Equities Research Analysts’ ratings reiterations for Tuesday, February 26th:
Bravo Brio (NASDAQ: BBRG) had its buy rating reiterated by analysts at Jefferies Group.
BHP Billiton (NYSE: BHP) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $78.00 target price on the stock. Zacks’ analyst wrote, “We are optimistic about BHP Billiton, given the ongoing industrialization in regions such as the US, China, Japan and India. Also, the divestiture strategy adopted by BHP helps it focus more on its profitable businesses. Moreover, the company’s commitment towards returning shareholder values enhances our outlook on the stock. The company saw a mixed production in the half-year ended December 31, 2012, where the volume of production for many of its segments increased year over year, offset by a reduction in the prices of most of its products. Also, worldwide upsurge in oil prices, rising core inflation in the emerging markets as well as mining disruptions raise our concerns. Labor crises, mining cost as well as equipment supply uncertainty are also headwinds. Moreover, currency fluctuations add to the woe. Thus, we prefer to remain on the sidelines on BHP.”
Comcast (NASDAQ: CMCSA) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $41.00 target price on the stock. Zacks’ analyst wrote, “We reaffirm our Neutral recommendation on Comcast. Although the company’s fourth-quarter 2012 financial results fell short of the Zacks Consensus Estimates, the year-over-year growth was strong. The company’s Cable business continued to beat market expectations and the NBC Universal division made a solid turnaround. In spite of challenges, the struggling video operation continued with its positive momentum. Comcast has also completed its major technical innovations, such as DOCSIS 3.0, all digital networks, and a multi-platform content delivery network. Moreover, several newly launched services, such as Xfinity Home, Wi-Fi, X1 and high-speed Metro Ethernet will act as long-term growth catalysts for the company. Nevertheless, following last year’s 40% stock price growth, we are apprehensive of restricted market gain in the near term. Hence, we see the Comcast shares as currently fairly valued. “
CMS Energy (NYSE: CMS) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $27.00 target price on the stock. Zacks’ analyst wrote, “Due to economic conditions in Michigan, CMS Energy Corporation is currently trading at a discount versus its electric power utility peers. However, over the long term the company presents a strong growth story, given its stable electric and gas utility operations, favorable regulatory policies in Michigan, higher rates, strong balance sheet, incremental dividend and relatively cheap earnings-based valuation. But we also believe these positives are embedded in the current target price, leaving little room for further upside in the near term. Also, valuation continues to be restrained by the unfavorable macro backdrop, lower demand for electricity and pending regulatory cases. Thus we maintain our near-term Neutral recommendation on CMS Energy with a target price of $27.00.”
Covidien plc (NYSE: COV) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $65.00 price target on the stock.
CVS Caremark (NYSE: CVS) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $53.00 price target on the stock. Zacks’ analyst wrote, “CVS posted an upbeat performance in the fourth quarter of 2012 with adjusted EPS rising 28.1% year over year to $1.14, beating the Zacks Consensus Estimate by 3.6%. Net revenues surged 10.9% to $31.4 billion, above the Zacks Consensus Estimate of $31.1 billion, on the back of solid growth across both operating platforms. The PBM franchise continues to drive growth. Notably, the company exceeded its financial goals for 2012. Further, CVS’ optimism about the 2013 selling season inspires investors’ confidence. Its focus on the overseas market with its first international acquisition also boosts expectations. CVS’ value creating capital deployment strategy is encouraging. Although, the company’s business fundamentals make it a safe bet, we are concerned about the Walgreen-Express Scripts resolution, which may create distress for CVS. Competitive landscape is also tough. Thus, we reiterate our Neutral recommendation on the stock. “
Cyberonics (NASDAQ: CYBX) had its outperform rating reaffirmed by analysts at Zacks. The firm currently has a $55.00 price target on the stock. Zacks’ analyst wrote, “Cyberonics’ third quarter fiscal 2013 EPS rose 11.9% to $0.47, beating the Zacks Consensus Estimate by 23.7%. Apart from top line growth, EPS benefited from a lower tax rate. Revenues shot up 15% to $62.7 million, surpassing the Zacks Consensus Estimate of $61 million. The company witnessed record revenues in the overseas market as European market flourished with double-digit growth for the seventh quarter. Meanwhile, AspireHC continued to drive sales growth in the U.S. Although the drag on gross margin appears to be a downside, it was mainly attributed to the medical device tax. Given the growth trend, Cyberonics increased its guidance for the ongoing fiscal. We believe that the stock is likely to appear more valuable on the back of the results. Accordingly, we maintain Outperform rating on the stock.”
Dollar Tree (NASDAQ: DLTR) had its conviction-buy rating reaffirmed by analysts at Goldman Sachs. The firm currently has a $51.00 price target on the stock.
