Archer Daniels Midland (NYSE:ADM) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $37.00 target price on the stock. Zacks’ analyst wrote, “Driven by robust operating performance at the Corn Processing segment, Archer Daniels posted better-than-expected bottom-line results for second-quarter 2013. We believe that Archer Daniels’ consistent focus on enhancing its processing capabilities and global footprint through strategic acquisitions and joint ventures bode well for future growth. We remain optimistic about the company’s recent deal to acquire GrainCorp, which will provide an opportunity to serve the fast-growing markets in the Middle East, Africa and Asia. Nevertheless, we remain slightly cautious about the stock as the price of raw materials may rise in the near term due to delayed spring rain and cold weather that could lead to late harvest this fall and hurt the company’s margins. Thus, with such mixed views, we maintain our long-term Neutral recommendation on the stock.”
Ameren Corp. (NYSE:AEE) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $35.00 price target on the stock. Zacks’ analyst wrote, “We have reiterated our Neutral recommendation on Ameren Corp. following its second-quarter 2013 results. The quarterly earnings were negatively affected by the planned nuclear refueling outage, impacts of a regulatory decision in 2012 and a court decision in 2013, accompanied by a milder weather. Again, regulated utility earnings fell considerably in the Missouri segment. The company has also slightly reduced the upper end of its 2013 EPS guidance range for the charge resulting from the Missouri Court of Appeals verdict. However, its plan to exit merchant generation improves the business mix. We expect Ameren to witness modestly rising earnings at its core utilities, primarily in Illinois, over the long term. With its predominantly coal-based generation assets and pending regulatory cases, we see limited upside from current levels and expect Ameren’s shares to trade in line with the broader market indices. “
salesforce.com inc. (NYSE:CRM) had its buy rating reissued by analysts at Bank of America Corp.. The analysts wrote, “The stock is up 7% in the aftermarket following strong 2Q results. The bears have focused on adjusted billings, which saw meaningful improvement in the quarter. We calculate adjusted CC organic billings grew 34% y/y. Underlying new DR growth trends are better as the tailwind from annual billing and multi-year contracts get smaller. After seemingly mixed 1Q results, the Q2 beat clearly demonstrates that seasonality is having a meaningful impact on the business as the company pushes deeper into the enterprise. The company expects DR growth in the high 20′s excl. ET, providing a relief to investors since DR is a leading indicator.”
Esterline Technologies Corp. (NYSE:ESL) had its outperform rating reaffirmed by analysts at Credit Suisse. The analysts wrote, “Our FY’13E rises to $5.38 (from $5.31), but our above-consensus out year forecasts are unchanged. We continue to view the upcoming analyst day in Boston on Sept. 19th as a catalyst for shares and we think management will more articulate a more detailed path to its 15% EBIT margin target. We reiterate our Outperform rating and $93 target price.”
Shanda Games (NASDAQ:GAME) had its underweight rating reiterated by analysts at Barclays Capital. The firm currently has a $3.50 price target on the stock, down from their previous price target of $5.00. The analysts wrote, “We maintain our Underweight rating and lower our 12-month price target to US$3.5 (from US$5.0 previously). Shanda Games delivered mixed results in 2Q13 with the top line coming in below our expectation as a result of a sequential revenue decline from the ‘Million Arthur’ game in Korea. It is disappointing that purchasing of in-game virtual items has declined after only 3-4 months of the game’s operation in Korea. Shanda guided mobile game revenues to grow 50% q/q in 3Q13 mainly due to the contribution from Million Arthur in China offsetting monetization slowdown in Korea. We are cautious on the game’s potential lifecycle and monetization sustainability in the China market in the next few quarters. In light of the continued slowdown of legacy core games in 2Q, we remain concerned that the recent ramp of mobile game revenues may not be enough to offset the declining trend for the company’s MMO games business. Our new PT of US$3.5 is based on 4.0x (down from 5.0x) our 2014E non-GAAP EPADS of US$0.89 (lowered from US$0.99 before). ith this note, we transfer primary coverage of Shanda Games to William Huang.”
GameStop Corp. (NYSE:GME) had its buy rating reiterated by analysts at Bank of America Corp.. The analysts wrote, “We attended GameStop’s 2013 Expo held in Las Vegas, Nevada. ~5,000 GME store managers and over 4,000 gamers were present. The event showcased the latest gaming hardware, software, accessories and most importantly, playable Xbox One and PS4 consoles. Overall, we thought enthusiasm for the next gen consoles was very high and our view that the console cycle will be successful was reinforced. Overall, we were impressed with the content presented at the Expo. We noted strong enthusiasm for leading established franchises such as Call of Duty, Battlefield, Forza, DriveClub and Assassins Creed, among others. More importantly, new franchise titles including Titanfall, Ryse, Destiny and Watchdogs were all very well received.”
