physical locations due to pandemic headwinds.”

RBC analyst Daniel Perlin lowered his price target from $115 to $95 while keeping a rating of Outperform.
Wolfe’s Darrin Peller downgraded his rating from Outperform to peerperform.
Morgan Stanley’s James Faucette lowered his price target from $85 to $67 while keeping a rating of Equal Weight.
Raymond James analyst John Davis lowered his price target from $112 to $83 while keeping a rating of a Strong Buy.
Oppenheimer’s Glenn Greene maintained a rating of a Buy.

TWLO

As CEO Jeff Lawson stated, Twilio delivered solid results in the third quarter of 2022 with revenue reaching $983 million, a 33% increase from the previous year. The company’s customer engagement platform continues to drive success for customers, resulting in a 122% expansion rate in dollar-based net revenue. Despite some short-term headwinds, the long-term opportunity for the company remains strong as businesses increasingly prioritize customer engagement. As of September 30, 2022, there are more than 280,000 active customer accounts compared to last year’s 250,000. Consequently, Twilio is well-positioned to maintain its momentum and capitalize on the growing demand for its services.

JMP analyst Patrick Walravens lowered his price target from $175 to $110 while keeping a rating of Market Outperform.
BAML’s Michael Funk lowered his price target from $85 to $70 while keeping a rating of Underperform.
Wells Fargo’s Michael Turrin lowered his price target from $140 to $60 while reducing his rating to Equal Weight from Overweight.
Mizuho’s Siti Panigrahi lowered his price target from $125 to $75 while keeping his Buy rating.
RBC’s Rishi Jaluria gave a price target of $55 to $75 while downgrading his Buy to Sector Perform from Outperform.
BAML’s Michael Funk lowered his price target from $175 to $85 while reducing his rating to Underperform from Buy.

EL

The Estée Lauder Companies (EL) today reported net sales of $3.93 billion for its first quarter ended September 30, 2022 a decline from previous year’s amounting to negative impacts due mainly on foreign currency exchange rates and COVID-19 restrictions in China which presented greater challenge than expected . However , several markets throughout Asia/Pacific regions delivered strong results despite these challenges while other emerging ones did as well making up majority – if not all–of total revenue generated globally during this particular period

The company anticipated Organic Net Sales would fall around 5% like they planned.

The company reported net earnings of $489 million, compared with 692 mil last year2. Diluted per share earnings came in at just under 2 dollars this time around versus last year where they were higher than expected due largely to restructuring costs which pushed their adjusted number down by about 28%. 24% FC exchange rates hurt them quite considerably

“For the first quarter, we delivered organic sales in line with our outlook and adjusted EPS ahead of it even as transitory external pressures from COVID-19 restrictions in China high inflation globally strong U.S dollar intensified.”

“Our multiple engines for growth strategy empowered us to seize prevailing opportunities amidst complexity,” said President & CEO Fab Freda during a conference call today about results so far this year

JP Morgan analyst Andrea Teixeira lowered his price target from $273 to $220 while keeping a rating of Overweight.
RBC’s Nik Modi reduced his price target from $313 to $287 while keeping a rating of Outperform.
Davidson’s Linda Bolton reduced his price target from $318 to $250 while keeping a rating of Buy.
Credit Swiss’s Michael Binetti reduced his price target from $260 to $215 while keeping a rating of Outperform.
Morgan Stanley’s Dara Mohsenian reduced his price target from $290 to $245 while keeping a rating of Overweight.
Raymond James’s Olivia Tong reduced his price target from $280 to $245 while keeping a rating of Strong Buy.

NBIX

Neurocrine’s treatments that are designed to combat tardive dyskinesia were a major driver of revenue growth in the quarter. The company has been impacted by this side effect before, but it appears as though things may have turned around recently with their latest offering – Ingrezza® (cingezerold).

In fact during Q4 2018 they announced an increase from $376 million annually on average per patient treatment course costs due largely because competitors are now also utilizing these drug cocktails which will allow patients who suffer from chronic illnesses such as Parkinson’s disease or Alzheimer’

JP Morgan analyst Anupam Rama raised his price target from $138 to $143 while maintaining a Buy Rating.
Cantor Fitzgerald’s Charles Duncan raised his price target from $127 to $132 while maintaining an Overweight Rating.
RBC’s Brian Abrahams raised his price target from $101 to $117 while maintaining a sector Perform Rating.
Piper Sandler’s David Amsellem raised his price target from $94 to $103 while maintaining a Hold Rating.

eBay

Announced financial results for its third quarter ended September 30th. In this period saw revenue drop 5% on an as-reported basis but rose 27 percent when looking at it through different lenses – namelyFX neutral or without added expenses from foreign currencies exchange rates fluctuations

EBAY’s total market value grew steadily during Q3 adding $2 billion since last year bringing their net asset value per share up close to pre Citigroup levels ($15). This success can largely be attributed first party advertising products like Promoted Listings which delivered 249mm Dollars.

Benchmark analyst Daniel Kurnos lowered his price target from $66 to $62 but maintained a Buy rating.
Morgan Stanlet’s Brian Nowak raised his price target from $33 to $34 but maintained an Underweight rating.
Credit Suisse’s Stephen Ju reduced his price target from $66 to $65 but maintained an Outperform rating.
Baird’s Colin Sebastian reduced his price target from $60 to $55 but maintained an Outperform rating.
Barclays Ross Sandler reduced his price target from $59 to $56 but maintained an Overweight rating.
Piper Sandler Thomas Champion reduced his price target from $59 to $52 but maintained an Overweight rating.