Lowe’s (NYSE: LOW) had its neutral rating reaffirmed by analysts at Piper Jaffray. The firm currently has a $41.00 price target on the stock, up from their previous price target of $34.00. The analysts wrote, “LOW Q4 comp of 1.9% was better than expected (consensus was 0.75%) and showed very nice acceleration on a 2- and 3-year stack basis. Importantly, comp trends strengthened in Dec/Jan as each month comped +3% despite meaningfully tougher compares. The transaction comp was slightly negative (and a modest disappointment), but the 2-year transaction trend accelerated from previous quarters as the y/y weather compare was difficult. All in, Q4 results did nothing to disprove our thesis that a multi-year home remodeling cycle is gaining strength heading into 2013 and we look for the industry backdrop to become a more positive driver in the coming months.”
Leucadia National (NYSE: LUK) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $28.00 target price on the stock. Zacks’ analyst wrote, “We believe LUK will benefit from its extensive diversifications into a variety of businesses and make the best of its strategy to grow through acquisitions of companies in crisis. Recently, the company fully disposed of its stake in Fortescue and agreed to buy the remaining stake in Jefferies in an all-stock deal. Both these transactions are likely to bode well for Leucadia, with Jefferies merger to open up new investment opportunities. In the fourth quarter 2012, Leucadia posted EPS of $1.83, up from $0.46 in 4Q11 and $0.44 in 3Q12. Revenue jumped massively from $262 million to $2.5 billion, due primarily to the company’s Beef Processing Services business that accounted for a major portion of total revenue. These positives notwithstanding, rising cost of cattle, animal health and disease issues and geopolitical risks act as major impediments to growth. Anticipating in line results, we maintain a Neutral recommendation.”
Officemax (NYSE: OMX) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $12.00 target price on the stock.
People’s United Financial (NASDAQ: PBCT) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $13.50 target price on the stock. Zacks’ analyst wrote, “People’s United’s fourth-quarter 2012 operating earnings per share came in line with the Zacks Consensus Estimate. Lower non-interest expenses and improved provision for loan losses were the positives for the quarter. Yet, lower revenue aided by lower net interest income acted as a headwind. Overall, People’s United is trying to overcome the slow economic recovery through opportunistic acquisitions. Going forward, growth in loans as well as deposits is expected to boost the company’s financial results. In addition, healthy capital deployment activity will definitely boost investors’ confidence. Yet, the recent regulatory issues, global concerns and continued market volatility remain the major areas of concern.”
Priceline (NASDAQ: PCLN) had its overweight rating reiterated by analysts at Piper Jaffray. They currently have a $756.00 target price on the stock.
PPR SA (EPA: PP) had its hold rating reiterated by analysts at CIC Securities. CIC Securities currently has a $220.78 target price on the stock.
Pioneer Natural Resources (NYSE: PXD) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $127.00 target price on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Pioneer following its fourth quarter 2012 results. The revenues beat the Zacks Consensus Estimate on the back of higher production. Its drilling venture helped Pioneer to deliver production beyond its expectation. Continuous success from the Wolfcamp operations and its new joint venture in its southern Wolfcamp acreage could act as potential catalysts for growth. However, we remain on the sidelines considering Pioneer’s sensitivity to gas/oil price volatility, as well as drilling results, costs, geo-political risks and project timing delays. Increasing cost pressure in the highly competitive shale plays is also a cause of concern. Additionally, the Permian operations carry high execution risk owing to a transition from the Spraberry vertical development program to the horizontal appraisal of the Wolfcamp.”
Qantas Airways (ASX: QAN) had its buy rating reiterated by analysts at Nomura. Nomura currently has a $2.06 price target on the stock.
QBE Insurance Group Limited (ASX: QBE) had its neutral rating reiterated by analysts at CIMB. They currently have a $13.52 price target on the stock.
Ralph Lauren (NYSE: RL) had its outperform rating reissued by analysts at Macquarie. The firm currently has a $210.00 price target on the stock.
Reliance Steel & Aluminum (NYSE: RS) had its neutral rating reiterated by analysts at Zacks. They currently have a $68.00 target price on the stock.
STMicroelectronics NV (EPA: STM) had its hold rating reiterated by analysts at Jefferies Group. The firm currently has a $7.47 target price on the stock.
Schneider Electric SA (EPA: SU) had its market perform rating reissued by analysts at Sanford C. Bernstein. Sanford C. Bernstein currently has a $68.83 price target on the stock.
Sacyr Vallehermoso SA (MCE: SYV) had its neutral rating reissued by analysts at Espirito Santo Investment Bank Research. Espirito Santo Investment Bank Research currently has a $2.34 price target on the stock.
Tenaris S.A. (BIT: TEN) had its add rating reiterated by analysts at AlphaValue. AlphaValue currently has a $21.82 target price on the stock.
TJX Companies (NYSE: TJX) had its hold rating reiterated by analysts at Jefferies Group. Jefferies Group currently has a $43.00 price target on the stock.
Mediaset Espana Comunicacion (MCE: TL5) had its underweight rating reiterated by analysts at Grupo Santander. The firm currently has a $5.78 price target on the stock.
