Equities Research Analysts’ Ratings Reiterations for October, 9th (AEP, AGNC, ALNY, BSX, BXS, DMND, ETP, FDO, GCI, HCN)
American Electric Power Co. (NYSE:AEP) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $46.00 price target on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on American Electric Power based on its consistent performance in core regulated operations and transmission network expansion, partly tempered by reduced capacity payments in the PJM Interconnection and weak second quarter results. Key Growth drivers for the company include its diversified geographical business that insulates it from risk, the company’s contribution from Transmission Operations, strong cost reduction efforts and an above-average dividend yield. However, tepid economies in a number of its service states, weak residential, commercial and industrial sales and its predominantly fossil fuel based generation assets may restrict opportunities for future performance.”
American Capital Agency Corp. (NASDAQ:AGNC) had its underperform rating reissued by analysts at Zacks. Zacks currently has a $20.50 target price on the stock.
Alnylam Pharmaceuticals (NASDAQ:ALNY) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $60.00 target price on the stock. Zacks’ analyst wrote, “Alnylam’s second quarter 2013 net loss of $0.29 per share was narrower than the Zacks Consensus Estimate loss of a $0.34 but wider than the year-ago loss of $0.25 per share. The wider year-over-year loss was primarily due to lower net revenues. We are impressed by Alnylam’s progress with its pipeline, especially its ATTR program. We are also encouraged by the company’s collaborations with big pharmaceutical players to further develop and utilize its core technology. However, the early-stage nature of the company’s pipeline remains a concern. Any negative news related to the pipeline will weigh heavily on the stock. We see limited upside potential from current levels and hence maintain our Neutral stance on Alnylam. “
Boston Scientific Corp. (NYSE:BSX) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $12.00 target price on the stock.
BancorpSouth (NYSE:BXS) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $21.00 price target on the stock. Zacks’ analyst wrote, “We are initiating coverage on BancorpSouth with a Neutral rating. The company’s second-quarter 2013 earnings marginally beat the Zacks Consensus Estimate, primarily aided by a rise in non-interest revenues. Moreover, loan loss provision levels stabilized in the quarter with a number of credit quality metrics exhibiting favorable trends. However, persistent pressure on net interest margin (NIM) and higher expenses were the headwinds. We believe that the company’s robust mortgage lending business performance, along with opportunistic acquisitions, would help it navigate through the current sluggish macroeconomic cycle. However, we remain concerned over the prevalent low interest rate environment and its adverse impact on NIM.”
Diamond Foods (NASDAQ:DMND) had its neutral rating reissued by analysts at Zacks. They currently have a $22.00 price target on the stock. Zacks’ analyst wrote, “Based on the past two quarters of strong bottom-line results, we have reaffirmed our long-term Neutral recommendation on Diamond Foods. The company is progressing well with its cost saving endeavors and operational efficiencies. We believe that better price realization, reduction of underperforming SKUs and lower dependency on discounting would gradually facilitate the company reinstate on the growth trajectory. However, the near-term headwinds cannot be ignored with first-quarter fiscal 2014 sales projected to be lower on a year-over-year basis. Further, we believe that the challenges related to procuring walnut supplies and mending Diamond Food’s ties with growers are denting the company’s performance. Moreover, Diamond Foods’ high dependence on few retailers might prove unfavorable in case there is trouble in business negotiations.”
Energy Transfer (NYSE:ETP) had its neutral rating reissued by analysts at Zacks. The firm currently has a $54.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on ETP units, reflecting a balanced risk/reward profile. ETP remains a premier MLP with strategically-positioned assets that serve major North American natural gas-producing basins. We like the partnership’s robust organic growth profile, stable fee-based operating income and strong liquidity position. While the partnership kept its distribution unchanged, we expect growth to resume shortly, driven by the completion of a broad array of organic growth projects. Additionally, the acquisition of Sunoco will help ETP to diversify and recalibrate its pipeline assets. However, we believe that the near- to medium-term outlook for the partnership’s natural gas gathering and processing business continues to be weak, which remains a major liability, in our view.”
Family Dollar Stores (NYSE:FDO) had its hold rating reiterated by analysts at Deutsche Bank. Deutsche Bank currently has a $65.00 price target on the stock.
Gannett Co. (NYSE:GCI) had its hold rating reissued by analysts at Zacks. Zacks currently has a $27.00 target price on the stock.
