These reports, extracted and edited by Barron’s, were recently published by investment and research firms. Reports are a sample of analysts’ thinking; they should not be taken as Barron’s views or recommendations. Some of the reporters have provided, or hope to provide, investment banking or other services to the companies analyzed.
United parcel service
Surpass Price $ 201.06 on June 10
On its recent Investor Day, UPS highlighted targeted areas of growth including small and medium businesses, healthcare and international; provided financial targets for 2023; and established new environmental, social and corporate governance targets. Its financial targets for 2023 include around 98 to 102 billion dollars in revenue, an adjusted operating margin of around 12.7% to 13.7%, cumulative 2021-2023 investments of around 13.5 to 14.5 billion dollars and an adjusted return on invested capital of approximately 26% to 29%. are solid, although apparently not sufficiently ambitious compared to market expectations. But we see the forecast as sufficiently cautious, achievable with upside potential. We are increasing our 12-18 month stock price target to $ 222 from $ 210.
Buy Price $ 138.99 June 10
by Seaport Research Partners
We are increasing our price target to $ 148 from $ 141 as we await the spin-off of DTE Energy’s intermediate gas operations (symbol: DTM) as early as June 17 (as part of trading on the issue date) . We are bracing for some volatility in the DTM due to shareholder turnover, but DTE’s current market valuation appears to be only $ 10 to $ 11 per share. DTM has yet to determine its dividend, but we estimate that the combined 2021 annualized payments per share for DTE and DTM are expected to be approximately $ 4.71, or 8.5% more than DTE’s current dividend of $ 4.34, with 8-10% annual growth to follow.
Overweight Price $ 281 on June 8
by KeyBanc Capital Markets
Sherwin-Williams raised its profit guidance for fiscal 2021 by 4% (with a midpoint of $ 9.25) on sales outlook of around 2% higher, led by TAG (business users) and Performance ( industrial users), as DIY trends did not meet expectations. For us, key to the outlook for the paint business is that the industry is supporting net prices (up 7% in August) amid rising input costs and secular growth. We are increasing our EPS estimates to $ 9.25 from $ 9.05 for fiscal 2021 and to $ 10.58 from $ 10.29 for fiscal 2022, both due to higher sales. We are increasing our target stock price from $ 300 to $ 320.
Surpass Price $ 605.13 on June 8
There was a lot of nervousness in the street as the [release of the China Passenger Car Association sales] figures for May, after Tesla had a very weak performance in April in China. The street was preparing for the worst and instead recorded 33,463 deliveries. including 21,936 sold on the domestic market and 11,527 exported to Europe. This is a jump of 29% from the April figure.
Tesla appears to have handled his PR issues in China (involving security) well. We believe that from June, the manufacturer of electric vehicles will be on an annual rate of 300,000 deliveries in China. The story of growth seems to be back on track in this pivotal region again, despite the skeptics and enemies mounting. The history of pent-up demand remains firm for Tesla over the next several years, and the company is expected to continue its strong sales trend in June and the second half of the year, with Model Y sales being a key driver, with the pillar model 3. maintain our price target of $ 1,000.
Purchase price $ 253.56 on June 3
As a follow-up to our September 2020 survey, we conducted a second survey of 26 U.S.-based stroke physicians in May, to clarify Penumbra’s position in the U.S. neurovascular therapy market. Along with our survey results, we are updating Penumbra [which provides devices and therapies to treat medical problems including strokes and blood clots] to buy from neutral, with a target price of $ 291.
Our second survey suggests that doctors have remained loyal to Penumbra’s stroke portfolio, despite what could have been stock losses at the start of fiscal 2021, due to competitive trials. Respondents expect to continue using Penumbra products from here, albeit at lower levels of sharing than seen in our previous survey. We believe that, if Penumbra’s US share holds (even at this lower level), the upward expectations of Street could stem from its performance in China and elsewhere or from further “paradigm” shifts in the treatment of Street. stroke, which management has alluded to.
Surpass Price $ 611.33 June 9
Restoration Hardware posted another impressive result in its most recent quarter and issued a strong forecast. The successful expansion in Europe next year should support a revaluation of its shares. We are increasing our price target to $ 750 from $ 680, or 27 times our estimated EPS for fiscal 2022. We see HR as a leader in an estimated market of $ 57 billion, with a market share of 4 , 5% and an important avenue for further gains. RH remains in the early rounds of a multi-year transformation journey, with secular tailwinds and continued catalysts for revenue and margins.
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