Century (CENX) (RS) (DROOY) (FUN) (TSO) (TEF) (DHI) (LEN) (MSL) Upgraded

Century Aluminum (NASDAQ:CENX), Reliance Steel (NYSE:RS), DRDGOLD (NASDAQ:DROOY), Cedar Fair (NYSE:FUN), Tesoro (NYSE:TSO), Telefonica S.A. (NYSE:TEF), DR Horton (NYSE:DHI), Lennar (NYSE:LEN) and Midsouth Bancorp (AMEX:MSL) get upgraded by analysts.

Goldman Sachs (NYSE:GS) upgraded Century Aluminum (CENX) from a "Neutral" rating to a "Sell" rating.

Goldman Sachs upgraded Reliance Steel (RS) from a "Neutral" rating to a "Buy" rating.

Morgan Stanley (NYSE:MS) upgraded DRDGOLD (DROOY) from an "Underweight" rating to an "Equal Weight" rating.

Keybanc Capital upgraded Cedar Fair (FUN) from a "Hold" rating to a "Buy" rating.

RBC Capital upgraded Tesoro (TSO) from a "Sector Perform" rating to an "Outperform" rating.

Sandord Bernstein upgraded Telefonica S.A. (TEF) from an "Underperform" rating to a "Market Perform" rating.

UBS (NYSE:UBS) upgraded DR Horton (DHI) from a "Neutral" rating to a "Buy" rating.

UBS upgraded Lennar (LEN) from a "Neutral" rating to a "Buy" rating.

Raymond James (NYSE:RJF) upgraded Midsouth Bancorp (MSL) from a "Market Perform" rating to a "Strong Buy" rating.

Century (CENX) (DHI) (FUN) (LEN) (NUS) (RS) (TSO) Upgraded

Century Aluminum (NASDAQ:CENX), D.R. Horton (NYSE:DHI), Cedar Fair (NYSE:FUN), Lennar (NYSE:LEN), Nu Skin (NYSE:NUS), Reliance Steel (NYSE:RS) and Tesoro Corporation (NYSE:TSO) upgraded by analysts.



Century Aluminum (CENX) was upgraded by Goldman Sachs (NYSE:GS) from a "Sell" rating to a "Neutral" rating. They cited valuation as the catalyst behind the call.



D.R. Horton (DHI) was upgraded by UBS (NYSE:UBS) from a "Neutral" rating to a "Buy" rating. They have a price target of $13 on the company.



Cedar Fair (FUN) was upgraded by KeyBanc from a "Hold" rating to a "Buy" rating. They have a price target of $25 on the company.



Lennar (LEN) was upgraded by UBS from a "Neutral" rating to a "Buy" rating. They have a price target of $21 on the company.



Nu Skin (NUS) was upgraded by Wedbush Securities from a "Neutral" rating to an "Outperform" rating. They have a price target of $48 on the company.



Reliance Steel (RS) was upgraded to a "Buy" rating by Goldman Sachs.



Tesoro Corporation (TSO) was upgraded by RBC Capital Markets from a "Sector Perform" rating to an "Outperform" rating. They raised their price target on the company from $28 to $30.

Manpower (MAN) (BMI) (SAP) (EC) (LEN) (FBNK) Get New Coverage

Manpower Inc. (NYSE: MAN), Badger Meter, Inc. (NYSE: BMI), SAP Aktiengesellschaft (NYSE: SAP), Ecopetrol S.A. (NYSE: EC), Lennar Co. (NYSE: LEN) and First Connecticut Bancorp Inc (NASDAQ: FBNK) getting new analyst coverage.



Avondale Partners initiated coverage on Manpower Inc. (MAN). They placed a “Market Perform” rating and a price target of $40.00 on the company.



Keybanc initiated coverage on Badger Meter, Inc. (BMI). They placed a “hold” rating on the company.



RBS initiated coverage on SAP Aktiengesellschaft (SAP). They placed a “Buy” rating on the company.



Tudor Pickering initiated coverage on Ecopetrol S.A. (EC). They placed a “Hold” rating on the company.



Keybanc initiated coverage on Lennar Co. (LEN). They placed a “Buy” rating and a price target of $23.00 on the company.



Stifel Nicolaus initiated coverage on First Connecticut Bancorp Inc (FBNK). They placed a “Buy” rating and a price target of $15.00 on the company.

