Wedbush initiated coverage on AFC Enterprises (NASDAQ: AFCE) with an Outperform rating and price target of $46.00.
"We believe AFCE's accelerating company unit development renders long-term
low- to mid-teens top-line and 17-20% EPS growth, above current long-term EPS guidance of 13%-15%, achievable. Combined with recently reset near-term expectations, we believe both estimates and valuation are poised for upward revisions. Therefore, we initiate with an OUTPERFORM rating," said analyst Nick Setyan.
Polycom upgraded to Buy from Neutral at Goldman
Goldman upgraded Polycom due to relative valuation and expects shares to move higher driven by a return to growth in hardware videoconferencing revenues, margin upside, and new products. Price target raised to $14 from $12.
Westport Innovations (NASDAQ: WPRT) was upgraded by equities research analysts at CIBC from a “sector perform” rating to an “outperform” rating in a research note issued to investors on Tuesday.
Several other analysts have also recently commented on the stock. Analysts at CIBC upgraded shares of Westport Innovations from a “sector performer” rating to a “sector outperformer” rating in a research note to investors on Tuesday. Separately, analysts at Jefferies Group reiterated a “buy” rating on shares of Westport Innovations in a research note to investors on Thursday, September 27th. Finally, analysts at Keybanc Capital Markets reiterated a “hold” rating on shares of Westport Innovations in a research note to investors on Wednesday, September 19th.
Shares of Westport Innovations traded up 2.47% during mid-day trading on Tuesday, hitting $28.855. Westport Innovations has a 52 week low of $21.93 and a 52 week high of $50.19. The company’s market cap is $1.587 billion.
Westport Innovations last posted its quarterly earnings results on Thursday, August 2nd. The company reported ($0.11) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.28) by $0.17. The company’s quarterly revenue was up 136.3% on a year-over-year basis. Analysts expect that Westport Innovations will post $-1.11 EPS for the current fiscal year.
Westport Innovations Inc. (Westport) is a provider of engine and fuel system technologies utilizing gaseous fuels.
From last Wednesday...
"Investment analysts at Northland Capital set a $96.00 target price on shares of Coinstar (NASDAQ: CSTR) stock in a note issued to investors on Wednesday.
Coinstar traded down 2.71% on Wednesday, hitting $52.04. Coinstar has a 1-year low of $38.62 and a 1-year high of $71.82. The company has a market cap of $1.598 billion and a price-to-earnings ratio of 10.84.
Coinstar last announced its earnings results on Thursday, July 26th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.06. The company’s revenue for the quarter was up 22.3% on a year-over-year basis. On average, analysts predict that Coinstar will post $4.89 earnings per share for the current fiscal year.
A number of other firms have also recently commented on CSTR. Analysts at Compass Point reiterated a “neutral” rating on shares of Coinstar in a research note to investors on Thursday, August 16th. Finally, analysts at Wedbush reiterated an “outperform” rating on shares of Coinstar in a research note to investors on Friday, July 27th.
Coinstar, Inc. (Coinstar) is a provider of automated retail solutions, which offers convenient products and services."
Wells Fargo Starts Gilead Sciences (GILD) at Outperform, Valuation Range $48-$52
December 10, 2010 8:29 AM EST
Wells Fargo resumes coverage on Gilead Sciences (NASDAQ: GILD) with an Outperform rating and a valuation range of .$48-$52.
The firm reported that, "Despite the B-tripla regimen's clear tolerability advantages
over Atripla, physicians expressed significant concern about its virological failure
rate. Improved 96-week data and/or better results with an FDC would not
necessarily improve their comfort with the regimen."
McKesson Corp. (MCK) shares declined Thursday as investors worried about the potential loss of business from a key customer that sued the pharmaceutical supplier for breach of contract.
Independent Pharmacy Cooperative, a group purchasing organization for independent pharmacies and customer of McKesson, claims in a suit filed last week that the company is striking side deals to steal its members and trying to convince them to directly purchase products or as part of other buying groups.
Robert W. Baird analysts said in a note Thursday that it believes the group is a top-five customer for the company and has used McKesson as a supplier for over 25 years. IPC represents 6,300 pharmacies whose purchases exceed $8 billion, according to the group's website.
"We believe this case is without merit and intend to defend it vigorously," a McKesson spokesman said. IPC couldn't be immediately reached for comment.
McKesson shares were down 3.5% at $60.00 in recent trading after earlier falling as low as $58.08. The stock is down 4.0% year to date.
