Research Analysts’ Ratings Reiterations for February, 21st (ABBV, ACHC, AXLL, BKD, CYBX, EPAM, HAWK, HPQ, JNPR, MRVL)
AbbVie (NASDAQ:ABBV) had its buy rating reiterated by analysts at Bank of America. Bank of America currently has a $58.00 price target on the stock, up from their previous price target of $56.00. The analysts wrote, “ABBV is unique among the US Major Pharma companies given its significant product concentration (50% of 2012 revenues were generated by a single product, Humira). Despite this, we are bullish on ABBV given its attractive valuation, above-average dividend yield, and the potential for the pipeline to deliver a blockbuster HCV franchise over the medium term. We conservatively include no real contribution from the rest of the pipeline despite the fact that we continue to model robust R&D spend.”
Acadia Healthcare Co (NASDAQ:ACHC) had its positive rating reaffirmed by analysts at BMO Capital Markets. The analysts wrote, “Our rating reflects our view that organic growth through bed additions/conversions supplemented by acquisitions will drive the fastest earnings growth in our coverage universe. Meanwhile, the expected rapid growth should allow the company to leverage its costs and close the margin gap between its current margin and its long-term 20% margin target. The management team has a proven track record in this industry executing on this type of strategy.”
Axiall Corp. (NASDAQ:AXLL) had its neutral rating reissued by analysts at Citigroup Inc.. Citigroup Inc. currently has a $48.00 price target on the stock, down from their previous price target of $51.00. The analysts wrote, “AXLL posted a strong 4Q as synergies are coming through faster than expected and Building Products margins are improving, which likely explains the 6% move in the stock today. However, the near-term outlook is challenging given: 1) The spike in natural gas prices to over $6/mmbtu; 2) Soft construction activity due to cold weather; 3) Languishing chorine & caustic prices; and 4) A $20mm increase in turnaround-related costs and a $25mm impact from the PHH VCM facility fire. On the plus side, AXLL has made strides on synergies and upped its YE ’14 run rate target to $140mm ($100mm in Dec ’13). Plus, PVC price hikes appear to be gaining traction.”
Brookdale Senior Living (NYSE:BKD) had its positive rating reaffirmed by analysts at Deutsche Bank.
Cyberonics (NASDAQ:CYBX) had its buy rating reissued by analysts at Citigroup Inc.. They currently have a $85.00 target price on the stock, up from their previous target price of $80.00. The analysts wrote, “F4Q13 EPS was $0.02 ahead of the Street as a slight miss in sales was aided by a slightly better GM and a lower tax rate. January proved to be a difficult month – largely due to weather – but this was largely offset by a large EMEA tender. While the US slowdown was a bit disappointing, it lines up with MDT’s recent commentary and we sense CYBX is very confident in a strong F2014 finish.”
EPAM Systems (NASDAQ:EPAM) had its buy rating reissued by analysts at Citigroup Inc.. Citigroup Inc. currently has a $46.00 price target on the stock, down from their previous price target of $50.00. The analysts wrote, “EPAM had solid results, much better than expected both on the top- and bottom-line – we believe this was likely due to a ‘budget flush’ similar to one EPAM benefited from last year. Even more important, the initial guide of 21%-23% revenue growth is quite solid, indicating that factors such as the Ukraine unrest (a key concern for investors) has not affected overall demand – we do believe there is a benefit modeled by the company for a higher onsite presence, one indicator of which is the higher expected tax rate in 2014. “Note the company has been conservative the last couple of years. The one thing to point out is that between the higher tax rate, higher share count and continued investments, we look for roughly in-line EPS vs. expectations. Of course, we do expect margins to rise over time and this is reflected in our increased forward estimates. The secular theme remains robust in EPAM, as we have stated before. Buy EPAM.”
