Research Analysts’ Ratings Reiterations for July, 24th (APH, CAKE, CMRE, COG, DD, DPZ, ECL, FB, FCX, FFIV)
Amphenol (NYSE:APH) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $102.00 price target on the stock. Zacks’ analyst wrote, “Amphenol reported stellar second-quarter 2014 results with record earnings and revenues on the back of solid organic and inorganic growth. The reported earnings also surpassed the Zacks Consensus Estimate by $0.04. Amphenol serves a variety of end markets, the diversification of which enables it to post strong results. Despite macroeconomic headwinds, Amphenol is bullish about the accelerating proliferation of new electronic products in most of its end markets, which it expects to propel demand with time. However, cut-throat competition and foreign currency translation could undermine its growth potential to 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. “
The Cheesecake Factory (NASDAQ:CAKE) had its hold rating reiterated by analysts at Wunderlich. The firm currently has a $46.00 target price on the stock, down from their previous target price of $48.00. The analysts wrote, “Cheesecake (CAKE) reported Q214 (Jun) EPS of $0.59 vs. guidance of $0.59-0.62 and our/Street $0.61. The slight EPS miss was dragged by weak revenue and margin deleverage, along with higher dairy and medical costs. Following those results and on its conference call last night, management reduced its 2014 EPS guidance to $2.19-2.25 from $2.24-2.33 and set Q314 EPS at $0.55-0.58 vs. our/Street prior $0.60. Accordingly, we have trimmed 2014 EPS to $2.20 from $2.28 (incl. Q314 by $0.04 to $0.56), and our 2015 EPS to $2.55 from $2.65 on more cautious expectations. Based on our lowered estimates, we have reduced our projected total return target for CAKE to $46 from $48 factoring a 8.0-8.2x EV/EBITDA multiple along with its 18% improved dividend (est. annual $0.66), and reiterate our Hold rating.”
Costamare (NASDAQ:CMRE) had its overweight rating reiterated by analysts at Morgan Stanley. Morgan Stanley currently has a $22.00 target price on the stock. The analysts wrote, “2Q14 results well above consensus on lower expenses. CMRE reported adjusted EPS of $0.48, surpassing our $0.32 estimate and consensus’ $0.38. Revenue of $124m was +7% QoQ and +22% YoY, matching our expectations, but cash expenses came 13% below our forecast with average daily costs falling 5% YoY. As a result, adjusted EBITDA of $87m (+8% QoQ, +29% YoY) beat our estimates by 5%.”
Cabot Oil & Gas Co. (NYSE:COG) had its buy rating reiterated by analysts at Topeka Capital Markets.
E I Du Pont De Nemours And (NYSE:DD) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $69.00 target price on the stock.
Domino's Pizza (NYSE:DPZ) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $79.00 price target on the stock. Zacks’ analyst wrote, “Domino’s Pizza’s second quarter 2014 adjusted earnings of $0.67 per share beat the Zacks Consensus Estimate by 3.1% and rose 17.5% year over year. The upside was driven by strong revenues and lower share count. Quarterly revenues increased 8.8% year over year to $450.5 million and surpassed the consensus mark by 2.9%. Revenues were driven by strong comps- both in domestic and international markets. Higher supply chain revenues due to increased commodity prices and volumes also pulled up the top line. Domino’s has been posting impressive results for the past few quarters on the back of higher traffic at its restaurants and unit growth. The company’s international operations promise significant growth. We believe the company’s digital ordering system and its foray into the Pan Pizza and Specialty Chicken categories will help it to sustain the top line momentum. However, increasing commodity costs and a weak consumer spending environment owing to macroeconomic pressure remain headwinds. We maintain our Neutral recommendation on the stock.”
Ecolab (NYSE:ECL) had its neutral rating reiterated by analysts at Zacks. They currently have a $116.00 price target on the stock. Zacks’ analyst wrote, “Ecolab’s 2014-first quarter adjusted EPS of $0.74 grew 23.3% but flat compared with the Zacks Consensus Estimate. Year-over-year growth was led by solid top-line growth, cost efficiency programs and synergies. Revenues grew 16.2% to $3,336.6 million and topped the mark. Global Energy and Global Specialty businesses posted strong results in the quarter. Ecolab is active on the acquisition front and continues to explore opportunities to expand in emerging markets to sustain growth. However, currency fluctuations, higher raw material prices and stiff competition remain significant headwinds. As a result, we reiterate our Neutral recommendation on Ecolab and set a target of $116.00.”
