In this article, we will look at the 10 stocks that recently received revised price targets from analysts after their recent earnings.
Notable stocks, including Marvell Technology, Inc. (NASDAQ:MRVL), Dollar General Corporation (NYSE:DG) and The Kroger Co. (NYSE:KR), recently released financial results for their respective quarters.
Subsequently, analysts trimmed their price targets for Marvell Technology, Inc. and Dollar General Corporation after the two companies failed to meet earnings expectations. On the other hand, The Kroger Co. received a price target cut despite topping expectations for its fiscal third quarter.
In addition, UiPath Inc. (NYSE:PATH) and Smartsheet Inc. (NYSE:SMAR) also received updated price targets from analysts following their recent earnings. Check out the complete article to find out the new price targets for these stocks.
10. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 13
R.F. Lafferty lowered its price target for ChargePoint Holdings, Inc. (NYSE:CHPT) from $34 per share to $28 per share on Friday, December 2. The research firm was primarily moved by the company’s Q3 earnings miss and gross margin erosion.
ChargePoint Holdings, Inc. recently reported a loss of 25 cents per share for its fiscal third quarter, wider than a loss of 20 cents per share estimated by analysts. The quarterly revenue of $125 million also missed the expectations of $132.3 million.
On the bright side, ChargePoint Holdings, Inc. raised its full-year sales outlook to a range of $475 – $480 million, from its previous projection between $450 – $500 million.
9. The Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Holders: 22
Canaccord improved its price target for The Toronto-Dominion Bank (NYSE:TD) from C$95 per share to C$103 per share on Friday, December 2, following the bank’s earnings beat for its fiscal fourth quarter.
Citing the First Horizon acquisition, analyst Scott Chan said The Toronto-Dominion Bank can now produce above-average growth. Chan also upgraded the Canadian bank from “Hold” to “Buy.”
The Toronto-Dominion Bank recently reported adjusted earnings of C$2.18 per share for its fiscal fourth quarter, up from C$2.09 per share in the year-ago period and above expectations of C$2.06.
8. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 26
UiPath Inc. last week surprised investors by reporting a profit. As a result, Mizuho analyst Siti Panigrahi increased his price target for the software company from $14 per share to $15 per share on Friday, December 2. Panigrahi also praised the company’s solid outlook for the current quarter despite macro challenges.
UiPath Inc. reported adjusted earnings of 5 cents per share for the three months ended October 31, contrary to the consensus estimate calling for a loss of 3 cents per share. Revenue for the quarter jumped 19 percent on a year-over-year basis to $262.7 million, crushing expectations of $248.51 million.
Looking forward, UiPath Inc. expects revenue in the range of $277 – $279 million for the current quarter.
7. Veeva Systems Inc. (NYSE:VEEV)
Number of Hedge Fund Holders: 42
Needham recently lifted its price target for Veeva Systems Inc. (NYSE:VEEV) from $205 per share to $220 per share, citing the company’s strong third-quarter results.
Veeva Systems Inc. last week reported adjusted earnings of $1.13 per share, compared to 97 cents per share in the year-ago period. Revenue for the quarter increased to $552.4 million, from $476.1 million in the corresponding period of 2021. The results exceeded the consensus of $1.07 per share for earnings and $546.04 million for revenue.
Like Veeva Systems Inc., analysts also updated their price targets for Marvell Technology, Inc., Dollar General Corporation and The Kroger Co..
6. Smartsheet Inc. (NYSE:SMAR)
Number of Hedge Fund Holders: 49
Shares of Smartsheet Inc. rallied nearly 17 percent on Friday, December 2, after the Washington-based company posted a narrower-than-expected loss for its fiscal third quarter.
Smartsheet Inc. reported an adjusted loss of 1 cent per share, while analysts were looking for a loss of 15 cents per share. Revenue came in at $199.6 million, beating the expectations of $194 million.
For its fiscal fourth quarter Smartsheet Inc. expects revenue in the range of $205 – $207 million, representing a growth of 30 – 32 percent on a year-over-year basis. The outlook was also better than the consensus of $204 million.
Several research firms raised their price targets for Smartsheet Inc. following its recent earnings. DA Davidson increased its price target from $40 to $45, RBC Capital raised its price target from $32 to $36 and BMO Capital improved its price target from $38 to $41.
5. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 49
MKM Partners trimmed its price target for The Kroger Co. from $50 per share to $47 per share on Friday, December 2. While the research firm acknowledged the company’s latest earnings, it thinks Kroger will face multiple challenges around margins next year.
