In this article, we will take a look at the 10 stocks that recently received revised price targets from analysts.
U.S. stocks inched lower on Thursday morning as the 10-year Treasury yield hit a record high. The surge in Treasury yields also overshadowed the better-than-expected earnings reports of companies like Lam Research Corporation (NASDAQ:LRCX) and Netflix, Inc. (NASDAQ:NFLX). In addition, Tesla, Inc. (NASDAQ:TSLA) and International Business Machines Corporation (NYSE:IBM) were also among the notable stocks that came into the limelight after their recent earnings.
Meanwhile, analysts continue to react to the latest financial performances of these companies. They revised their price targets for Netflix, Inc., Lam Research Corporation and Tesla, Inc.. Check out the complete article to see some more stocks with updated price targets from analysts.
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10. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 26
Morgan Stanley slashed its price target for Palantir Technologies Inc. (NYSE:PLTR) from $11 per share to $10 per share on Thursday, October 20, as the research firm expects the weaker environment to persist through the next year.
Meanwhile, Palantir Technologies Inc. recently secured a multi-year deal with car rental company Hertz. The partnership will allow Hertz to improve its operational efficiencies using Palantir’s data-driven insights.
Earlier this week, Palantir Technologies Inc. also announced its Q3 earnings release date. It plans to report its financial results for the third quarter on November 7.
9. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 31
RBC Capital lifted its price target for The Travelers Companies, Inc. (NYSE:TRV) from $165 per share to $180 per share on Thursday, October 20. The research firm referred to the company’s lower-than-expected catastrophe losses in Q3.
The Travelers Companies, Inc. released its financial results for the third quarter on Wednesday, October 19. The insurance company reported core earnings of $2.20 per share, down from $2.60 per share in the year-ago period but well above the consensus of $1.56 per share.
Speaking on the results, CEO of The Travelers Companies, Inc., Alan Schnitzer, said in a statement:
“Even in the face of challenging weather, we generated meaningful profit with core income for the quarter of $526 million, or $2.20 per diluted share, and core return on equity of 7.9%. These results benefited from record net earned premiums of $8.6 billion, up 10% compared to the prior year period.”
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 37
Citi analyst Jim Suva trimmed his price target for Hewlett Packard Enterprise Company (NYSE:HPE) from $13.50 per share to $11.50 per share on Thursday, October 20. Suva was primarily moved by the company’s earnings and cash flow outlook for fiscal 2023.
The price-target cut came a day after Hewlett Packard Enterprise Company issued its profit guidance for its fiscal 2023. The software and computer services provider expects adjusted earnings in the range of $1.96 – $2.04 for the year, below analysts’ average estimate of $2.10 per share.
Moreover, Hewlett Packard Enterprise Company projected revenue growth of 2 – 4 percent and free cash flow between $1.9 – $2.1 billion for the same period.
Besides Hewlett Packard Enterprise Company, analysts also changed their price targets for Netflix, Inc., Lam Research Corporation and Tesla, Inc..
7. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
BofA lowered its price target for International Business Machines Corporation from $155 per share to $145 per share on Tuesday, October 18. Analyst Wamsi Mohan believes foreign exchange headwinds will continue to affect the company’s sales. Nevertheless, Mohan kept a “Buy” rating for International Business Machines Corporation.
Meanwhile, International Business Machines Corporation released its third-quarter results on Wednesday, October 19. The company reported adjusted earnings of $1.81 per share on revenue of $14.11 billion. Analysts were calling for earnings of $1.77 per share and revenue of $13.51 billion.
Speaking on the results, International Business Machines Corporation said foreign-exchange rates would reduce its full-year sales by 7 percent. On the bright side, IBM reaffirmed its free cash flow guidance of about $10 billion for the year.
6. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 55
RBC Capital increased its price target for Lockheed Martin Corporation (NYSE:LMT) from $420 per share to $455 per share on Wednesday, October 19. The research firm was mainly moved by the company’s recent earnings.
