Stock Upgrades & Downgrades to consider- AMD, GOOG, DELL, PFE, ACI, CAT & C
By Yaser Anwar, CSC of Equity Investment Ideas
Advanced Micro Devices "neutral" target price reduced- Analyst Sumit Dhanda of Banc of America Securities maintains his "neutral" rating on Advanced Micro Devices (AMD). The target price has been reduced from $20 to $19.
In a research note published on July 21, the analyst mentions that the company’s F3Q sales are expected to be adversely affected by difficult comps, margin pressure due to price cuts in late 2Q and early 3Q and a likely loss of market share to Intel during 2H06. Advanced Micro Devices’ costs are likely to increase in the forthcoming months due to the company's potential capacity expansion plans, the analyst adds.
Google "overweight" target price raised- Analyst Mark J Rowen of Prudential Financial reiterates his "overweight" rating on Google Inc (GOOG), while raising his estimates for the company. The target price has been raised from $500 to $520.
In a research note published on July 21, the analyst mentions that the company has reported robust 2Q net revenues and pro forma EPS ahead of expectations. Google’s US gross revenues and International revenues rose 69% and 91% y/y, respectively, the analyst says. The company is likely to continue to post hypergrowth rates in the near term, Prudential Financial adds. The EPS estimates for 2006 and 2007 have been raised from $8.28 to $9.12 and from $12.40 to $12.94, respectively.
Dell downgraded to "hold"- Analyst David M Wong of AG Edwards downgrades Dell Inc (DELL) from "buy" to "hold," while reducing his estimates for the company.
In a research note published on July 21, the analyst mentions that the company has reduced its guidance for the July quarter due to aggressive pricing and global weakness in the commercial market. It may be several quarters before Dell can substantially improve its margins and generate market share momentum, the analyst believes. The EPS estimate for FY08 has been reduced from $1.82 to $1.12.
Pfizer "overweight" target price raised- Analyst Tim Anderson of Prudential Financial maintains his "overweight" rating on Pfizer Inc (PFE), while raising his estimates for the company. The target price has been raised from $26 to $27.
In a research note published on July 21, the analyst mentions that the company has reported its 2Q EPS ahead of the estimates and the consensus primarily due to marginally higher-than-expected revenues and lower-than-anticipated expenses. Pfizer has reiterated its EPS guidance for 2006, despite the sale of the OTC business, due to favourable currency valuations, low spending, and increased share buybacks. The company continues to expect to generate high single-digit EPS growth in 2007 and 2008. The EPS estimates for 2006 and 2007 have been raised from $1.91 to $2.00 and from $2.03 to $2.10, respectively.
Arch Coal "sector perform" target price reduced - Analysts at RBC Capital Markets maintain their "sector perform" rating on Arch Coal Inc (ACI), while reducing their estimates for the company. The target price has been reduced from $66 to $62.
In a research note published this morning, the analysts mention that the company has reported its 2Q06 EPS and EBITDA ahead of the estimates. Coal prices have been weak during the quarter and are expected to improve in 2H06, the analysts say. Arch Coal has projected that its 3Q earnings would be the weakest during the year due to rail maintenance and longwall moves. The EPS estimates for 2006, 2007 and 2008 have been reduced from $2.07 to $2.01, from $3.80 to $3.75 and from $5.09 to $5.01, respectively.
Caterpillar "neutral" target price reduced- Analysts at Robert W Baird maintain their "neutral" rating on Caterpillar Inc (CAT), while raising their estimates for the company. The target price has been reduced from $81 to $77.
In a research note published this morning, the analysts mention that the company has posted robust 2Q06 results, with EPS ahead of the estimates and the consensus. According to the analysts, Caterpillar's sales in North America rose 13% y/y, with the company attributing the robust demand to rising highway and non-residential construction activity. The challenges being faced by the residential construction and the on-highway engines markets in the US is expected to exert pressure on the company's share price going forward, Robert W Baird adds. The EPS estimates for 2006 and 2007 have been raised from $5.25 to $5.55 and from $5.80 to $5.90, respectively.
Citigroup "buy"- Analyst Richard X Bove of Punk Ziegel & Co maintains his "buy" rating on Citigroup Inc (C). The target price is set to $59.
