Procore signs multi-year strategic collaboration agreement with AWS
On Tuesday, Jefferies analyst Daniel Fannon adjusted the price target for Icahn Enterprises , L.P. (NASDAQ:IEP), currently trading at $8.57, to $12.00, down from the previous $15.00, while sustaining a Buy rating on the stock. The stock has shown resilience with a 9.67% gain year-to-date. InvestingPro analysis indicates the stock is currently fairly valued based on its comprehensive Fair Value model. The revision followed Icahn Enterprises’ first-quarter financial results for the year 2025, which highlighted a net income attributable to IEP of negative $422 million. This represented a significant drop from the negative $38 million reported in the first quarter of 2024. According to InvestingPro data, analysts expect the company to return to profitability this year, with projected earnings of $0.71 per share. For deeper insights into IEP’s financial outlook, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The company’s adjusted EBITDA was also in the negative, reported at -$287 million, a stark contrast to the positive $134 million recorded in the same period the previous year. The investment fund’s performance was notably down, with a return of -8.4% for the quarter. Furthermore, Icahn Enterprises had a net long position of 20% as of March 31, 2025, which adjusts to 35% when accounting for refining hedges.
The net asset value (NAV) per share of Icahn Enterprises also saw a quarter-over-quarter decrease, moving from $6.38 per share to $5.74 per share in the first quarter of 2025. Despite the downturn in several financial metrics, Icahn Enterprises maintained its quarterly dividend at $0.50 per share, unchanged from the previous quarter. Notably, the company has maintained dividend payments for 21 consecutive years, with a current yield of 23.34%, while maintaining strong liquidity with a current ratio of 1.83.
The price target reduction reflects the challenges faced by Icahn Enterprises in the first quarter, as evidenced by the reported financial figures. However, the firm’s decision to maintain a Buy rating indicates a continued positive outlook on the stock’s potential.
In other recent news, Icahn Enterprises reported its first quarter 2025 earnings, revealing an earnings per share (EPS) of $0.50, significantly surpassing the forecast of $0.21. However, the company faced a revenue shortfall, reporting $2 billion against a projected $2.63 billion. Moody’s Ratings downgraded Icahn Enterprises’ corporate family rating to B1 from Ba3, citing weak performance in core subsidiaries and financial policies that prioritize unitholders over creditors. The downgrade also considers the decreased creditworthiness of its largest dividend-paying subsidiary, CVR Energy (NYSE:CVI). Despite these challenges, Icahn Enterprises maintains a strong liquidity position with total liquidity of $3.8 billion. The company’s automotive segment experienced a 9% decline in sales year-over-year, while the energy segment reported a negative EBITDA of $61 million. Analysts from Moody’s noted that improvements in the energy segment’s profitability and regular dividends could lead to a future upgrade of the company’s ratings.
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