Equities Research Analysts’ Ratings Reiterations for August, 14th (ACAS, ADM, ADS, ALNY, APDN, BTO, CA, CL, CLX, CNI)
American Capital (NASDAQ:ACAS) had its neutral rating reiterated by analysts at Zacks. They currently have a $16.00 price target on the stock. Zacks’ analyst wrote, “American Capital reported dismal results in second-quarter 2014. Results missed the Zacks Consensus Estimate and came below the prior-year quarter earnings as well. Results were affected by decreased revenues, partially offset by lower expenses. However, new investments and realization from portfolios were the positives. Further, during the quarter, the company obtained $750 million senior secured revolving credit facility, which enhances the company’s financial flexibility. The company formed ACE III, to bring in more institutional investors and expand the asset management business. Though the improved portfolio performance is expected to continue with the economic recovery, we believe the low interest rate environment and global cues might act as headwinds in the upcoming quarters.”
Archer Daniels Midland Company (NYSE:ADM) had its outperform rating reiterated by analysts at Zacks. They currently have a $60.00 price target on the stock. Zacks’ analyst wrote, “Archer Daniels’ second-quarter 2014 earnings per share were impressive, increasing 67.4% year over year and surpassing the Zacks Consensus Estimate. The company gained by making the most of strong ethanol and oilseeds products demand as well as improvement in the U.S. grain export volumes. Further, we believe the company’s earnings benefited from cost containment efforts. We also perceive that Archer Daniels’ consistent focus on enhancing its processing capabilities and global footprint through strategic acquisitions and joint ventures bode well for future growth. Moreover, we are encouraged by its strong cash flow generation ability, which helps it to make investments toward the development of business while using the excess cash to enhance shareholder returns. Given the bullish aspects embedded in the stock, we maintain our Outperform recommendation.”
Alliance Data Systems (NYSE:ADS) had its neutral rating reissued by analysts at Zacks. The firm currently has a $274.00 target price on the stock. Zacks’ analyst wrote, “Alliance Data’s second-quarter earnings per share exceeded the Zacks Consensus Estimate and improved from the year-ago number on strong performances across all its segments. The top line improved year over year on a double-digit increase in two of its segments and continue to exceed the $1 billion milestone mark. The company’s growth trajectory seems impressive based on its inorganic background. Further, it has been strengthening its balance sheet to gain financial flexibility. This will allow Alliance Data to capitalize on strategic opportunities. We are optimistic about the Dotz coalition loyalty program in Brazil that aims to expand to three more regions in 2014. Its continued share repurchase programs are also expected to boost bottom line, thereby enhancing shareholder value. However, we are skeptical about the company’s increasing expenses and dependence on limited clients for a major portion of its revenues. We remain Neutral on Alliance Data.”
Alnylam Pharmaceuticals (NASDAQ:ALNY) had its neutral rating reiterated by analysts at Zacks. They currently have a $69.00 price target on the stock. Zacks’ analyst wrote, “Alnylam’s second-quarter 2014 loss of $0.63 per share was wider than the Zacks Consensus Estimate of a loss of $0.54 as well as the year-ago loss of $0.29. We are encouraged by Alnylam’s progress with its pipeline, especially the ATTR program. Meanwhile, Alnylam’s deal with Sanofi has ensured continued pipeline progress apart from boosting Alnylam’s balance sheet. With multiple data read-outs expected in the coming months, we expect the remainder of 2014 to be data rich for the company. However, any negative news related to the pipeline will weigh heavily on the stock. We see limited upside potential from current levels and hence maintain our Neutral stance on Alnylam.”
Applied DNA Sciences (NASDAQ:APDN) had its outperform rating reissued by analysts at Zacks. The firm currently has a $0.25 price target on the stock. Zacks’ analyst wrote, “We are optimistic about the Company’s unique technology and two principle anti-counterfeiting and product authentication solutions: SigNature DNA and fiberTyping, which can be used in numerous industries. With an ever booming anti-counterfeiting business worldwide, along with its unique technology and broad range of product offering, the Company is well positioned to grow in the coming years. APDN reported record revenue for fiscal 3Q14 and first nine months of fiscal 2014. We expect to see further growth of revenue in fiscal 4Q14 and beyond. “
B2Gold Corp. (TSE:BTO) had its focus stock rating reiterated by analysts at Scotiabank. They currently have a C$4.00 target price on the stock.
