Research Analysts’ Ratings Reiterations for June, 10th (AMGN, ARMH, BEAV, FDO, GRAM, HK, HUB.B, IDIX, ONNN, PPC)
Amgen (NASDAQ:AMGN) had its overweight rating reaffirmed by analysts at Morgan Stanley. The firm currently has a $140.00 price target on the stock. The analysts wrote, “David W. Meline, former CFO of 3M, appointed new CFO: Meline joins from 3M where he served as CFO for the last 3 years and corporate controller for the 3 years prior to CFO. Amgen has been without a permanent CFO since Jon Peacock stepped down on 1/10/2014. “Multi-national and P&L management experience cited as key attributes: Amgen management cited Meline’s experience as a divisional CFO at GM for Brazil, Europe and North American, plus his experience at 3M as CFO for a company with operations in 70 countries, as important experience he can bring to Amgen as it expands its international operations – a goal which remains a priority for management. “Further, Meline understands how to run a cost efficient business – another key area that Amgen management cited as important to the CFO role.”
ARM Holdings plc (NASDAQ:ARMH) had its buy rating reissued by analysts at Canaccord Genuity. Canaccord Genuity currently has a $45.59 target price on the stock, down from their previous target price of $60.00.
B/E Aerospace (NASDAQ:BEAV) had its positive rating reaffirmed by analysts at KeyCorp.
Family Dollar Stores (NYSE:FDO) had its underperform rating reaffirmed by analysts at Bank of America. Bank of America currently has a $53.00 target price on the stock. The analysts wrote, “Following the disclosure after market on Friday that Icahn has taken a 9.4% stake, resulting in press speculation that he may push for a combination with DG, we have conducted a preliminary analysis of potential synergies and estimate that DG could pay up to $80/share for FDO in a cash and debt-finance acquisition, which would be 1) accretive in 2015 and 2) keep DG’s leverage to within 3.5x excluding merger synergies and 2.8x including synergies, preserving its investment grade rating. “We note that DG has not commented on a potential transaction and we are not suggesting interest on their part. While we believe shareholders of both companies could be favorable toward a potential combination at the right price, the main uncertainty in our minds is whether or not DG’s management would be willing to undertake such a transaction, given the execution risks involved. In fact, we have never seen a listed retailer within 11,000 stores purchase a troubled retailer with over 8,000 stores. “DG’s shareholder base is also much more fragmented than that of FDO. We note that FDO has just issued a one-year shareholder rights plan which caps ownership of all shareholders to 10% (without paying a control premium for all shares), increasing the uncertainties surrounding the situation.”
Grana y Montero SA (NASDAQ:GRAM) had its overweight rating reiterated by analysts at Morgan Stanley. They currently have a $24.33 price target on the stock, up from their previous price target of $21.10. The analysts wrote, “Underperforming for the first time in years: It started just after the conference in Miami in mid-January, when management first mentioned some issues in the Linea 2 of Lima metro. Since January 17, GRAM is down -25% in PEN, underperforming Lima SE General by 22 percentage points; it is now trading close to its lowest absolute level since 2012.”
Halcon Resources Corp (NYSE:HK) had its equal weight rating reiterated by analysts at Wunderlich. The firm currently has a $3.50 target price on the stock, down from their previous target price of $6.00. The analysts wrote, “Risk-reward is relatively balanced after recent outperformance. Halcon discounts credit for large resource potential, but has significant leverage to both exploration success (or disappointment) and commodity prices. Halcon is a leader in well completion design, which can dramatically influence capital productivity. Success with new well designs could significantly improve returns and lead to upside in the stock.”
Hubbell (NASDAQ:HUB.B) had its overweight rating reiterated by analysts at Morgan Stanley. The firm currently has a $135.00 target price on the stock, up from their previous target price of $122.00. The analysts wrote, “The shift towards an independent trustee for the Hubbell and Roche trusts (~36% voting rights) could signal a subtle yet important tilt in the Board of Directors’ thinking between short term and long term value creation. We raise our PT to $135 as we raise the probability of our bull case outcome.”
Idenix Pharmaceuticals (NASDAQ:IDIX) had its equal weight rating reissued by analysts at Morgan Stanley. The firm currently has a $5.00 target price on the stock, down from their previous target price of $24.50. The analysts wrote, “We are increasing our price target to $24.50 in light of Merck’s announced bid for Idenix at $24.50/share. We do not expect other bidders for this company or any data to cause the deal to not happen…We are Equal-weight IDIX and have a $24.50 price target, which is driven by Merck’s announced acquisition price for Idenix. We do not expect other bidders for Idenix.”
ON Semiconductor Corp (NASDAQ:ONNN) had its underweight rating reiterated by analysts at Morgan Stanley. The firm currently has a $8.00 price target on the stock. The analysts wrote, “After getting the acquired SANYO business close to break-even, ON announced a $400mn acquisition yesterday in the competitive image sensor space. Investors are clearly enthusiastic about accretive deals, although the margin profile and end market mix may be questioned here. We are Underweight ONNN due to lower growth and less operating leverage relative to peers.”
President Energy PLC (LON:PPC) had its outperform rating reaffirmed by analysts at RBC Capital. RBC Capital currently has a GBX 70 ($1.18) price target on the stock.
Seagate Technology PLC (NYSE:STX) had its buy rating reiterated by analysts at Brean Capital. They currently have a $70.00 price target on the stock.
Urban Outfitters (NASDAQ:URBN) had its in-line rating reiterated by analysts at Morgan Stanley. The analysts wrote, “Flattish 2QTD comp, in-line with MS and the Street: We think UO’s comp slightly improved to -9% compared to 1Q’s -12% but was promotionally driven. UO’s e-mail marketing and creative content look markedly improved (quicker and easier to fix), in our view, but in-store progress is slower. URBN 2Q GM guidance implies UO will utilize promotions through 2Q to liquidate less compelling items in the assortment and make room for new Fall product.”
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