Investment Analysts’ Upgrades for November, 14th (BBY, CF, CNMD, ED, FCX, FMX, LOXO, MOS, MXWL, NS)
Best Buy Co. (NYSE:BBY) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Best Buy has exhibited a bullish run in the index and outpaced the industry in a year owing to strategic efforts, sturdy online sales growth and solid earnings history. The company is making extensive investments to upgrade operations with special focus on developing omni-channel capabilities and strengthening partnership with vendors. Moreover, following the completion of “Renew Blue” program, it launched a fresh strategy called “Best Buy 2020: Building the New Blue”. Under this strategy, the top most priority is to explore and pursue growth opportunities and optimize cost with focus on key areas. Moreover, the challenging retail landscape, aggressive promotional strategies and waning store traffic remain concerns. Further, analyst believes increase in investment may strain margins in the coming quarters.”
CF Industries Holdings (NYSE:CF) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $42.00 price target on the stock. According to Zacks, “CF Industries posted a net loss in third-quarter 2017, which was wider on a year-over-year basis. However, adjusted loss and revenues beat the respective Zacks Consensus Estimate. CF Industries has outperformed the industry it belongs to over the past six months. CF Industries is well positioned to gain from its efforts to boost production capacity. It is also likely to benefit from higher nitrogen demand driven by healthy corn plantations. The company is also enjoying the benefit of ample natural gas supply.”
Consolidated Edison (NYSE:ED) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $98.00 target price on the stock. According to Zacks, “Consolidated Edison reported mixed results in the third quarter of 2017. While its bottom line missed the Zacks Consensus Estimate for earnings, its top line exceeded the corresponding consensus mark. However, on a year-over-year basis, results were disappointing on both fronts. Consolidated Edison has a favorable rate decisions history by regulatory authorities, which will likely encourage it to invest more in infrastructure improvements. The company is also making notable progress in generating renewable energy. Moreover, the company outperformed its broader industry over a year. However, the company faces interest rate risk owing to variable rate debt and to new debt financing needed to fund capital requirements.”
Freeport-McMoran (NYSE:FCX) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $16.00 target price on the stock. According to Zacks, “Freeport reported a year-over-year increase in earnings and revenues for third-quarter 2017. Earnings and sales also beat the respective Zacks Consensus Estimate. Freeport is taking actions to cut mining costs which should lend support to its margins in 2017. The company should also gain from efforts to de-leverage its balance sheet. It is also conducting exploration activities near its existing mines with a focus to expand reserves that will support additional future production capacity.”
Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “FEMSA has underperformed the industry in three months attributable to its dismal earnings trend and strained margins. Though FEMSA posted positive earnings surprise in third-quarter 2017 after four consecutive misses, its margins remained under pressure. Gross margin was hurt by growth of lower-margin businesses at FEMSA Comercio, while operating margin contracted due to soft Coca-Cola FEMSA margins. Further, margins at FEMSA Comercio’s Retail division are likely to remain soft going forward. The company also provided a cautious sales outlook for fourth-quarter 2017 and 2018 backed by high inflation rates, upcoming presidential elections in Mexico and ongoing discussions to modernize trade. However, the company is poised for long-term growth through its strategic actions, including expanding store base, diversifying business portfolio and focus on core business activities. FEMSA's focus on achieving growth through acquisitions bodes well.”
Loxo Oncology (NASDAQ:LOXO) was upgraded by analysts at Ifs Securities from an outperform rating to a strong-buy rating.
Mosaic Company (The) (NYSE:MOS) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $26.00 price target on the stock. According to Zacks, “Mosaic saw its profits surge year over year in the third quarter, driven by strong operational performance and healthy demand for its products. Both revenues and adjusted earnings topped the respective Zacks Consensus Estimate. Mosaic is well placed to gain from strong global demand for fertilizers. Moreover, the acquisition of Vale Fertilizantes will help the company to capitalize on the rapidly growing Brazilian agricultural market. The buyout is also expected to deliver significant synergies. Mosaic should also benefit from its cost reduction measures and its efforts to boost production capacity.”
