Tag Archives: upgrades

Anadarko And Phillips 66: Fundamental Improvement Continues [Seeking Alpha]

Anadarko Petroleum Corporation (APC) and Phillips 66 (PSX) are two energy stocks, with higher margins and stronger ROEs compared with their peers, gaining with fundamental improvements. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Anadarko Petroleum Corporation

APC was up 3.75% and closed at $86.40 on March 20, 2013. APC had been trading in the range of $56.42-$87.50 in the past 52 weeks. APC has a market cap of $43.25B with a beta of 1.53.

On March 20, 2013, UBS reiterated an overweight rating and increased its target price from $102 to $105 for APC. On March 18, 2013, Barclays also reiterated an outperform rating and increased the target price from $101 to $102 for APC. Analysts currently have a mean target price of $104.13 and a median target price of $100.00 for APC, suggesting 15.74%-20.52% upside potential. Analysts, on average, are estimating an EPS of $0.89 with revenue of $3.47B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $4.02 with revenue of $15.05B, which is 12.20% higher than 2012.

On March 21, 2013, APC announced a U.S. Gulf of Mexico oil discovery that may produce more than half a billion barrels of crude. As reported by Bloomberg, the well, drilled to almost 6 miles (9.6 kilometers) beneath the seafloor in water 5,800 feet deep, encountered oil deposits more than 1,000 feet thick. John Malone, an analyst for Global Hunter Securities LLC believes the field may produce 700 million barrels of oil, more than twice a previous estimate. The discovery adds $3 a share to Anadarko’s value as indicated by Brian Lively, an analyst for Tudor, Pickering, Holt & Co.

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General Motors And Johnson Controls: Low Forward P/E, Steady EPS Growth, Upgraded [Seeking Alpha]

General Motors Company (GM) and Johnson Controls, Inc. (JCI) are two auto-related companies, with low forward P/E and high expected EPS growth (next five years), receiving analysts’ upgrades recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

General Motors Company

GM was up 0.18% and closed at $28.21 on March 15, 2013. GM had been trading in the range of $18.72-$30.68 in the past 52 weeks. GM has a market cap of $38.55B.

On March 15, 2013, Equities researchers at Deutsche Bank boosted their target price on shares of GM from $38.00 to $39.00 with a “buy” rating on the stock. Analysts currently have a mean target price of $34.88 and a median target price of $35.00 for GM. Analysts are estimating an EPS of $0.56 with revenue of $36.72B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $3.39 with revenue of $157.33B, which is 3.30% higher than 2012.

According to RDI report, signs of an improving U.S. housing market combined with upbeat readings on U.S. consumer confidence have continued to fuel the auto industry’s rally in 2013. The Fed’s policy of keeping interest rates near-zero has benefited the auto industry as a majority of Americans rely on loans to purchase new vehicles. Marketing firm LMC Automotive projects new vehicle sales to grow to 15.3 million in 2013.

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ARM And Broadcom: Semiconductors, Solid Growth And Cash Flow, Upgraded [Seeking Alpha]

ARM Holdings plc (ARMH) and Broadcom Corporation (BRCM), two semiconductor companies in the technology sector with solid growth and strong cash flow, had received positive calls from analysts recently. ARMH is well positioned for mid-to-long term growth while BRCD is benefiting from Samsung’s (SSNLF.PK) new S4 launch and China Mobile’s (CHL) TD-LTE expansion. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

ARM Holdings plc

ARMH was up 0.36% and closed at $41.91 on March 15, 2013. ARMH had been trading in the range of $21.64-$44.47 in the past 52 weeks. ARMH has a market cap of $19.29B with a relatively low beta of 0.88.