The price-target cut came a day after The Kroger Co. released its fiscal third-quarter results. The Kroger Co. earned 88 cents per share on an adjusted basis, topping expectations of 82 cents. The quarterly revenue of $34.2 billion was also better than the consensus of $33.96 billion.
In addition, The Kroger Co. lifted its full-year adjusted earnings outlook to a range of $4.05 – $4.15 per share, from its previous guidance between $3.95 – $4.05 per share.
4. Zscaler, Inc. (NASDAQ:ZS)
Number of Hedge Fund Holders: 51
Zscaler, Inc. (NASDAQ:ZS) recently delivered solid profit and sales for its fiscal first quarter. Yet, Baird lowered its price target for the cloud security stock from $220 per share to $180 per share on December 5, citing a lesser surge in quarterly billings versus past trends.
For its fiscal Q1, Zscaler, Inc. earned 29 cents per share on an adjusted basis, significantly higher than 14 cents per share in the year-ago period and above the consensus of 26 cents. Revenue came in at $355.5 million, up 54 percent on a year-over-year basis and above expectations of $343.9 million. Calculated billings also jumped 37 percent versus last year to $340.1 million.
Separately, investment management firm Artisan Partners also discussed Zscaler, Inc. in its third-quarter 2022 investor letter, stating:
“Our notable adds in the quarter included Zscaler, Inc. (NASDAQ:ZS) , Etsy and BioNTech. Zscaler provides cloud-based Internet security solutions. The company recently delivered 61% revenue growth and expects to grow nearly 40% in 2023 (ahead of expectations). Despite solid fundamental momentum, shares have underperformed this year as investors have grown concerned about slowing demand for enterprise software as the broader global economy slows. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments alike as cyberattacks can have devastating financial and reputational consequences. From 2018 to 2020, losses from cybercrimes grew 67% to $1 trillion, and some estimate it could reach $10 trillion by 2025. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (Office 365, Salesforce, etc.) and a more remote workforce (versus pre-pandemic) make operating IT infrastructures increasingly complex. Zscaler’s scalable, cloud-based security platform is a more secure and efficient way to connect users and applications, which eliminates the need for several layers of security (firewalls, VPNs, etc.) developed and built over the last couple of decades. For these reasons and with shares trading at an attractive discount to our PMV estimate, we added to our position.”
3. Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Holders: 54
Ulta Beauty, Inc. (NASDAQ:ULTA) recently crushed financial expectations for its fiscal third quarter. Citing its resilient quarterly performance, Barclays raised its price target for the beauty retailer from $511 per share to $548 per share on December 5.
For its fiscal Q3, Ulta Beauty, Inc. reported earnings of $5.34 per share on revenue of $2.34 billion. This compares to the consensus forecast calling for earnings of $4.20 per share on revenue of $2.22 billion.
In addition, Ulta Beauty, Inc. also improved its full-year revenue guidance to a range of $9.95 – $10 billion, from its previous projection between $9.65 – $9.75 billion.
2. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 58
Several research firms cut their price targets for Marvell Technology, Inc. after the semiconductor company missed financial expectations for its fiscal third quarter and issued a weak outlook for the current quarter.
BMO Capital trimmed its price target for Marvell Technology, Inc. from $90 to $63 on December 2, while BMO Capital decreased its price target from $75 to $65 on the same day.
If we look at its latest results, Marvell Technology, Inc. reported adjusted earnings of 57 cents per share, below the consensus of 59 cents. Moreover, the quarterly sales of $1.537 billion also came in below expectations of $1.56 billion.
For the January quarter, Marvell Technology, Inc. expects adjusted earnings of around 46 cents per share, well below analysts’ average estimate of 62 cents per share.
1. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 59
Deutsche Bank lowered its price target for Dollar General Corporation from $293 per share to $276 per share on December 2. The research firm expressed disappointment over the company’s latest earnings.
Dollar General Corporation recently delivered mixed financial results for its fiscal third quarter. The discount retailer reported earnings of $2.33 per share, missing the consensus of $2.54 per share. Revenue came in at $9.46 billion, while analysts were looking for $9.43 billion.
Moreover, the company’s fourth-quarter profit outlook was also below expectations. Dollar General Corporation projected adjusted earnings in the range of $3.15 – $3.30 per share for the current quarter, against the consensus of $3.66 per share.
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This article is originally published at Insider Monkey.