Maxwell Technologies (NASDAQ:MXWL) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $5.50 price target on the stock. According to Zacks, “Maxwell reported narrower-than-expected loss in the third quarter of 2017, while revenues missed the Zacks Consensus Estimate. The company continues to lead the growing ultracapacitor market and benefits from increasing demand for its utility infrastructure, renewable energy, public transportation and space programs. It is also making progress in the high-voltage capacitor market. This product line provides the company’s foundational cash flow and also the opportunity for steady long-term growth in the solid $150 million addressable market by 2021. Further, research and development forms an integral part of the company’s growth strategy. However, short-term changes in the Chinese government’s deployment strategy for wind turbines are affecting Maxwell’s wind market revenues.”
Nustar Energy L.P. (NYSE:NS) was upgraded by analysts at Zacks Investment Research from a strong sell rating to a hold rating. According to Zacks, “NuStar has successfully weathered crude's historic decline through its large and diverse asset portfolio that provides highly certain cash flows. Other positive attributes include its investment grade rating and strong track record for distribution growth. NuStar’s fee-based transportation and storage assets make it less susceptible to commodity price weakness. Further, the partnership acquired Dallas-based private pipeline company, Navigator Energy Services, which marks the partnership’s entry into the Permian Basin and is likely to boost its revenue. However, we believe that MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over crude prices continues. We are also concerned about the partnership’s high leverage. As such, we see NuStar units performing in line with the broader market.”
Regeneron Pharmaceuticals (NASDAQ:REGN) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Regeneron’s third-quarter results were impressive as both earnings and sales beat estimates driven by strong Eylea’s sales. Eylea continues to perform well. Dupixent launch in the United States for moderate-to-severe atopic dermatitis is progressing well. The drug was also approved in Europe. The geographic expansion of the drug will further boost sales. Moreover, the company is also looking to expand Dupixent’s label in uncontrolled asthma. The approval of new drugs like Kevzara and Dupixent provide a significant boost to the top-line and reduce the company’s dependence on Eylea for growth. Prospects of PCSK9 inhibitors, a new class of cholesterol-lowering treatments with blockbuster potential, gained instant popularity even before hitting the market. Shares have outperformed the industry so far in 2017. However, sales of Praluent have failed to impress payer utilization management restrictions in the United States.”
Shawcor (TSE:SCL) was upgraded by analysts at Scotiabank from an underperform rating to a sector perform rating. They currently have C$32.00 price target on the stock.
Shire PLC (NASDAQ:SHPG) was upgraded by analysts at Liberum Capital from a hold rating to a buy rating.
State Street Corporation (NYSE:STT) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $102.00 target price on the stock. According to Zacks, “Shares of State Street have outperformed the industry over the past six months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. The company’s third quarter 2017 results benefited from higher revenues and rise in assets under management, partially offset by increase in expenses. New business wins, efforts to improve efficiency through its multi-year restructuring plan, synergies from GE Asset Management deal and easing margin pressure are likely to aid profitability. While mounting expenses mainly owing to higher compensation and employee benefit costs are expected to hurt its bottom line, enhanced capital deployment activities and exposure in international markets keeps us encouraged.”
WESCO International (NYSE:WCC) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $69.00 price target on the stock. According to Zacks, “Wesco is one of the major distributors of electrical products in the U.S. Year to date, the stock has outperformed the industry it belongs to. The company’s third-quarter 2017 beat the Zacks Consensus Estimate on both counts. WESCO continues with its focus on delivering above-average sales growth, profitability improvement, strong cash flow generation and increasing shareholder value. It continues to invest progressively in the One WESCO initiative aimed at creating extensive supply chain management solutions by integrating its portfolio of products and services and its supplier relationships. WESCO has a comprehensive portfolio of products and services, and a sizable global footprint, which will help drive growth, going forward. However, foreign exchange risk, supplier concentration, a significant debt load and limited liquidity remain concerns.”
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