CA (NYSE:CA) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $30.00 target price on the stock. Zacks’ analyst wrote, “CA reported mixed first-quarter results wherein the bottom line beat the Zacks Consensus Estimate but the top line fell short of the same. The year-over-year comparisons were not favorable either. CA’s major revenue generating segments were adversely affected primarily due to lower-than-expected sales of new products in the quarter. The company also provided modest outlook for fiscal 2015. Nonetheless, we believe that the breadth of its products and the increased efficiency offered by them will help attract customers across sectors, lending stability to the business model. We are positive about CA’s increased cloud exposure. A decent renewal rate, modest cash position and share repurchase also appear encouraging. On the other hand, increasing competition from IBM and Hewlett Packard and exposure to Europe remain the near-term headwinds. Thus, we reiterate our Neutral recommendation on the stock.”
Colgate-Palmolive Company (NYSE:CL) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $68.00 target price on the stock. Zacks’ analyst wrote, “Colgate-Palmolive commands a market-leading position in oral care and personal care product categories. We believe that Colgate’s continued focus on product innovation, along with globally recognized brands and presence in both developed and emerging economies enables it to utilize the growth opportunities and consequently boost its profitability. This is evident from the company’s second-quarter 2014 results wherein adjusted earnings per share came in at $0.73, up 4% year over year and in line with the Zacks Consensus Estimate. However, we maintain our long-term Neutral recommendation on the stock as lingering macroeconomic concerns in Venezuela and Argentina may negatively impact its financials. In addition, intense competition and a sluggish economic recovery may undermine the company’s performance.”
The Clorox (NYSE:CLX) had its neutral rating reiterated by analysts at Zacks. They currently have a $93.00 target price on the stock. Zacks’ analyst wrote, “Battered by unfavorable exchange rates, higher raw material prices and increased competitive activities, Clorox reported yet another quarter of dismal results wherein it’s top and bottom lines for fourth-quarter fiscal 2014 declined year over year. Looking ahead, the company reiterated its bleak outlook for fiscal 2015, as it expects pressure from aforementioned factors to continue to impact results. Additionally, we remain concerned about the lingering macroeconomic headwinds in Venezuela and Argentina. Despite all these, we have maintained our long-term Neutral recommendation as we are partially constructive about the stock’s performance given its sustained focus on brand-building, global expansion and cost saving initiatives. Furthermore, we also appreciate the company’s cash flow generation capabilities which help it to invest in the development of business as well as returning excess cash to shareholders.”
Canadian National Railway (NYSE:CNI) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $71.00 target price on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Canadian National Railway. The company reported strong second-quarter 2014 results that surpassed the Zacks Consensus Estimate on both the lines. Strong demand across most of its businesses with improvements in the U.S. economy and domestic retail markets bodes well for the company. In the near term, we expect growth in shipment related to automotive, housing, grains and intermodal to drive revenues. Expected market gains from frac sand and investments in infrastructure will boost its long-term prospects. Nevertheless, lower coal shipments, particularly for export, continue to be a headwind for the company. Higher expenses, competitive pressure and slow recovery in global economy are other deterrents, which dampen our optimism regarding the company.”
Cisco Systems (NASDAQ:CSCO) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $26.00 price target on the stock. Zacks’ analyst wrote, “Cisco Systems is the leading provider of IP-based networking and other products. The company’s fourth-quarter earnings beat the Zacks Consensus Estimate, driven by higher volumes and better opex management. Despite a sluggish macro-environment and increasing competition, we are positive about the company’s market position, innovative prowess, product range, growth initiatives and dividend payout. Additionally, overall growth prospects remain positive because of the drive toward cloud computing and increasing data flow on carrier and computing networks. Given these factors and the reasonable valuation, we are reiterating our Neutral recommendation on CSCO shares.”
