Wedbush advises investors to wait for AutoZone (NYSE:AZO) to go down before investing in the company, as they see their valuation as being full.
They said that "the company continues to gain share in both DIY and commercial, while also managing working capital and FCF generation to support share buybacks. That said, we believe current valuation of -15x appears full and therefore prefer to be opportunistic on pullbacks."
Wedbush reiterates a "Neutral" rating on AutoZone, which closed Wednesday at $262.57, up $2.42, or 0.93 percent. They have a price target on the parts supplier of $276.
Showing posts with label Valuation. Show all posts
Showing posts with label Valuation. Show all posts
Thursday, December 9, 2010
Wednesday, December 8, 2010
Citigroup (NYSE:C) Slashes Alpha (NYSE:ANR), Arch Coal (NYSE:ACI), Patriot (NYSE:PCX) on Reserves Valuation
Citing the recent run-up in the valuation of coal reserves, Citigroup (NYSE:C) downgraded Alpha Natural Resources (NYSE:ANR), Patriot Coal (NYSE:PCX) and Arch Coal (NYSE:ACI).
Arch Coal they downgraded from "Buy" to "Hold"; Patriot Coal from "Hold" to "Sell"; Alpha Natural Resources from "Buy" to "Hold."
One company in the sector they're still bullish on is Peabody Energy (NYSE:BTU), which Citi sees as the "only coal company offering significant production growth."
Citigroup raised their price target on Peabody from $57 to $74, while maintaining a "Buy" rating on them.
Arch was trading at $31.52, down $0.83, or 2.57 percent, as of 12:12 PM EST. Citi raised their price target on them from $30 to $33.
Alpha Natural Resources was trading at $52.63, down $1.85, or 3.40 percent. Citi raised their price target on them from $55 to $58.
Patriot Coal was trading at $16.51, down $0.82, or 4.73 percent.
Peabody Energy was at $61.35, down $0.12, or 0.20 percent.
Arch Coal they downgraded from "Buy" to "Hold"; Patriot Coal from "Hold" to "Sell"; Alpha Natural Resources from "Buy" to "Hold."
One company in the sector they're still bullish on is Peabody Energy (NYSE:BTU), which Citi sees as the "only coal company offering significant production growth."
Citigroup raised their price target on Peabody from $57 to $74, while maintaining a "Buy" rating on them.
Arch was trading at $31.52, down $0.83, or 2.57 percent, as of 12:12 PM EST. Citi raised their price target on them from $30 to $33.
Alpha Natural Resources was trading at $52.63, down $1.85, or 3.40 percent. Citi raised their price target on them from $55 to $58.
Patriot Coal was trading at $16.51, down $0.82, or 4.73 percent.
Peabody Energy was at $61.35, down $0.12, or 0.20 percent.
Thursday, December 2, 2010
Health Care REIT (NYSE:HCN) Deserves Premium Valuation Says Jefferies
Jefferies reiterated their "Buy" rating on Health Care REIT (NYSE:HCN), saying warrant a premium valuation.
"HCN has one of the most complete platforms in the healthcare REIT sector. In our opinion, this warrants a premium valuation, yet HCN trades at or below industry average valuation multiples," said Jefferies.
Jefferies did lower their FFO and revenue estimates on the company for full year 2011 from $3.32/$723.6 to $3.20/$788.6. For full year 2012, they changed them from $3.55/$837.2 to $3.48/$914.4.
Health Care REIT traded at $45.60 at the close Wednesday, dropping $0.68, or 1.47 percent. Jefferies lowered their price target on them from $55 to $54.
Trading volume was about 9 times more than the daily 3-month average.
"HCN has one of the most complete platforms in the healthcare REIT sector. In our opinion, this warrants a premium valuation, yet HCN trades at or below industry average valuation multiples," said Jefferies.
Jefferies did lower their FFO and revenue estimates on the company for full year 2011 from $3.32/$723.6 to $3.20/$788.6. For full year 2012, they changed them from $3.55/$837.2 to $3.48/$914.4.
Health Care REIT traded at $45.60 at the close Wednesday, dropping $0.68, or 1.47 percent. Jefferies lowered their price target on them from $55 to $54.
Trading volume was about 9 times more than the daily 3-month average.