Facebook (NASDAQ:FB) had its buy rating reissued by analysts at Bank of America. They currently have a $92.00 price target on the stock, up from their previous price target of $84.00. The analysts wrote, “big opportunities” for Facebook and will “kick in when needed.”
Freeport-McMoRan (NYSE:FCX) had its buy rating reiterated by analysts at Nomura. They currently have a $43.00 target price on the stock.
F5 Networks (NASDAQ:FFIV) had its hold rating reaffirmed by analysts at Wunderlich. Wunderlich currently has a $118.00 price target on the stock, up from their previous price target of $110.00. The analysts wrote, “F5 Networks (FFIV) is now in a relatively high visibility phase of upgrades, both for the company’s BIG IP installed base and the one-time competitive Cisco (CSCO-$25.68, Hold) offering. “This demand cycle is a lengthier opportunity than we previously thought and may extend until we start to see meaningful SDN-drive activity 2+ years from now. Because of this, we are moderately increasing our forecast and 12-month price target, which is now $118, up from $110. However, we believe since this adjustment to the valuation accorded to the shares is largely recognized, our rating remains Hold.”
General Dynamics (NYSE:GD) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $127.00 target price on the stock. Zacks’ analyst wrote, “General Dynamics’ second-quarter 2014 earnings beat the Zacks Consensus Estimate and improved year over year primarily on the back of improved cost-control initiative and share repurchase program. On the revenue front, the company reported unfavorable results due to weak performance at the Aerospace, Combat Systems, and Information Systems and Technology segments. In the quarter, the company posted a surge in backlog mainly on the heels of strong contribution from the Combat Systems and Marine Systems segments. The company’s stable financial position and disciplined in investment in product and service expansion are expected to act as catalysts. However, continued scale back in defense expenditures will affect General Dynamics’ growth prospects. Moreover, emergence of China as a frontrunner in global defense market could offer stiff competition to the U.S. Thus, we maintain our Neutral recommendation.”
General Mills (NYSE:GIS) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $56.00 target price on the stock. Zacks’ analyst wrote, “For the third quarter in a row, General Mills missed the Zacks Consensus Estimate for both revenues and earnings in the fourth quarter of fiscal 2014. Soft volume performance, slowdown in food industry trends, higher-than-expected input costs and currency headwinds hurt results in the quarter. Though fourth-quarter adjusted earnings of $0.67 per share increased 24% year on year, revenues declined 3% as U.S. sales continued to lag. Its two most important categories – cereals and yogurt have been sluggish which led to a dismal performance in 2014. However, we are encouraged by General Mills’ aggressive plans for fiscal 2015 that include strong innovation and marketing and further cost cuts. Also, the company enjoys sound fundamentals including a strong market share position in some leading food categories, growing international presence, strategic acquisitions and generous cash returns. However, we remain on the sidelines as the consumer environment remains weak.”
Hanesbrands (NYSE:HBI) had its neutral rating reissued by analysts at DA Davidson. DA Davidson currently has a $108.00 price target on the stock, up from their previous price target of $100.00. The analysts wrote, “HBI reported revenue and adjusted EPS of $1.342 billion and $1.71 (GAAP $1.51), compared to consensus at $1.352 billion and $1.51, and our estimates of $1.339 billion and $1.50. Revenue grew 11.9% year-over-year (y/y), driven by 14.7% growth in Innerwear (down 2.0% excluding MFB) and an 8% growth in Activewear. Adjusted gross margin expanded 155bp y/y to 37.9%, driven largely by the Innovate-to-Elevate strategyand supply chain efficiencies. SG&A was up 9.0% to $277.0 million, representing 20.6% percent of sales (vs. 21.2% in 2Q13).”
Halma plc (LON:HLMA) had its outperform rating reissued by analysts at Credit Suisse. The firm currently has a GBX 665 ($11.36) price target on the stock.
Incyte (NASDAQ:INCY) had its buy rating reissued by analysts at Nomura. The firm currently has a $90.00 target price on the stock.
Iomart Group Plc (LON:IOM) had its buy rating reissued by analysts at SP Angel. They currently have a GBX 300 ($5.13) price target on the stock.
