Stock Upgrades to Consider
Stocks: (GSK)(NSI)(ZOLT)(DIS)(NVDA)(TRLG)
By Yaser Anwar, CSC of Equity Investment Ideas
NutriSystem "buy" target price raised- Analyst Colin Sebastian of Lazard Capital reiterates his "buy" rating on NutriSystem Inc (NSI), while raising his estimates for the company. The target price has been raised from $70 to $75.In a research note published this morning, the analyst mentions that recent checks indicate that the company has witnessed healthy business trends so far in the current quarter. NutriSystem's new-customer additions have improved so far in June, after having remained modestly affected by seasonal trends in May, the analyst says. The EPS estimates for 2006 and 2007 have been raised from $1.85 to $1.87 and from $2.50 to $2.65, respectively.
Zoltek Companies "outperform"- Analysts at RBC Capital Markets maintain their "outperform" rating on Zoltek Companies Inc (ZOLT). The target price is set to $41.In a research note published this morning, the analysts mention that the company’s share price has recently declined partly due to investor concerns surrounding the US DoD's decision to halt 12 wind farm projects. According to RBC Capital Markets, Zoltek Companies is unlikely to be affected by the DoD's decision. Although Zoltek Companies' forced conversion of shares will dilute near-term EPS, the process would enable the company to reduce its debt, the analysts add.
Walt Disney downgraded to "hold"- Analysts at AG Edwards downgrade Walt Disney (DIS) from "buy" to "hold."In a research note published yesterday, the analysts mention that the downgrade in the company’s rating reflects the likelihood of a decline in the growth in its core businesses. Walt Disney’s total revenue growth is likely to decline from 4.7% in 2006 to 3.9% in 2007 due to the impact of the slowdown in the economy on Media Networks and Theme Parks, the analysts say. Revenue growth remains the key driver of the company’s share price, AG Edwards adds.
NVIDIA upgraded to "buy"- Analysts at UBS upgrade NVIDIA Corp (NVDA) to buy while reducing their estimates for the company. The target price is set to $30.In a research note published this morning, the analysts mention that although the company is witnessing near-term uncertainties, its long-term prospects are bright. NVIDIA’s performance is among the best in the graphics space, with more than 42% gross margins and 18% operating margins, the analysts say. While NVIDIA is likely to witness a downturn in MCP shipments, SNE's PS3, Microsoft’s new operating system and new notebook integrated MCPs are expected to offer longer-term upside to the company’s performance, UBS adds. The ex-options EPS estimate for FY07 has been reduced from $1.23 to $1.22.
True Religion Apparel "strong buy"- Analyst Eric M Beder of Brean Murray reiterates his "strong buy" rating on True Religion Apparel (TRLG). The target price is set to $30.In a research note published this morning, the analyst mentions that the company has made significant progress this year in terms of management maturity and growth as a lifestyle brand. True Religion Apparel is expected gain momentum, which would lend upside to revenues and profits in 2Q06 and beyond, the analyst says. The company is likely to continue to gain market share, Brean Murray adds.
GlaxoSmithKline "buy"- Analysts at Dresdner Kleinwort Wasserstein maintain their "buy" rating on GlaxoSmithKline (GSK). The target price is set to 1,640p.In a research note published this morning, the analysts mention that new prescriptions of the company's Avandia and Advair drugs have declined in May, following a similar trend in April. The analysts expect the disappointing prescription trends for both dugs to adversely affect GlaxoSmithKline's share price in the near term. The prescriptions for Avandia are unlikely to reaccelerate until the company restarts its promotional campaigns for Avandia and Avandamet in July, the analysts add.
http://equityinvestmentideas.blogspot.com/
By Yaser Anwar, CSC of Equity Investment Ideas
NutriSystem "buy" target price raised- Analyst Colin Sebastian of Lazard Capital reiterates his "buy" rating on NutriSystem Inc (NSI), while raising his estimates for the company. The target price has been raised from $70 to $75.In a research note published this morning, the analyst mentions that recent checks indicate that the company has witnessed healthy business trends so far in the current quarter. NutriSystem's new-customer additions have improved so far in June, after having remained modestly affected by seasonal trends in May, the analyst says. The EPS estimates for 2006 and 2007 have been raised from $1.85 to $1.87 and from $2.50 to $2.65, respectively.
Zoltek Companies "outperform"- Analysts at RBC Capital Markets maintain their "outperform" rating on Zoltek Companies Inc (ZOLT). The target price is set to $41.In a research note published this morning, the analysts mention that the company’s share price has recently declined partly due to investor concerns surrounding the US DoD's decision to halt 12 wind farm projects. According to RBC Capital Markets, Zoltek Companies is unlikely to be affected by the DoD's decision. Although Zoltek Companies' forced conversion of shares will dilute near-term EPS, the process would enable the company to reduce its debt, the analysts add.
Walt Disney downgraded to "hold"- Analysts at AG Edwards downgrade Walt Disney (DIS) from "buy" to "hold."In a research note published yesterday, the analysts mention that the downgrade in the company’s rating reflects the likelihood of a decline in the growth in its core businesses. Walt Disney’s total revenue growth is likely to decline from 4.7% in 2006 to 3.9% in 2007 due to the impact of the slowdown in the economy on Media Networks and Theme Parks, the analysts say. Revenue growth remains the key driver of the company’s share price, AG Edwards adds.
NVIDIA upgraded to "buy"- Analysts at UBS upgrade NVIDIA Corp (NVDA) to buy while reducing their estimates for the company. The target price is set to $30.In a research note published this morning, the analysts mention that although the company is witnessing near-term uncertainties, its long-term prospects are bright. NVIDIA’s performance is among the best in the graphics space, with more than 42% gross margins and 18% operating margins, the analysts say. While NVIDIA is likely to witness a downturn in MCP shipments, SNE's PS3, Microsoft’s new operating system and new notebook integrated MCPs are expected to offer longer-term upside to the company’s performance, UBS adds. The ex-options EPS estimate for FY07 has been reduced from $1.23 to $1.22.
True Religion Apparel "strong buy"- Analyst Eric M Beder of Brean Murray reiterates his "strong buy" rating on True Religion Apparel (TRLG). The target price is set to $30.In a research note published this morning, the analyst mentions that the company has made significant progress this year in terms of management maturity and growth as a lifestyle brand. True Religion Apparel is expected gain momentum, which would lend upside to revenues and profits in 2Q06 and beyond, the analyst says. The company is likely to continue to gain market share, Brean Murray adds.
GlaxoSmithKline "buy"- Analysts at Dresdner Kleinwort Wasserstein maintain their "buy" rating on GlaxoSmithKline (GSK). The target price is set to 1,640p.In a research note published this morning, the analysts mention that new prescriptions of the company's Avandia and Advair drugs have declined in May, following a similar trend in April. The analysts expect the disappointing prescription trends for both dugs to adversely affect GlaxoSmithKline's share price in the near term. The prescriptions for Avandia are unlikely to reaccelerate until the company restarts its promotional campaigns for Avandia and Avandamet in July, the analysts add.
http://equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 10:16 AM
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