Earlier this week, Lockheed Martin Corporation posted better-than-expected profit for the third quarter. The aerospace and defense company earned $6.87 per share on an adjusted basis, up from $6.60 per share in the corresponding period of 2021. Analysts were looking for earnings of $6.72 per share.
Meanwhile, Lockheed Martin Corporation also reaffirmed its financial outlook for the full year. It continues to expect earnings of $21.55 per share on revenue of about $65.3 billion.
Among other updates, Lockheed Martin Corporation said it intends to repurchase $4 billion worth of its common stock during the fourth quarter.
5. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 56
Evercore ISI lowered its price target for Lam Research Corporation from $500 per share to $450 per share on Thursday, October 20. The research firm referred to recent tensions between the U.S. and China that could hurt the company’s growth.
The price-target cut came a day after Lam Research Corporation warned that the latest ban on high-end chips to China could reduce its 2023 revenue in the range of $2 – $2.5 billion.
Lam Research Corporation made these comments while discussing its financial results for the September quarter. The company reported adjusted earnings of $10.42 per share for the three months ended September 25, beating the consensus of $9.57 per share. The quarterly revenue of $5.07 billion also exceeded the expectations of $4.92 billion.
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
Barclays raised its price target for The Procter & Gamble Company from $139 per share to $145 per share on Thursday, October 20. The research firm was moved by the company’s better-than-expected results for the latest quarter.
The Procter & Gamble Company released the financial results for its fiscal first quarter on Wednesday, October 19. The consumer goods giant reported adjusted earnings of $1.57 per share, surpassing the expectations of $1.54 per share. Revenue came in at $20.61 billion, while analysts were looking for $20.28 billion.
Speaking on the results, CEO of The Procter & Gamble Company, Jon Moeller, said in a statement:
“We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment. These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Shares of Tesla, Inc. slid over four percent on Thursday, October 20, after RBC Capital cut its price target for the electric vehicle giant from $340 per share to $325 per share.
The price-target cut follows the company’s mixed financial results for the third quarter. Tesla, Inc. reported adjusted earnings of $1.05 per share, beating the consensus of 99 cents per share. On the downside, its quarterly sales of $21.45 billion missed the expectations of $21.96 billion.
Separately, Tesla, Inc. also appeared in the second-quarter 2022 investor letter of investment management firm Carillon Tower Advisers. Here’s what the firm said:
“Tesla, Inc. (NASDAQ:TSLA), the electric vehicle and clean energy company, is set to recall more than 100,000 cars in China over a potential safety risk and is reportedly delaying a plan to restore production at its Shanghai plant. CEO Elon Musk was reported to have said that the company would cut 10% of salaried staff and freeze hiring due to a bad feeling he has about the economy.”
2. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
Macquarie increased its price target for Netflix, Inc. from $230 per share to $285 per share on Wednesday, October 19. The research firm pointed towards the company’s latest earnings and impressive subscriber growth for the third quarter.
Netflix, Inc. recently announced better-than-expected financial results for the third quarter. The video-streaming giant reported earnings of $3.10 per share, down from $3.19 per share in the year-ago period but well above analysts’ average estimate of $2.13 per share. The quarterly revenue of $7.93 billion also exceeded the consensus of $7.837 billion.
Among other updates, Netflix, Inc. reported that it added 2.41 million new subscribers in the latest quarter, significantly higher than its own outlook of 1 million additions. Looking forward, the company expects to add around 4.5 million subscribers in the current quarter.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Piper Sandler reduced its price target for Microsoft Corporation (NASDAQ:MSFT) from $312 per share to $275 per share on Thursday, October 20. The research firm believes factors like foreign exchange headwinds and declining IT spending could negatively impact the company’s sales and free cash flow projections for 2023.
Earlier this week, several reports suggested that Microsoft Corporation recently cut about 1,000 jobs. Industry experts are linking the reported layoffs to the company’s decelerating sales growth.
Like Microsoft Corporation, many notable firms, such as Meta Platforms and Twitter also reduced their global workforce amid an uncertain macro environment.
You can also take a peek at Best Chemical Stocks To Buy and 13 Best Cybersecurity Stocks To Buy.
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