Health Care REIT (NYSE:HCN) had its neutral rating reissued by analysts at Zacks. The firm currently has a $65.00 target price on the stock. Zacks’ analyst wrote, “Health Care REIT is scheduled to release its third-quarter 2013 earnings results before the market opens on Nov 5. The company’s second-quarter 2013 normalized FFO per share came a cent ahead of the Zacks Consensus Estimate and escalated year over year. The improved results were primarily attributable to better-than-expected revenue growth. Alongside, the company registered decent same-store NOI. Moreover, the completion of the Sunrise Senior Living facility acquisition, the Revera deal in Canada and the Avery Healthcare investments in the UK are expected to further enhance the company’s high-quality senior housing portfolio and extend its reach in the high-barriers-to-entry affluent markets. Yet, intense competition in the healthcare industry and the company’s series of acquisitions are expected to raise the upfront operating expenses.”
International Flavors & Fragrances (NYSE:IFF) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $84.00 price target on the stock. Zacks’ analyst wrote, “Growth prospects are bright for International Flavors & Fragrances on the back of new business wins, geographical diversification, wide product lines, continuous accomplishments in research and intense consumer insight. For 2013, management anticipates overall results to be in-line with the long-term targets. The company fared well in the second quarter 2013 posting earnings per share of $1.14, up 5.6% year over year but $0.04 below the Zacks Consensus Estimate. Revenue grew by 5% or 6% on constant currency. Geographically, business flourished in all operating regions while growth in emerging markets was appreciable at 10%. This was partially offset by negative foreign currency translation impact. Dividend increase and a share buyback approval in hand signify the company’s efforts to reward its shareholders well. Despite these, risks from increase in debt levels as well as negative impact from foreign currency translation might prove detrimental to growth. Thus currently we maintain a Neutral recommendation.”
OptimizeRx Co.(NDA) (NASDAQ:OPRX) had its outperform rating reiterated by analysts at Zacks. They currently have a $3.50 price target on the stock. Zacks’ analyst wrote, “The expectation is that sales should significantly ramp with growth in revenue from voucher printing – which should pick as SampleMD’s distribution is further expanded, especially as it relates to Allscripts, DrFirst and NewCrop. The additional functionality and integration into new solutions should also increase awareness, increase value to the end user, increase the physician base and utilization, help to increase the number of drugs promoted, and expand opportunities for further growth. OPRX’s business model is super scalable. OPRX was cash flow positive in Q4, full-year 2012 and 1H 2013. We look for revenue growth of 133% in 2013. Distribution growth numbers are very encouraging. Further revenue growth could mean earnings/EPS/cash flow really accelerate. We are maintaining our Outperform rating. “
Suntech Power (NYSE:STP) had its hold rating reissued by analysts at RBC Capital. The firm currently has a $0.75 price target on the stock.
Teradyne (NYSE:TER) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $17.00 target price on the stock. Zacks’ analyst wrote, “Teradyne is a leading provider of automated test equipment. The company’s second quarter earnings beat the Zacks Consensus Estimate, driven by strong improving demand. Forward guidance was also encouraging. The addition of LitePoint remains a big positive going forward given the significant opportunities in the high-growth wireless market. Though we remain optimistic about the product lineup, lean cost structure and strong balance sheet, we believe that the company’s relatively low exposure to the memory segment will keep the shares range bound in the near term. We therefore reiterate our Neutral recommendation on the shares.”
Universal Technical Institute (NYSE:UTI) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $12.00 price target on the stock.
Vodafone (NYSE:VOD) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $37.00 price target on the stock.
Zoetis (NYSE:ZTS) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $33.00 target price on the stock. Zacks’ analyst wrote, “We are initiating coverage on Zoetis with a Neutral recommendation. Zoetis’ second quarter 2013 adjusted earnings of $0.36 per share were in line with the Zacks Consensus Estimate. Second quarter 2013 earnings were 3% above the year-ago figure. Higher revenues aided results in the quarter. We expect Zoetis to achieve its 2013 guidance (adjusted earnings in the range of $1.36-$1.42 per share on revenues between $4.425 billion to $4.525 billion) driven by its impressive and diversified product portfolio. We are also impressed by the company’s focus on emerging markets. We remain concerned about Zoetis’ high debt levels, which can impact its long-term growth prospects. “
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