There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Lumentum Holdings (LITE), Callaway Golf (ELY) and CryoPort Inc (CYRX) with bullish sentiments.
Lumentum Holdings (LITE)
B.Riley FBR analyst Dave Kang maintained a Buy rating on Lumentum Holdings today and set a price target of $71. The company’s shares closed yesterday at $60.64.
Kang said:
“On Thursday (8/8) pre-market, Lumentum Holdings, Inc. (LITE) reported F4Q revenue/EPS of $404.6M/$0.92 versus consensus estimates of $384M/$0.72. For F1Q, LITE guided revenue/ EPS to the ranges of $435M-$455M/$1.12-$1.26 compared with consensus of $440M/$1.11. Despite an impressive beat-and-raise, we believe LITE could face N-T challenges, including flat demand from Huawei. Except for ROADMs, other segments may struggle for Q/Q growth in F1H20. We maintain/raise our FY20/FY21 EPS estimates from $4.47/$5.10 to $4.47/$5.37. One of the main reasons for raising our FY21 EPS estimate is due to higher GM assumption (43.3% vs previous estimate of 41.9%). Our PT increases from $68 to $71, which is based on an unchanged P/E multiple of 14x our CY20 EPS estimate. Maintain Buy.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 19.6% and a 62.7% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as DASAN Zhone Solutions Inc, Applied Optoelectronics, and Acacia Communications.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Lumentum Holdings with a $68.30 average price target, a 12.6% upside from current levels. In a report released yesterday, Barclays also maintained a Buy rating on the stock with a $65 price target.
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Callaway Golf (ELY)
B.Riley FBR analyst Susan Anderson reiterated a Buy rating on Callaway Golf today and set a price target of $30. The company’s shares closed yesterday at $17.54.
Anderson wrote:
“Callaway Golf (ELY—Buy, $30 PT) reported 2Q19 adjusted EPS of $0.37, vs. B. Riley FBR/ consensus of $0.26/$0.25, reflecting +13% sales growth (vs. B. +7.1%/ +8.5%). GM delevered -113 bps (B. -190 bps/-184 bps), while op. margin delevered -681 bps (B. -810 bps/-904 bps). ELY updated top-line 2019 revenue guidance range to $1,685M—$1,700M, and updated $1.03—$1.09 (vs. B. Riley FBR/consensus of $1.02/$1.03). The increased EPS was due primarily to continued strength in both core Club segments. Additionally, management announced a new $100M share buyback program, which could account for ~5.7M/6% of shares outstanding.”
According to TipRanks.com, Anderson is a 1-star analyst with an average return of -0.5% and a 38.2% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Columbia Sportswear.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Callaway Golf with a $24.33 average price target.
CryoPort Inc (CYRX)
In a report released today, Andrew D’silva from B.Riley FBR reiterated a Buy rating on CryoPort Inc, with a price target of $26. The company’s shares closed yesterday at $20.18, close to its 52-week high of $21.07.
D’silva wrote:
“CYRX reported 2Q19 results AMC Thursday, 8/8, and held a conference call at 5:00pm ET. Recall, CYRX releases a comprehensive update prior to its call—” CYRX’s earnings call was primarily a Q&A and has limited prepared remarks from management. CYRX posted a top-line/adj. EPS/adj. EBITDA of $8.5M/$(0.08)/$0.3M versus our/consensus estimates of $8.2M/$(0.08)/$(0.1)M and $7.9M/$(0.08)/$(0.1)M, respectively. The revenue beat relative to our estimate was primarily due to higher biopharmaceutical- related logistic sales as the segment grew 81% vs our 79% projection. This was completely due to a strong performance from commercialized offerings, Kymriah (Novartis) and Yescarta (Gilead), which came in at $1.9M for 2Q19 vs. our $1.3M projection.”
According to TipRanks.com, D’silva is a 3-star analyst with an average return of 2.9% and a 40.2% success rate. D’silva covers the Healthcare sector, focusing on stocks such as Cumberland Pharmaceuticals Inc, Sensus Healthcare Inc, and Anixa Biosciences Inc.
CryoPort Inc has an analyst consensus of Strong Buy, with a price target consensus of $24.
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