RBC Capital analysts provided their views on Verisk Analytics (NASDAQ:VRSK) ahead of the company’s upcoming Q1/23 earnings, scheduled to be reported on May 3.
The analysts expect organic growth to improve throughout fiscal 2023 as the headwinds in the auto underwriting and marketing moderate, workers’ compensation improves, and robust pricing tailwinds above the premium growth.
According to the analysts, the recent investor day reinforced the results-driven culture under the new management team, focusing on growth while balancing investments.
The analysts conservatively estimate Q1/23 revenue of $629 million, slightly below the Street estimate of $633 million, as their Underwriting & Ratings revenues of $449 million are in line with the Street but their Claims revenue estimate of $180 million is modestly below the Street estimate of $183 million. The analysts expect Q1 EBITDA of $317 million and EPS of $1.15, below the Street estimate of $323 million and $1.19, due to higher stranded costs from the Energy divestiture.

Oppenheimer analysts raised their price target on PulteGroup, Inc. (NYSE:PHM) to $73 from $68 and reiterated their Outperform rating, expecting multiple expansions given a positive backdrop for builders broadly and because the company likely will have the highest ROE in the space this year.
According to analysts, they believe that the premium can be maintained in 2023 due to various factors such as Pulte’s projected gross margin, backlog ASP, market mix, and exposure to a diverse range of buyers. Furthermore, the analysts anticipate that the estimated earnings per share (EPS) for 2023 could increase, as it is currently 35% lower compared to the same time last year.
The analysts highlighted $0.38 of incremental upside to their $7.85 estimate (vs. the Street’s $7.50) based on higher closing ASP and margin.

Jefferies raised its price target on Uber Inc. (NYSE:UBER) to $49.00 from $47.00 while reiterating their Buy rating, noting that the company’s above-consensus EBITDA is expected to rise with faster growth in higher-margin businesses (Mobility & Advertising).
The analysts predict approximately $5.6 billion in 2024 EBITDA and a 7% upside to the Street estimate, with a long runway for margin expansion. EBITDA growth is estimated to be around 45% vs. 15% in 2022-2027 CAGR.
According to the analysts, the strong EBITDA should boost confidence in long-term economics and drive Uber’s multiple higher, leading to higher share prices.

State Street’s (NYSE:STT) shares dropped more than 9% on Monday after the bank missed Q1 Street estimates. The company posted earnings per share (EPS) of $1.52 on revenue of $3.1 billion, which fell below the Street estimate of $1.65 per share on sales of $3.13 billion.
The report also showed a year-over-year decline of 9.2% in fee revenue. The Q1 results were impacted by a $1 billion liquidity injection into the U.S. financial system, which had a $0.06 per share impact on earnings. The bank reported $26 billion in net outflows and net interest income (NII) of $766 million, below the Street estimates.

RBC Capital shared their outlook on Smith & Nephew plc (NYSE:SNN) ahead of the upcoming Q1/23 earnings announcement, scheduled on April 26, expecting revenue growth of 3.9%. This is due to the company benefiting from positive trends in US electives but tempered by headwinds in China.
According to the analysts, Q1 is set to be 2023’s weakest quarter, in line with company guidance and commentary from competitors. The analysts continue to believe that the company’s valuation vs peers do not account for its competitive positioning or growth outlook, and they anticipate a gradual re-rating as it delivers on its self-help strategy.

Bank of America reaffirmed their Buy recommendation on e.l.f. Beauty (NYSE:ELF), and increased their price target from $75.00 to $105.00. The decision was made after the company’s share value grew by around 135% since September 2022. The increase was attributed to e.l.f. Beauty’s success in gaining market share in color cosmetics, expanding shelf space in major retailers, and introducing innovative products that appeal to their core consumers.
According to analysts, there are still opportunities for e.l.f. Beauty to outperform in the future, including gaining more shelf space, benefiting from product innovation and the expansion of ELF Skin, and expanding into lip and eye cosmetics.
e.l.f. Beauty has exceeded expectations and increased guidance for 2023, and Bank of America remains optimistic about the company’s prospects in 2024 and 2025, surpassing the Street estimates. For 2023, e.l.f. Beauty has forecasted net sales of $541-$555 million, which represents a growth of 38-39% year-over-year.