Stock Upgrades & Downgrades to consider- CSCO, NVDA, RIG, WW, BA, UNH, RTP & FWLT
By Yaser Anwar, CSC of Equity Investment Ideas
Cisco Systems "sell"- Analyst Robert Jakobsen of Jyske Bank reiterates his "sell" rating on Cisco Systems Inc (CSCO). The 12-month target price is set to $21.
In a research note published yesterday, the analyst mentions that Cisco Systems’ share price has appreciated by 9% after the company projected 10%-15% y/y organic sales growth for the 2006/2007 accounting year. The analyst believes that Cisco Systems would not be able to meet an organic growth target of 15%. Jyske Bank expects long-term investor concerns over the company’s growth potential to resurface going forward.
Nvidia "buy" target price raised- Analysts at UBS maintain their "buy" rating on Nvidia Corp (NVDA), while raising their estimates for the company. The target price has been raised from $28 to $30.
In a research note published this morning, the analysts mention that the company has reported its 2Q revenues ahead of the estimates and the consensus and has issued higher-than-expected revenue guidance for 3Q. Although Nvidia did not report other financial metric pending the audit review of its stock-based options expense, it indicated that its gross margins for the quarter expanded on a sequential basis. The EPS estimates for 2006 and 2007 have been raised from $1.00 to $1.07 and from $1.10 to $1.16, respectively.
Transocean upgraded to "buy"- Analyst Poe Fratt of AG Edwards upgrades Transocean Inc (RIG) to "buy," while reducing his estimates for the company. The target price is set to $82.50.
In a research note published yesterday, the analyst mentions that the company’s share price has recently declined. Transocean’s earnings growth remains healthy, underpinned by an unprecedented contract backlog, the analyst says. The EPS estimates for 2006 and 2007 have been reduced from $3.41 to $2.94 and from $8.97 to $7.87, respectively, to reflect lost revenues related to Discoverer 534 and higher operating expense assumptions.
Watson Wyatt Worldwide upgraded to "outperform"- Analysts at Robert W Baird upgrade Watson Wyatt Worldwide Inc (WW) from "neutral" to "outperform." The target price is set to $37.
In a research note published yesterday, the analysts mention that the company has reported its 4Q06 EPS significantly ahead of the estimates. Watson Wyatt Worldwide’s biggest segment, Benefits Group, reported robust results for 4Q06, the analysts say. The company has announced an additional 1.5 million share repurchase programme, Robert W Baird adds.
Boeing "buy" estimates raised- Analyst Rob Stallard of Banc of America Securities reiterates his "buy" rating on Boeing (BA), while raising his estimates for the company. The target price is set to $100.
In a research note published this morning, the analyst mentions that the company's outlook for 2008 is healthy. Boeing is well positioned to gain market share in the near term, given that Lufthansa and British Airways are likely to place orders for fleet replacement, the analyst says. The EPS estimate for 2006 has been raised from $2.53 to $2.55.
UnitedHealth downgraded to "hold"- Analysts at AG Edwards downgrade UnitedHealth Group (UNH) from "buy" to "hold."
In a research note published yesterday, the analysts mention that the company has delayed the filing of its 10-Q due to a possible change in accounting for certain stock options. The accounting change is expected to reduce UnitedHealth's historic earnings by a maximum of 10%, the analysts add. The delay in the 10-Q indicates the possibility of problems in the company’s stock option accounting, AG Edwards says.
Rio Tinto upgraded to "neutral weight"- Analyst John C Tumazos of Prudential Financial upgrades Rio Tinto Plc Ads (RTP) from "underweight" to "neutral weight," while raising his estimates for the company. The target price has been raised from $186 to $210.
In a research note published this morning, the analyst mentions that the company is committed to return substantial capital to its shareholders and is, therefore, unlikely to undertake a major acquisition in the near future. The EPS estimates for 2006 and 2007 have been raised from $20.73 to $24.14 and from $14.74 to $15.40, respectively, to reflect increased copper and gold price assumptions for 2006 and raised aluminum price assumptions for 2007. The EPS estimates for 2009 and 2010 have been raised from $13.74 to $14.81 and from $14.08 to $15.17, respectively, to reflect additional iron ore capacity and other projects.
Foster Wheeler "buy" target price raised- Analysts at DA Davidson maintain their "buy" rating on Foster Wheeler Ltd (FWLT), while raising their estimates for the company. The 12-month target price has been raised from $54 to $55.
In a research note published this morning, the analysts mention that the company has reported its 2Q EPS, excluding onetime items, ahead of the estimates. Substantial margin and revenue growth at the Engineering & Construction segment boosted Foster Wheeler’s operating results, the analysts say. Given the level of orders and market activity, the company is expected to generate earnings growth going forward, DA Davidson adds. The EPS estimates for 2006 and 2007 have been raised from $1.46 to $2.68 and from $2.40 to $2.85, respectively.