Gol Linhas Aereas Inteligentes SA (NYSE:GOL) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $3.75 price target on the stock. Zacks’ analyst wrote, “We adhere to our Neutral recommendation on GOL Linhas. The company displays a commanding hold over the Brazilian air travel sector with the support of network expansion across the globe, fleet restructuring and enhancement of customer services. The airline’s various partnerships and collaborations should bode well in the coming months. Nevertheless, we stay on the sidelines due to disappointing results in the second quarter. Additionally, the company faces a number of roadblocks including fluctuating fuel costs, a competitive sector scenario, imbalance in domestic supply and demand ratio and international business risks.”
Goldman Sachs Group (NYSE:GS) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $161.00 price target on the stock. Zacks’ analyst wrote, “Goldman’s second-quarter 2013 earnings per share significantly outpaced the Zacks Consensus Estimate. Moreover, the reported earnings surpassed the prior-year quarter’s earnings. The results were driven by Goldman’s record revenues with an improvement in client activity. However, increased operating expenses acted as a headwind for the quarter. We anticipate Goldman to benefit from its well-managed global franchise, strong capital base and recent investments. However, regulatory issues coupled with fundamental pressures on the banking sector are expected to dent its financials in the upcoming quarters. “
Hershey (NYSE:HSY) had its neutral rating reiterated by analysts at Zacks. They currently have a $96.00 target price on the stock. Zacks’ analyst wrote, “Hershey’s second-quarter 2013 earnings of $0.72 per share beat the Zacks Consensus Estimate by a penny. Earnings also rose 9.1% year over year driven by better-than-expected top-line growth and solid margins. Revenues increased 6.7% driven by volume gains. Moreover, Hershey raised its 2013 earnings guidance for the second time this year as it expects to gain from core brand volume growth, innovation, international expansion, lower input costs and better fixed cost leverage. The revenues and gross margin expectations were also upped and the company increased its dividend. The company’s strong brand positioning, strategic marketing investments in core brands, disciplined innovation and consumer capabilities make it attractive. However, even though the company is fast expanding its presence outside the U.S., we would remain on the sidelines until we see some meaningful progress and substantial profitability from these efforts. We thus, have a Neutral recommendation on the stock with a target price of $96.00.”
International Game Technology (NYSE:IGT) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $20.00 price target on the stock.
Iron Mountain (NYSE:IRM) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $28.00 target price on the stock.
JDS Uniphase Corp. (NASDAQ:JDSU) had its neutral rating reissued by analysts at Zacks. The firm currently has a $14.00 target price on the stock. Zacks’ analyst wrote, “JDS Uniphase reported disappointing financial results for the fourth quarter of fiscal 2013, missing both the top and the bottom lines of the Zacks Consensus Estimate. Lower-than-expected capital expenditure by telecom carriers was the main reason for this poor performance. Management provided a soft financial outlook for the ensuing first quarter of fiscal 2014. Nevertheless, JDS Uniphase’s newly-launched products coupled with the acquisition of Arieso are the long-term positives for the company. In the last quarter, the newly-launched products generated 65% of the total network revenue. As a leading supplier of optical components and modules used in 3G/4G high-speed communications networks, JDS Uniphase is benefiting from increasing Internet traffic and associated applications. We believe this trend to continue and therefore, reiterate our long-term Neutral recommendation on JDS Uniphase.”
Johnson & Johnson (NYSE:JNJ) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $91.00 target price on the stock. Zacks’ analyst wrote, “Johnson & Johnson posted a strong second quarter with EPS coming in at $1.48, well above the Zacks Consensus Estimate of $1.39 and up 13.8% y/y. Revenues increased 8.5% y/y to $17.9 billion, above the Zacks Consensus Estimate of $17.7 billion. Despite the negative impact of currency fluctuation, Johnson & Johnson recorded growth on the back of strong product sales. Moreover, the company upped its 2013 EPS guidance to $5.35 to $5.45 from $5.35 – $5.45. We remain Neutral on the stock. While we expect the company to continue facing headwinds in the form of pricing pressure, manufacturing issues, and U.S. healthcare reform, we believe the diversified business model, lack of cyclicality and strong financial position will continue helping the company pave its way through tough situations.”
Loews Corp. (NYSE:L) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $47.00 target price on the stock. Zacks’ analyst wrote, “Loews’ second-quarter operating earnings lagged the Zacks Consensus Estimate but surpassed the year ago earnings. Higher parent company investment income drove the improvement. However, lower earnings at Diamond Offshore limited the upside. Top line improved due to an increase in Insurance premiums, net investment income as well as contract drilling revenues. Loews remains on track to strengthen its hotel business by doubling its hotel count within the next two to four years and expects to triple the net income by 2015. Moreover, Diamond Offshore continues to work on improving its fleet. Boardwalk’s foray into the natural gas liquids business is a part of its diversification strategy. The acquisitions of HP Storage and Louisiana Midstream support its strategy to focus on diversification, which would help the company become less dependent on its base gas transportation business. A strong balance sheet with low leverage and adequate cash and strong rating scores are among the positives. We retain our Neutral rating.”
