Equities Research Analysts’ ratings reiterations for Wednesday, July 17th:
Amsurg Corp. (NASDAQ: AMSG) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $41.00 price target on the stock. Zacks’ analyst wrote, “AmSurg’s first-quarter 2013 adjusted EPS of $0.52 was up 4% year over year. Also, it remained in line with the Zacks Consensus Estimate and met the high end of the company’s guidance range. Revenues increased a robust 14% to $260.1 million, in line with the Zacks Consensus Estimate. The double-digit sales growth came on the back of new centers. However, we are concerned with the disappointing same-center sales after 7 consecutive quarters of growth. We are however, encouraged with the company’s new alliance with a hospital system which is expected to create future growth opportunities. Yet challenges remain, such as reimbursement issues and economic uncertainty. Accordingly, we are Neutral on the stock.”
American Tower Corp (NYSE: AMT) had its sell rating reissued by analysts at Wells Fargo & Co..
Central Garden (NASDAQ: CENT) had its neutral rating reissued by analysts at Zacks. The firm currently has a $7.80 price target on the stock. Zacks’ analyst wrote, “Central Garden once again fell short of expectation. The company’s second-quarter 2013 earnings came in at $0.46 per share, missing the Zacks Consensus Estimate of $0.53. The company’s poor performance is evident from its earnings surprise history. It had missed the Zacks Consensus Estimate in 3 of the trailing 4 quarters, which remains a concern. Amid the sluggishness, sales did rise and surpassed the Zacks Consensus Estimate. Central Garden has been focusing on streamlining its cost structure, increasing operating efficiencies in order to improve its margins, and concentrating on revenue growth through better pricing and brand-building initiatives. However, the company’s lack of improvement is dashing all hopes of recovery, at least in the near term. Consequently we maintain our Neutral recommendation on the stock. “
Dick’s Sporting Goods (NYSE: DKS) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $53.00 target price on the stock. Zacks’ analyst wrote, “We remain impressed with DICK’s Sporting’s financial results for first-quarter fiscal 2013, which indicates steady growth in the company’s top and bottom lines. Apart from strong quarterly results, the company’s growth prospects appear promising, as we believe that its strategic measures of consolidating store base and the use of technology to provide better services will enhance relationships with present customers, attract new customers and effectively promote products, thereby boosting its top and bottom lines further. However, the stock remains vulnerable to a sluggish economic recovery and cautious consumer spending. Moreover, risks of sourcing merchandise from overseas markets may hamper the company’s performance. Hence, our Neutral recommendation on the full-line sporting goods retailer remains in place.”
Federal Realty Investment Trust (NYSE: FRT) had its neutral rating reissued by analysts at Zacks. The firm currently has a $111.00 price target on the stock. Zacks’ analyst wrote, “Federal Realty is scheduled to report second-quarter 2013 results on Aug 1, after the closing bell. The company came up with a decent performance, again, in first-quarter 2013, with FFO per share exceeding the Zacks Consensus Estimate. The result was aided by an improvement in the same-center portfolio. Moreover, the strategic buyout of Darien shopping center in the quarter enhanced its retail dominance in the Connecticut region. Additionally, the rating upgrade boosts its credit worthiness. Encouraged by these, Federal Realty upped its FFO per share guidance for 2013. However, a huge development and redevelopment pipeline and stiff competition from public and private retail developers somewhat restrict its growth impetus and thus pose a drag on earnings. Thus, our Neutral recommendation on the stock remains in place.”
Goldman Sachs Group (NYSE: GS) had its neutral rating reissued by analysts at Zacks. They currently have a $168.00 target price on the stock. Zacks’ analyst wrote, “Goldman reported its second-quarter 2013 earnings per share of $3.70, significantly outpacing the Zacks Consensus Estimate of $2.81. Moreover, the reported earnings surpassed the prior-year quarter’s earnings of $1.78. The results were driven by Goldman’s record revenues with an improvement in client activity. However, increased operating expenses acted as a headwind for the quarter. We expect Goldman to benefit from its well-managed global franchise, strong capital base, and recent investments in the near future. After reviewing the results, we are maintaining our Neutral recommendation on the shares.”
Johnson & Johnson (NYSE: JNJ) had its neutral rating reissued by analysts at Zacks. They currently have a $95.00 target price on the stock. Zacks’ analyst wrote, “Johnson & Johnson posted a strong second quarter with EPS coming in at $1.48, well above the Zacks Consensus Estimate of $1.39 and up 13.8% y/y. Revenues increased 8.5% y/y to $17.9 billion, above the Zacks Consensus Estimate of $17.7 billion. Despite the negative impact of currency fluctuation, Johnson & Johnson recorded growth on the back of strong product sales. Moreover, the company upped its 2013 EPS guidance to $5.35 to $5.45 from $5.35 – $5.45. We remain Neutral on the stock. While we expect the company to continue facing headwinds in the form of pricing pressure, manufacturing issues, and US healthcare reform, we believe the diversified business model, lack of cyclicality and strong financial position will continue helping the company pave its way through tough situations.”
