Stock Analysts’ Ratings Reiterations for October, 24th (ASGN, AWH, BEAV, EAT, ETFC, LL, MLNX, NOC, NOW, TGT)
On Assignment (NASDAQ:ASGN) had its buy rating reaffirmed by analysts at Jefferies Group. The firm currently has a $39.00 price target on the stock, up from their previous price target of $36.00. The analysts wrote, “Yesterday, after the market closed, On Assignment reported 3Q results and provided 4Q guidance. As we expected, accelerating Apex growth (+21.6% vs. +19.8% in 2Q) helped drive yet another strong quarter, driving a ~6% beat to the high-end of EPS guidance. Buoyant commentary about the state of the IT markets exiting 3Q bodes well for ASGN’s growth trajectory. Reiterate BUY. Increase PT from $36 to $39.”
“Allied World Assurance Company Holdings, AG ” (NYSE:AWH) had its hold rating reiterated by analysts at Barclays. The firm currently has a $105.00 price target on the stock.
B/E Aerospace (NASDAQ:BEAV) had its hold rating reiterated by analysts at Deutsche Bank. Deutsche Bank currently has a $73.00 price target on the stock.
Brinker International (NYSE:EAT) had its neutral rating reissued by analysts at JPMorgan Chase & Co.. The firm currently has a $44.00 price target on the stock, down from their previous price target of $45.00. The analysts wrote, “Brinker F1Q EPS of $0.43 missed consensus of $0.45 and our $0.51 and included a $0.02 accrual for upcoming higher advertising spend. Blended comps were down 1.3% vs. a generally expected -1% and the Knapp industry average of -2.4%. This was matched with a restaurant margin miss including 40bps pressure in labor from higher health insurance costs unrelated to ACA. Management lowered guidance to -1% to +1% F14 comps from prior +1-2% (we model 0.2%) and earnings to $2.65-2.75 from prior $2.70-2.85 (we model $2.66). The company said October comps are ‘off to a good start,’ outperforming the industry. We agree with the focus on same-unit returns and disciplined new unit openings. Meanwhile F14E capex of $150m drops to $90m by F16E, allowing FCF yield to go from 5.5% to 10% on current prices. We downgraded EAT to Neutral (along with BLMN and TXRH) largely due to our belief that the industry’s top-line environment would remain weak and generally below companies’ expectations. In fact, we believe the supply demand imbalance remains through at least C14 as we wish other industry participants (Darden namely) would acknowledge that traditional casual dining is a mature industry. While our forecast longer term for EAT continues to support a mid-teens EPS CAGR and mid- to high-single-digit FCF yields, we believe valuation reflects this, especially relative to nearterm SSS risk in the industry. Our revised Dec 2014 price target of $44 implies an 8% FCF yield in C15E or 14x C15E EPS.”
E*TRADE Financial Corp. (NASDAQ:ETFC) had its buy rating reissued by analysts at Goldman Sachs Group Inc..
Lumber Liquidators Holdings (NYSE:LL) had its positive rating reaffirmed by analysts at Jefferies Group. The analysts wrote, “We still like this momentum story as it outperforms at the top-line. Management is executing well against its strategy as it grows its customer base, benefits from marketing investments, improves training, expands the product mix, improves real estate and extracts good results from remodels. This is all contributing to higher sales productivity and gross margin rate.”
Mellanox Technologies (NASDAQ:MLNX) had its buy rating reiterated by analysts at Stifel Nicolaus. They currently have a $55.00 price target on the stock, down from their previous price target of $63.00. The analysts wrote, “Mellanox’ results and guidance missed our below-consensus estimates. While this is clearly a disappointment, we believe the company’s end-to-end high-performance networking solutions are poised for accelerated growth in 2014. In particular, we expect Mellanox can gain market share in the broader Ethernet markets that previously the company could not fully address. We maintain our Buy rating.”
Northrop Grumman Corp. (NYSE:NOC) had its hold rating reiterated by analysts at UBS AG. UBS AG currently has a $94.00 target price on the stock.
ServiceNow (NYSE:NOW) had its buy rating reaffirmed by analysts at Barclays. The firm currently has a $60.00 price target on the stock.
Target Corp. (NYSE:TGT) had its buy rating reissued by analysts at ISI Group. The firm currently has a $70.00 target price on the stock. The analysts wrote, “Target’s October 30th Investor Day is a chance to update long term goals, as well as outline strategies for turning the traffic and winning the hearts/wallets of Canadian shoppers. Target’s long term path to prosperity involves driving sales productivity and holding EBIT margins, with a modest top-line improvement likely as payroll tax cycles. That said, our August downgrade to Buy was a recognition that eCommerce pressures are secular – see Ten Potential Positives, Two Big Risks on 7/7 for more on traffic concerns. What could move the stock is frequency driving initiatives to narrow a 40% sales/ ft deficit vs. Walmart, raising buybacks/ dividends, or plans to jump-start Canada. Inside we deep dive category trends, multi-channel progress, and the Canadian market/competitor overlaps/ store demographics inside. Trading at 13x our CY14 EPS (20% dsct to peers) TGT reflects much of the risk that comps languish with upside to $70+ if traffic turns, and FCF inflects.”
TripAdvisor (NASDAQ:TRIP) had its buy rating reissued by analysts at Stifel Nicolaus. The firm currently has a $92.00 price target on the stock, down from their previous price target of $93.00. The analysts wrote, “TripAdvisor’s engagement metrics continue to be very strong (260m uniques), and financial results were in-line, perhaps even a little better than feared. As previewed, total guidance was maintained despite a reduction to click-based ad outlook. Shares might digest the outlook but we believe weakness should be bought. We maintain that evidence of weak engagement metrics is necessary to derail the investment thesis and we see no evidence of this. Maintain Buy.”
WellPoint (NYSE:WLP) had its neutral rating reissued by analysts at Goldman Sachs Group Inc..
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