Stock Analysts’ Updated EPS Estimates for November, 3rd (AMT, ANDV, ARE, AXS, BBT, CACI, CIT, CSX, DIS, DOL)
American Tower Corporation (REIT) (NYSE:AMT) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $160.00 price target on the stock. According to Zacks, “American Tower posted strong third-quarter 2017 financial results. American Tower’s Indian, EMEA and Latin American operations account for almost 50% of its organic core revenue growth. American Tower continues to benefit from increased investment of wireless carriers in 4G LTE and 5G networks. The company’s tower buyouts in emerging markets and long-term tower leases with major wireless carriers have driven its top line and lend it a competitive edge over rivals. Over the past three months, the stock price grew 3.5%, as against the industry's loss of 0.3%. However, American Tower has a substantially leveraged balance sheet. High customer concentration is likely to affect the company’s top line. Expansion in the global market increases the company’s exposure to foreign currency exchange rate risks. Stiff competition, integration risks and rising operating expenses are other headwinds.”
Tesoro Corporation (NYSE:ANDV) had its overweight rating reaffirmed by analysts at J P Morgan Chase & Co. J P Morgan Chase & Co currently has a $121.00 price target on the stock.
Alexandria Real Estate Equities (NYSE:ARE) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Alexandria’s third-quarter 2017 adjusted funds from operations (FFO) of $1.51 per share surpassed the Zacks Consensus Estimate. It also came in higher than the prior-year quarter figure. Results were driven by robust internal and external growth. Furthermore, shares of Alexandria have outperformed the industry, year to date. The company enjoys high occupancy arising from escalating demand for its Class A properties in premium locations. In September, the company announced that its ground development project —100 Binney Street — was 100% pre-leased, in advance of its delivery in fourth-quarter 2017. Also, robust cash flow and solid balance sheet are the company’s strengths. However, dilutive impact of dispositions on earnings and rise in interest rates remain concerns. Moreover, the company’s global footprint makes its profitability vulnerable to currency fluctuations.”
Axis Capital Holdings Limited (NYSE:AXS) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “AXIS Capital reported third-quarter 2017 operating loss, slightly wider than the Zacks Consensus Estimate and also compared unfavorably with the operating income in the year-ago quarter. Significantly higher catastrophe loss was mainly responsible for such a dismal earnings performance. Nonetheless, Axis Capital continues to build on its Specialty Insurance, Reinsurance, Accident and Health to pave way for long-term growth. It remains focused on deploying resources prudently, while enhancing efficiencies. It has also been improving its portfolio mix and underwriting profitability apart from strengthening the casualty and professional lines in the insurance segment. Its inorganic growth story remains impressive with strategic buyouts. But, stiff competition in the reinsurance industry along with escalating expenses are concerns. Also, shares have underperformed the industry, since the release of its third quarter results.”
BB&T Corporation (NYSE:BBT) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “BB&T’s shares have underperformed the industry over the past three months. The company has impressive earnings surprise history, with not lagging the Zacks Consensus Estimate in all the trailing four quarters. The bank’s third quarter 2017 results benefited from higher revenues and a fall in credit cost, while a rise in operation expenses was a headwind. Strategic acquisitions, consistent growth in loans and deposits, and higher interest rates will further lead to improved profitability. Nevertheless, mounting expenses due to acquisitions and branch consolidation efforts are expected to hurt bottom-line growth. he company intends to close nearly 170 branches by the end of this year. The company’s exposure to risky loans also continues to be a near-term concern.”
CACI International (NYSE:CACI) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Macroeconomic challenges, foreign currency volatility and regulatory pressure remain potential headwinds for CACI International. Federal government contracts are also subject to extensive legal and regulatory hurdles and subject to change from time to time. Deviations from the terms laid out by the government may further result in huge penalties or termination. Moreover, CACI International has to continuously invest in value drivers that act as a hedge against competition. These increase its operating costs and reduce its profitability. The company has underperformed the industry year to date. However, CACI International intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building newer ones. The company beat first-quarter fiscal 2018 earnings on higher revenues.”
