TLV Recap-Week Ending Feb. 6
Tickers mentioned in today's edition: DOX, CYBR, INMD, NNDM, ORA, PGY, SPNS, TEVA, TSEM, URGN, VRNS, WIX
We share weekly updates with investors on stocks in the four Israel-country exchange-traded funds:
Ark Israel Innovative Technology ETF (IZRL), up 6.02% for week ended Feb. 6
Amplify Bluestar Israel Technology ETF (ITEQ), up 2.33%
iShares MSCI Israel ETF (EIS), up 2.1%
VanEck Israel ETF (ISRA), up 1.9%
Four stocks closed the week within 10% of their 52-week lows: Ormat Technologies (ORA) at $64.02; Sapiens International (SPNS) at $26.95; Urogen Pharma (URGN) at $10.72; Varonis Systems (VRNS) at $40.59 (covered below).
Amdocs (DOX), down 1% for the week ending Feb. 6
Amdocs (DOX) reported fiscal Q1 non-GAAP earnings on Feb. 4 of $1.66 per diluted share, up from $1.56 a year earlier.
Analysts surveyed by FactSet expected $1.64.
Revenue for the quarter ended Dec. 31 was $1.11 billion, down from $1.25 billion a year earlier.
Four analysts surveyed expected $1.11 billion.
The company said it expects fiscal Q2 non-GAAP diluted EPS between $1.67 and $1.73 and revenue between $1.11 billion and $1.15 billion.
Analysts expect non-GAAP EPS of $1.71, and four analysts expect revenue of $1.12 billion.
CyberArk Software (CYBR), up 4.81%
CyberArk Software (CYBR) is expected to issue a net new annual recurring revenue outlook for 2025 in line with prior guidance when it reports its Q4 results, UBS said in a note on Feb. 4.
UBS said it expects the company to issue flat net new annual recurring revenue, or NNARR, guidance for the calendar year, consistent with previous outlooks, which would also reflect any potential upside to consensus estimates for $68 million NNARR in Q4.
UBS also said that the company would have a "more mixed setup" near-term but its partners "continue to sound positive" on 2025.
The investment firm said it sees potential for upside to 2025 numbers as the Venafi acquisition could open up a cross-sell opportunity to around 8,500 of CyberArk's non-overlapping customers. Even a modest cross-sell could represent a third to a half of 2025 NNARR, though there is some risk associated if CyberArk "does not nail the integration," according to UBS.
The firm said it was raising its price target to $440 from $400 while maintaining a buy rating on the stock.
Oppenheimer raised its price target on CYBR to $420 from $360, while maintaining its outperform rating.
CYBR stock has an average rating of buy and a mean price target of $384.25, per FactSet.
InMode (INMD), up 9.57%
InMode (INMD) reported Q4 adjusted earnings Feb. 4 of $0.42 per diluted share, down from $0.71 a year earlier.
Nano Dimension (NNDM), up 14.4%
Nano Dimension on Feb. 6 said David Stehlin is joining its board of directors, effective immediately, replacing Kenneth Traub.
Traub resigned from the Board effective immediately following his recent appointment as CEO and President of Comtech Telecommunications
Stehlin’s previous roles included Spirent Communications, MRV Communications, Overture Networks, Ceterus Networks, Valo, and Antec.
Pagaya Technologies (PGY), up 40.13%
Pagaya Technologies (PGY) said Feb. 6 that it has entered into a new forward flow agreement with funds managed by Blue Owl Capital (OWL) to purchase up to $2.4 billion in consumer loans via the Pagaya network over two years.
The company said the forward flow program allows it to efficiently fund loan originations, complementing its asset-backed securitization program, which has raised more than $26 billion since its inception.
Citigroup upgraded Pagaya Technologies to buy from neutral, adjusts its price target to $14.50 from $13.
PGY stock has an average rating of overweight and a mean price target of $20.20, per FactSet.
Teva Pharmaceuticals (TEVA), down 4.32%
Teva Pharmaceutical filed a registration statement with the US Securities and Exchange Commission Friday for the sale of securities by the company and its finance subsidiaries.
Teva has not raised capital since it acquired Actavis from Allergan in 2016.
The prospectus includes American depositary shares each representing one ordinary share, debt securities, purchase contracts and units.
Tower Semiconductor (TSEM), up 0.25%
Wedbush initiated Tower Semiconductor stock coverage at outperform with $60 price target.
TSEM stock has an average rating of overweight and a mean price target of $57.50, per FactSet.
Varonis Systems (VRNS), down 8.85%
Varonis Systems (VRNS) reported Q4 non-GAAP net income Feb. 4 of $0.18 per diluted share, down from $0.27 a year earlier.
Analysts polled by FactSet expected $0.14.
Revenue in the three months ended Dec. 31 rose to $158.5 million from $154.1 million a year earlier.
Analysts surveyed by FactSet expected $165.6 million.
In Q1, the company expects a non-GAAP net loss of $0.04 to $0.06 per diluted share on revenue of $130 million to $135 million. Analysts expect a non-GAAP loss of $0.02 on revenue of $129.9 million.
In 2025, Varonis expects non-GAAP net income of $0.13 to $0.17 per diluted share on revenue of $610 million to $625 million. Analysts expect non-GAAP EPS of $0.32 on revenue of $626.7 million.
Following the earnings report, Morgan Stanley cut its price target on Varonis Systems to $54 from $60, keeping its overweight rating
UBS adjusted its price target on Varonis Systems stock to $60 From $70, while maintaining its buy rating.
Wedbush cut its target to $60 from $67, while maintaining its outperform rating.
VRNS stock has an average rating of overweight and a mean price target of $57.28, per FactSet.
Wix.com (WIX), down 3.3%
Wells Fargo on Feb. 3 initiated coverage of Wix.com stock at underweight with a $208 price target,
WIX stock has an average rating of overweight and a mean price target of $244.60, per FactSet.