Equities Research Analysts’ Updated EPS Estimates for October, 17th (AVGO, CAB, CELG, CP, CRE, FOSL, HSIC, HSY, JACK, LPCN)
Avago Technologies (NASDAQ:AVGO) had its outperform rating reiterated by analysts at RBC Capital Markets. RBC Capital Markets currently has a $190.00 price target on the stock.
Cabela’s (NYSE:CAB) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Cabela’s multi-channel model, next-generation stores and cost-saving initiatives continue to bode well. The cost-saving endeavors include an improvement in IT process, optimum utilization of retail labor, indirect procurement, merchandise sourcing along with retail support functions and supply chain efficiencies. Management envisions 2016 earnings per share to grow in the range of high-single-digits or low-double-digits in comparison with adjusted earnings per share of $2.88 in 2015. However, stiff competition and cannibalization remain threats, as these may dent results. Cabela’s succumbed to a negative earnings surprise in the second quarter, after delivering back to back earnings beat, with the merchandise gross margin contracting year over year – partly accountable to softness in the apparel category.”
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Celgene Corp. (NASDAQ:CELG) had its outperform rating reiterated by analysts at BMO Capital Markets. BMO Capital Markets currently has a $141.00 target price on the stock.
Canadian Pacific Railway Limited (TSE:CP) was downgraded by analysts at Raymond James Financial Inc. from a strong-buy rating to an outperform rating. Raymond James Financial Inc. currently has C$230.00 price target on the stock, up from their previous price target of C$220.00.
Creston plc (LON:CRE) had its speculative buy rating reiterated by analysts at Canaccord Genuity. They currently have a GBX 0.80 ($0.01) price target on the stock.
Fossil Group (NASDAQ:FOSL) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Estimates have remained unchanged after Fossil’s second quarter fiscal 2016 earnings release. Fossil surpassed earnings and revenue estimates in the second quarter of fiscal 2016, but the company tightened its fiscal 2016 outlook due to economic, competitive and consumer headwinds. Though Fossil’s connected wearables and smartwatches are expected to give momentum to the company, we note that the company has been witnessing soft sales over the past few quarters due to a decline in its multi-brand licensed watch portfolio, due to general weakness in the watches category. Also, the company expects tempered growth in China and anticipates several challenges to impact international demand. However, Moreover, the company has been witnessing sluggish comps in the U.S. over the past few quarters due to weak traffic. Unfavorable currency translations, meanwhile, will continue to pose concern.”
Henry Schein (NASDAQ:HSIC) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “We are disappointed with Henry Schein lowering the upper end of the previously provided EPS guidance range for 2016. Meanwhile, foreign currency fluctuations and competitive headwinds continue to impede the company’s business. However, on a positive note, Henry Schein’s impending acquisition of Marrodent should help it tap into the abundant dental market opportunities in Poland. We are also encouraged by the company’s recent strong share gains in both North American and overseas markets. Its recent investment in Custom Automated Prosthetics – a U.S. digital laboratory supply company offering CAD/CAM equipment and zirconia materials, buoys optimism. However, the company’s weakness in North American Dental sales was less than expectation. The year-over-year deterioration in Henry Schein’s gross margin figure on account of higher cost of sales also depresses us.”
Hershey (NYSE:HSY) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Hershey’s sales trends have been weak since 2014 due to weak category trends, increased competition from broader snacking category and soft international growth. The top-line weakness continued in 2016 with sales declining 1.4% in the first half of 2016 due to continued weakness in demand in China and North America. Moreover, the company lowered its sales and earnings expectations for 2016 twice this year due to weak growth in the CMG category in North America and persistent macroeconomic challenges in China. However, management expects sales trends to improve in the second half driven by innovation and larger in-store merchandising and trade support.”
Jack In The Box (NASDAQ:JACK) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. According to Zacks, “Jack in the Box’s Qdoba brand has been driving growth at the company over the past few quarters. However, of late, the company has been experiencing moderated comps growth at its namesake Jack in the Box restaurants due to increased competitive pressure. Even so, the company’s enhanced focus on franchising and rewarding its shareholders through share repurchases and dividends bode well. Also, various sales initiatives like regular menu innovation, increased marketing efforts, remodeling along with offering catering options should drive top-line growth. Meanwhile, the company has a mixed record of earnings surprises in the recent quarters. However, increased marketing initiatives might keep profits under pressure. The company’s fiscal Q4 comps guidance also raises concerns. Estimates too have been mostly going down ahead of its Q4 earnings release.”
