Stock Analysts’ Ratings Reiterations for August, 6th (ACT, ALKS, APL, DAL, FEYE, GLDD, IRWD, JBL, JLL, LPX)
Actavis plc (NYSE:ACT) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $225.00 target price on the stock. Zacks’ analyst wrote, “Actavis’ second quarter results were once again strong with the company beating on both the top- and bottom-line. Earnings grew 70.1% to $3.42 per share, beating the Zacks Consensus Estimate of $3.37. Revenues increased 34% to $2.67 billion, beating the Zacks Consensus Estimate of $2.56 billion. We remain optimistic about Actavis’ growth prospects. We are positive on the Forest acquisition which is in line with Actavis’ strategy of building its branded product portfolio. With a fewer number of blockbuster products slated to lose patent protection in the coming years, quite a few generic companies have been focusing on strengthening their branded products offerings. We are encouraged by Actavis’ focus on building its branded and biosimilars pipeline. We remain Neutral on the stock. “
Alkermes Plc (NASDAQ:ALKS) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $45.00 target price on the stock. Zacks’ analyst wrote, “Alkermes’ second quarter 2014 adjusted loss of $0.01 per share compared unfavorably to the Zacks Consensus Estimate of earnings of $0.04 and the year ago earnings of 23 cents. Higher costs hurt results in the second quarter of 2014. Total revenues climbed 10.7% to $153.4 million, above the Zacks Consensus Estimate of $148 million. Alkermes now expects to record adjusted earnings per share in the range of $0.19 to $0.32 in 2014. Alkermes’ efforts to develop its pipeline is encouraging. The company intends to seek FDA approval of its schizophrenia candidate aripiprazole lauroxil by Sep 30, 2014. Management is highly bullish on this candidate. We maintain our Neutral recommendation on the stock.”
Atlas Pipeline Partners, L.P. (NYSE:APL) had its sector perform rating reissued by analysts at RBC Capital. They currently have a $36.00 target price on the stock.
Delta Air Lines (NYSE:DAL) had its neutral rating reissued by analysts at Zacks. The firm currently has a $38.00 price target on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Delta Air Lines. We expect Delta to perform impressively on various strategic measures such as solid domestic demand, route launches, introduction of ancillary products, revamping of fleet structure and strong customer service. Further, Delta continues to deliver solid results through its joint venture and expects trans-Atlantic revenue and capacity to increase owing to strength in the New York-London route. In addition, management’s balanced capital deployment plan is expected to enhance shareholder value going forward. However, several ongoing initiatives including a rise in wages and salaries of employees are expected to increase the non-fuel expenses of the company, thus affecting its bottom line. Further, the formation of American Airlines Group and the win of airport slots by Southwest Airlines and JetBlue Airways will increase competition for Delta. Hence, we prefer to remain sidelined on the carrier at present.”
FireEye (NASDAQ:FEYE) had its buy rating reissued by analysts at Goldman Sachs.
Great Lakes Dredge & Dock Corp. (NASDAQ:GLDD) had its buy rating reissued by analysts at DA Davidson. They currently have a $10.50 price target on the stock, down from their previous price target of $35.00. The analysts wrote, “Improved Q2 EPS of $0.06 per share was below our estimate for a $0.12 profit, although up substantially from last year on an operating basis. For 2013, the company reported a loss of $0.42 per share, including $0.22 of unusual net costs, goodwill impairment partially offset by settlement gains. A model is attached. Please note we have not restated prior year results. Higher dredging utilization lifts margins. Overall revenues increased 21% from originally reported results last year, with most of the gain in dredging. Reported margins declined due to the benefits from asset sales last year, but improved excluding unusual recoveries last year.”
