Tag Archives: upgrade

Yamana Gold And Newmont Mining: Time To Shine Again, Upgraded [Seeking Alpha]

Yamana Gold Inc. (AUY) and Newmont Mining Corp (NEM), two gold producers with high margins and low forward P/E, had received positive calls from analysts recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be reviewed.

Yamana Gold Inc.

AUY was up 2.72% and closed at $15.11 on March 19, 2013. AUY had been trading in the range of $12.68-$20.59 in the past 52 weeks. AUY has a market cap of $11.37B with a low beta of 0.73.

On March 19, 2013, Cowen upgraded AUY from hold to buy with a price target of $16.40. The analyst noted,

Shares have traded off with the group YTD. However, AUY has not disappointed in either 2012 performance or 2013 guidance, unlike its peers. Production growth for 2013-2016E leads the peer-group at a CAGR of 8.0% versus peers of 6.0%.

Analysts currently have a mean target price of $22.11 and median target price of $22.00, suggesting 45.60%-46.33% upside potential. Analysts, on average, are estimating an EPS of $0.24 with revenue of $625.34M for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $1.11 with revenue of $2.90B, which is 24.00% higher than 2012.

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Facebook And eBay: Buying On Pullback [Seeking Alpha]

Facebook Inc. (FB) and eBay Inc. (EBAY) are two leading online companies, with strong growth, receiving positive analysts’ calls recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be reviewed.

Facebook Inc.

FB was up 0.23% and closed at $26.55 on March 19, 2013. FB had been trading in the range of $17.55-$45 in the past 52 weeks. FB has a market cap of $63.25B.

On March 19, 2013, JMP Securities initiated coverage on FB with a market perform rating. Analysts currently have a mean target price of $33.44 and a median target price of $34.00, suggesting 25.95%-28.06 upside potential. Analysts, on average, are estimating an EPS of $0.13 with revenue of $1.45B for the current quarter ending in March 2013. For 2013, analysts are predicting an EPS of $0.57 with revenue of $6.66B, which is 30.90% higher than 2012.

Facebook on Tuesday announced “Lookalike Audiences,” a new feature for advertisers. The company claims the new targeting technique offers lower cost per checkout, lower cost per acquisition, larger purchase size, as well as faster and increased return on investment.

Fundamentally, despite the recent pullback, FB’s valuation remains unreasonably high with P/E of 2655 and P/FCF of 167.76. However, if FB can achieve its estimated long-term annual EPS growth of 29.04% for the next 5 years, the valuation will become more justified. On the positive end, FB has a total cash of $9.63B with a total debt of $2.36B. FB generates a positive operating cash flow of $1.61B with a levered free cash flow of $412.38M.

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2 Recovering Stocks With More Upside Potential: Yum Brands And VeriFone [Seeking Alpha]

Yum Brands, Inc. (YUM) and VeriFone Systems, Inc. (PAY) are two companies showing positive signs for improvements. Both stocks had received positive calls from the analysts, including the PT increases for YUM and analyst’s upgrade for PAY. Both stocks will be analyzed fundamentally and technically. Investing strategies will also be reviewed.

Yum Brands, Inc.

YUM is a quick service restaurant company based on a number of system units, including KFC, Pizza Hut, and Taco Bell. YUM was up 1.31% and closed at $68.73 on March 12, 2013. YUM had been trading in the range of $59.68-$74.75 in the past 52 weeks. YUM has a market cap of $30.98B with a beta of 0.83.

As reported by Fox Business, YUM estimated same-store sales tumbled 24% in its KFC China division during Q1, which includes only the two months of January and February. The company’s Pizza Hut chain of restaurants suffered a preliminary same-store sales decline of just 2%. Overall, same-store sales slumped 20%, beating the company’s forecast for a drop of 25%.