Coca-Cola (NYSE: KO) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $42.00 price target on the stock. Zacks’ analyst wrote, “Coca-Cola reported weak second-quarter results, managing to meet the Zacks Consensus Estimate for earnings but marginally missing the revenue estimates. Overall, the results were hurt by weak volume growth due to bad weather in many countries and slow economic growth in Europe and China. Overall we are encouraged by Coca-Cola’s global reach, strong brand power, expanding international presence, powerful global bottling network and its solid cash position. Moreover, the integration of Coca-Cola Enterprises’ bottling business and the company’s productivity initiatives are expected to result in significant cost savings. However, muted volume trends of carbonated beverages and challenging consumer spending environment concern us. We thus, maintain a Neutral recommendation with a target price of $42.00.”
Coca-Cola (NYSE: KO) had its overweight rating reiterated by analysts at Barclays Capital. The firm currently has a $50.00 target price on the stock.
Lincoln National Corp. (NYSE: LNC) had its neutral rating reiterated by analysts at Zacks. They currently have a $42.00 target price on the stock.
MasterCard (NYSE: MA) had its overweight rating reiterated by analysts at Barclays Capital. Barclays Capital currently has a $650.00 price target on the stock.
Microsemi Corp. (NASDAQ: MSCC) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $26.00 price target on the stock. Zacks’ analyst wrote, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. Second quarter results beat the Zacks Consensus and forward guidance looks optimistic. The bulk of revenue comes from stable end markets (defense, aerospace and medical equipment), where Microsemi serves most of the largest players. Microsemi’s compelling products, scope for margin expansion and decent balance sheet are other positives. However, we consider the macro weakness and dependence on the government a big negative in the current situation. We therefore have Neutral recommendation on Microsemi’s shares.”
Pfizer (NYSE: PFE) had its buy rating reissued by analysts at TheStreet. The analysts wrote, “Pfizer (PFE) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.”
PS Business Parks (NYSE: PSB) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $79.00 price target on the stock. Zacks’ analyst wrote, “PS Business Parks is slated to release second-quarter 2013 earnings results after the market closes on Jul 29. The company’s first-quarter 2013 core FFO per share came in line with the Zacks Consensus Estimate but beat the prior-year quarter figure. An uptick in net operating income (NOI) from Non-Same Park facilities and a dip in interest expense boosted the quarterly results. Yet, a rise in preferred equity distributions was a dampener. Nevertheless, the company’s portfolio in diversified markets enables it to tap opportunities and neutralize the operating risks associated with the economic down cycles. Moreover, it has a strong balance sheet with adequate liquidity. However, the volatility in the office sector with job cuts and a decline in market fundamentals remain a headwind. Moreover, stiff competition from office and industrial asset developers somewhat undermines the company’s near-term profitability. “
Praxair (NYSE: PX) had its buy rating reissued by analysts at TheStreet. The analysts wrote, “Praxair (PX) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company’s strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.”
Shaw Communications (NYSE: SJR) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $26.00 target price on the stock. Zacks’ analyst wrote, “We reaffirm our long-term Neutral recommendation on Shaw Communications based on the mixed financial results for the third quarter of fiscal 2013. While net income beat the Zacks Consensus Estimate, revenues fell below the same. Moreover, the stock price soared over 32% in the last year and is currently trading at the high-end of its 52-week price range. We believe that the stock is currently fairly valued. Meanwhile, the company continues to improve EBITDA margin and free cash flow due to discontinued promotional activities. The losses of video and DTH subscribers were offset by a gain in high-speed Internet and telephony subscribers. Management raised its free cash flow guidance for fiscal 2013. Shaw Communications stated that its board of directors is considering a proposal to raise the dividend rate by 5% -10% over the next 2 years. Shaw Go – the TV Everywhere service of the company – is another catalyst. “
Constellation Brands (NYSE: STZ) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $55.00 price target on the stock. Zacks’ analyst wrote, “We remain impressed with Constellation Brand’s consistent focus on brand building and its initiatives to include new products in its wine and spirits businesses, which are the key revenue drivers for the stock. Owing to its strategic endeavors, the company is witnessing steady depletion trends and an increasing market share in the U.S. wine and spirits category. Moreover, the company is increasing its distribution points in retail and effectively executing its strategic merchandising initiatives, aimed to bolster sales. However, we are skeptical about the stock’s future performance due to rising grape prices as well as operating expenditure. In addition, the company’s highly leveraged balance sheet may limit its financial flexibility. Therefore, we are maintaining our long-term Neutral recommendation on the stock.”
Sierra Wireless (NASDAQ: SWIR) had its outperform rating reissued by analysts at RBC Capital. The firm currently has a $14.00 price target on the stock, down from their previous price target of $16.00.
Telefonica SA (NYSE: TEF) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $14.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Telefonica. Although the company’s earnings were substantially higher than our projection in the first quarter, the top-line figure fell short. The company is expected to benefit from its various strategic measures to enhance its operations in the European markets and post improved earnings and revenue in the coming days. These steps include expansion of broadband and data services, pricing revision, network enhancements and collaborations with other players. Nevertheless, we remain on the sidelines considering unstable macro conditions, the slowdown in Brazil, effects of reduction in mobile termination rates, a highly leveraged balance sheet and growing competition. Moreover, the numerous initiatives will likely increase commercial expenses, restricting margins in the short term.”
