Credit Suisse (NYSE:CS) says they see Macy's (NYSE:M) as being undervalued, and are high on the stock at this share price.
"...while the company is projected to produce 32% more EBITDA than it was in '05, the EV is only 19% higher. This disparity is a rather recent phenomenon as FY1 EBITDA estimates have risen by 25% since the beginning of '10 while EV has only increased by 8%," said Credit Suisse.
They said they have more conviction now in their belief Macy's is undervalued than last month when they boosted their rating on the retailer.
Credit Suisse maintains its "Outperform" rating on Macy's, which was trading at $24.09, gaining $0.58, or 2.47 percent, as of 1:41 PM EST. CS has a price target of $27 on Macy's.
Showing posts with label EBITDA. Show all posts
Showing posts with label EBITDA. Show all posts
Tuesday, February 8, 2011
Tuesday, December 7, 2010
LHC Group (NASDAQ:LHCG) EPS Estimates Lowered by Jefferies (NYSE:JEF)
Saying the downwardly revised EPS estimate on LHC Group (NASDAQ:LHCG) is strictly technical and related to reimbursements, Jefferies (NYSE:JEF) lowered EPS for full year 2010.
They explained, "Today's revision to our FY10 EPS estimate is a strictly technical, reimbursement-related one and does not reflect weakening fundamentals at LHCG. On the contrary, we are raising our FY11 EPS estimate to reflect likely prospects of improved margins from drop sites and cost efficiencies."
Full year revenue, and EBITDA estimates were lowered to $2.72, $633.2M, and $88.4 from $2.78, $635M, and $90.2. Also changed were their estimates for full year 11 to $2.57, $648.3M, and $85.5 from $2.54, $686.3M, and $84.6.
Jefferies reiterates their "Buy" rating on LHC, which closed Monday at $24.25, losing $0.49, or 1.98 percent. They have a price target of $32 on the company.
They explained, "Today's revision to our FY10 EPS estimate is a strictly technical, reimbursement-related one and does not reflect weakening fundamentals at LHCG. On the contrary, we are raising our FY11 EPS estimate to reflect likely prospects of improved margins from drop sites and cost efficiencies."
Full year revenue, and EBITDA estimates were lowered to $2.72, $633.2M, and $88.4 from $2.78, $635M, and $90.2. Also changed were their estimates for full year 11 to $2.57, $648.3M, and $85.5 from $2.54, $686.3M, and $84.6.
Jefferies reiterates their "Buy" rating on LHC, which closed Monday at $24.25, losing $0.49, or 1.98 percent. They have a price target of $32 on the company.
AutoZone (NYSE:AZO) Near-term Results Uncertain
With the Christmas season upon us, the auto parts industry has historically slowed down because of consumers focusing in on buying gifts. AutoZone (NYSE:AZO) and others will soon find out if that will again be the practice this year, as consumers holding on to their money could have created a demand during the cold season for car parts and maintenance.
Barclays (NYSE:BCS) said, "We will be paying close attention to any indication regarding trends over the past few weeks. During the last couple of years, the auto parts industry has seen a slowdown around the holidays as consumers allocate more of their spending dollars towards giftable items. We think the key to the near-term performance for the auto part stocks will be whether or not this deceleration has occurred this year.
"Given AZO's premium valuation (trading at 10x our CY'10 EBITDA estimate), we think the shares offer a balanced near-term risk/reward. We are raising our price target to $250, which equates to 14X our CY'11 EPS estimate of $18.11 (vs. our old $230 target, which equated to 13X our CY'11 EPS estimate of $17.67)."
Barclays reiterates their "Equalweight" on AutoZone, which closed Monday at $261.91, dropping $3.29, or 1.34 percent. They have a price target of $250 on them, up from the $230 they had before, implying they think the quarter will be slower.
Barclays (NYSE:BCS) said, "We will be paying close attention to any indication regarding trends over the past few weeks. During the last couple of years, the auto parts industry has seen a slowdown around the holidays as consumers allocate more of their spending dollars towards giftable items. We think the key to the near-term performance for the auto part stocks will be whether or not this deceleration has occurred this year.
"Given AZO's premium valuation (trading at 10x our CY'10 EBITDA estimate), we think the shares offer a balanced near-term risk/reward. We are raising our price target to $250, which equates to 14X our CY'11 EPS estimate of $18.11 (vs. our old $230 target, which equated to 13X our CY'11 EPS estimate of $17.67)."
Barclays reiterates their "Equalweight" on AutoZone, which closed Monday at $261.91, dropping $3.29, or 1.34 percent. They have a price target of $250 on them, up from the $230 they had before, implying they think the quarter will be slower.
Monday, December 6, 2010
Capri Casinos (NASDAQ:ISLE) Capital Cost Challenge to Continue
With Capri Casinos (NASDAQ:ISLE) increase in capital cost not looking to go away any time soon, Jefferies has lowered their EPS estimates and PT on them, while maintaining their "Hold" rating.