Sources: Thompson, NR & Bloomberg
http://www.equityinvestmentideas.blogspot.com/
Cisco Systems "sell"- Analyst Robert Jakobsen of Jyske Bank reiterates his "sell" rating on Cisco Systems Inc (CSCO). The 12-month target price is set to $21.
In a research note published yesterday, the analyst mentions that Cisco Systems’ share price has appreciated by 9% after the company projected 10%-15% y/y organic sales growth for the 2006/2007 accounting year. The analyst believes that Cisco Systems would not be able to meet an organic growth target of 15%. Jyske Bank expects long-term investor concerns over the company’s growth potential to resurface going forward.
Nvidia "buy" target price raised- Analysts at UBS maintain their "buy" rating on Nvidia Corp (NVDA), while raising their estimates for the company. The target price has been raised from $28 to $30.
In a research note published this morning, the analysts mention that the company has reported its 2Q revenues ahead of the estimates and the consensus and has issued higher-than-expected revenue guidance for 3Q. Although Nvidia did not report other financial metric pending the audit review of its stock-based options expense, it indicated that its gross margins for the quarter expanded on a sequential basis. The EPS estimates for 2006 and 2007 have been raised from $1.00 to $1.07 and from $1.10 to $1.16, respectively.
Transocean upgraded to "buy"- Analyst Poe Fratt of AG Edwards upgrades Transocean Inc (RIG) to "buy," while reducing his estimates for the company. The target price is set to $82.50.
In a research note published yesterday, the analyst mentions that the company’s share price has recently declined. Transocean’s earnings growth remains healthy, underpinned by an unprecedented contract backlog, the analyst says. The EPS estimates for 2006 and 2007 have been reduced from $3.41 to $2.94 and from $8.97 to $7.87, respectively, to reflect lost revenues related to Discoverer 534 and higher operating expense assumptions.
Watson Wyatt Worldwide upgraded to "outperform"- Analysts at Robert W Baird upgrade Watson Wyatt Worldwide Inc (WW) from "neutral" to "outperform." The target price is set to $37.
In a research note published yesterday, the analysts mention that the company has reported its 4Q06 EPS significantly ahead of the estimates. Watson Wyatt Worldwide’s biggest segment, Benefits Group, reported robust results for 4Q06, the analysts say. The company has announced an additional 1.5 million share repurchase programme, Robert W Baird adds.
Boeing "buy" estimates raised- Analyst Rob Stallard of Banc of America Securities reiterates his "buy" rating on Boeing (BA), while raising his estimates for the company. The target price is set to $100.
In a research note published this morning, the analyst mentions that the company's outlook for 2008 is healthy. Boeing is well positioned to gain market share in the near term, given that Lufthansa and British Airways are likely to place orders for fleet replacement, the analyst says. The EPS estimate for 2006 has been raised from $2.53 to $2.55.
UnitedHealth downgraded to "hold"- Analysts at AG Edwards downgrade UnitedHealth Group (UNH) from "buy" to "hold."
In a research note published yesterday, the analysts mention that the company has delayed the filing of its 10-Q due to a possible change in accounting for certain stock options. The accounting change is expected to reduce UnitedHealth's historic earnings by a maximum of 10%, the analysts add. The delay in the 10-Q indicates the possibility of problems in the company’s stock option accounting, AG Edwards says.
Rio Tinto upgraded to "neutral weight"- Analyst John C Tumazos of Prudential Financial upgrades Rio Tinto Plc Ads (RTP) from "underweight" to "neutral weight," while raising his estimates for the company. The target price has been raised from $186 to $210.
In a research note published this morning, the analyst mentions that the company is committed to return substantial capital to its shareholders and is, therefore, unlikely to undertake a major acquisition in the near future. The EPS estimates for 2006 and 2007 have been raised from $20.73 to $24.14 and from $14.74 to $15.40, respectively, to reflect increased copper and gold price assumptions for 2006 and raised aluminum price assumptions for 2007. The EPS estimates for 2009 and 2010 have been raised from $13.74 to $14.81 and from $14.08 to $15.17, respectively, to reflect additional iron ore capacity and other projects.
Foster Wheeler "buy" target price raised- Analysts at DA Davidson maintain their "buy" rating on Foster Wheeler Ltd (FWLT), while raising their estimates for the company. The 12-month target price has been raised from $54 to $55.
In a research note published this morning, the analysts mention that the company has reported its 2Q EPS, excluding onetime items, ahead of the estimates. Substantial margin and revenue growth at the Engineering & Construction segment boosted Foster Wheeler’s operating results, the analysts say. Given the level of orders and market activity, the company is expected to generate earnings growth going forward, DA Davidson adds. The EPS estimates for 2006 and 2007 have been raised from $1.46 to $2.68 and from $2.40 to $2.85, respectively.
Sources: Thompson, NR & Bloomberg
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 5:22 AM
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