Applied Materials (AMAT) (CVI) (GES) (GSM) (LEN) (PRU) (SNI) (UTHR) Price Targets Changed

Applied Materials (AMAT), CVR Energy (CVI), Guess (GES), Globe Specialty Metals (GSM), Lennar (LEN), Prudential Financial (PRU), Scripps Networks (SNI) and United Therapeutics (UTHR) price targets adjusted by analysts.

Applied Materials (AMAT) had its price target cut by Goldman Sachs (NYSE:GS) to $10.50. Goldman has a "Neutral" rating on the company.

CVR Energy (CVI) had its price target cut by Credit Suisse (NYSE:CS) to $38. They boosted its estimates and have an "Outperform" rating on the company.

Guess (GES) had its price target cut by Brean Murray to $44. They also lowered their estimates also cut and have a "Buy" rating on the company.

Globe Specialty Metals (GSM) had its price target cut by Credit to $22. They also cut their estimates and have an "Outperform" rating on the company.

Lennar (LEN) had its price target cut by Keybanc to $23. They also cut their estimates while having a "Buy" rating on the company.

Prudential Financial (PRU) had its price target cut by Morgan Stanley to $67. They lowered their Estimates and have an "Overweight" rating on the company.

Scripps Networks (SNI) had its price target cut by UBS (NYSE:UBS) to $44. They lowered their estimates and have a "Neutral" rating on the company.

United Therapeutics (UTHR) had its price target cut by Goldman Sachs to $52. They cut their estimates and have a "Buy" rating on the company.

Dividend Yields for (LEN) (RL) (HAR) (HRB) (MCD)

Indicated dividend yields for Standard & Poor's 500 Index companies Lennar Corp (LEN), Polo Ralph Lauren Corp (RL), Harman International (HAR), H&R Block Inc (HRB) and McDonald's Corp (MCD).

These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.

Lennar Corp (LEN) has a dividend yield of 0.84 percent on a declared dividend of $0.04. The payout ratio is 27.3 percent.

Polo Ralph Lauren Corp (RL) has a dividend yield of 0.61 percent on a declared dividend of $0.20. The payout ratio is 5.7 percent.

Harman International (HAR) has a dividend yield of 0.21 percent on a declared dividend of $0.03. The payout ratio is na.

H&R Block Inc (HRB) has a dividend yield of 3.47 percent on a declared dividend of $0.15. The payout ratio is 7.1 percent.

McDonald's Corp (MCD) has a dividend yield of 3.12 percent on a declared dividend of $0.61. The payout ratio is 53.2 percent.

Wells (WFC) Sees Lennar's (LEN) Earnings as Weak

After the quarterly report from Lennar (NYSE:LEN), Wells Fargo commented that the earnings were weaker than reported, citing the $0.19 a share garnered from a legal settlement and an extinguishment of JV debt, which added another $0.08 to the total.

Wells Fargo said, "with investor attention keenly focused on the spring selling season, LEN's orders may be considered weak, as they missed our estimate and we believe they also missed consensus."

In other words, earnings per share is much weaker than the quarterly reported indicated, and it appears that is going to continue on throughout 2011.

Lennar closed Tuesday at $19.07, falling $0.68, or 3.44 percent.

PulteGroup (PHM), Lennar (LEN), Toll Brothers (TOL) Drop on Disappointing Data

It was just a couple of days ago after the news of the earthquake in Japan that the home construction industry was one of the few sectors in the positive. That has changed quickly as shares of PulteGroup (NYSE:PHM), Lennar (NYSE:LEN) and Toll Brothers (NYSE:TOL) are all falling on data showing the industry continues to struggle.

The idea a couple of days ago was the hope that spring sales would boost the sector, but that's not going to be the case, as housing starts were at a 27-year low and new building permits dropped to a record low.

It appears the gains a couple of days ago were just investors trying to find anything that would move up at the time.

Toll Brothers was trading at $20.41, down $0.45, or 2.16 percent, as of 2:04 PM EDT. Lennar was at $19.20, falling $0.48, or 2.44 percent. PulteGroup was at $6.90, dropping $0.11, or 1.57 percent.

Homebuilders Up (PHM) (LEN) (TOL) (Hov) (DHI) Up on Dismal Trading Day

In what appears to be investors searching for anything positive to sink their teeth into, shares of homebuilders Pulte (NYSE:PHM), Lennar (NYSE:LEN), Toll Brothers (NYSE:TOL), Hovnanian (NYSE:Hov) and D.R. Horton (NYSE:DHI) are trading up.

The only other positive sector on the day is solar, which is trading up on the nuclear play.

Apparently investors are looking at the hope there will be a decent selling season this spring, the evident reason for pushing up the homebuilder sector. It's doubtful this will be sustainable, but interesting nonetheless.