The Walt Disney Company (NYSE:DIS) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $92.00 price target on the stock. Zacks’ analyst wrote, “Incredible success of its movies at the box office helped Disney post yet another quarter of better-than-expected results wherein both the top and bottom lines registered growth of 8% and 24%, respectively. In fact, third-quarter fiscal 2014 earnings of $1.28 per share were the highest in the company’s history. All the segments with the exception of Media Networks continued to deliver double digit profits. We believe that the robust pipeline of movies and sustained growth at Parks and Resorts along with booming opportunities for Interactive segment given releases of new gaming titles will boost revenues in the upcoming quarters. However, higher sports rights as well as increased programming and production costs along with deteriorating traditional advertising revenue trends are near-term headwinds compel us to be on the sidelines. Thus, we reiterate our Neutral recommendation on the stock.”
Dreamworks Animation Skg (NYSE:DWA) had its neutral rating reiterated by analysts at Zacks. They currently have a $21.00 target price on the stock. Zacks’ analyst wrote, “DreamWorks reported second-quarter 2014 financial results wherein both its top and bottom line missed the Zacks Consensus Estimate. The company is gradually diversifying its Feature film segment to mitigate volatility plaguing the film business. Separately, management has decided to invest in key growth areas in order to expand the company’s operations into TV, consumer product, digital content and location-based entertainment. DreamWorks believes that exploring all options is the best way to optimally monetize its large portfolio of intellectual property rights. However, the company needs to continuously come up with box-office hits in order to sustain growth. We believe that DreamWorks is fairly valued at this stage. Thus, we maintain our Neutral recommendation on the stock.”
Embraer SA (NYSE:ERJ) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $41.00 target price on the stock. Zacks’ analyst wrote, “Embraer SA’s earnings in the second quarter 2014 surpassed the Zacks Consensus Estimate and the year-ago earnings, primarily due to strong defense and executive jet deliveries. We believe that Embraer’s strong financial profile, continuous focus on research and development activities and disciplined investment to strengthen existing operations are expected to act as key growth drivers. In addition, the MoU signed with Petrobras to render technical know-how to the oil and gas industry would boost its earnings capability going forward. However, we remain concerned about currency risk, the highly competitive industry and inherent operational risks in the airline manufacturing industry. Thus, we maintain our Neutral recommendation on the stock.”
Fossil Group (NASDAQ:FOSL) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $101.00 price target on the stock. Zacks’ analyst wrote, “Fossil’s second quarter 2014 earnings of $0.98 per share beat the Zacks Consensus Estimate by 2.1%. However, it declined significantly from the prior-year earnings of $1.15 per share as planned increases in operating expenses more than offset the benefit of higher sales and lower share count. Net sales of $773.8 million managed to beat the Zacks Consensus Estimate by a slight margin, but increased 10% from the prior-year sales results, driven by growth in the multi-brand global watch portfolio and favorable currency translation. The company also witnessed 19% gain in jewelry, which made up for the sales decline in the leather business. Overall, we are encouraged by Fossil and Skagen brands, which have strengthened the company’s watch portfolio. The company targets further expansion of the Fossil brand in 2014 and intends to improve leather assortment. However, high promotional activity in the leather business and increased competition from Apple’s smart watches are expected to remain headwinds. “
FUJIFILM Holdings (NASDAQ:FUJIY) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $32.00 target price on the stock. Zacks’ analyst wrote, “Fujifilm reported mixed results for the fiscal first quarter of 2015. While net income climbed 3% year over year to $150.5 million, revenues slid 2% to $5.5 billion. The increase in income was primarily attributable to effective cost management by the company. Fujifilm has also been enhancing shareholders’ values through dividend payments and share repurchases. Moreover, continuous product launches are helping the company to gain a significant market share. However, a decline in sales of the traditional photo-imaging business reduced the total sales in the reported quarter. Further, Fujifilm’s presence in regions outside Japan exposes it to various socio-economic and political risks. Based on these factors, we maintain our Neutral recommendation on the stock.”
Iconix Brand Group (NASDAQ:ICON) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $43.00 target price on the stock. Zacks’ analyst wrote, “Iconix’ earnings and sales exceeded the Zacks Consensus Estimate in the second quarter. The company raised its guidance for fiscal 2014. Second quarter earnings of $0.75 per share increased 4% year over year, driven by solid revenues and lower share count owing to share buybacks. Iconix revenues grew 3% driven by the company s positive results across its Women’s, Home and Entertainment businesses. The strong performance of its core brands and international expansion through joint ventures also contributed to sales growth. We are impressed that the company is signing new licensing partnerships with top retailers in the U.S. in order to increase its brand presence. The company’s strong brand portfolio, its strategic acquisitions and consistent expansion in the U.S., Europe and in emerging markets is also appealing. However, unfavorable currency translations and a volatile retail environment may continue to hinder earnings.”
