Investment Analysts’ Upgrades for January, 17th (ABT, DOL, ESI, INFY, JAKK, NVMI, OXC, PNC, RENT, TEX)
Abbott Laboratories (NYSE:ABT) was upgraded by analysts at Morgan Stanley from an equal weight rating to an overweight rating. The firm currently has $45.00 price target on the stock. The analysts wrote, “Lingering impacts of Fonterra, FX, and ramping spend on Nutritionals production for Asia are near term drags that likely mute upside to ’14 guidance. ABT’s 40% emerging market revenue mix is largely unhedged, implying ’13 FX moves could pressure 1H margins, in line with COV and JNJ commentary,” the report noted. “We forecast flat EBIT margins in 1H14, conservative vs. the >150bps improvement we estimate for 2H13 despite incremental spend on the Nutritionals recovery. Our revised FX assumptions reduce reported revenues by 2% (largest delta is EPD down 4% given EM mix) and shave $0.02 off our EPS estimate. We are comfortable with the consensus ’14 outlook for revenue growth >5% and EPS at $2.21/up 10%.”
Dollarama (TSE:DOL) was upgraded by analysts at Raymond James from a market perform rating to an outperform rating. The firm currently has C$90.00 target price on the stock.
ITT Educational Services (NYSE:ESI) was upgraded by analysts at Merrill Lynch from a neutral rating to a buy rating.
Infosys Technologies Ltd (NASDAQ:INFY) was upgraded by analysts at Zacks from a neutral rating to an outperform rating. The firm currently has $73.00 target price on the stock. Zacks’ analyst wrote, “Infosys is a leading provider of business consulting, technology, engineering and outsourcing services worldwide. We have upgraded our recommendation on Infosys to Outperform from Neutral. Profits during the reported quarter were driven by the company’s differentiating strategy to capture potential opportunities and the strategic organizational changes. Further, the company has signed new deals that are expected to drive profits going forward. This apart, during the quarter, Infosys had strong client wins, especially the Fortune 500 companies. In addition, the company’s big data and cloud offering are also gaining strong momentum. Furthermore, after witnessing a consecutive decline in margins for approximately past six quarter, during the reported the company reported margin growth. The company has increased its revenue guidance for fiscal 2014. “
JAKKS Pacific (NASDAQ:JAKK) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. The firm currently has $6.75 target price on the stock. Zacks’ analyst wrote, “We are upgrading our recommendation on JAKKS Pacific to Neutral from Underperform based on better than expected third quarter results. After missing the Zacks Consensus Estimate for six consecutive quarters, JAKKS Pacific managed to beat the same in the third quarter of 2013. Jakks Pacific’s earnings of $1.11 per share beat the Zacks Consensus Estimate by 4.7% and the year-ago quarter earnings by 0.9%. A better-than-expected top line performance and operating margin expansion helped earnings during the quarter. Revenues plunged nearly 1.2% but beat the Zacks Consensus Estimate by 4.3%. Also, JAKK’s international expansion efforts as well as acquisitions/joint ventures have started yielding benefits. Going forward, we are optimistic about the company’s product launches and organic growth initiatives which include creating new products and securing new licenses. However, we prefer to remain on the sidelines currently, given the weak consumer spending environment and the decision to suspend dividend as a result of restructuring efforts.”
Nova Measuring Instruments (NASDAQ:NVMI) was upgraded by analysts at TheStreet from a hold rating to a buy rating. The analysts wrote, “Nova Measuring Instruments (NVMI) has been upgraded by TheStreet Ratings from hold to buy. The company’s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.”
Oryx Petroleum (TSE:OXC) was upgraded by analysts at RBC Capital from a sector perform rating to an outperform rating. They currently have C$18.00 price target on the stock, up from their previous price target of C$17.00.
PNC Financial Services Group (NYSE:PNC) was upgraded by analysts at Rafferty Capital Markets to a buy rating.
Rentrak Corp. (NASDAQ:RENT) was upgraded by analysts at Albert Fried & Company from an underweight rating to a market perform rating. The firm currently has $30.00 price target on the stock.
Terex Corp. (NYSE:TEX) was upgraded by analysts at Zacks from a neutral rating to an outperform rating. They currently have $50.00 target price on the stock. Zacks’ analyst wrote, “Terex’s adjusted earnings for third-quarter 2013 grew 24% year over year to $0.77 per share, due to a reduced interest expense and a lower effective tax rate. The company will continue to benefit from replacement demand in the AWP segment while improved Port business and realization of restructuring benefits will improve results in the MHPS segment. Terex’s decision to divest its truck business will be a positive. Furthermore, Terex’s initiation of dividend and share repurchases will enhance shareholders’ value. We have, thus, upgraded our recommendation from Neutral to Outperform on Terex with a target price of $50.”
Toyota Motor (NYSE:TM) was upgraded by analysts at Goldman Sachs Group Inc. from a buy rating to a conviction-buy rating.
Western Digital Corp. (NYSE:WDC) was upgraded by analysts at Zacks from a neutral rating to an outperform rating. They currently have $107.00 price target on the stock. Zacks’ analyst wrote, “We have upgraded Western Digital shares to Outperform as we are encouraged by the company’s business shift toward non-PC applications. The secular growth of digital data, modest growth in the TAM and higher demand for storage are expected to drive near-term results. Additionally, its growing exposure to the small and medium business space, synergies from acquisitions and product innovations remain growth drivers. We think that these factors more than offset the higher expenses, flat margins, stiff competition and sluggish macroeconomic environment that the company is up against. “
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