Analysts' Actions: AIMCO, Bruker, Fresh Market

TheStreet Staff

NEW YORK (TheStreet) -- RATINGS CHANGES

AIMCO was upgraded at UBS to buy from neutral. Valuation call with a 12-month price target of $36, UBS said.

Bruker was downgraded at ISI Group to neutral from buy. Valuation call, based on a 12-month price target of $25.50, ISI Group said.

Ennis was upgraded to buy at TheStreet Ratings.

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Hawaiian Holdings was downgraded to hold at TheStreet Ratings.

Fresh Market was downgraded at Goldman Sachs to sell from neutral. Twelve-month price target is $27. Company is facing cost inflation and increased competition, Goldman Sachs said.

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Now let's look at TheStreet Ratings' take on some of these stocks:

TheStreet Ratings team rates FRESH MARKET INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FRESH MARKET INC (TFM) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation."

Highlights from the analysis by TheStreet Ratings Team goes as follows:


TheStreet Ratings team rates BRUKER CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BRUKER CORP (BRKR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $56.17 million or 22.37% when compared to the same quarter last year. In addition, FRESH MARKET INC has also modestly surpassed the industry average cash flow growth rate of 12.44%.
  • TFM's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.24 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Food & Staples Retailing industry. The net income has significantly decreased by 25.1% when compared to the same quarter one year ago, falling from $22.12 million to $16.57 million.
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 51.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • BRUKER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, BRUKER CORP increased its bottom line by earning $0.48 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.48).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Life Sciences Tools & Services industry average. The net income increased by 61.1% when compared to the same quarter one year prior, rising from $5.40 million to $8.70 million.
  • BRKR's revenue growth trails the industry average of 18.4%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.

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