EPS estimates for full year 2011 were lowered from $0.31 to $0.11 and for 2012 they dropped it from $0.38 to 0.02. EBITDA estimates for full year 2011 were lowered from $182.9 to $178.4 and for 2012 from $192.9 to $191.6.
Jefferies maintains their "Hold" rating on Capri Casinos, which closed Friday at $9.54, gaining $0.42, or 4.61 percent. They have a price target of $8.50 on them, dropping it from $9.
EPS estimates for full year 2011 were lowered from $0.31 to $0.11 and for 2012 they dropped it from $0.38 to 0.02. EBITDA estimates for full year 2011 were lowered from $182.9 to $178.4 and for 2012 from $192.9 to $191.6.
Jefferies maintains their "Hold" rating on Capri Casinos, which closed Friday at $9.54, gaining $0.42, or 4.61 percent. They have a price target of $8.50 on them, dropping it from $9.
Monday, November 22, 2010
Health Management (NYSE:HMA) Outperforming Industry in Revenue Growth
Health Management (NYSE:HMA) is in the middle of a major turnaround, leading the sector in revenue growth. Soleil Securities has maintained their "Buy" rating on them while raising their price target.
Soleil reported, "HMA is in the heart of its turnaround phase, outperforming the industry on revenue growth (solid surgical growth) and same-hospital margin expansion (incremental cost control), and is aggressively building its revenue base via attractively priced acquisitions. We continue to recommend purchase of HMA shares."
Earnings estimates for full year 2011 were raised from $0.67 to $0.72, and EBITDA from $782 million to $800 million.
Health Management closed up Friday at $8.67, gaining $0.05, or 0.58 percent. Soleil has a price target of $10 on them, raising it from $9.
Soleil reported, "HMA is in the heart of its turnaround phase, outperforming the industry on revenue growth (solid surgical growth) and same-hospital margin expansion (incremental cost control), and is aggressively building its revenue base via attractively priced acquisitions. We continue to recommend purchase of HMA shares."
Earnings estimates for full year 2011 were raised from $0.67 to $0.72, and EBITDA from $782 million to $800 million.
Health Management closed up Friday at $8.67, gaining $0.05, or 0.58 percent. Soleil has a price target of $10 on them, raising it from $9.
Thursday, November 18, 2010
Paragon Shipping Inc. (NYSE:PRGN) Earnings for 2011 Lowered by Cantor Fitzgerald
Cantor Fitzgerald lowered their earnings per share estimates for Paragon Shipping Inc. (NYSE:PRGN) for 2010 and 2011, along with EBITDA.
"We now look for Paragon to report 2010 EPS of $0.39 (from $0.33) and EBITDA of $65 million (from $67 million). For 2011, we look for PRGN to generate EPS of $0.40 and EBITDA of $70 million. We note that our 2011 estimates assume the company's open vessels achieve an average daily rate of $18,000 for the Handymaxes," said Cantor.
Cantor maintained a "Buy" rating on Paragon, while lowering their price target.
Paragon closed Wednesday at $3.69, losing $0.03, or 0.81 percent. Cantor dropped the price target on them from $6 to $5 a share.
"We now look for Paragon to report 2010 EPS of $0.39 (from $0.33) and EBITDA of $65 million (from $67 million). For 2011, we look for PRGN to generate EPS of $0.40 and EBITDA of $70 million. We note that our 2011 estimates assume the company's open vessels achieve an average daily rate of $18,000 for the Handymaxes," said Cantor.
Cantor maintained a "Buy" rating on Paragon, while lowering their price target.
Paragon closed Wednesday at $3.69, losing $0.03, or 0.81 percent. Cantor dropped the price target on them from $6 to $5 a share.
Thursday, November 4, 2010
Devon Energy (NYSE:DVN) Undervalued on Onshore Resource Plays Says Ticonderoga
Devon Energy (NYSE:DVN) is undervalued in almost all the key valuation metrics against its peers, and Ticonderoga Securities said they're maintaining their "Buy" rating on them as a result.
"We view DVN as an undervalued asset base that should generate better results given the shift in focus toward onshore unconventional resource plays. And with $3.6B of cash on hand currently (excluding the expected $3.2B close of Brazilian assets), the company is in a strong financial position as well. The company’s shares are trading below peers on almost all relevant valuation metrics, including at a steep discount to our $118.00 NAV. The resulting P/NAV of 66% compares with a group median of 78% for our E&P universe. DVN’s EV/2010 EBITDA is 5.0 compared with 7.1 for the group and its P/CF is 5.9 compared with 6.4 for the group, said Ticonderoga.
"Today’s news (earnings report) is positive and supports our Buy rating, and should please investors who have been looking for consistent results/growth from DVN quarter-to-quarter. We would look toward the year-end reserve report for signs of better organic growth and improving finding cost as an indication that the company’s resource strategy is working long-term. We don’t believe the sharp discount to peers is justified, and would continue to look for periods of weakness when the stock/group trades down to accumulate shares."
Devon surged to close at $68.22 Wednesday, gaining $2.29, or 3.47 percent. Ticonderoga has a price target of $78 on Devon.
