Investment Analysts’ Ratings Reiterations for September, 30th (ARNA, AZN, CYTR, EEFT, FINL, HXL, IMAX, LOW, MDP, MHR)
Arena Pharmaceuticals (NASDAQ:ARNA) had its underperform rating reissued by analysts at Credit Suisse. The firm currently has a $4.00 price target on the stock, down from their previous price target of $5.00. The analysts wrote, “As Q3 closes and following a Friday meeting with management, we are lowering our Belviq US net sales estimate for Q3, Q4, and each year through 2018 (2019-2020 are unchanged). We expect consensus will be coming down in the weeks ahead. We think a capital raise may potentially be required next year and have built this into our model. With these changes, our DCF-derived target price goes from $5 to $4.”
AstraZeneca (NYSE:AZN) had its market perform rating reiterated by analysts at Leerink Swann.
CytRx (NASDAQ:CYTR) had its buy rating reiterated by analysts at Aegis.
Euronet Worldwide (NASDAQ:EEFT) had its overweight rating reissued by analysts at Piper Jaffray Cos.. They currently have a $44.00 target price on the stock, up from their previous target price of $39.00. The analysts wrote, “We recently traveled to see investors with EEFT CEO Mike Brown. We believe EEFT continues to show momentum in all three businesses. In epay, its recent roll out of Google Play in Germany has been very strong and will be rolled out in an additional 6-7 countries in early 2014. We believe that with at least 4x as many Android phones in Europe as iPhones, this business could pass iTunes for EEFT in the future. Second, EEFT is talking to a number of banks to connect their mobile banking apps to iTunes and other ecommerce providers, like their current relationship with Swiss Post. We reiterate our OW, Top Pick for 2013 and increase price target to $44 from $39 based on 10.5x our 2014E EV/EBITDA of $223.5M ($55M net debt, 52.0M s/o). Our multiple expands to 10.5x from 9.5x based on better growth prospects.”
Finish Line (NASDAQ:FINL) had its hold rating reaffirmed by analysts at Deutsche Bank. Deutsche Bank currently has a $24.00 target price on the stock, up from their previous target price of $23.00. The analysts wrote, “FINL’s sharp move higher Friday was justified, in our view, as SSS trends accelerated from slightly negative to +MSD, the Macy’s partnership continues to drive stronger than expected productivity, and expenses were managed better than expected – a reversal from last year’s stumbling blocks. That said, we will remain on the sideline for now as management stated that the 2Q beat (vs. the Street) was actually just in-line with their view (no quarterly guidance), GPM missed in 2Q and 2H guidance was lowered due to a need to promote and markdown more aggressively in the current environment, and FY earnings were reiterated opposed to a raise (due to additional expenses expected in 4Q vs. consensus) despite the Street already being ahead of the company’s guidance.”
Hexcel Corp. (NYSE:HXL) had its buy rating reissued by analysts at Deutsche Bank. They currently have a $54.00 price target on the stock, up from their previous price target of $41.00. The analysts wrote, “We see at least 40% more upside in shares of HXL and are raising our 12- month target to $54 from $41. We believe the company is on the verge of entering the sweet spot of its already-impressive earnings growth trajectory, as the Airbus A350 enters service late next year and begins its production ramp. As such, we are initiating our 2015 EPS estimate at $2.70 (consensus: $2.38), which translates to 50% earnings growth over 2013 levels.”
Imax Corporation (NASDAQ:IMAX) had its neutral rating reiterated by analysts at Sterne Agee. They currently have a $27.00 target price on the stock, down from their previous target price of $28.00. The analysts wrote, “Our title-by-title analysis of IMAX releases in 2H’13 implies a PSA of $1.0 mln for 2013. This is below the 2012 PSA of $1.2 mln which we had used for our previous forecast. We therefore think expectations for a base case slate performance going forward need to be moderated at this point. We are adjusting our estimates; our price target moves to $27 from $28, and we maintain a Neutral rating.”
Lowe’s Cos. (NYSE:LOW) had its buy rating reiterated by analysts at Deutsche Bank. They currently have a $53.00 target price on the stock, up from their previous target price of $49.00. The analysts wrote, “We continue to see Lowe’s as an attractive investment even at current levels as company specific initiatives are starting to kick in right when the macro environment has become supportive. Execution has gotten better, but l there is still plenty of room to grow sales per foot, which is 20%+ below peak, and operating margins, which are 350 bps below peak. We maintain our Buy rating on LOW.”
Meredith Corp. (NYSE:MDP) had its hold rating reaffirmed by analysts at Deutsche Bank. They currently have a $43.00 price target on the stock, up from their previous price target of $42.00. The analysts wrote, “Maintain Hold rating. We maintain our Hold but raise our TP from $42 to $43 based on our updated sum-of-the-parts analysis (base case and TV M&A scenario SOTP). While we like Meredith’s stable National consumer brands, retrans opportunity, and capital return (3.5% div yid + 2% buyback yld), we think an opportunistic TV scenario is required to justify the current price not to mention any upside, thus we remain on the sidelines and await a better entry point.”
Magnum Hunter Resources Corp. (NYSE:MHR) had its buy rating reiterated by analysts at Topeka Capital Markets. Topeka Capital Markets currently has a $8.50 target price on the stock, up from their previous target price of $6.50. The analysts wrote, “While MHR shares have significantly outperformed (up 55.9% since our top pick status on August 22, 2013 vs. peers at 15.5%), we continue to see upside from its asset base and the optionality it provides via potential asset sales and/or JVs. We have discussed several assets earmarked for sale (non-core assets, Eureka Hunter midstream, Utica JV); however, we also believe MHR has the option to sell down a portion of its Marcellus assets. We believe the recent move higher is attributable to speculation around upcoming asset sales, which do not come as a surprise to us, given its rich asset base in the Marcellus/Utica. In this note, we revise higher our RNAV to $10.25 following recent non-core asset sales and as we ascribe greater value to its Marcellus/Utica assets (still at a significant discount to peers). Consequently, we are raising our price target to $8.50 (from $6.50).”
Monolithic Power Systems (NASDAQ:MPWR) had its buy rating reissued by analysts at Deutsche Bank. They currently have a $35.00 price target on the stock, up from their previous price target of $30.00. The analysts wrote, “Raising estimates on greater confidence in 2014 growth. Revisiting one of our favorite names, we have greater confidence in MPWR’s multifaceted 2014 growth story. Largely on product cycles in SSDs, Comm, and Computing; a better-than-seasonal 4Q Consumer decline (game console); and stable inventory dynamics, we see MPWR entering 2014 with a number of company-specific drivers that should yield another year of above-industry growth and GM/OM expansion. Accordingly, we are reiterating our Buy rating, raising our CY14 EPS from $1.45 to $1.65.”
Yahoo! (NASDAQ:YHOO) had its buy rating reissued by analysts at Bank of America Corp.. Bank of America Corp. currently has a $38.00 price target on the stock, up from their previous price target of $29.00. The analysts wrote, “We believe Alibaba’s press release on 9/26 suggests that the company is focused on its IPO and considering a US listing. We think the release suggests an IPO filing in the next 3 months and, in a bull market, Alibaba valuations could move higher. As a reminder, Yahoo will sell 50% of its 24% Alibaba ownership in an IPO (if prior to 2015).”
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