IPC, which said it believes that up to 20% of its members may have entered separate agreements with McKesson, is seeking unqualified damages in a suit that was filed with the U.S. District Court in Madison, Wis., on Sept. 15. The group also wants the court to void the contract's $100 million early termination fee. The two parties entered a 10-year supply agreement in 2003.
"McKesson's behavior is ongoing and relentless, and IPC believes that many more of its members have and will quit IPC as a direct result of McKesson's unlawful advances or have entered and will enter into separate agreements with McKesson," the suit said.
Sanford C. Bernstein analyst Helene Wolk said investors are likely overreacting Thursday, noting that IPC's members likely have well-established relationships with McKesson and therefore would probably pressure IPC to stick with the company.
"Is this noise? Yes. Is this a nuisance? Yes. Is this going to result in a huge loss of business for McKesson? My guess is no," Wolk said.
The stock may have also been weighed by the wider-than-expected fiscal second-quarter results its customer Rite Aid Corp. (RAD) reported Thursday. Rite Aid also lowered its 2011 earnings outlook.
Technical reason: GME had been testing the 50 ema. Bears decided it wasn't ready to exceed the 50 ema. Seems like a buying opportunity to me, as dip is likely short lived, due to GME's ever improving fundamentals, and currently atttractive low valuation.
Somebody is Positive On GameStop (GME); Broadpoint AmTech Resumes Coverage with a 'Buy'
March 8, 2010 12:37 PM EST
Beaten-up video game retailer GameStop Corp. (NYSE: GME) received a rare positive rating today. Broadpoint AmTech analyst Ben Schachter resumed coverage on the stock today with a Buy rating and $21 price target.
Investors have slammed the stock as the video game industry transitions to digital, killing GameStop's retail business. The company has continuously had to lower profit guidance.
The key question at this point, Schachter says, is how much cash GME can generate as the industry transitions to digital. He thinks GME will be able to generate approximately $500 million annually through 2016. He also said GME is executing well and should be able to maintain margins in its used business.
Schachter said while the recent CFO departure was a bitter pill to swallow, the company's cash generation capabilities provides upside to investors.
February 17, 2010 10:57 AM EST
Brigantine Advisors upgrades Coinstar (Nasdaq: CSTR) from to Buy with a $35 price target.
The firm commented, "We downgraded the stock last week due to the company’s ongoing dispute with Hollywood and the fact that running three workarounds (Fox, Universal and Warner) would pressure margins in Q1, perhaps leading to an earnings shortfall. Far faster than we had anticipated, the company has announced a settlement with Warner, agreeing to a 28-day delay, and given guidance for Q1 which should mark the bottom in margins. At the same time the company is reiterating last week’s full year guidance. While questions remain, such as the impact of a 28-day delay on consumer demand, the Warner agreement is enough of a catalyst for us to return to our Buy rating. In conjunction with the Buy rating we are setting a $35 Price Target, which is based on 5.5x EV/2010E EBITDA. "
Panel prices are set to fall due to the seasonal downturn and oversupply after companies increased their output, but the price drop won't be as severe as expected, analysts say.
``I don't think panel prices will plunge in the coming quarters as much as the market fears,'' James Kim, an analyst at Nomura Securities, was quoted as saying. ``Demand appears to be stronger than expected, given China's buying spree during the recent holidays and Intel's optimistic view. I see more upside room for LG Display share prices.''
Plus, the glass shortage that was caused by an earthquake in Japan in August was expected to be normalized in October, but the recent power outage in Taiwan will likely delay the balance of supply-demand until January at the earliest.
An electricity failure at a Corning production plant in Taiwan negatively impacted the level of glass supply to LCD makers.
Analysts say the recent power outage accounts for around a 4 percent drop in LCD's global supply.
Keeping these factors in mind, LG Display officials express optimism about the company's short-term performance.
``The decrease in panel prices is expected to be gradual,'' Jeong Ho-young, chief financial officer of LG Display, said at an investor meeting, adding that the oversupply this year won't be as severe in depth than in the previous year.
He said any oversupply challenge will still help widen the gap between competitive and non-competitive firms.
``In the fourth quarter, we estimate an upper single-digit increase in production,'' Jeong said.
LG Display invested about 3.5 trillion won this year, he said, adding that almost the same amount will be invested in 2010 in new plants and equipment, including the expansion of sixth-generation plants.
The global economic downturn has left a serious dent on some of the world's biggest technology firms, but not LG Display, South Korea's flat panel maker.