Target Corp. (NYSE: TGT) had its buy rating reiterated by analysts at TheStreet. The analysts wrote, “Target (TGT) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+. The company’s strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.”
Talisman Energy (NYSE: TLM) had its neutral rating reissued by analysts at Zacks. They currently have a $12.00 price target on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Talisman Energy shares, reflecting its balanced risk/reward prospects. Taking a cautious view of volatile gas prices, Talisman’s capital program specifically focuses on the promising North American liquids-rich areas, which is a major shift away from dry natural gas development. TLM plans to trim its current year capex by 25% from 2012 levels, while still managing to maintain stable production. While subscribing to management’s outlook, we believe the realignment of Talisman will take some time to bear results. Questions about the company’s sustainable operational efficiency and execution abilities also remain key areas of concern, in our view. As such, we see the stock performing in line with the broader market.”
Total System Services (NYSE: TSS) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $27.00 target price on the stock.
TELUS (NYSE: TU) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $32.00 price target on the stock.
Unum Group (NYSE: UNM) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $33.00 price target on the stock. Zacks’ analyst wrote, “Unum’s first quarter earnings surpassed the Zacks Consensus Estimate and year-ago numbers. The improvement was driven by significant share repurchases and solid performances at the Unum U.S. and Colonial Life segment. The Closed Block segment, which had been performing poorly over the past few quarters, recovered immensely during the quarter. However, soft results at Unum U.K. remain a matter of concern. With $95 million share buybacks in the first quarter, Unum has bought back $2.3 billion over the last 5 years. Unum expects $500 million of repurchases in 2013. Additionally the company generated a pretax gain from purchasing and retiring the outstanding senior secured notes issued by Tailwind Holdings. The company maintains a strong capital position, with an adequate risk-based capital ratio, low leverage and high levels of liquidity. We retain our Neutral recommendation.”
Universal Technical Institute (NYSE: UTI) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $12.00 target price on the stock.
Visa (NYSE: V) had its overweight rating reaffirmed by analysts at Barclays Capital. They currently have a $205.00 target price on the stock.
Vivo Participacoes SA (NYSE: VIV) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $23.00 price target on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Telefonica Brasil. The company is experiencing strong adoption of its mobile services that have largely offset the decline in its fixed line business. The company’s growing popularity with enhanced customer satisfaction in the prepaid and post-paid segments as well as leadership in 3G deployments remain the prime contributors to its success. As a result, the company is experiencing a strong revenue growth along with a rising demand in mobile data. Further, the launch of 4G services in key cities also remains encouraging. However, the current competitive market in Brazil continues to hurt the bottom line. In addition, low interconnection charges are also resulting in margin contraction. Further, we believe intense inflationary pressure and excessive government intervention can impede the near-term growth goals of the company. “
Valero Energy Corp. (NYSE: VLO) had its buy rating reissued by analysts at TheStreet. The analysts wrote, “Valero Energy Corporation (VLO) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.”
Willis Group Holdings PLC (NYSE: WSH) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $45.00 target price on the stock. Zacks’ analyst wrote, “Willis Group’s first quarter earnings surpassed the Zacks Consensus Estimate and year ago results. The improvement came on the back of growth across all its segments, and a lower tax rate relative to the last year. Top line fared better on the heels of higher commission and fees. Moreover, the Australia unit of Willis, which had a difficult 2012, experienced high single-digit growth in the first quarter. Management is also reviewing the organizational design and has eliminated 207 positions. It expects to realize cost savings of $20 million in 2013 in the second quarter with an annualized cost savings of approximately $25-$30 million. Willis Group remains focused on enhancing its shareholders value. Moreover, the company scores strongly with the rating agencies. However, the weakness in the U.S. economy might restrict any significant top-line growth in the company. We maintain a Neutral recommendation on Willis Group Holdings. “
Yahoo! (NASDAQ: YHOO) had its outperform rating reissued by analysts at Zacks. They currently have a $32.00 price target on the stock. Zacks’ analyst wrote, “Yahoo! Inc. is one of the leading providers of web-based services and advertisements. Second-quarter 2013 earnings surpassed the Zacks Consensus Estimate. Though Yahoo’s search business continues to show signs of improvement, it faces extremely tough competition from Google and Microsoft’s ad platform is not generating enough yet. However, despite the uncertainty surrounding the search business and deterioration of display ad revenue share, we are encouraged by the refocusing of the company, as well as the many product upgrades and growth initiatives implemented, which are improving engagement on Yahoo properties. The company’s progress in the fast-growing mobile search segment is also encouraging. We therefore have an Outperform rating on the shares.”
This article (Equities Research Analysts’ Ratings Reiterations for July, 17th (AMSG, AMT, CENT, DKS, FRT, GS, JNJ, KO, LNC, MA)) was originally developed by and is property of American Banking News.
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