D.R. Horton was trading at $11.80, gaining $0.15, or 1.29 percent, as of 1:06 PM EDT. Hovnanian was at $3.72, up $0.04, or 1.09 percent. PulteGroup was trading at $6.94, up $0.02, or 0.29 percent. Toll Brothers were at $20.71, gaining $0.07, or 0.34 percent. Lennar was at $19.47, up $0.14, or 0.72 percent.

Lennar's (NYSE:LEN) Outperformance Should Continue

Impressed by the recently quarterly results of Lennar (NYSE:LEN), UBS sees their outperformance continuing, although caution on possibly waiting for a better entry point.

UBS says, "We were particularly impressed with Lennar’s results in its most recently reported quarter and would highlight a number of positives: 1) unit orders declined 6% YOY, leaving ending backlog down just 1% heading in F12; 2) EBIT margin (ex charges) remains impressive at 7% in F4Q, driven by lower SG&A; & 3) results in Rialto are exceeding our expectations. Given mgmt’s operating acumen, this outperformance should continue, even as conditions remain volatile through 2011."

UBS reiterates a "Neutral" rating on Lennar (LEN), which was trading at $19.56, down $0.28, or 1.41 percent, as of 2:49 PM EST. UBS raised their price target on Lennar from $17 to $21.

D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN), KB Home (NYSE:KBH), Other Homebuilders Reviewed by Ticonderoga

Noting the upcoming earnings season for homebuilders, Ticonderoga has reviewed a number of companies, including their Buy-rated D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN) and KB Home (NYSE:KBH).

Ticonderoga says, "With the fourth quarter earnings season ramping next week for the homebuilders, we want to step back and review our calendar 2011 outlook for the group. Given a positive 19.3% performance in December compared with a 6.5% increase in the S&P, followed by a 13.3% increase to-date this month, investors are decidedly looking optimistically toward the builders’ prospects for 2011 and, more specifically, the impending spring selling season, which starts in earnest in February. Improved valuations, not improved fundamentals, have driven the rise in the equities, which now trade at 1.3x (ex-NVR) our favored present valued adjusted BV multiple and at 1.08x (ex-NVR) historically comparable book values, which adds back DTA valuation allowances. Absent improved fundamentals in February, March and April versus our expectations, we believe the equities have become over-extended in the near term, although still reasonably valued longer term, as the economy starts its recovery. A sustained march toward the group’s 1.6x historical BV measure will likely not occur without a healthier buyer demand scenario.

"Entering this year, we have 3 Buy, 1 Sell and 5 Neutral rated equities in our homebuilder coverage. Additionally, we have one paired trade in place. With respect to our Buy-rated names—D.R. Horton (NYSE: DHI), Lennar (NYSE: LEN) and KB Home (NYSE: KBH)- KBH is our top pick at the moment given its significant cost reduction progress and its discount valuation to the group (7% and 26%, respectively, on book value metrics above). While the first half of 2011 will likely prove challenging for the company given its low backlog, we continue to project solid profitability in 2011 and 2012. In our opinion, this should allow the equity to close the valuation gap versus its peers. Similarly, we believe risk appetite within the space will increase this year, with KBH best positioned, outside of the speculative bankruptcy risk builders, to capitalize on this shift in investor sentiment. MDC (NYSE: MDC), our lone Sell-rated equity, appears set to fundamentally underperform the group by a wide margin, in our opinion, given its industry-high cost structure. Other than a much lower valuation, we need to see a useful reduction in the company’s SG&A expense ratio prior to giving consideration to a more constructive rating. While shorting any builder may be difficult in this somewhat euphoric environment, we believe MDC has the fundamental headwinds and stout valuation to pair up with virtually any other builder we cover. For our specific paired trade, we are long KBH and short PulteGroup (NYSE: PHM). Given the above-mentioned discount valuation to the group for KBH and a premium valuation for PHM, we believe investors will be rewarded as the respective gap for each dissipates driven by improved fundamentals at KBH and continued struggles for PHM as it attempts to capitalize on its acquisition of CTX."

D.R. Horton (DHI) was trading at $13.00, down $0.33, or 2.48 percent, as of 11:56 AM EST. Lennar (LEN) was at $19.99, down $0.50, or 2.44 percent., KB Home (KBH) was at $15.14, down $0.32, or 2.07 percent.

Rialto Differentiator for Lennar (NYSE:LEN), Execution Solid

With little to justify the recent boost in the share price of Lennar, Ticonderoga concludes it's Rialto which is the differentiator for them.