The company did go through its share of lows from the end of last year to the beginning of this one, posting two straight quarters of losses due to weak panel prices and sinking demand for electronics. But starting in the second quarter, it rebounded, moving into positive territory as it continuously beat market forecasts.
The world's No. 2 maker of liquid crystal displays (LCDs) earned 302 billion won in the April to June period, which was a sharp turnaround from a 255 billion won loss the previous quarter and the first profit it saw in three quarters.
In the third quarter, LG Display reported 559 billion won in net profit, almost doubling the figure from the previous year, which stood at 295 billion won.
The global slump significantly reduced global demand for LCD panel-equipped consumer electronics, such as televisions and computers. But strong demand for TV panels from China and Japan, coupled with a shortage of raw materials, largely helped push figures up again.
``The LCD industry was fortunate enough to climb out of the downturn quicker than others in the technology sector,'' said Lim Seung-beom, analyst at Hanwha Securities, who forecasts that demand will continue to grow firmly.
And to meet the rising need, LG Display began mass production at its eighth-generation LCD production line in Paju, about 40 kilometers north of Seoul, in March.
The new plant can create pieces of glass measuring 2,200 by 2,500 millimeters, enough for eight 47-inch panels, six 55-inch panels and 18 32-inch panels.
The company said it plans to invest 3.27 trillion won to add another eighth-generation production line to its factory by the second half of 2010 to up its monthly output to 60,000 sheets.
While recovering demand was a crucial factor in boosting LG Display's stellar third-quarter performance, company CEO Kwon Young-soo added that a rise in panel prices also provided a nice lift.
``LG Display posted strong performance in the third quarter, thanks mainly to increased demand and higher panel prices,'' he said. ``Investment in new production lines and customer-oriented marketing also contributed to the good results.''
Price changes are significant in determining the profitability for flat-panel manufacturers as panel prices are mostly dependent on demand and supply cycles.
Since May, the LCD industry has been boosted by steep price rises of displays used in televisions. The price of an LCD panel for a 32-inch TV climbed to $200 early this month from $160 in February, according to WitsView Technology Corp., a Taiwan-based researcher.
November 12, 2009 1:58 PM EST
Although well off session lows, shares of LG Display (NYSE: LPL) are still trading in negative territory this afternoon despite an upgrade from this morning. The stock most recently traded at $13.04, down 0.5% from yesterday's close.
Earlier, an analyst at JPMorgan upgraded the stock from Neutral to Overweight.
That's kind of a slime ball, smear tactic, isn't it? That was a minor question brought up, and fully answered during the conference call by their attorney.
NEW YORK (MarketWatch) -- Keefe Bruyette & Woods analysts on Friday raised their rating on Morgan Stanley /quotes/comstock/13*!ms/quotes/nls/ms (MS 29.43, +0.82, +2.87%) to outperform from market perform, saying that a refocusing of the firm's business should enhance profitability. "Management is remaking Morgan's business mix to focus on relatively more stable and less capital intensive revenue sources, particularly wealth management, reminiscent of the drivers behind the 1997 merger of Morgan Stanley and Dean Witter. The pending merger of Morgan Stanley's Wealth Management business with Smith Barney in a joint venture has the potential to enhance long-term profitability," the analysts said. They raised their one-year price target on Morgan Stanley shares to $35. Keefe Bruyette kept is rating for Morgan Stanley rival Goldman Sachs /quotes/comstock/13*!gs/quotes/nls/gs (GS 144.65, +4.64, +3.31%) unchanged, at market perform.
May 29 (Reuters) - Keefe, Bruyette & Woods upgraded Morgan Stanley (MS.N) to "outperform" from "market perform" and raised its price target on the stock, saying the bank was poised to benefit from recent improvements in its operating environment.
The pending merger of Morgan Stanley's wealth management business with Smith Barney in a joint venture has the potential to enhance long-term profitability, said analyst Robert Lee who assumed coverage of the stock.
The Smith Barney deal calls for Morgan Stanley to pay Citigroup Inc (C.N) $2.7 billion in cash for majority control of the venture.
Analyst Lee, however, noted that returns on capital at Morgan Stanley were likely to remain muted in the near-term, placing a limit on its valuation.
Separately, Lee also assumed coverage of Goldman Sachs Group Inc (GS.N) with a "market perform" rating and said the firm had weathered the financial crisis better than most peers.
The brokerage cut its 2009 earnings estimate for Morgan Stanley to $1 per share from $1.45, while it raised the same for Goldman to $13.53 a share from $9.69.