Blackhawk Network Holdings (NASDAQ:HAWK) had its buy rating reiterated by analysts at Citigroup Inc.. They currently have a $26.00 target price on the stock, down from their previous target price of $33.00. The analysts wrote, “A perfect storm – a 4Q13 miss; tepid 2014 bottom-line guidance; Safeway’s spin of its entire ownership stake – led HAWK stock down ~20%. At current levels, there is interest for HAWK stock but the timing of the announced spin (mid-March) implies the stock likely continues to be at this depressed level for a month. The seasonality of the business doesn’t help matters, since there is no real catalyst in the next couple of quarters from a numbers standpoint. Having said this, adjusted operating revenue growth of 24%-28% and adjusted EBITDA growth of 20%-24% is strong and comments on a 2014 load value growth are positive. We are lowering our estimates and price target to $26 from $33 but HAWK remains a Buy at these lower levels.”
Blackhawk Network Holdings (NASDAQ:HAWK) had its neutral rating reaffirmed by analysts at Bank of America. They currently have a $25.00 price target on the stock, down from their previous price target of $28.00. The analysts wrote, “We view Blackhawk as the clear leader in the $16bn closed-loop third-party gift card market. Blackhawk has strong near-term prospects driven by strong secular trends and significant same store growth potential. However, we argue these are balanced by medium-term risks – valuation, uncertainty around longer term growth prospects, and limited margin expansion potential.”
Hewlett-Packard (NYSE:HPQ) had its overweight rating reissued by analysts at Morgan Stanley. Morgan Stanley currently has a $34.00 target price on the stock. The analysts wrote, “HP has a two year head start on transforming and restructuring its business to meet the demands of a cloud world.” Investments in Ink in the Office, Chromebooks, 3Par storage, and Vertica “are beginning to drive results while disruption post Dell going private and IBM selling x86 servers should help sustain recent revenue growth in Enterprise Group and PC’s,” says the analyst. Operating margins of 10-11 percent “unlikely in the medium-term, as secular shifts away from PC’s, printers, branded servers and IT outsourcing weigh on margins,”
Hewlett-Packard (NYSE:HPQ) had its sell rating reaffirmed by analysts at Goldman Sachs. The firm currently has a $21.00 target price on the stock.
Hewlett-Packard (NYSE:HPQ) had its outperform rating reissued by analysts at Wells Fargo & Co.. The analysts wrote, “slightly ahead of the prior $6-6.5 billion guide.” Potential divestitures would also be” positive in helping the balance sheet or fund M&A,” says Um. On PC’s, Um says, “guidance does not embed macro or improvement/stabilization in PCs, PC sales and margins were higher than expected, particularly in the commercial segment.”
Juniper Networks (NYSE:JNPR) had its neutral rating reissued by analysts at Citigroup Inc.. The firm currently has a $28.00 price target on the stock, up from their previous price target of $27.00. The analysts wrote, “Thurs after the close, Juniper announced new CEO Shaygan Kheradpir’s much anticipated Integrated Operating Plan (IOP), in response to the ‘Value Plan’ activist investor Elliott Management proposed in mid-January. We expected the announcement before Juniper’s Board nomination period closes on Feb 23.”
Marvell Technology Group (NASDAQ:MRVL) had its neutral rating reissued by analysts at Citigroup Inc.. The firm currently has a $17.00 price target on the stock, up from their previous price target of $16.00. The analysts wrote, “Marvell reported FYQ4’14 sales of $932m, above street estimates for $901m and non-GAAP diluted EPS of $0.29, significantly above consensus of $0.25. The company saw strength in Storage (+3%q/q), with better than expected demand and market share gains in HDD. Marvell also highlighted better than expected demand for SSDs at Tier 1 OEMs. We believe Marvell is gaining share here given the recent dynamics with a major competitor in NAND controllers. While Mobile & Wireless declined -14%q/q with seasonal declines in wireless connectivity, Networking increased +5%q/q driven by enterprise and service provider spending.”
SCANA Corp. (NYSE:SCG) had its neutral rating reissued by analysts at UBS AG. UBS AG currently has a $50.00 price target on the stock.
Trinity Industries (NYSE:TRN) had its neutral rating reiterated by analysts at UBS AG. They currently have a $68.00 price target on the stock.
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