Ticonderoga said, "As the equity market testified, LEN’s fiscal 4Q results were solid as this company continues executing in a very tough environment. We believe Rialto is quickly becoming a home run for LEN and, in fact, is the differentiator in the battle among builders. We are not completely sure what the market was rewarding Tuesday when LEN’s share price spiked. However, given that the homebuilding results were pretty much what we expected, we must chalk up the run to Rialto or inattention—and we prefer Rialto.

"For investors to understand how different LEN’s model has become, one has to separate out homebuilding operations from the rest of LEN. Before charges, roughly 40% of its reported $0.17 came from building and selling a home (after charges of $22M, it generated a loss of $0.05 per share or a negative 27% of EPS). Land sales, primarily deferred Land revenue recognized, accounted for a little over 40% of EPS (net of $3.1M in charges). Financial Services accounted for nearly 36% of EPS. Rialto generated about 38% of EPS, while the Tax Refund added about 11% of total EPS. In other words, this quarter, from an EPS standpoint, was really about all of LEN’s other businesses, rather than delivering a home. We want to be clear, we are not knocking LEN on this, just trying to highlight that investors must remember home construction is only one part of this story. Operationally, it is obviously the most important part, but financially it is not for now. Over time, as volumes return, it will once again likely lead the charge."

Ticonderoga maintains a "Buy" rating on Lennar, which closed Wednesday at $20.46, gaining $0.22, or 1.09 percent. Ticonderoga has a price target of $21 on LEN.

Lennar (NYSE:LEN) Continues to Run Through Specs Fast, How Long Can Margins Take it?

Lennar (NYSE:LEN) earnings exceeded Street estimates, but with the fast rate their burning through specs, one wonders how long that can last before margins are affected.

Ticonderoga noted, "LEN reported 4Q earnings. The headline number looks quite good, turning in positive EPS of $0.17. There is plenty to like if one is a Bull, plenty to dislike if one is a Bear. Net, we think the Street will modestly like the results. That is our feeling on the result. We don’t see a meaningful outperformance versus the group.

"Orders were 2,520 including JVs, or 2,496 excluding JVs. That is down 5.5%, which is well ahead of our estimated 14% decline, but below consensus of 2,698. Given that LEN was going up against the last of the Tax Credit last year, we look at this number positively.

"Revenues, at $840M (down 8%), blew out estimates—both ours and the Street’s. The backlog conversion rate was the key, as it was 141% versus our 115% forecast. LEN continues to run through specs aggressively, yet its Gross Margin is none the worse for it. We do not know how long it can keep up this treadmill, which makes us nervous, but kudos again this quarter.

"The Homebuilding Operating Margin was 3.2%, well ahead of our estimate of 1.5%. Even factoring out a better than expected Land profit, the Operating Margin was still 1.4%. The Gross Margin was 20.8%, 50 bps better than our 20.3% estimate. SG&A benefited nicely from the added volume, as it came in at 16.7% versus our 18.6% forecast."

Lennar closed Tuesday at $20.24, gaining $1.34, or 7.09 percent. Ticonderoga has a price target of $21 on the company.

Lennar (NYSE:LEN) Should Outperform Peers says Ticonderoga

The current quarter of Lennar (NYSE:LEN) should be very similar to the prior one, although margins could be pressured slowing demand and incentives used to offset that.

Ticonderoga said, "We expect this quarter will be similar to the last, as the primary focus for investors will be centered around mediocre demand trends, growing incentives and the pressures those issues will exert on LEN’s margins. We feel comfortable earnings will be there, as expectations are rational. On the Rialto front, this rapidly growing story should only help profits."

"Our EPS estimate is $0.10, ahead of the Street Consensus of $0.02, however, there are several estimates above ours, so expectations are meaningful and growing. Impairment charges (not in our estimates) could range from $25M to $50M. We worry that given the strong run the equity has had, any miss on key metrics could weigh on the equity. Despite those worries, we believe LEN has set itself on an enviable course that should continue delivering results which are better than peers.’

"We expect unit Orders of 2,265, down 14% YoY and 13% sequentially. Consensus is just slightly above our estimate...We expect Orders ASP to decline 5.7% due to higher incentives and adverse mix...Revenues should be down 29% to $648M. This is well below consensus of $756M, as we are forecasting LEN’s Backlog Conversion Rate to decline slightly from abnormally high levels."

Ticonderoga maintains a 'Buy' on Lennar, which closed Monday at $19.05, up $0.30, or 1.60 percent. Ticonderoga raised their price target on them to $21.