Intuitive Surgical (NASDAQ:ISRG) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $485.00 price target on the stock. Zacks’ analyst wrote, “Intuitive Surgical’s 2014-second quarter earnings per share fell 24.1% to $3.03. However, it beat the Zacks Consensus Estimate of $2.76. Revenues dipped 11.5% to $512.2 million, but surpassed the Zacks Consensus Estimate of $499 million. The decrease was due to lower revenues in the Instruments and Accessories, and Systems segments. Revenues continued to be impacted by the stiff hospital capital spending environment. However, we are optimistic about its new da Vinci Xi Surgical System, which has received both FDA approval and CE Mark. We can also never ignore the company’s leading position in robotic surgery. As a result, we maintain our Neutral recommendation and set a target price of $485.00.”
Kimberly Clark Corp (NYSE:KMB) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $115.00 price target on the stock. Zacks’ analyst wrote, “Kimberly-Clark’s second quarter 2014 earnings of $1.49 were in line with the Zacks Consensus Estimate and grew 5.7% from the prior-year figure. Earnings were boosted by organic sales growth, cost savings and a lower share count owing to share buybacks, which made up for increased input costs, currency headwinds and lower net income from equity companies. Organic sales grew 5% backed by higher sales volume and selling prices. We are encouraged by the company’s decision to shed its healthcare business to focus on its core consumer and professional brands. In addition, the company’s efforts to streamline its European facilities by dissolving the diaper segment should optimize resources. Further, the company’s regular innovations, growth initiatives and a strong international presence make the stock attractive. However, slow economic recovery, increased input and marketing expenses and currency headwinds keep us on the sidelines with a Neutral recommendation. “
Kinder Morgan Energy Partners (NYSE:KMP) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $89.00 price target on the stock. Zacks’ analyst wrote, “Kinder Morgan Energy Partners is a premier MLP with an impressive track record of distribution growth and financial discipline. The partnership raised its distribution by 5% year over year to $1.39 per unit ($5.56 annualized) for the second quarter. Kinder Morgan has invested significantly in a number of projects that should help drive growth in the coming years. We also like the partnership’s focus on stable, fee-based, well-diversified assets and its strong balance sheet. Going forward we expect the partnership to seize attractive investment opportunities in the near term, particularly in the Eagle Ford and Haynesville shale plays. However, the partnership remains vulnerable to macro conditions, unstable oil & gas prices and interest rate fluctuations. Therefore, we see limited upside potential and are sticking with our market Neutral recommendation.”
Laboratory Corp. of America Holdings (NYSE:LH) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $111.00 price target on the stock. Zacks’ analyst wrote, “LabCorp posted the second quarter 2014 with adjusted EPS of $1.84, up 2.2% and ahead of the Zacks Consensus Estimate of $1.77. Revenues increased 3.3% to $1,516.4 million beating the Zacks Consensus Estimate of $1,504 million. Significant increase in test volume acted as the main impetus to the company’s top-line improvement. Although testing volume increased 5%, revenue per requisition was down 2.0%, reflecting a still difficult volume environment. Moreover, we are concerned about the utilization weaknesses, Medicare payment reductions, molecular pathology codes and sequestration. Meanwhile, the company aims to generate 45% of revenues from esoteric testing over the next 5 years. We thus reaffirm LabCorp at Neutral.”
Linear Technology (NASDAQ:LLTC) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $47.00 target price on the stock. Zacks’ analyst wrote, “Linear Technology is a leading OEM of analog and mixed signal semiconductors. Fiscal fourth quarter results were above the Zacks Consensus estimate, helped by higher revenue and lower-than-expected expenses. Linear’s solid business model, excellent products, ability to generate strong operating cash flows and dividend yield are positives. Though the steady growth and profitability of its core industrial, communications infrastructure and automotive businesses may be positive for the long term, the current sluggishness in these markets continue to hurt its performance. We therefore have a Neutral recommendation on LLTC shares.”
Microsemi Corp. (NASDAQ:MSCC) had its neutral rating reissued by analysts at Zacks. The firm currently has a $27.00 target price on the stock. Zacks’ analyst wrote, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. Second quarter results missed the Zacks Consensus Estimate and forward revenue guidance was disappointing. However, Symmetricom synergies and a more favorable mix will have a positive impact on margins. The bulk of revenue comes from stable end markets (defense, aerospace and medical equipment), where Microsemi serves most of the largest players. Microsemi’s compelling products, scope for margin expansion and decent balance sheet are other positives. However, macro-driven weakness and heavy investment in R&D could impact near-term profitability. We therefore reiterate our Neutral rating on the shares.”