The Coca-Cola Company (NYSE:KO) had its neutral rating reissued by analysts at Zacks. The firm currently has a $42.00 target price on the stock. Zacks’ analyst wrote, “Coca-Cola posted mixed results in the second quarter, beating the Zacks Consensus Estimate for earnings but slightly missing the same for revenues. Earnings increased 1% year over year driven by improved sparkling beverage volumes, price/mix gains, strong international volumes and better gross margins which made up for higher commodity and marketing costs. Organic revenues grew 3% driven by better volumes. We believe Coca-Cola has sound long-term fundamentals with its global reach, strong brand power, expanding international presence, powerful global bottling network and solid cash position. Moreover, increased focus on product/packaging innovation and marketing strategies are expected to aid market share gains. However, muted volume trends of carbonated beverages due to category headwinds and challenging consumer spending environment concern us. Though volume trends are expected to improve in the second half, we prefer to remain on the sidelines.”
Macy's (NYSE:M) had its neutral rating reiterated by analysts at Zacks. They currently have a $59.00 price target on the stock.
MWI Veterinary Supply (NASDAQ:MWIV) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $151.00 target price on the stock. Zacks’ analyst wrote, “MWI Vet recorded EPS of $1.52 in the third quarter of fiscal 2014, up 15.2% year over year and ahead of the Zacks Consensus Estimate by 1.3%. Revenues surged 28.4% to $778.4 million, exceeding the Zacks Consensus Estimate of $762 million. The company posted healthy growth in the quarter on strong 30.4% growth in the U.S. revenues which was benefited from the acquisition of IVESCO and organic revenue growth. Considering the positive momentum over the past few quarters and the addition of IVESCO, the company has upgraded its strong guidance for fiscal 2014. Notably, MWI Vet has the strength to deliver consistent growth performance amid a low-growth environment. Moreover, its strategy of selective acquisition should keep the momentum going over the long haul. However, product recall and vendor dependency is a cause of concern. Currency headwinds also remain an overhang. Accordingly, we remain Neutral on the stock.”
Profire Energy (NASDAQ:PFIE) had its positive rating reaffirmed by analysts at Chardan Capital.
Philip Morris International (NYSE:PM) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $89.00 price target on the stock. Zacks’ analyst wrote, “Philip Morris’ second-quarter 2014 earnings of $1.41 per share beat both the Zacks Consensus Estimate and the prior-year quarter results by 13.7% and 8.5%. Despite beating the Zacks Consensus Estimate by 1.3%, revenues were down 1.5% from the year-ago results due to currency headwinds. However, revenue excluding currency improved backed by higher sales in most geographical segments. Currency headwinds and lower sales in Asia and Latin America also hurt the top line. However, the company expects volume to improve in the latter part of the year. Overall, we are encouraged by the company’s strong portfolio of tobacco brands and pricing power. Moreover, it is foraying into the growing category of e-cigarettes and increasing its foothold in the emerging markets through strategic acquisitions. Its foray into the field of less harmful alternative tobacco products is in line with the changing consumer preferences. However, strict anti-smoking regulations by governments across the world and currency headwinds are matters of concern. “
Pioneer Natural Resources (NYSE:PXD) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $215.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Pioneer Natural Resources following its second quarter 2014 results. The company posted higher earnings in the quarter backed by higher price realization. Total production in the most recent quarter also rose by approximately 11.8%, due to robust yields in the core growth assets of Spraberry field, Wolfcamp Shale and Eagle Ford Shale. Moreover, its joint venture in the southern Wolfcamp acreage is helping to accelerate activities in the area. However, we remain on the sidelines considering Pioneer’s sensitivity to gas/oil price volatility, as well as its drilling results, costs, geo-political risks and project timing delays. Increasing cost pressure in the highly competitive shale plays is also a cause of concern. Additionally, the Permian operations carry high execution risk due to the transition from the Spraberry vertical development program to the horizontal appraisal of the Wolfcamp.”
