Research Analysts’ Ratings Reiterations for February, 5th (AAPL, APD, BRCM, CLX, CME, CRK, ERJ, IP, LEN, MRC)
Apple (NASDAQ:AAPL) had its neutral rating reiterated by analysts at Zacks. They currently have a $534.00 target price on the stock.
Air Products & Chemicals (NYSE:APD) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $109.00 price target on the stock.
Broadcom Corp. (NASDAQ:BRCM) had its outperform rating reaffirmed by analysts at Zacks. They currently have a $35.00 price target on the stock. Zacks’ analyst wrote, “Broadcom reported healthy fourth quarter 2013 results as both adjusted earnings and revenues comfortably beat the Zacks Consensus Estimates. The company is well-positioned in the fast-growing wired and wireless communications markets, with cutting-edge solutions for an increased number of connected users that require more content and bandwidth. Broadcom’s product leadership, solid financial performance and strong cash flow generation remain positives. However, we are concerned about margin pressure due to the accelerated new product ramp up and concentration risks. Nevertheless, we maintain our long-term Outperform recommendation for the stock as we expect it to perform well above the broader market. “
Clorox (NYSE:CLX) had its neutral rating reissued by analysts at Zacks. They currently have a $90.00 price target on the stock. Zacks’ analyst wrote, “Battered by higher commodity, manufacturing and logistics costs along with adverse currency exchange rates, Clorox posted a disappointing second quarter fiscal 2014 bottom-line results with earnings falling over 5% year over year while missing the Zacks Consensus Estimate. Further, anticipating pressure from unfavorable foreign currency exchange rates and rising commodity costs, Clorox has lowered its sales and earnings forecasts for fiscal 2014. Despite all this we have maintained our long-term Neutral recommendation on the stock based on its strong fundamentals, supported by its solid market shares and modest growth across all segments except Household segment. Moreover, we believe that Clorox’s strategy of tapping mid-sized economies provides huge growth potential.”
CME Group (NYSE:CME) had its neutral rating reiterated by analysts at Zacks. They currently have a $77.00 price target on the stock.
Comstock Resources (NYSE:CRK) had its neutral rating reissued by analysts at Zacks. They currently have a $18.00 target price on the stock. Zacks’ analyst wrote, “Comstock Resources’ large acreage position in the prolific Haynesville/Bossier Shale play provides a multi-year inventory of low-risk development drilling opportunities. Supplemented with a low cost structure, Comstock remains well positioned to maintain a strong growth trajectory in the near- to medium-term. The initiation of a quarterly cash dividend will create further value for shareholders. However, the company’s highly gas-weighted reserves/production profile, along with its geographically concentrated asset base, offset these strengths and is the key area of concern, in our view. The rise in net debt/reduction of liquidity associated with the Delaware Basin acquisition is also concerning. As such, we see limited upside from current levels and maintain our Neutral recommendation on Comstock shares.”
Embraer (NYSE:ERJ) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $32.00 price target on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Embraer S.A. The company has already met its delivery targets for the commercial and executive segments in 2013 and is expected to reach its revenue goal. Moreover, the launch of the advanced E-2 commercial aircraft and strong inflow of fresh contracts primarily on the back of a rising demand for regional aircraft will likely sustain future growth for the company. Embraer’s focus on research and development activities, systematic inorganic growth strategy and continuous investments in new service centers will keep it well positioned. A stable liquidity position allows the company to enter into new ventures. However, we remain concerned about currency risk and the highly competitive industry that is forcing Embraer to incur high costs.”
International Paper (NYSE:IP) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $48.00 price target on the stock. Zacks’ analyst wrote, “International Paper reported strong fourth quarter 2013 results as both revenue and earnings increased year over year. The company registered record operating earnings with a solid performance across the board and a healthy margin expansion across its businesses. Pricing initiatives and synergies from acquisition are expected to deliver better performance in the coming quarters as well. Furthermore, strong cash flow position of the company empowers it to better utilize the cash by investing in capital projects and acquisitions. However, pension headwinds, increased raw material costs and high debt levels could peg back its growth momentum by some extent. Nevertheless, we maintain our long-term Neutral recommendation on the stock as we anticipate it to perform in line with the broader market.”