On March 15, 2013, Jefferies upgraded ARMH from hold to buy. Jefferies analyst Lee Simpson noted,

“We see development in four market areas (mobile computing, datacentres, networking, Internet of Things) as key to the emergence of ARM as the architecture of choice for the mid-to-long term. ARM remains well-positioned for the mid-to-long term given: (1) rising royalty rates (cortex-A driven; later ARMv8), (2i) record licensing (j/est backlog of $570m+), (3) upcoming tax benefits (dropping to c.17% effective tax rate long term), and (4) Opex control showing through. Overall, we expect earnings growth (3-year CAGR of 40%) to continue largely unperturbed through 2013-16e.”

Analysts currently have a mean target price of $42.89 and a median target price of $44.00 for ARMH. Analysts are estimating an EPS of $0.21 with revenue of $249.83M for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $0.87 with revenue of $1.06B, which is 15.80% higher than 2012. Analysts are also predicting 17.50% increase in revenue for 2014.

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2 Coca-Cola Upgrades: More Cash Pours In [Seeking Alpha]

The Coca-Cola Company (KO) and Coca Cola Hellenic Bottling Co (CCH), both with strong cash flow and steady growth, had received positive upgrades from analysts recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

The Coca-Cola Company

The Coca-Cola Company is the world’s largest beverage company and is the leading producer and marketer of soft drinks. KO was up 1.11% and closed at $39.02 on March 14, 2013. KO had been trading in the range of $34.89-$40.67 in the past 52 weeks. KO has a market cap of $173.90B with a very low beta of 0.51.

On March 14, 2013, Credit Agricole upgraded KO from underperform to outperform with a price target of $43.00 (from $40.00), and Bank of America had reaffirmed its current buy rating with a price target of $41 on KO. On March 13, 2013, Wells Fargo maintained an outperform rating on KO and raised its price target to $42.00-$44.00 (from $41.00-$43.00). Analyst Bonnie Herzog thinks the stock deserves a higher premium relative to peers. As quoted from Bonnie Herzog,

Based on KO’s current valuation, we believe the market is underestimating KO’s long-term growth opportunities and the power of its global bottling network. Therefore, we believe KO’s current valuation premium of only ~10% to its peers is too narrow and presents a good entry point for long-term investors.

Analysts currently have a mean target price of $42.23 and a median target price of $42.00 for KO. Analysts are estimating an EPS of $0.45 with revenue of $11.05B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $2.14 with revenue of $49.02B, which is 2.10% higher than 2012.

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2 High-Margin Apparel Brands With Recent Upgrades: Michael Kors And Coach [Seeking Alpha]

Michael Kors Holdings Ltd (KORS) and Coach, Inc. (COH) are two large-cap companies with high margins, strong ROE and cash flow, and a healthy balance sheet. Both stocks had received positive upgrades from analysts recently and will be analyzed fundamentally and technically in this article. Investing strategies will also be reviewed.

Michael Kors Holdings Ltd

KORS was up 3.96% and closed at $58.51 on March 13, 2013. KORS had been trading in the range of $35.50-$65.10 in the past 52 weeks. KORS has a market cap of $11.72B.

On Mach 13, 2013, Avondale Partners upgraded KORS from market perform to market outperform. This upgrade was based on favorable risk/reward and checks that indicate favorable trends at the end of February, 2013. On March 3, 2013, Sterne Agee initiated coverage on KORS with a neutral rating and a price target of $63.00. Analysts currently have a mean target price of $74.08 with a median target price of $75.00 for KORS. Analysts, on average, are estimating an EPS of $0.39 with revenue of $548.05M for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $1.86 with revenue of $2.12B, which is 63.10% higher than 2012.

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Alcatel-Lucent And Netflix: 2 Technology Stocks Received The Most Upgrades In Past 3 Months [Seeking Alpha]

Alcatel-Lucent (ALU) and Netflix, Inc. (NFLX) are two technology stocks that received the most upgrades in the past three months. In this article, analysts’ calls and projections will be provided for both stocks, which will also be analyzed fundamentally. Investing strategies will also be reviewed.