Ironwood Pharmaceuticals (NASDAQ:IRWD) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $14.00 target price on the stock. Zacks’ analyst wrote, “Ironwood reported a loss of $0.38 per share in the second quarter of 2014 narrower than the year-ago loss of $0.57 per share. The Zacks Consensus Estimate was a loss of $0.36 per share. Revenues could pick up from the next quarter on the back of price increases. Ironwood and Actavis have increased the price of Linzess from $7.70 per pill to $8.43 per pill. Ironwood’s partnerships with big pharma companies for the development and commercialization of Linzess in different territories are also encouraging. However, we are concerned about the disappointing top-line phase II data on Linzess released by Astellas. Since Linzess, launched in Dec 2012, is the company’s sole marketed product, it is highly dependent on the drug for growth. Based on the above factors we maintain a Neutral recommendation on the stock.”
Jabil Circuit (NYSE:JBL) had its neutral rating reiterated by analysts at Zacks. They currently have a $21.00 price target on the stock.
Jones Lang LaSalle (NYSE:JLL) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $137.00 price target on the stock. Zacks’ analyst wrote, “Helped by robust growth in fee revenue, JLL’s second-quarter 2014 adjusted earnings per share comfortably exceeded the Zacks Consensus Estimate and the year-ago quarter figure. Recently, JLL announced the acquisition of CLEO Construction Management, as part of its effort to enhance healthcare-oriented real estate services in the West. Moreover, the company disclosed the buyout of 49% stake in a Kuala Lumpur-based leading transaction and advisory business – YY Property Solutions Sdn Bhd. We believe that strength in the company s Leasing and Property & Facility Management lines and investments in recruitment, IT and data would be the primary growth drivers going forward. Moreover, strategic acquisitions and opportunistic hires would make JLL adequately capable of capitalizing on an improving market environment. Yet, competition as well as interest rate issues are anticipated to partly lower the growth tempo. “
Louisiana-Pacific (NYSE:LPX) had its buy rating reissued by analysts at Longbow Research. The firm currently has a $17.00 target price on the stock, down from their previous target price of $20.00. The analysts wrote, “We are maintaining our BUY rating despite a disappointing 2Q14, as we believe there is substantial value in the stock, the recognition of which is being thwarted for now by the anemic housing recovery and its impact on OSB prices. We believe the value will be realized as the housing market gathers steam and the overhang of restarted idled OSB capacity is absorbed as housing approaches mid-cycle levels.”
ManpowerGroup (NYSE:MAN) had its outperform rating reaffirmed by analysts at Zacks. Zacks currently has a $84.00 target price on the stock. Zacks’ analyst wrote, “ManpowerGroup continues with its robust performance owing to improvement across all regions and effective cost management. This is evident from the company’s second quarter 2014 performance, wherein earnings beat the Zacks Consensus Estimate by 2.3% and rose 29% year over year. Moreover, in the trailing 4 quarters, the company has surpassed the Zacks Consensus Estimate by an average of 15.9%. Following healthy results, earnings estimate revisions for the company have been portraying an uptrend. ManpowerGroup is also focused on exiting lower margin businesses and venturing into high margin ones. We believe that the company’s brand value and strong worldwide network provide it with a competitive advantage and reinforce its dominant position in the market. Therefore, we reiterate our Outperform recommendation on ManpowerGroup.”
ProAssurance (NYSE:PRA) had its neutral rating reiterated by analysts at Zacks. They currently have a $46.00 target price on the stock.
Questar (NYSE:STR) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $23.00 target price on the stock. Zacks’ analyst wrote, “We believe Questar will be able to generate meaningful earnings and dividend growth in the coming years through strong operational performances by its business units. Other positives in the Questar story include its sole emphasis on the natural gas markets, its focus on long-term contracts and the efficient management team. An above-average credit quality adds to the bullish sentiment. However, we remain worried about the current volatile natural gas price environment that is likely to restrict near-term growth prospects at Questar Pipeline. We are maintaining our Neutral recommendation on Questar shares. We also believe that upside potential will remain limited until the company has fully reaped the benefits of the spin-off.”