Wednesday, November 24, 2010
TFS Financial's (NASDAQ:TFSL) EPS Lowered for 2011
TFS Financial (NASDAQ:TFSL) had their earnings per share lowered on them for 2011 by FBR Capital, as valuations will remain low, although after the MOU is removed, that is expected to change.
FBR said, "We reiterate our rating and lower our price target to $9.50 due to lower valuations on recent second-step transactions...We expect valuation to improve once the MOU is lifted. We are lowering our FY11 EPS estimate to $0.05 from $0.12 and establishing our FY12 estimate of $0.12."
FBR did reiterate their "Outperform" rating on TFS, which closed Tuesday at $8.01, falling $0.10, or 1.23 percent. FBR has a price target of $9.50 on the company, slashing it from $13.
FBR said, "We reiterate our rating and lower our price target to $9.50 due to lower valuations on recent second-step transactions...We expect valuation to improve once the MOU is lifted. We are lowering our FY11 EPS estimate to $0.05 from $0.12 and establishing our FY12 estimate of $0.12."
FBR did reiterate their "Outperform" rating on TFS, which closed Tuesday at $8.01, falling $0.10, or 1.23 percent. FBR has a price target of $9.50 on the company, slashing it from $13.
Tuesday, November 23, 2010
Harley-Davidson (NYSE:HOG) Earnings Lowered by Wells Fargo (NYSE:WFC)
While Wells Fargo (NYSE:WFC) likes the long-term position of Harley-Davidson (NYSE:HOG), because of its strong brand and lowering of operating costs, they still lowered their earnings per share estimates for full year 2010 and 2011, although 2012 shipments for the company should improve.
Wells said, "Harley is well positioned as the global leader in the heavyweight motorcycle market given its iconic brand (image and lifestyle) and solid financials, in our view. We believe investors are yet to fully appreciate (1) Improving supply/demand that should allow for '12 shipments equal to retail sales, (2) Materially lower operating cost structure and significantly improving free cash generation, and (3) Positively skewed HDFS risk profile."
An "Outperform" rating was maintained on Harley by Wells Fargo, and their raised their valuation range from $35-$37 to $36-$39.
Harley closed Monday at $31.58, losing $0.32, or 1.00 percent.
Wells said, "Harley is well positioned as the global leader in the heavyweight motorcycle market given its iconic brand (image and lifestyle) and solid financials, in our view. We believe investors are yet to fully appreciate (1) Improving supply/demand that should allow for '12 shipments equal to retail sales, (2) Materially lower operating cost structure and significantly improving free cash generation, and (3) Positively skewed HDFS risk profile."
An "Outperform" rating was maintained on Harley by Wells Fargo, and their raised their valuation range from $35-$37 to $36-$39.
Harley closed Monday at $31.58, losing $0.32, or 1.00 percent.
Thursday, November 18, 2010
Cimarex Energy (NYSE:XEC) Valuation Should Rise on Permian
UBS (NYSE:UBS) says they're maintaining their "Buy" rating on Cimarex Energy (NYSE:XEC), as they see potential for their valuation to increase on opportunities in Permian.
UBS said, "On Wednesday, we hosted Cimarex at our 1x1 Energy Conference and came away with incrementally bullish takeaways. XEC has been one of the best operators in our coverage group over the past year, and shares have reflected as such, up roughly 80% YoY. Valuation has consolidated in the $70-$80 range for much of the last six months, a band that we see being re-rated higher as XEC delivers on its transformational horizontal Permian opportunities."
Cimarex is trading at $82.42, up by $1.48, or 1.83 percent, as of 12:40 PM EST. UBS raised their price target on them from $80 to $91.
UBS said, "On Wednesday, we hosted Cimarex at our 1x1 Energy Conference and came away with incrementally bullish takeaways. XEC has been one of the best operators in our coverage group over the past year, and shares have reflected as such, up roughly 80% YoY. Valuation has consolidated in the $70-$80 range for much of the last six months, a band that we see being re-rated higher as XEC delivers on its transformational horizontal Permian opportunities."
Cimarex is trading at $82.42, up by $1.48, or 1.83 percent, as of 12:40 PM EST. UBS raised their price target on them from $80 to $91.
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