"We view DVN as an undervalued asset base that should generate better results given the shift in focus toward onshore unconventional resource plays. And with $3.6B of cash on hand currently (excluding the expected $3.2B close of Brazilian assets), the company is in a strong financial position as well. The company’s shares are trading below peers on almost all relevant valuation metrics, including at a steep discount to our $118.00 NAV. The resulting P/NAV of 66% compares with a group median of 78% for our E&P universe. DVN’s EV/2010 EBITDA is 5.0 compared with 7.1 for the group and its P/CF is 5.9 compared with 6.4 for the group, said Ticonderoga.
"Today’s news (earnings report) is positive and supports our Buy rating, and should please investors who have been looking for consistent results/growth from DVN quarter-to-quarter. We would look toward the year-end reserve report for signs of better organic growth and improving finding cost as an indication that the company’s resource strategy is working long-term. We don’t believe the sharp discount to peers is justified, and would continue to look for periods of weakness when the stock/group trades down to accumulate shares."
Devon surged to close at $68.22 Wednesday, gaining $2.29, or 3.47 percent. Ticonderoga has a price target of $78 on Devon.
Monday, October 25, 2010
Precision Drilling (NYSE:PDS) Outlook Positive Says Canaccord
After reporting their quarterly results, Precision Drilling (NYSE:PDS) maintained their "Buy" rating from Canaccord Genuity.
Rob McNally, Executive Vice President and Chief Financial Officer, said on the conference call:
"Precision had a very solid quarter. We reported net earnings of $61 million or $0.21 per diluted share on revenues of $359 million for the third quarter. These results do include an $18 million foreign exchange gain which equates to about $0.05 per share relating to our debt being primarily US dollar denominated.
"Our Q3 2010 EBITDA was $113 million, which represents a 31% increase over the $86 million achieved in the third quarter of 2009. The improved third quarter results primarily reflect increased utilization. Activity levels have increased meaningfully with the continuation of positive momentum building from the beginning of the year."
Canaccord said, "We reiterate our rating and target price (based on 6.0x 2011E EV/EBITDA) following PD’s in-line Q3 results; our thesis remains intact as the company has a large mix of high-performance rigs and enjoys geographic diversity across North America. The company also continues to benefit from increasing oil and liquids-rich drilling, pricing traction starting to take in Canada, and moving forward with its new build programs."
Precision closed Friday at $7.76, gaining $0.21, or 2.78 percent. Canaccord has a price target of C$10 on them.
Rob McNally, Executive Vice President and Chief Financial Officer, said on the conference call:
"Precision had a very solid quarter. We reported net earnings of $61 million or $0.21 per diluted share on revenues of $359 million for the third quarter. These results do include an $18 million foreign exchange gain which equates to about $0.05 per share relating to our debt being primarily US dollar denominated.
"Our Q3 2010 EBITDA was $113 million, which represents a 31% increase over the $86 million achieved in the third quarter of 2009. The improved third quarter results primarily reflect increased utilization. Activity levels have increased meaningfully with the continuation of positive momentum building from the beginning of the year."
Canaccord said, "We reiterate our rating and target price (based on 6.0x 2011E EV/EBITDA) following PD’s in-line Q3 results; our thesis remains intact as the company has a large mix of high-performance rigs and enjoys geographic diversity across North America. The company also continues to benefit from increasing oil and liquids-rich drilling, pricing traction starting to take in Canada, and moving forward with its new build programs."
Precision closed Friday at $7.76, gaining $0.21, or 2.78 percent. Canaccord has a price target of C$10 on them.
Monday, October 18, 2010
Wells Fargo (NYSE:WFC) Down on Pride International (NYSE:PDE)
Wells Fargo (NYSE:WFC) downgraded Pride International (NYSE:PDE) from "Outperform" to "Market Perform," citing valuation, which they did raise from $32-35 to $34-36.
Wells said, "After strong price performance for the offshore drilling group since 9/7 (+19% on average versus +7% for the SPX), and PDE in particular (+23%), we believe the risk/reward profile for PDE shares is less compelling at current valuation of 7.0x 2011E EBITDA and 120% EV/estimated NAV. While we remain comfortable with our estimates and PDE management's ability to execute, the drilling fleet is largely contracted through 2011, so we see limited opportunity for positive near-term catalysts, to continue this recent outperformance."
Pride ended Friday's trading session at $31.95, gaining $0.15, or 0.47 percent.
Volume for the day was up over 50 percent from its daily 3-month average.
Wells said, "After strong price performance for the offshore drilling group since 9/7 (+19% on average versus +7% for the SPX), and PDE in particular (+23%), we believe the risk/reward profile for PDE shares is less compelling at current valuation of 7.0x 2011E EBITDA and 120% EV/estimated NAV. While we remain comfortable with our estimates and PDE management's ability to execute, the drilling fleet is largely contracted through 2011, so we see limited opportunity for positive near-term catalysts, to continue this recent outperformance."
Pride ended Friday's trading session at $31.95, gaining $0.15, or 0.47 percent.
Volume for the day was up over 50 percent from its daily 3-month average.
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