RLI Corp. (NYSE:RLI) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $47.00 price target on the stock. Zacks’ analyst wrote, “RLI Corp. posted second-quarter earnings in line with the Zacks Consensus Estimate. Results improved year over year on the back of top-line growth, driven by higher premiums and investment income. Underwriting results improved primarily on the back of better underwriting performance in the Casualty segment. However, overall combined ratio deteriorated. Nevertheless, the company remains focused on leveraging its expertise in niche markets. Given the improving pricing scenario in the insurance market and widened product lines, we expect RLI Corp. to perform well in the coming quarters. The leveraging has strengthened its equilibrium with improving cash balance and in-line debt balance. It continues to return value to shareholders through regular dividend hikes and special dividends. However, total expenses witnessed an increase in the quarter. Hence, we remain Neutral on the stock. “
Rexnord Corp (NYSE:RXN) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $28.00 price target on the stock. Zacks’ analyst wrote, “Rexnord’s adjusted earnings came in at $0.26 per share in first-quarter fiscal 2015, up 18% year over year. Revenues climbed 2%, excluding Mill Products revenues. Acquisitions contributed 3% to revenue growth while core sales growth inched down 1% due to weakness in bulk material handling end market. Higher cost of sales pulled down the gross margin by 60 basis points. For fiscal 2015, Rexnord maintained its earnings and core sales growth forecasts in the range of $1.60-$1.70 per share and 3-5% respectively. Growth in the non-residential construction markets in the U.S., increasing demand for clean water and favorable aerospace industry will boost Rexnord’s top line in the quarters ahead. However, we remain wary of active competition and rising debt level. Thus, we maintain a Neutral recommendation on Rexnord.”
SAP AG (NYSE:SAP) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $81.00 price target on the stock. Zacks’ analyst wrote, “SAP is the world’s leading independent software vendor with its flagship ERP software. We are maintaining our Neutral rating on SAP with a target price of $81. The company reported strong second-quarter results with growth across all its segments. The company’s new products are also being well received in the market. In addition, SAP HANA has a strong market and is likely to continue to be the primary top-line driver, going forward. The company’s business performed well in Americas, Asia Pacific and EMEA markets despite the ongoing uncertainties. However, the sluggishness in the professional services business and the ongoing Crimea-Ukraine crisis remain headwinds for the company. Moreover, the financial results are also being impacted by the currency volatility, which remains a concern.”
SanDisk (NASDAQ:SNDK) had its neutral rating reissued by analysts at Zacks. They currently have a $98.00 price target on the stock.
Sysco Corp. (NYSE:SYY) had its neutral rating reissued by analysts at Zacks. They currently have a $40.00 target price on the stock. Zacks’ analyst wrote, “Sysco’s both earnings and revenues beat the Zacks Consensus Estimate in fourth quarter fiscal 2014. Earnings of $0.50 were flat year over year as an improvement in sales made up for the ongoing cost pressure. Sysco’s sales grew 5.9% on a year-over-year basis, driven by volume growth and acquisitions. Acquisitions contributed 0.6% to sales growth, while currency translation decreased sales by 0.7%. Overall, we have faith in the company’s long term fundamentals. We appreciate the company’s growth strategy and its efforts to reduce costs and improve efficiency. We are also looking forward to the completion of the company’s acquisition deal with US Foods as it is expected to improve efficiencies, increase size and scale and provide with significant cost synergies. However, we are concerned about margin pressure from rising food costs in 2014. We therefore remain Neutral on the stock.”
Triumph Group (NYSE:TGI) had its neutral rating reissued by analysts at Zacks. The firm currently has a $69.00 target price on the stock. Zacks’ analyst wrote, “Triumph Group Inc.’s earnings per share and revenues in first quarter of fiscal 2015 missed the Zacks Consensus Estimates. The company’s top as well as bottom line decreased from the respective year ago figures primarily due to lower organic sales as a result of production rate cuts on the 747-8 and V-22 programs. Despite reporting unfavorable results, the company continues to expand its operations organically as well as through acquisitions. The company’s recent acquisition of the hydraulic actuation business from GE Aviation is expected to boost its future top line. In addition, an effective share repurchase program and payment of regular dividends will help Triumph Group to retain investor interest. However, over-dependence on government spending and reliance on a single customer are major headwinds, undermining its financial performance. Thus, we are maintaining our Neutral recommendation on the stock.”
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