Netflix (NASDAQ:NFLX) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $449.00 target price on the stock.
Omnicom Group (NYSE:OMC) had its neutral rating reiterated by analysts at Zacks. They currently have a $76.00 target price on the stock. Zacks’ analyst wrote, “Omnicom posted a healthy beat in earnings for the second quarter of 2014, driven by organic growth across the world. Its well-diversified business mix profited from strong demand in developing nations such as Asia Pacific, Latin America and Africa. Omnicom is focusing on strengthening its business and expanding its client base globally. The increasing demand for media services, speedy growth of technologies and massive proliferation of channels are likely to drive the company’s growth, going forward. However, a competitive and fragmented communications services industry is likely to limit the profitability of the company to some extent. Hence, we reiterate our Neutral recommendation on Omnicom.”
O'Reilly Automotive (NASDAQ:ORLY) had its neutral rating reissued by analysts at Zacks. They currently have a $154.00 target price on the stock. Zacks’ analyst wrote, “O’Reilly posted a 20.9% increase in earnings to $1.91 per share in the second quarter of 2014, exceeding the Zacks Consensus Estimate by $0.06. Revenues scaled up 7.7% to $1.85 billion, marginally surpassing the Zacks Consensus Estimate of $1.83 billion. Comparable store sales increased 5.1% in the reported quarter. For third-quarter 2014, O’Reilly projects earnings per share in the range of $1.91-$1.95. The company expects consolidated comparable store sales to increase by 3% to 5%. It also announced an encouraging 2014 earnings guidance. O’Reilly continues to benefit from its active share repurchase strategy. However, the company’s highly concentrated store locations make it susceptible to regional economic volatility and other localized problems. Therefore, we are maintaining our Neutral recommendation.”
Outsourcery PLC (LON:OUT) had its buy rating reiterated by analysts at Investec. Investec currently has a GBX 130 ($2.22) target price on the stock.
PepsiCo (NYSE:PEP) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $95.00 price target on the stock. Zacks’ analyst wrote, “Pepsi began 2014 on a solid note beating the Zacks Consensus Estimate for both earnings and revenues in both the first and the second quarter. Moreover, earnings increased 1% year over year in the second quarter driven by strong organic revenue gains and solid margins. Organic revenues increased 3.4% as improved beverage volumes, strong snacks performance and sales gain in developing/emerging market offset weakness in Mexico and mild slowdown in Europe. Overall, we are encouraged by the company’s strong brand portfolio, its product and geographic diversity, improved productivity, increased brand building investments and market execution, efforts to innovate and solid cash flow generation. Also, the company’s plan to substantially increase shareholders returns in 2014 and extend productivity initiatives is encouraging. However, challenging consumer spending environment and continued sluggish volumes in the North American beverage business keep us on the sidelines.”
PVH Corp (NYSE:PVH) had its neutral rating reiterated by analysts at Zacks. They currently have a $117.00 target price on the stock. Zacks’ analyst wrote, “We are initiating our coverage on PVH Corporation with a long-term Neutral recommendation. Though the company’s lower-than-expected first-quarter fiscal 2014 performance keeps us on the back foot, we still remain somewhat positive on its growth prospects driven by sustained focus on brand building, asset management, global expansion and effective implementation of business strategies. We believe the company’s sustained efforts will help it in exploring opportunities in the lifestyle apparel market. Moreover, from a valuation perspective, the stock looks attractive as it trades at a discount to the industry average based on forward earnings estimates. However, the prevalent soft macroeconomic recovery, stiff competition and rising raw material prices still remain matters of concern.”
QEP Resources (NYSE:QEP) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $36.00 price target on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on QEP Resources with a target price of $36. With a diversified asset base, exposure to emerging plays and quality acreage in multiple basins, this mid-cap onshore-focused E&P offers compelling value. Since its split from Questar Corp. in 2010, QEP has established a strong track record of production growth, while maintaining a competitive cost structure. The potential split of its midstream segment is expected to further enhance shareholder worth. However, the natural gas-heavy production mix currently clouds QEP’s value and is the main factor behind our cautious stance. This will remain a major headwind over the next few quarters, in our view, offsetting most of the positives. We are also concerned by the company’s high leverage.”