In a research note published this morning, the analyst mentions that the company’s share price has declined following the declaration of the 2Q earnings. Citigroup’s stock performance since April 18 has not been healthy due to wrong decisions made by the company’s current Board of Directors, the analyst says. Punk Ziegel & Co believes that the company’s Board of Directors should give in their resignations.
http://equityinvestmentideas.blogspot.com/
Advanced Micro Devices "neutral" target price reduced- Analyst Sumit Dhanda of Banc of America Securities maintains his "neutral" rating on Advanced Micro Devices (AMD). The target price has been reduced from $20 to $19.
In a research note published on July 21, the analyst mentions that the company’s F3Q sales are expected to be adversely affected by difficult comps, margin pressure due to price cuts in late 2Q and early 3Q and a likely loss of market share to Intel during 2H06. Advanced Micro Devices’ costs are likely to increase in the forthcoming months due to the company's potential capacity expansion plans, the analyst adds.
Google "overweight" target price raised- Analyst Mark J Rowen of Prudential Financial reiterates his "overweight" rating on Google Inc (GOOG), while raising his estimates for the company. The target price has been raised from $500 to $520.
In a research note published on July 21, the analyst mentions that the company has reported robust 2Q net revenues and pro forma EPS ahead of expectations. Google’s US gross revenues and International revenues rose 69% and 91% y/y, respectively, the analyst says. The company is likely to continue to post hypergrowth rates in the near term, Prudential Financial adds. The EPS estimates for 2006 and 2007 have been raised from $8.28 to $9.12 and from $12.40 to $12.94, respectively.
Dell downgraded to "hold"- Analyst David M Wong of AG Edwards downgrades Dell Inc (DELL) from "buy" to "hold," while reducing his estimates for the company.
In a research note published on July 21, the analyst mentions that the company has reduced its guidance for the July quarter due to aggressive pricing and global weakness in the commercial market. It may be several quarters before Dell can substantially improve its margins and generate market share momentum, the analyst believes. The EPS estimate for FY08 has been reduced from $1.82 to $1.12.
Pfizer "overweight" target price raised- Analyst Tim Anderson of Prudential Financial maintains his "overweight" rating on Pfizer Inc (PFE), while raising his estimates for the company. The target price has been raised from $26 to $27.
In a research note published on July 21, the analyst mentions that the company has reported its 2Q EPS ahead of the estimates and the consensus primarily due to marginally higher-than-expected revenues and lower-than-anticipated expenses. Pfizer has reiterated its EPS guidance for 2006, despite the sale of the OTC business, due to favourable currency valuations, low spending, and increased share buybacks. The company continues to expect to generate high single-digit EPS growth in 2007 and 2008. The EPS estimates for 2006 and 2007 have been raised from $1.91 to $2.00 and from $2.03 to $2.10, respectively.
Arch Coal "sector perform" target price reduced - Analysts at RBC Capital Markets maintain their "sector perform" rating on Arch Coal Inc (ACI), while reducing their estimates for the company. The target price has been reduced from $66 to $62.
In a research note published this morning, the analysts mention that the company has reported its 2Q06 EPS and EBITDA ahead of the estimates. Coal prices have been weak during the quarter and are expected to improve in 2H06, the analysts say. Arch Coal has projected that its 3Q earnings would be the weakest during the year due to rail maintenance and longwall moves. The EPS estimates for 2006, 2007 and 2008 have been reduced from $2.07 to $2.01, from $3.80 to $3.75 and from $5.09 to $5.01, respectively.
Caterpillar "neutral" target price reduced- Analysts at Robert W Baird maintain their "neutral" rating on Caterpillar Inc (CAT), while raising their estimates for the company. The target price has been reduced from $81 to $77.
In a research note published this morning, the analysts mention that the company has posted robust 2Q06 results, with EPS ahead of the estimates and the consensus. According to the analysts, Caterpillar's sales in North America rose 13% y/y, with the company attributing the robust demand to rising highway and non-residential construction activity. The challenges being faced by the residential construction and the on-highway engines markets in the US is expected to exert pressure on the company's share price going forward, Robert W Baird adds. The EPS estimates for 2006 and 2007 have been raised from $5.25 to $5.55 and from $5.80 to $5.90, respectively.
Citigroup "buy"- Analyst Richard X Bove of Punk Ziegel & Co maintains his "buy" rating on Citigroup Inc (C). The target price is set to $59.
In a research note published this morning, the analyst mentions that the company’s share price has declined following the declaration of the 2Q earnings. Citigroup’s stock performance since April 18 has not been healthy due to wrong decisions made by the company’s current Board of Directors, the analyst says. Punk Ziegel & Co believes that the company’s Board of Directors should give in their resignations.
http://equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 5:47 AM
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