For alerts on price target and estimate changes on Morgan Stanley and Goldman, please double click on [ID:nWNAB4470] [ID:nWNAB4471]
Shares of Morgan Stanley were trading up almost 2 percent at $30 in pre-market trade, after closing at $29.43 Thursday on the New York Stock Exchange. Shares of Goldman Sachs closed at $144.65 on Thursday
Silver Lining: BE Aerospace Prepares for Take-Off
Glenn Curtis Feb 02, 2009 12:15 pm
When most people hop on a plane, their main focus -- and rightfully so these days -- is getting there in one piece. Next time you take to the skies, take a good look around at all the stuff that goes into one of those flying fortresses, including the seating equipment and the often overlooked (but oh-so-important) oxygen system.
Enter BE Aerospace (BEAV), which essentially makes the guts of the airplane so often taken for granted.
BE Aerospace comes to mind because very early this morning, the Florida-based company disseminated its fourth-quarter results.
Excluding charges, it earned $0.53 a share - well north of the $0.46 that analysts had been looking for. And although it did indicate that it’s looking to earn about $0.40 a share (adjusted) in the first quarter (which is $0.04 lower than expectations), it did offer up a decent ’09 outlook. In the release, the company offered guidance of about $2 a share, excluding costs.
That stands out to me ,for a few reasons.
First, its north of the $1.88 a share that analyst’s are expecting.
Second, I think the company could have seriously waffled or given a really big range for guidance but the fact that it didn’t -- and that it came out so early in the game -- seems like good news to me.
Third, I've this hunch that analysts will probably give their 2009 estimates a goose in the days ahead and this could have a positive impact on the share price.
But even beyond today’s news, I think it’s important to recognize that insiders had been bellying up to the bar in a pretty big way. According to the data, execs have been stepping up to the plate since the October time frame in the mid single-digits to low double-digits.
There’s no guarantee that insiders will be right and end up making money. At the same time, their timing was pretty good when there was a fair amount of selling toward the latter part of ’07 (when the shares were in north of $40s).
Basically this means the shares have the potential to do really well over the long haul as demand for air travel increases. I also think the shares deserve a look, given the aforementioned plusses and the fact that tax-loss selling season is now behind us. The shares could really -- pun intended -- take off from here.
Anybody out there old enough to remember when the airlines actually gave out peanuts and a deck of cards?
Davenport Maintains a 'Buy' on BE Aerospace (BEAV), Lowers Target and Estimates; Long-Term Thesis Solidly Intact Feb 3, 2009 11:29AM
Davenport maintains a 'Buy' on BE AerospaceInc. (NASDAQ: BEAV), lowers price target to $25.
Davenport analyst says, "We are lowering our ’09 estimates from $2.12 to $2.04, and our ‘10 estimates from $2.79 to $2.09. Both estimates are exclusive of one-time HCS integration cost of approximately 10 cents for both ’09 and ’10. Downward revisions are not indicative of any weakness in our long-term investment thesis, but rather the adjustment of our model to account for worsening industry conditions since our initiation in early November. With these changes, we believe we have sufficiently stressed our
model to more accurately reflect both the negative trends in revenues, and the positive trends in operating margins gleaned from 4Q08 and management comments."
BE Aerospace, Inc. is engaged in the manufacture of cabin interior products for commercial aircraft and business jets, and is an aftermarket distributor of aerospace fasteners.
It's quite intriguing how the author of this article is using UBS downgrade as a contrary buy signal. Shows to go ya, that some feel analysts can be all wet.
Long: Triumph Group (TGI), $42: Triumph Group has the healthiest mix of fundamentals among the group after diving into the numbers. At a price/book ratio of 0.97, it trades at a 50% discount to the industry average ratio of 2. The price/sales ratio of 0.58 is also below the group’s average of 0.74, and Triumph has one of the highest operating margins in the industry at a healthy 12.12% and an impressive ROE of 13%.
Today will be a good day to get long as shares were but from buy to neutral at UBS. With the Boeing strike coming to a close, margins will get back to higher levels, and business will also benefit from the election of Democrat Barrack Obama. The robust backlog at Triumph, about $1.2bln, gives a clear picture of earnings stability, and new growth initiatives should allow the company to continue to beat expectations. Organic growth rates are much higher than its peers and many segments of business are seeing sequential growth. On a technical basis shares need to break through $48.5 to give a strong buy signal, as this would break the downtrend. A pullback to the $40 support level would provide a nice reward to risk trade. Shares are down 43.2% on the year and it is likely Triumph will outperform the group.