CIT Group Inc (DEL) (NYSE:CIT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of CIT Group have underperformed the industry over the past twelve months. Yet, the company has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Its third-quarter 2017 results were aided by lower expenses and a fall in provisions. The company's business streamlining initiatives should improve efficiency, going forward. Also, given a solid capital and balance sheet position, the company is expected to continue to enhance shareholder value through efficient capital deployment activities. However, mounting expenses are expected to hurt bottom-line growth in the near term. Further, worsening credit quality and sluggish growth in the industries where CIT Group provides finance continue to be key concerns.”
CSX Corporation (NASDAQ:CSX) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Shares of CSX have outperformed its industry in a year. The company's third-quarter earnings improved 6.3% year over year. Revenues in the quarter also improved owing to core pricing gains. The improved coal scenario is also encouraging. Coal revenues improved 10% in third-quarter. Moreover, the company expects bottom line to expand between 20% and 25% in 2017 owing to improved effciencies. Additionally, Operating ratio in the high end of mid-60s is expected in 2017. However, the company reported lower than expected revenues in the third quarter. The year over year decline in merchandise revenues is also concerning. CSX's high debt levels is also worrisome. Sluggish automotive production presents a further challenge to the company. Automotive sector revenues declined 12% in the third quarter. The recent service disruptions also do not bode well for the company. “
Walt Disney Company (The) (NYSE:DIS) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Disney’s shares have outpaced the industry in a year driven by sturdy movie business and solid performance of Parks & Resorts. The studio will continue its success given an impressive lineup of big budget movies up to 2018. The company’s decision to terminate distribution agreement with Netflix for subscription streaming and having its own streaming services – one for Disney and Pixar brands and another for ESPN followers is likely to be a driving factor in the long run. However, the stock recently came under pressure after CEO cautioned that fiscal 2017 earnings are likely to be similar to last year. Ongoing concerns regarding ESPN future and havoc at its Lucasfilm division due to the delay in the release of Star Wars: Episode IX also hurt the stock. Nevertheless, in an effort to attract online viewers, Disney, which had earlier acquired 33% stake BAMTech, announced its intention to acquire another 42% stake in the firm.”
Wells Fargo & Company assumed coverage on shares of Dollarama (TSE:DOL). They issued a market perform rating on the stock.
Draegerwerk AG & Co KGaA (ETR:DRW3) was given a €108.00 ($127.06) target price by analysts at Nord/LB. The firm currently has a buy rating on the stock.
Airbus SE (EPA:EAD) had its buy rating reissued by analysts at DZ Bank AG.
Randgold Resources Limited (NASDAQ:GOLD) was upgraded by analysts at Investec from a hold rating to a buy rating.
Goldman Sachs Group, Inc. (The) (NYSE:GS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Goldman underperformed the industry over the past six months. Yet, the company boasts an impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Goldman’s third-quarter 2017 results surpassed the Zacks Consensus Estimate. Results reflected higher revenues on continued momentum in investment banking business, partially offset by lower fixed-income trading activities and elevated expenses. Though several issues, including sluggish global economic growth and lower client activity levels, remain near-to-medium-term headwinds, we believe the company’s well-diversified business and its focus to capitalize on growth opportunities through strategic moves should continue to bolster the overall business.”
Hanesbrands (NYSE:HBI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Hanesbrands has been gaining from its focus on acquisitions, particularly Champion Europe and Hanes Australasia. Benefits from these buyouts fueled third-quarter 2017 results, wherein both earnings and sales grew year over year. Moreover, the company returned to positive organic sales growth trajectory, thanks to robust International sales. Also, Hanesbrands’ online sales remained strong. However, the company has lagged the industry in the past three months owing to a tough retail landscape which is hurting its brick-and-mortar performance. Evidently, this marred Hanesbrands’ domestic sales in the quarter. Management expects these trends to linger in 2017, where it also expects high marketing costs. These factors, along with impacts from natural disasters led to a trimmed view. Nonetheless, cost savings from Project Booster; expected gains from Alternative Apparel and expectations of organic sales growth keep management encouraged.”
Gartner (NYSE:IT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Gartner reported strong third-quarter 2017 results with healthy growth in non-GAAP revenues and earnings that beat the respective Zacks Consensus Estimates. With a diligent execution of operational plans, Gartner has recorded double-digit growth in key metrics for over a decade. The company has a vast, untapped market opportunity worth an estimated $61 billion. The acquisition of CEB further reinforces Gartner’s market strength and is likely to be accretive in the future. The company has also outperformed the industry year to date. However, revenue from the federal government business is exposed to lengthy approval times and other austerity measures, which undermine the long-term growth potential to some extent. In addition, with modest revenue coming from the U.K., Gartner is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post the Brexit referendum.”