Trimble Navigation Limited (NASDAQ:TRMB) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $33.00 price target on the stock. Zacks’ analyst wrote, “Trimble is an OEM of GPS-based products and control systems. Second quarter results beat the Zacks Consensus Estimate, driven by broad-based growth in the majority of Trimble’s businesses. While government sequestration concerns remain, improving trends in the domestic construction market, increasing adoption of technology in the agricultural market and well-planned acquisitions in the TMS segment remain secular drivers. Product enhancements and introductions, a re-aligned cost structure, improving mix of software and services revenue, and international expansion are other positives. We have a Neutral recommendation on Trimble shares.”
Tractor Supply Company (NASDAQ:TSCO) had its neutral rating reissued by analysts at Zacks. They currently have a $65.00 target price on the stock. Zacks’ analyst wrote, “Although, Tractor Supply disappointed investors to some extent by issuing a modest profit warning for the rest of 2014, we commend the company’s constant endeavors to remain focused on growth, which has led it to produce desirable results amid a soft economic environment. The company’s second-quarter 2014 earnings gained from improvement in the top line. The company is constantly revamping itself through concentrating on square footage growth and enhancement of store productivity which we believe will boost its revenue as well as profitability. Going forward, the company will remain focused on managing inventories, shipment timings and marketing strategies. However, we remain somewhat cautious due to the sluggish economic recovery and challenges posed by rising material costs. Hence, we maintain our long-term Neutral recommendation on the stock.”
Vitamin Shoppe (NYSE:VSI) had its buy rating reissued by analysts at Longbow Research. They currently have a $55.00 target price on the stock, down from their previous target price of $59.00. The analysts wrote, “VSI reported adjusted EPS in line with our estimate, along with more stable comp trends compared to key competitor GNC (NEUTRAL). However, VSI indicated it expects gross margin in 2H14 to come in at the low end of expectations, and plans to increase ad spend in 3Q, likely in an attempt to drive new customer traffic. Gross and operating margin pressure appear near-term in nature, so given top-line strength, we consider yesterdays sell-off to be an attractive entry point. Consolidated revenues increased 9.6% y/y to $306.2M, (essentially in line with consensus), while segment comparable sales were up 4.0% in 2Q14 excluding e-commerce sales (versus our 4.4% estimate) and 5.1% including internet growth. Comp growth was mostly driven by traffic but also experienced slight inflation for the first time in 4+ quarters.”
Whirlpool (NYSE:WHR) had its neutral rating reissued by analysts at Zacks. They currently have a $151.00 price target on the stock. Zacks’ analyst wrote, “Whirlpool witnessed steady growth in its bottom-line during second-quarter 2014, mainly on the back of ongoing cost and capacity reduction initiatives. The company witnessed a marginal decline in sales mainly due to unfavorable exchange rates. We appreciate Whirlpool’s understanding of believing in innovation as a key ingredient for growth, which helped it in producing differentiated items while generating extra revenues as well as gaining market share. Further, we believe Whirlpool’s global expansion policy will not only help it in mitigating risks stemming from geographical concentration in one region but will also boost its top-line. However, we maintain our long-term Neutral recommendation on the stock as lingering macroeconomic challenges in Venezuela and Argentina could negatively impact its financials. Furthermore, fluctuation in raw material prices and limited clientele could hinder Whirlpool’s growth in the future.”
United States Steel (NYSE:X) had its buy rating reaffirmed by analysts at Goldman Sachs.
Zoetis (NYSE:ZTS) had its neutral rating reiterated by analysts at Zacks. They currently have a $34.00 price target on the stock. Zacks’ analyst wrote, “Zoetis’ second quarter 2014 adjusted earnings of $0.38 per share fell short of the Zacks Consensus Estimate by a penny. Second quarter earnings were above the year-ago figure of 2 cents on the back of higher revenues which climbed 4% to $1.2 billion. Foreign currency movements adversely impacted the top line during the quarter by 2%. Zoetis tweaked its outlook for 2014 both with respect to revenues and earnings. The company now expects revenues in the range of $4.675 billion to $4.75 billion. Adjusted earnings per share are now projected in the range of $1.50 to $1.54. We believe that the stock is fairly valued at current levels with limited scope for upside. Hence we remain Neutral on the stock. “
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