Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Thursday, October 26, 2006

Stock Upgrades, Downgrades & Earnings To Consider

By Yaser Anwar, CSC of Equity Investment Ideas

Upgrades & Downgrades

Comcast "buy" target price raised

Analysts at Deutsche Bank Securities maintain their "buy" rating on Comcast Corporation (CMCSA). The target price has been raised from $40 to $47.

In a research note published yesterday, the analysts mention that the company is likely to report its 3Q06 phone and data net additions above the consensus. The analysts expect Comcast to have witnessed a better-than-expected ramp for digital phones. The performance of the digital TV services segment is tracking above expectations, Deutsche Bank Securities adds.
Halliburton "outperform" estimates raised

Analyst Kurt Hallead of RBC Capital Markets maintains his "outperform" rating on Halliburton Company (HAL), while raising his estimates for the company. The target price is set to $50.

In a research note published yesterday, the analyst mentions that the company is likely to witness market share gains, following the confirmation of the KBR timing. Halliburton would undertake an IPO of nearly 20% of KBR by end-2006 and spin-off the remainder by April 2007, provided the SEC review is finalised in the forthcoming few weeks, the analyst says.

The EPS estimates for 2006 and 2007 have been raised from $2.12 to $2.14 and from $2.66 to $2.71, respectively.
Dell downgraded to "sell"

Analyst Robert Jakobsen of Jyske Bank downgrades Dell Inc (DELL) to "sell."

In a research note published yesterday, the analyst mentions that Gartner's PC market survey indicates a 7% increase in PCs sold globally during 3Q06 due to the upcoming launch of Windows Vista. Dell’s PC sales increased by only 4% y/y due to a decline in unit sales in the US, as compared to the higher-than-market growth posted by the company during 2Q06, Jyske Bank adds.


DaimlerChrysler 3Q profits plunge

DaimlerChrysler AG (DCX) Wednesday announced a 37% decline in its third-quarter profits, amid losses at its American arm, Chrysler Group.

The Stuttgart, Germany-based company said its net income in the three months plummeted to €541 million, from €855 million in the year-ago quarter. DaimlerChrysler’s overall sales declined almost 8% to around €35.2 billion.

The Chrysler group recorded an operating loss of €1.16 billion in the third quarter. DaimlerChrysler said in a statement, "The operating loss was primarily the result of a decrease in worldwide factory unit sales, an unfavorable shift in product and market mix, and negative net pricing," while adding that the US market environment continued to be challenging.

The company is maintaining its earnings projection for 2006 on account of the robust performance of its Mercedes and truck divisions. 3Q net income dips 37%

Internet retailer Inc (AMZN) Tuesday announced a decline in its net income for the third quarter, citing increased spend on technology and content as the reason. The company’s results for the quarter, however, beat the average analyst expectations.

The company said that its net income for the third quarter ended September 30 dropped 37% to $19 million or 5¢ per share, from $30 million or 7¢ in the year-ago period. The net profits, however, beat the average expectations of the Wall Street analysts.

The company said that its net profits were adversely affected by a 42% increase in its technology-related expenses in the third quarter, which jumped to $172 million from $121 million a year ago. said that its sales rose 24% to $2.31 billion from $1.86 billion in the same period a year earlier.

The company narrowed its sales guidance for the full year to $10.35 billion-$10.68 billion, from its previous guidance of $10.15 billion-$10.65 billion.

Sources: Bloomberg, Earnings & Newratings

Powered by Blogger