Just Eat Plc (OTC:JSTLF) was upgraded by analysts at Morgan Stanley from an underweight rating to an equal rating.
McDermott International (NYSE:MDR) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “We are upgrading our investment thesis on McDermott to ‘Hold’ following its strong Q3 results on the back of robust project execution. The company's revenues in the quarter rose about 72% year-over year on increased activity levels. We appreciate the company’s broad product portfolio, diversified geographical footprint, good market position and strong relationship with national oil companies. McDermott’s healthy balance sheet provides it with ample financial flexibility amid the volatile industry environment to tap on the growth opportunities. All these positives are also reflected in MDR’s impressive earnings surprise history and strong price performance. However, with a considerable portion of MDR’s current backlog associated with offshore operations, it remains susceptible to the pricing weakness. Consequently, until the external environment challenges subside, we see limited upside for MDR shares.”
Manulife Financial Corp (NYSE:MFC) (TSE:MFC) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Manulife continues to witness new business volumes, particularly in Asia, and positive net flows in its wealth and asset management businesses. Deep reach in the Asian market and a growing asset management business would drive long-term earnings growth. The company remains on track to achieve more than $100 million in expense synergies. However, declining group benefit sales in Canada segment will weigh on results, volatile global equity markets coupled with low bond yields has largely affected the company’s capital position. Shares of Manulife underperformed the industry in a year’s time. Moreover, the company witnessed its third quarter estimates moving down ahead of earnings release. The company is set to report third quarter results on Nov 8. A Zacks Rank #3, which increases the predictive power of earnings surprise, when combined with Earnings ESP of -2.97% makes prediction difficult for conclusive beat.”
Republic Services (NYSE:RSG) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Republic Services reported strong third-quarter 2017 results, with healthy year-over-year increase in earnings and revenues. The company is currently focusing on a series of quality acquisition opportunities, primarily of recycling assets, which are likely to act as a catalyst for a healthy long-term growth within its top 25 markets. It is also transitioning to a fee-based recycling processing model to cover processing costs and generate a healthy ROI. Republic Services outperformed the industry year to date. However, commodity price headwinds remain a significant impediment to growth. Margin pressure also remains a bottleneck as Republic Services has more exposure to Collection services that generate the lowest margin, while protracted weakness in special waste and tight municipal budgets remain additional headwinds. In addition, increased competitive pressure remains a cause for concern.”
Seattle Genetics (NASDAQ:SGEN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Seattle Genetics beat both earnings and sales estimates in the third quarter of 2017. Concurrently, the company raised 2017 revenues outlook.The company has upped its guidance for 2017 driven by a robust performance of Adcetris in the first half. We are also encouraged by the company’s efforts to expand the drug’s label. The company’s collaboration with Takeda for the global development and commercialization of Adcetris is encouraging. However, dependence on one product – Adcetris– for growth has its inherent risks. The recent label expansion of Merck’s Keytruda in the lymphoma indication is likely to increase competition. Though the company has multiple candidates in its pipeline, most of them are in early stages of development. The company’s shares have outperformed the industry year to date.”
Swedbank AB (OTCMKTS:SWDBY) was downgraded by analysts at Berenberg Bank from a buy rating to a hold rating.
Tenet Healthcare Corporation (NYSE:THC) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Tenet Healthcare is well poised for long term growth on the back of its inorganic strategies. The company continues to divest its non core and unprofitable businesses in order to streamline its core operations. Tenet is undertaking cost reduction initiative that will help it lower annual operating expenses by $150 million, with annualized run-rate savings to be achieved by 2018 end. However, the shares have underperformed the industry in a year's time. Tenet Healthcare has a high level of uncollectible accounts. Following lackluster second-quarter 2017 results, the company has lowered its guidance for 2017. Rising level of bad debts has led to a spike in interest expenses, weighing on margins. It will release third quarter results on Nov 6. The company estimates third quarter adjusted loss of 17 cents on revenues of $4.6 billion, both down year over year.”
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