Upgrades & Downgrades To Consider- ORCL, MS, DVN & BHP
By Yaser Anwar, CSC of Equity Investment Ideas
Oracle "strong buy" target price raised- Analysts at JMP Securities reiterate their "strong buy" rating on Oracle Corporation (ORCL), while raising their estimates for the company. The target price has been raised from $17 to $22.
In a research note published this morning, the analysts mention that the company has posted robust F1Q07 results, with EPS ahead of the estimates and the consensus. Oracle achieved 28% y/y license revenue growth during F1Q07, despite it being a seasonally weak quarter, the analysts say. The company is benefiting from large enterprise level agreements, consolidation of the enterprise software market and the sale of broader product offerings to its install base, JMP Securities adds. The non-GAAP EPS estimates for FY07 and FY08 have been raised from $0.94 to $0.97 and from $1.08 to $1.12, respectively.
Morgan Stanley "market perform" estimates revised- Analyst Richard X Bove of Punk Ziegel & Co reiterates his "market perform" rating on Morgan Stanley (MS), while revising his estimates for the company. The target price is set to $74.
In a research note published this morning, the analyst mentions that the company has posted its F3Q EPS ahead of the estimates, primarily due to a lower-than-expected compensation expense and higher-than-anticipated net interest income. Morgan Stanley’s principal transaction revenues for the quarter were short of the estimates and the company's asset management business continued to face pressures, Punk Ziegel & Co adds. The EPS estimate for 2006 has been raised from $6.35 to $6.88. The EPS estimate for 2007 has been reduced from $6.45 to $6.43.
Devon Energy "buy"- Analyst Bob Morris of Banc of America Securities maintains his "buy" rating on Devon Energy (DYN). The target price is set to $90.
In a research note published yesterday, the analyst mentions that the company has indicated that its capital budget for 2007 would remain unchanged as long as natural gas prices stay above $5.50/Mcf. Even with a significant improvement in the commodity price outlook, Devon Energy expects merely a marginally upturn in its full-year E&D spending, the analyst says. Banc of America Securities expects the company to produce up to $6.3 billion of discretionary cash flows next year, as compared to an E&D budget of $5.3 billion.
CarMax "sector perform" target price raised- Analyst Scot Ciccarelli of RBC Capital Markets maintains his "sector perform" rating on CarMax Inc (KMX), while raising his estimates for the company. The target price has been raised from $36 to $41.
In a research note published this morning, the analyst mentions that the company has posted robust Q2 results, with comp trends continuing to be stable and a robust EPS. CarMax raised its EPS guidance for FY07 from $1.25-$1.47 to $1.55-$1.65. The EPS estimates for FY07 and FY08 have been raised from $1.55 to $1.73 and from $1.80 to $2.05, respectively.
BHP Billiton "underweight" estimates revised- Analyst John C Tumazos of Prudential Financial reiterates his "underweight" rating on BHP Billiton (BHP), while revising his estimates for the company. The target price is set to $28.
In a research note published this morning, the analyst mentions that the EPS estimate for FY07 has been raised from $3.34 to $3.40 to reflect higher-than-expected nickel prices. The EPS estimates for FY08, FY09 and FY10 have been reduced from $2.85 to $2.72, from $2.53 to $2.40 and from $2.48 to $2.38, respectively, to reflect lower-than-expected natural gas, crude oil and thermal coal prices, as well as delays at Spence, Escondida and other projects.
http://www.equityinvestmentideas.blogspot.com/
Oracle "strong buy" target price raised- Analysts at JMP Securities reiterate their "strong buy" rating on Oracle Corporation (ORCL), while raising their estimates for the company. The target price has been raised from $17 to $22.
In a research note published this morning, the analysts mention that the company has posted robust F1Q07 results, with EPS ahead of the estimates and the consensus. Oracle achieved 28% y/y license revenue growth during F1Q07, despite it being a seasonally weak quarter, the analysts say. The company is benefiting from large enterprise level agreements, consolidation of the enterprise software market and the sale of broader product offerings to its install base, JMP Securities adds. The non-GAAP EPS estimates for FY07 and FY08 have been raised from $0.94 to $0.97 and from $1.08 to $1.12, respectively.
Morgan Stanley "market perform" estimates revised- Analyst Richard X Bove of Punk Ziegel & Co reiterates his "market perform" rating on Morgan Stanley (MS), while revising his estimates for the company. The target price is set to $74.
In a research note published this morning, the analyst mentions that the company has posted its F3Q EPS ahead of the estimates, primarily due to a lower-than-expected compensation expense and higher-than-anticipated net interest income. Morgan Stanley’s principal transaction revenues for the quarter were short of the estimates and the company's asset management business continued to face pressures, Punk Ziegel & Co adds. The EPS estimate for 2006 has been raised from $6.35 to $6.88. The EPS estimate for 2007 has been reduced from $6.45 to $6.43.
Devon Energy "buy"- Analyst Bob Morris of Banc of America Securities maintains his "buy" rating on Devon Energy (DYN). The target price is set to $90.
In a research note published yesterday, the analyst mentions that the company has indicated that its capital budget for 2007 would remain unchanged as long as natural gas prices stay above $5.50/Mcf. Even with a significant improvement in the commodity price outlook, Devon Energy expects merely a marginally upturn in its full-year E&D spending, the analyst says. Banc of America Securities expects the company to produce up to $6.3 billion of discretionary cash flows next year, as compared to an E&D budget of $5.3 billion.
CarMax "sector perform" target price raised- Analyst Scot Ciccarelli of RBC Capital Markets maintains his "sector perform" rating on CarMax Inc (KMX), while raising his estimates for the company. The target price has been raised from $36 to $41.
In a research note published this morning, the analyst mentions that the company has posted robust Q2 results, with comp trends continuing to be stable and a robust EPS. CarMax raised its EPS guidance for FY07 from $1.25-$1.47 to $1.55-$1.65. The EPS estimates for FY07 and FY08 have been raised from $1.55 to $1.73 and from $1.80 to $2.05, respectively.
BHP Billiton "underweight" estimates revised- Analyst John C Tumazos of Prudential Financial reiterates his "underweight" rating on BHP Billiton (BHP), while revising his estimates for the company. The target price is set to $28.
In a research note published this morning, the analyst mentions that the EPS estimate for FY07 has been raised from $3.34 to $3.40 to reflect higher-than-expected nickel prices. The EPS estimates for FY08, FY09 and FY10 have been reduced from $2.85 to $2.72, from $2.53 to $2.40 and from $2.48 to $2.38, respectively, to reflect lower-than-expected natural gas, crude oil and thermal coal prices, as well as delays at Spence, Escondida and other projects.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 4:28 AM
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