OmniVision Technologies (NASDAQ:OVTI) had its neutral rating reiterated by analysts at Wedbush. They currently have a $16.00 target price on the stock, down from their previous target price of $18.00. The analysts wrote, “OVTI reported mixed FQ1 (Jul) results of a bottom line beat, but on lower revenue and provided FQ2 (Oct) outlook that missed expectations hurt by a slowdown in smartphone demand and intensifying competition. While FQ1 (Jul) pro forma EPS of $0.55 beat due to a tax benefit, revenue of $374MM (11% Q/Q) was below the Street ($0.43/$377MM) and our ($0.43/$380MM) estimates. FQ1 pro forma GM was flat at 17.7% versus FQ4 (Apr) as some manufacturing cost reductions were offset by an increase in provision for excess and obsolete inventories. FQ1 units shipped increased 11% Q/Q to 208MM up from 188MM in FQ4 largely in-line with our estimate of 208.6MM and DOI decreased 15 days Q/Q to 127 days from 142 days in FQ4.”
PacWest Bancorp (NASDAQ:PACW) had its buy rating reaffirmed by analysts at Sterne Agee. The analysts wrote, “Reiterating our BUY rating as the announced PACW/CSE merger continues apace. Given PACW’s strong track record in executing/integrating acquisitions, in addition to the highly complementary pieces of the recently announced deal, our sense is this transformational acquisition may exceed conservative expectations.”
Regis Corp. (NYSE:RGS) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $17.00 target price on the stock. Zacks’ analyst wrote, “Regis’ fourth-quarter fiscal 2013 adjusted earnings of $0.06 per share missed the Zacks Consensus Estimate by 40% and that of the year-ago quarter’s earnings by 83.3%. Higher cost and lower comps caused the earnings to decline year over year. Revenues dipped 5.0% year over year to $502.3 million and also missed the Zacks Consensus Estimate by 2.3%. Revenues in the quarter were under pressure due to a 3.1% decline in consolidated comps following a 3.7% fall in traffic. Service revenues and product revenues also dropped 5.3% and 4.9% year over year, respectively, due to a 3.1% decline in service same-store sales and 3.3% drop in product same-store sales. Changing fashion trend remains a major cause of concern for Regis. However, Regis has taken several strategic initiatives in order to drive its sales. The company’s strategy to divest some its assets is also impressive. Hence, we prefer to remain Neutral on the stock.”
Ralph Lauren Corporation (NYSE:RL) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $174.00 price target on the stock. Zacks’ analyst wrote, “Ralph Lauren’s initiatives to capitalize on opportunities in emerging markets and sustained focus on core business activities, appears to be the key revenue drivers for the stock. Total revenue in the first quarter of fiscal 2014 jumped about 4%. Going forward, Ralph Lauren’s growth prospects look promising, given the company’s sustained focus on expanding higher growth businesses such as the accessories category. Moreover, Ralph Lauren’s debt-free balance sheet and its ability to generate a strong operating cash flow have helped it in executing long-term strategies. However, we remain slightly cautious about the stock due to the prevalent weak macroeconomic conditions in Europe, intense competition, and volatile raw material prices. Therefore, we are maintaining our long-term Neutral recommendation on the stock.”
Theravance (NASDAQ:THRX) had its neutral rating reissued by analysts at Zacks. They currently have a $38.00 target price on the stock. Zacks’ analyst wrote, “Theravance’s second quarter 2013 loss of $0.37 per share was narrower than the Zacks Consensus Estimate of a loss of $0.59 per share and the year-ago loss of $0.42 per share. Revenues declined marginally to $1.3 million from $1.4 million a year ago. We are positive on Theravance’s decision to split into two separate publicly traded companies. Moreover, the FDA approval of Breo Ellipta for COPD is another positive for the company. We are also impressed by Theravance’s efforts to develop its pipeline. The reintroduction of Vibativ in the U.S. is also encouraging. However, we prefer to remain on the sidelines until more visibility is obtained on the drug’s performance in the market. Consequently, we retain our Neutral stance on the stock.”
Union Pacific Corp. (NYSE:UNP) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $162.00 price target on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Union Pacific. While the company’s bottom line surpassed the Zacks Consensus Estimate in the second quarter driven by pricing gains, its top line failed to meet the same. We remain encouraged by the company’s ability to combat coal and agricultural headwinds with growth in chemicals and industrial segments. In the near term, we expect that growth in shipment related to lumber, automotive, petrochemicals, export coal and chemical to remain accretive to revenue growth. Accelerated growth in these markets together with cost improvements are expected to pave the way for earnings growth. We also appreciate Union Pacific’s focus on high returns to shareholders via dividends and share buybacks. However, sluggish economic growth, fierce competition, labor union issues and inflation somewhat dampen the optimistic outlook on the company.”
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