Lennar Corp. (NYSE:LEN) had its neutral rating reiterated by analysts at Zacks. They currently have a $42.00 target price on the stock. Zacks’ analyst wrote, “Lennar reported strong fourth-quarter 2013 results beating the Zacks Consensus Estimate for both earnings and revenues. Adjusted earnings of $0.73 per share grew 30.4% year over year driven by growth in both revenues and margins. Though homebuilding revenues grew around 50% in the quarter, net order were soft as sales pace moderated due to rising interest rates and home prices. Management is optimistic that the moderating sales pace is only temporary and is confident demand will improve in future quarters as buyers adjust to the rising interest rates, credit standards ease and supply remains limited. However, we prefer to remain on the sidelines until we see a rebound in order growth. Moreover, 2014 guidance implies flattish gross margins which raise concerns. “
MRC Global (NYSE:MRC) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $29.00 target price on the stock. Zacks’ analyst wrote, “MRC Global has been successfully increasing its market share through various contract wins. The company won contracts from Williams Companies, BP and Chevron Phillips Chemical during the fourth quarter of 2013. Additionally, the inorganic growth of the company is boosting overall growth. Acquisitions accounted for a significant portion of the company’s revenues in the third quarter of 2013. Management intends to pursue more acquisitions in 2014, to strengthen its presence in the international arena. MRC Global anticipates an improvement in the general market environment, which is expected to boost earnings and revenues in the coming quarters. However, MRC Global’s over-dependence on a handful of customers, impacts the company negatively. Moreover, adverse foreign currency transactions impacts can lower earnings. The company’s history of zero dividends is also being viewed as a downside. Based on these factors, we maintain our Neutral recommendation on the stock.”
RenaissanceRe Holdings (NYSE:RNR) had its neutral rating reissued by analysts at Zacks. They currently have a $95.00 target price on the stock. Zacks’ analyst wrote, “RenaissanceRe’s fourth quarter earnings surpassed the Zacks Consensus on lower catastrophes and higher gross written premiums in the Specialty and Lloyd’s segments. Top line also fared well through significantly enhanced core operations through premiums written and divestitures. Balance sheet improved with higher shareholder equity and lower debt, while also generated substantial investment gains. The latest restructuring is also expected to boost the operating leverage. However, the company will continue to face headwinds related to volatile investment income, high competition, and weather-related risks in the catastrophe insurance and reinsurance business. Nevertheless, strategic divestitures, efficient capital deployment via repurchase, dividend hikes and stable ratings should enhance operating leverage. We maintain a Neutral recommendation on the stock.”
Surge Energy (TSE:SGY) had its outperform rating reissued by analysts at National Bank Financial. They currently have a C$8.50 target price on the stock.
Tyco International (NYSE:TYC) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $42.00 target price on the stock. Zacks’ analyst wrote, “Tyco reported strong first quarter fiscal 2014 results as both revenue and earnings increased year over year with solid performances across all three segments. Tyco, post the spin-off of its ADT and Flow Control divisions, has now become a pure Fire & Security company. Given, Tyco’s broad portfolio of products and market-leading position, it continues to strengthen its competitive capabilities and grow through acquisitions. The company believes that its strong balance sheet provides flexibility to continuously fund organic and inorganic growth initiatives and maximize return for its shareholders. However unfavorable foreign currency translation, pending lawsuits, and high operating expense remain concerns for the company. We maintain our long-term Neutral recommendation for Tyco. “
Vornado Realty Trust (NYSE:VNO) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $96.00 target price on the stock. Zacks’ analyst wrote, “Vornado is scheduled to reports its fourth quarter 2013 earnings release after the market close on Feb 24. The company’s third-quarter 2013 adjusted FFO per share exceeded the Zacks Consensus Estimate and compared favorably with the year-ago figure. Results were driven by a rise in operating income. It continues to strategically revamp its portfolio mix to position it well for growth going forward. The New York portfolio is expected to grow with office leasing activity progressing well and retail sales and rental rates improving. However, the Washington DC portfolio is anticipated to remain stressed with lower pace of leasing activity. Moreover, the company continues to face stiff competition from other commercial property developers. As such we reaffirmed our Neutral stance.”
Yum! Brands (NYSE:YUM) had its neutral rating reissued by analysts at Zacks. They currently have a $76.00 price target on the stock. Zacks’ analyst wrote, “Yum! Brands posted a mixed fourth quarter 2013 with earnings beating the Zacks Consensus Estimate by 7.5% but revenues missing the same by 1.2%. The top line miss was primarily due to lower same-store sales at the U.S. and China divisions. China has been a key player in the company’s growth story. The negative publicity regarding the quality of chicken supplied to Yum!’s KFC in China in Dec 2012 took a toll on the company’s top line. However, the worries seem to be subsiding slowly. Management expects the division to bounce back significantly in 2014 with double-digit earnings growth from 2014 onward. Yum! has a proven business model, which has survived similar threats in the past. Also, the company resorted to an organizational restructuring to focus on high-potential markets and boost overall operations, signaling an effort to turn around in the coming quarters. We maintain our Neutral recommendation on the stock.”
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