Robert Half International (NYSE:RHI) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $54.00 target price on the stock. Zacks’ analyst wrote, “Robert Half’s second quarter earnings beat the Zacks Consensus Estimate by 5.8% and the prior-year earnings by 19.6%, driven by top-line growth and margin expansion. Revenues were in line with the Zacks Consensus Estimate and increased 9.6% year over year, driven by solid demand for skilled professionals in the company’s permanent placement and technology staffing divisions. Protiviti operations once again delivered strong revenues in the quarter. The company’s gross and operating margins also improved in the quarter. Overall, we are impressed with the solid demand for skilled professionals both in the U.S. and internationally. However, we remain concerned about currency headwinds. Also, the company’s permanent placement services are expected to remain sensitive due to an uncertain macroeconomic environment. We thus remain Neutral on the stock. “
StanCorp Financial Group (NYSE:SFG) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $65.00 price target on the stock. Zacks’ analyst wrote, “StanCorp Financial’s second quarter earnings per share missed the Zacks Consensus Estimate as well as declined year over year. Less favorable claims experience in Employee Benefits and Individual Disability largely perpetuated the underperformance. The top line though surpassed expectation, deteriorated from the prior-year quarter. After seven straight quarters of improvement, the Employee Benefit ratio experienced deterioration. Nonetheless, higher administrative fees resulting from increase in assets under administration favored its performance. In addition, expenses in the quarter inched up slightly. Conservative underwriting practices and a strong capital position bode well for the company’s future growth levels. StanCorp remains focused on enhancing shareholder value via both dividend hike and share buyback. It also scores strongly with the credit rating agencies. We retain our Neutral recommendation.”
SINA Corp (NASDAQ:SINA) had its neutral rating reiterated by analysts at Zacks. They currently have a $52.00 target price on the stock. Zacks’ analyst wrote, “SINA reported strong first-quarter results, with both earnings and revenues beating the Zacks Consensus Estimate. However, the company provided pessimistic revenue guidance for the second quarter on account of the licensing issues in relation to video games content. Sluggish macro economic environment also remains a concern. Further, increasing regulations imposed by the Chinese government remains a major headwind. Additionally, stiff competition is expected to hurt profitability in the near term. Nevertheless, we believe that SINA remains a premier company based on its strong product pipeline, continuous investments in product development and marketing and a robust user base for its e-commerce and Weibo offerings. Moreover, Weibo’s value-added services have started witnessing substantial growth in revenues. Further, vertical expansion will form an integral part of its growth strategy in the long run. Weibo’s monetization will be a major positive catalyst for SINA. We maintain our Neutral recommendation and set a price target of $52.00.”
Teradyne (NYSE:TER) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $20.00 price target on the stock. Zacks’ analyst wrote, “Teradyne is a leading provider of automated test equipment. The company’s second-quarter earnings beat the Zacks Consensus Estimate on higher volumes although forward guidance was disappointing. Improving orders and backlog were however encouraging. A recovery in the core semiconductor business (processors, MCUs and power management), long-term opportunities in the high-growth wireless test market, product lineup, lean cost structure and strong balance sheet are positives. However, we see excess capacity, pricing pressure and a relatively low exposure to the memory segment as near-term headwinds. We are therefore reiterating our Neutral rating on TER shares.”
Talisman Energy (NYSE:TLM) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $12.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral stance on the Canadian energy explorer Talisman, reflecting a balanced risk/reward profile. Talisman has a solid base business in Western Canada and in the U.K. North Sea. The company also has exposure to some of the most prospective unconventional natural gas plays in North America and high-impact exploration prospects worldwide. However, questions about the company’s sustainable operational efficiency and execution abilities remain key areas of concern, in our view. We also remain concerned, as the company’s extensive natural gas exposure raises its sensitivity to gas price fluctuation.”
Walgreen Company (NYSE:WAG) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $77.00 target price on the stock. Zacks’ analyst wrote, “Walgreens reported a mixed third quarter fiscal 2014 with adjusted earnings remaining below the Zacks Consensus Estimate while revenues marginally exceeded the mark. During the quarter, Walgreens recorded improved revenues on back of strong prescription sales performance. Sales growth was also driven by the company’s gaining share in the pharmacy market. Furthermore, Walgreens has experienced return of some Express Scripts customers. The higher first-year synergy from the Alliance Boots deal was another upside. We are also upbeat about the long-term three-pronged-deal with AmerisourceBergen. However, deteriorating margin and difficult macroeconomic conditions remain as looming concerns. The competitive landscape also remains tough. Accordingly, we remain Neutral on Walgreens. “
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