Equities Research Analysts’ New Coverage for February, 5th (CRR, DECK, DH, FNV, GLE, LH, NGS, SGY, TGI, UAM)
Morgan Stanley started coverage on shares of CARBO Ceramics (NYSE:CRR). They issued an equal weight rating and a $123.00 target price on the stock. The analysts wrote, “As a provider of consumable proppants, CRR benefits in our view from the ongoing bifurcation in footage drilled relative to rig count growth. Additionally, we expect US onshore E&Ps to increase their focus on optimizing well results, and we see CRR’s ceramic proppants benefitting.”
B. Riley initiated coverage on shares of Deckers Outdoor Corp. (NASDAQ:DECK). The firm issued a buy rating and a $98.00 target price on the stock.
Raymond James initiated coverage on shares of Davis + Henderson (TSE:DH). They issued an outperform rating and a C$32.00 price target on the stock.
Credit Suisse initiated coverage on shares of Franco Nev Corp (NYSE:FNV). They issued a neutral rating and a $52.00 target price on the stock.
Liberum Capital began coverage on shares of MJ Gleeson Group plc (LON:GLE). Liberum Capital issued a buy rating and a GBX 477 ($7.84) target price on the stock.
Maxim Group assumed coverage on shares of Laboratory Corp. of America Holdings (NYSE:LH). The firm issued a buy rating and a $110.00 target price on the stock.
Lake Street Capital started coverage on shares of Natural Gas Services Group (NYSE:NGS). They issued a buy rating on the stock.
NBF assumed coverage on shares of Surge Energy (TSE:SGY). They issued an outperform rating and a C$8.50 price target on the stock.
Canaccord Genuity started coverage on shares of Triumph Group (NYSE:TGI). They issued a neutral rating and a $73.00 price target on the stock. The analysts wrote, “We are downgrading TGI to Neutral from Buy. In our view, there remain significant operating risks facing the company as it grapples with 747-8 execution, C-17 termination, and weakness in military aftermarket. Margin expansion amidst a more difficult top-line outlook may be challenging. We estimate that management’s pro forma EPS guidance of $5.75 in FY15 and $6.75 in FY16 factors in earnings growth per share from operations of $0.27 and $0.50, respectively. See Table 1 for our EPS bridge. Considering that the current guidance already assumes a 1% margin for the 747-8 program, which is TGI’s largest program by backlog, a further program rate cut by Boeing could mean additional unfavorable cumulative catch-up charges…Additionally, in order to meet guidance, TGI must be able to offset the production ramp-down of the V-22 Osprey and UH-60 Blackhawk, which are the ninth and tenth largest programs by backlog, respectively. We are lowering our FY14 GAAP EPS to $4.10 from $4.55 as we account for lower operating profit margin of 14.2% from 15.0%, higher refinancing charges, and 747-8 charges. In the outyears, we are lowering our expected operating margin forecast and we now expect TGI to exit FY18 at operating margins of 14.0% vs. our previous guidance of 16.1%. This lowers our FY15 EPS to $5.50 from $6.55, our FY16 EPS to $6.25 from $7.10, our FY17 EPS to $6.35 from $7.40, and our FY18 EPS to $6.40 from $7.50.”
Leerink Swann began coverage on shares of Universal American Corp. (NYSE:UAM). The firm issued a market perform rating and a $7.50 target price on the stock.
Credit Suisse started coverage on shares of Verint Systems (NASDAQ:VRNT). Credit Suisse issued an outperform rating and a $49.00 price target on the stock.
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