Alcatel-Lucent SA

Alcatel-Lucent, a France-based company, is a provider of telecommunications technology and services, which also engages in mobile, fixed, Internet Protocol and optics technologies, applications and services. ALU was down 207% and closed at $1.42 on March 6, 2013. ALU had been trading in the range of $0.91-$2.48 in the past 52 weeks. ALU has a market cap of $3.22B with a high beta of 2.36.

ALU had received six upgrades from several analysts in the past three months. On March 1, 2013, Bernstein upgraded ALU from underperform to market perform with a price target of $1.46 (from $0.79). On February 8, 2013, Morgan Stanley upgraded ALU from underweight to overweight following Q4 results and CEO move. On January 23, 2013, Citi upgraded ALU from sell to neutral and raised its price target to EUR1.30 (USD $1.69). The firm cited a positive carrier spending environment and reduced bankruptcy risk.

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Pengrowth Energy And Merck: Undervalued, High Dividend, And Positive Upgrades [Seeking Alpha]

Pengrowth Energy Corp. (PGH) and Merck & Co Inc. (MRK), both undervalued and providing attractive dividend yields, had received positive upgrades from analysts recently. Recent developments will be updated for both companies. Both stocks will also be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Pengrowth Energy Corp.

Pengrowth Energy Corp. is engaged in the development, production and acquisition of, and exploration for oil and natural gas reserves in Canada. PGH was up 4.02% and closed at $4.66 on March 4, 2013. PGH had been trading in the range of $3.82-$10.21 in the past 52 weeks. PGH has a market cap of $2.39B with a beta of 1.38.

On March 4, 2013, FirstEnergy Capital upgraded PGH from market perform to outperform. Analysts have a mean target price of $7.33 and a median target price of $7.50 for PGH.

On February 28, 2013, PGH reported proved plus probable year-end reserve increased 55% to 512MMboe at December 31, 2012, from 330.5MMboe at year-end 2011. 2012 crude oil and natural gas liquids reserves increased by 29% and 79% on a proved and proved plus probable basis, respectively.

Dividend Maintained and Capital Program Fully Funded for 2013

According to the latest management discussion on Q4, 2012 earnings result, PGH is moving to be a sustainable dividend-paying energy producer. The company will invest approximately $600 million over the next 2 years to drill wells, build the surface facility to bring the Lindbergh production on-stream in 2014. Pengrowth is committed to maintaining its dividend at the current levels of $0.04 per share per month.

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3 Technology Stocks With Positive Upgrades [Seeking Alpha]

In this article, 3 technology stocks receiving positive upgrades from the analysts will be presented, including Brocade Communications Systems, Inc. (BRCD), JDS Uniphase Corporation (JDSU), and Allscripts Healthcare Solutions, Inc. (MDRX).

Brocade Communications Systems, Inc.

Brocade Communications Systems, Inc. supplies networking equipment and provides end-to-end Internet Protocol-based Ethernet networking solutions and storage area networking solutions for businesses and organizations of all types and sizes. BRCD dropped 2.5% and closed at $5.84 on February 20, 2013. BRCD had been trading in the range of $4.18-$6.44 in the past 52 weeks.

On February 14, 2013, BRCD reported Q1 loss of $21.26M, or 5 cents a share, compared with a profit of $58.58M, or 12 cents a share, for the year-earlier period. Revenue increased to $588.73M, from $560.64M. On an adjusted basis, BRCD reported a profit of 21 cents a share, beating analysts’ expectation of 16 cents a share on revenue of $575.55M. BRCD also issued Q2, 2013 guidance, which is in line with analysts’ estimates. For Q2, 2013, BRCD expects revenue to be in the range of $555-$575M and non-GAAP EPS to be in the range of $0.14-$0.16, where analysts are expecting revenues of $563M and EPS of $0.15. However, Brocade executives are concerned about Europe and sales to the deficit-challenged U.S. federal government.

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