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Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Three stocks – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have all recently received price target upgrades. Below is a chart illustrating the performance of all three stocks in 2023, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
It raises a valid question – why have analysts raised their expectations? Let’s take a closer look.
Occidental Petroleum
Occidental Petroleumis an integrated oil and gas company with significant exploration and production exposure.
Recently, TD Cowen moved their price target for OXY shares up to $70 per share from $63 while upgrading the stock to outperform.
The company’s cash-generating abilities were amplified during elevated energy prices, as seen in the chart below. Over the last twelve months, Occidental Petroleum has generated nearly $13 billion in free cash flow.
Image Source: Zacks Investment Research
Just on February 27th, the company increased its annual dividend payout to $0.72 per share ($0.18 per share quarterly), reflecting a nearly 40% increase from the previous annual rate of $0.52 per share.
Image Source: Zacks Investment Research
Ulta Beauty
Ulta Beauty is a leading beauty retailer in the United States, with a vast product catalog that includes cosmetics, fragrances, skincare, hair care, bath and body products, and more. Ulta Beauty’s price target was raised to $615 per share from $610 by Piper Sandler.
The company’s earnings outlook has improved across all timeframes over the last 60 days, landing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Impressive quarterly results undoubtedly aided in the price target upgrade; ULTA has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in nine consecutive quarters.
Within the most recent quarterly print, the beauty retailer delivered a 17% earnings beat and reported revenue 6.2% ahead of expectations.
Image Source: Zacks Investment Research
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half the global cruise guests. Carnival’s price target was upgraded to $13 per share from $12 by Barclays.
A recovery in travel demand has benefited the company, with CCL exceeding earnings estimates in back-to-back quarters after a string of negative surprises.
In its latest release on March 27th, the company registered an 11.3% EPS beat and reported revenue nearly 2% ahead of expectations.
Image Source: Zacks Investment Research
The recovery in travel demand is further illustrated by the company’s strong forecasted growth rates; earnings are forecasted to soar nearly 100% in its current fiscal year (FY23) and a further 570% in FY24.
Image Source: Zacks Investment Research
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, all three stocks above – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have received price target upgrades.
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3 Stocks Recently Seeing Price Target Upgrades
Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Three stocks – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have all recently received price target upgrades. Below is a chart illustrating the performance of all three stocks in 2023, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
It raises a valid question – why have analysts raised their expectations? Let’s take a closer look.
Occidental Petroleum
Occidental Petroleumis an integrated oil and gas company with significant exploration and production exposure.
Recently, TD Cowen moved their price target for OXY shares up to $70 per share from $63 while upgrading the stock to outperform.
The company’s cash-generating abilities were amplified during elevated energy prices, as seen in the chart below. Over the last twelve months, Occidental Petroleum has generated nearly $13 billion in free cash flow.
Image Source: Zacks Investment Research
Just on February 27th, the company increased its annual dividend payout to $0.72 per share ($0.18 per share quarterly), reflecting a nearly 40% increase from the previous annual rate of $0.52 per share.
Image Source: Zacks Investment Research
Ulta Beauty
Ulta Beauty is a leading beauty retailer in the United States, with a vast product catalog that includes cosmetics, fragrances, skincare, hair care, bath and body products, and more. Ulta Beauty’s price target was raised to $615 per share from $610 by Piper Sandler.
The company’s earnings outlook has improved across all timeframes over the last 60 days, landing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Impressive quarterly results undoubtedly aided in the price target upgrade; ULTA has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in nine consecutive quarters.
Within the most recent quarterly print, the beauty retailer delivered a 17% earnings beat and reported revenue 6.2% ahead of expectations.
Image Source: Zacks Investment Research
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half the global cruise guests. Carnival’s price target was upgraded to $13 per share from $12 by Barclays.
A recovery in travel demand has benefited the company, with CCL exceeding earnings estimates in back-to-back quarters after a string of negative surprises.
In its latest release on March 27th, the company registered an 11.3% EPS beat and reported revenue nearly 2% ahead of expectations.
Image Source: Zacks Investment Research
The recovery in travel demand is further illustrated by the company’s strong forecasted growth rates; earnings are forecasted to soar nearly 100% in its current fiscal year (FY23) and a further 570% in FY24.
Image Source: Zacks Investment Research
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, all three stocks above – Ulta Beauty (ULTA - Free Report) , Carnival (CCL - Free Report) , and Occidental Petroleum (OXY - Free Report) – have received price target upgrades.