On March 12, 2013, Goldman Sachs maintained a neutral rating on YUM and raised its price target to $65.00 (from $63.00). Adjusted for the new year shift, YUM’s China same-store-sales declined 13 percent in February compared to a decline of 22 percent in January. In the view of analysts, the improvement signals the worst is behind YUM’s in China. The analyst, Michael Kelter, said,

The improvement in underlying trend suggests that the acute phase of YUM’s recent chicken PR issue is finally behind it. The focus now is on the length of time before trends return to positive; until that time the P&L is under a significant amount of stress from China fixed cost de-leverage.

Deutsche Bank also maintained its hold rating on YUM and increased the price target to $68 (from $62).

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Oracle Keeps Buying, Growing, And Upgrading [Seeking Alpha]

Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. ORCL has spent $38B on acquisitions since 2005 and an active acquisition program contributes to the fundamental component of Oracle’s overall strategy.

On March 13, 2013, Oracle announced its acquisition of Nimbula, a provider of private cloud infrastructure management software. As quoted, “Nimbula’s technology helps companies manage infrastructure resources to deliver service, quality and availability, as well as workloads in private and hybrid cloud environments. Nimbula’s product is complementary to Oracle, and is expected to be integrated with Oracle’s cloud offerings. The transaction is expected to close in the first half of 2013.” According to Jim Xavier from Silicon Valley Business Journal, Nimbula could help Oracle shore up a major weakness in its product portfolio. As quoted,

“Nimbula reportedly has a very solid software, and it’s got some big customers, notably Yandex, the Russian internet firm that is sometimes called the Google of Russia.”

On March 13, 2013, Canaccord Genuity upgraded ORCL from hold to buy with a price target of $42.00 (from $35.00). Analyst Richard Davis said the firm is set up well to gain 20% this year. He expects Oracle deliver 9 to 11 percent EPS growth this year and thinks its multiple relative to peers IBM (IBM) and SAP AG (SAP) can expand given its current 10 to 25 percent discount valuation.

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2 Large-Cap Retailers With Recent Optimistic Analysts’ Calls: Walgreen And Costco [Seeking Alpha]

Walgreen Company (WAG) and Costco Wholesale Corporation (COST) are two large-cap retailers with strong cash flow and a healthy balance sheet. Both stocks had received positive calls from analysts recently and will be analyzed fundamentally and technically in this article. Investing strategies will also be reviewed.

Walgreen Company

WAG was up 4.24% and closed at $42.78 on March 13, 2013. WAG had been trading in the range of $28.53-$42.91 in the past 52 weeks. WAG has a market cap of $40.43B with a beta of 1.01

On March 13, 2013, UBS upgraded WAG from neutral to buy and lifted its price target from $41 to $48. UBS said recent weakness on monthly comps that are no longer benefiting from flu provides an opportunity to invest “for ‘big picture’ positive developments at the company over the next 1-2 years.” As quoted from the report,

These ‘big picture’ items include: 1) underappreciated leverage to health reform in 2014, 2) stronger gross margins in 2013 (due to lack of over spending on promotion), and 3) increased visibility on Alliance Boots in both Step 1 & 2 of the transaction.

UBS raised 2013 EPS estimates from $3.36 to $3.42 due to higher gross margin assumption and UBS believes that WAG has not overinvested in its loyalty card program in an effort to win back customers lost due to the ESRX impasse. UBS also raised 2014 EPS from $3.73 to $3.85 on health reform upside.

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2 Retailers With Solid Fundamentals And Recent Upgrades [Seeking Alpha]

Whole Foods Market, Inc. (WFM) and Vitamin Shoppe Inc. (VSI), retailers with high margins and steady growth, have been recently upgraded by analysts. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Whole Foods Market, Inc.

Whole Foods Market, Inc. is the largest retailer of natural and organic foods. WFM was down 0.24% and closed at $85.79 on March 12, 2013. WFM had been trading in the range of $80.81-$101.86 in the past 52 weeks. WFM has a market cap of $15.90B with a beta of 1.01.