HC Wainwright initiated coverage on shares of Lipocine (NASDAQ:LPCN). The firm issued a buy rating and a $25.00 target price on the stock.
OceanaGold (TSE:OGC) was upgraded by analysts at Barclays PLC from an equal weight rating to an outperform rating.
Pacific Biosciences of California (NASDAQ:PACB) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Pacific Biosciences’ second quarterly numbers fell year over year. In addition to the headwind related to the limited availability of Single Molecule, Real-Time (SMRT) cells for the Sequel system and lower contractual revenues, higher non-cash operating expenses will hurt bottom-line growth. We believe persistent losses and cash burn are the primary headwinds in the near term. Meanwhile, estimates have been falling lately ahead of the company’s third-quarter earnings release. Nevertheless, we believe growing adoption of the Sequel system will boost the top line in 2016 and beyond. Moreover, lower product development cost for the Sequel system will expand gross margin. Additionally, development and distribution collaborations will drive market penetration over the long haul.”
Pinnacle Foods (NYSE:PF) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Estimates have largely remained unchanged ahead of Pinnacle Foods' third quarter earnings release. Pinnacle Foods has a strong portfolio of brands and intends to continue to invest in innovation in order to further differentiate its brands in the marketplace. The food company has also been carrying out various acquisitions over the years to grow its distribution network and customer base and boost long-term growth. The company also has an operational excellence program in place designed to generate annual productivity savings across the supply chain. However, increased consumer marketing investment, cost inflation and currency headwinds are likely to hurt profits. The company also expects higher expenses in 2016 due to innovation and costs related with product launches.”
Premier Gold Mines (TSE:PG) was downgraded by analysts at TD Securities from a speculative buy rating to a hold rating. The firm currently has C$4.00 price target on the stock, down from their previous price target of C$5.50.
Paypal Holdings (NASDAQ:PYPL) had its buy rating reissued by analysts at Mizuho. They currently have a $46.00 price target on the stock.
Royal Caribbean Cruises (NYSE:RCL) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”
Robert Half International (NYSE:RHI) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Estimates have largely remained unchanged ahead of the third quarter earnings release. Robert Half reported weaker-than-expected second quarter of 2016 results, possibly due to uncertain macro-economic environment and market volatility. However, both earnings and revenues grew on a year-over-year basis. Robert Half has been witnessing strong year-over-year earnings growth since the past many quarters driven by solid demand for services provided by skilled professionals as well as a growing labor market in the U.S. The recently released 2017 Salary Guides by Robert Half also shows rising demand for skilled professionals. However, the company cannot escape from currency fluctuations. Also, the company is expected to incur higher costs in the near term.”
Scientific Games Corp. (NASDAQ:SGMS) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Scientific Games has been impacted by the weakness in the gaming segment especially with regard to WAP, premium installed base and gaming systems. Nonetheless, the company holds a premium position in the gaming equipment space. In addition, the acquisitions of Bally Technologies and WMS Industries are positives as they diversify its product portfolio and expand its global footprint. Earnings estimates for the company have remained stable for a while now.”
Teck Resources (TSE:TCK.B) was upgraded by analysts at RBC Capital Markets from a sector perform rating to an outperform rating. RBC Capital Markets currently has C$30.00 price target on the stock, up from their previous price target of C$23.00.
Teck Resources (TSE:TCK.B) was upgraded by analysts at CSFB from a neutral rating to an outperform rating. The firm currently has C$30.00 target price on the stock, up from their previous target price of C$23.00.
Uranium Participation Corp (TSE:U) was downgraded by analysts at RBC Capital Markets from an outperform rating to a sector perform rating. RBC Capital Markets currently has C$4.50 target price on the stock, down from their previous target price of C$5.50.
Xcerra Corp. (NASDAQ:XCRA) had its hold rating reaffirmed by analysts at Needham & Company LLC.
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