On March 12, 2013, Edward Jones upgraded WFM from hold to buy. Analysts currently have a mean target price of $103.15 and a median target price of $103.50 for WFM. Analysts, on average, are estimating an EPS of $0.73 with revenue of $3.03B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $2.87 with revenue of $13.06B, which is 11.60% higher than 2012.

On March 8, 2013, WFM announced, by 2018, all products in its U.S. and Canadian stores must be labeled to indicate whether they contain genetically modified organisms (GMOs).

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ArcelorMittal And Mosaic: Basic Materials, Recovering And Upgraded [Seeking Alpha]

ArcelorMittal (MT) and Mosaic Co (MOS), both with lower Forward P/E and dividend distribution, are two basic materials stocks recovering from the recent slump and had received positive upgrades from analysts recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

ArcelorMittal

MT was up 1.15% and closed at $14.89 on March 11, 2013. MT had been trading in the range of $13.28-$21.61 in the past 52 weeks. MT has a market cap of $23.07B with a high beta of 2.15.

According to the report from Zacks on March 8, 2013, MT remains affected by the challenging economic conditions in Europe. It is also exposed to volatility in steel pricing and tough competition and has significant debt. The effect of price declines was witnessed across all segments in the fourth quarter and led to a contraction in the top line. MT still retains a strong sell rating with Zacks.

However, on March 11, 2013, UBS upgraded MT from neutral to buy. Analysts said if the company reached its debt target by the end of 2013, it might regain investment grade status. Asset optimization in Europe could also benefit the stock. Analysts currently have a mean target price of $20.44 and a median target price of $18.91 for MT. Analysts, on average, are estimating an EPS of -$0.06 for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $0.65 with revenue of $86.14B, which is 2.30% more than 2012.

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Pandora And Skullcandy: Music, Earnings, Analyst Calls, And Big Moves [Seeking Alpha]

Pandora Media Inc. (P) and Skullcandy Inc. (SKUL) are two music related companies with recent analyst calls and earnings announcements. P received most number of upgrades while SKUL received most number of downgrades from analysts on Friday. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Pandora Media Inc.

Pandora Media gives people music and comedy they love anytime, anywhere, through connected devices. P was up 17.56% and closed at $13.79 on March 8, 2013. P had been trading in the range of $7.08-$14.70 in the past 52 weeks. P has a market cap of $2.35B.

Earnings and CEO Resignation

On March 7, 2013, Pandora reported Q4 non-GAAP loss of $0.04 per share, beating consensus estimate of a loss of $0.05 per share. Pandora’s revenue increased to $125.1M from $81.3M, beating analysts’ estimate of $122.8M in revenue. Pandora also forecast Q1, 2013 loss of 10 cents to 13 cents per share on an adjusted basis. It expects revenue between $120M and $125M for the period. Analysts had forecast a loss of 10 cents per share on revenue $118.6M. Pandora also announced that its CEO, Joseph Kennedy, had resigned and that the company would begin searching for his successor.

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4 Solar Stocks With Positive Upgrades But Concerns Remain [Seeking Alpha]

In this article, four solar stocks with recent upgrades will be presented, including First Solar, Inc. (FSLR), Suntech Power Holdings Co. (SPWR), Suntech Power Holdings Co. (STP), and Trina Solar Limited (TSL). Fundamental comparison will also be provided for these four stocks.

First Solar, Inc.

First Solar, Inc. manufactures and sells solar modules with an advanced, proprietary thin-film semiconductor technology, and it designs, constructs, and sells photovoltaic (PV) solar power systems. FSLR was up 3.19% and closed at $25.90 on March 6, 2013. FSLR had been trading in the range of $11.43-$36.98 in the past 52 weeks. FSLR has a market cap of $2.26B with a beta of 1.57.

SunPower Corporation

SunPower Corporation is a vertically integrated solar products and services company that designs, manufactures and delivers high-performance solar electric systems worldwide. SPWR was up 1.83% and closed at $12.23 on March 6, 2013. SPWR had been trading in the range of $3.71-$13.88 in the past 52 weeks. SPWR has a market cap of $1.97B.

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