- Interpublic Group (IPG) to buy from hold at Deutsche Bank.
- Radware (RDWR) to outperform from perform at Oppenheimer.
- Fluor (FLR) and Waddell & Reed (WDR) to buy from hold, as well as AllianceBernstein (AB) to hold from sell, at Citigroup.
- MetroCorp (MCBI) and American Capital (AGNC) to outperform from market perform at Keefe Bruyette.
- International Flavors (IFF) to overweight from equal weight at Barclays.
- BioCryst (BCRX) and Southern Company (SO) to buy from neutral at BofA/Merrill.
- Bunge (BG) to overweight from neutral at HSBC.
Analyst Calls: AB, BG, CMG, CSCO, DF, EXPE, JLL, MU, NLSN, S, SO ...
Continue reading Analyst Calls: AB, BG, CMG, CSCO, DF, EXPE, JLL, MU, NLSN, S, SO ...
Manufacturing Bright Spot Found in Food Production
As is often the case, growth and recovery in America begins at ground level. Current upbeat news from regional food producers is signaling good news for many companies, including Deere & Company (DE). While developing industrial bases such as China and India have taken on the lion's share of mid to heavy manufacturing duties, they are also developing increased needs to feed hungry work forces. Indeed, they are also developing the capital to feed those needs.
The spin-off from this morphing consumption dynamic is a surge of growth in America's agricultural and food production sectors. Indications are that the increased demands being put upon American agricultural output is fueling an increased demand for heavy weight farm tractors and is requiring food processing facility expansions. "Sales of 100-horsepower tractors, which cost about $75,000 to $100,000 each, were up 27 percent last month over the same month last year, said Charlie O'Brien, vice president of agricultural services for The Association of Equipment Manufacturers, in an Associated Press interview.
Continue reading Manufacturing Bright Spot Found in Food Production
Analyst Calls: AAP, DF, ENER, KEYW, LVS, NVS, SCHW, SLW, TYC ...
- Advance Auto Parts (AAP) was upgraded to Perform from Underperform at Oppenheimer.
- Macquarie upgraded Gen-Probe (GPRO) and Beckman Coulter (BEC) to neutral from underperform.
- Tyco (TYC) was upgraded to neutral from reduce at Nomura.
- BofA/Merrill upgraded Cousins Properties (CUZ) to buy from underperform.
- Morgan Stanley upgraded Energy Conversion (ENER) to equal weight from underweight.
- Thermo Fisher (TMO) was upgraded to buy from hold at Auriga.
Continue reading Analyst Calls: AAP, DF, ENER, KEYW, LVS, NVS, SCHW, SLW, TYC ...
Analyst Calls: A, CQB, DDR, DF, LDK, NOC, RIMM, S, STRA, TTM, WDC ...
- Barclays upgraded Western Digital (WDC) to overweight from equal weight.
- LDK Solar (LDK) was upgraded to buy from hold at Needham.
- Legg Mason (LM) was upgraded to outperform from neutral at Macquarie.
- Agilent (A) was upgraded to buy from hold at Stifel Nicolaus.
- Wells Fargo upgraded Dean Foods (DF) to outperform from market perform and Developers Diversified (DDR) to market perform from underperform.
- Deutsche Bank also upgraded Developers Diversified, to buy from hold.
- Northrop Grumman (NOC) was upgraded to sell from conviction sell at Goldman.
- MYR Group (MYRG) was upgraded to buy from hold at BB&T.
Continue reading Analyst Calls: A, CQB, DDR, DF, LDK, NOC, RIMM, S, STRA, TTM, WDC ...
Dean Foods Takeover Speculation Resumes
Dean Foods (DF - option chain) shares are up a significant amount for the second consecutive day after rumors resurfaced that Groupe Danone SA could be investigating an acquisition of the company. This rumor first came to light back in March, but since then DF has seen its share price cut by a third, which could make the company even more attractive now. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DF.DF opened this morning at $10.55 So far today the stock has hit a low of $10.50 and a high of $10.75. As of 12:15, DF is trading at $10.63 up 0.41 (4.0%). The chart for DF looks neutral and S&P gives DF a neutral 3 STARS (out of 5) hold ranking.
Options Update: Kellogg August Puts Active on Elevated Volatility into EPS
Kellogg (K) closed down 95 cents to $51.52. K is expected to report Q1 EPS on July 29. August put option implied volatility is at 26, December is at 22, versus its 26-week average of 18. Call option volume of 481 contracts compares to put volume of 9,000 contracts according to Track Data, suggesting hedging for downside price movement.Dean Foods (DF) is expected to report Q2 EPS on August 3. DF August put option implied volatility is at 58, December puts are at 52, versus its 26-week average of 37, according to Track Data, suggesting larger price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Dean Foods: Not a Buy
Dean Foods (DF) is down today. During afternoon trading, my screen showed the stock off 56 cents, or over 5%, to $9.91. Volume is way above normal, indicating conviction on the part of the traders. Is the sell-off a buying opportunity?I'm not so certain about that. I'll tell you, I do not like the one-year chart. Take a look at it and see what you think. As an investor, that graphic must give you the chills. Sure, you might be wondering if Dean Foods is getting cheap; thing is, though, you have to be careful you're not attempting to catch the proverbial falling knife. That wouldn't be so good.
Earnings Highlights: Allstate, Marriott, PepsiCo, 3M, UBS, Viacom, WWE ...
Here are some highlights from this past week's earnings coverage on BloggingStocks:
- Activision Blizzard Inc. (ATVI) reported better-than-expected Q4 earnings and declared an annual dividend.
- Allstate Corp. (ALL) swung to better-than-expected Q4 earnings and also swung to a full-year profit.
- Buffalo Wild Wings Inc. (BWLD) shares tumbled after it posted disappointing earnings tied to costs.
- The Cheesecake Factory Inc. (CAKE) posted better-than-expected Q4 earnings but sales were flat.
- Chipotle Mexican Grill Inc. (CMG) earnings numbers for Q4 resulted in upgrades from two analysts.
- CVS Caremark Corp. (CVS) higher Q4 earnings matched the expectations of analysts, and shares rose.
Continue reading Earnings Highlights: Allstate, Marriott, PepsiCo, 3M, UBS, Viacom, WWE ...
Dean Foods Tumbles on Earnings Miss, Soft Outlook
Dean Foods (DF) shares fell more than 15%, or $2.70, in Wednesday morning trading to a new 52-week low.
For the quarter ended Dec. 31, Dean Foods reported net income of $50 million, or 27 cents per share, down from $66 million, or 42 cents a share, in the year-ago period. Price pressure at retailers and rising dairy costs dragged down results. Excluding charges, Dean Foods said it earned 31 cents a share.
Continue reading Dean Foods Tumbles on Earnings Miss, Soft Outlook
Earnings highlights: CBS, Comcast, News Corp., Time Warner, UBS, Viacom ...
Here are some highlights from last week's earnings coverage from BloggingStocks:
- CBS Corp. (NYSE: CBS) reported that Q3 revenue was flat while earnings and cash flow declined.
- Clorox Co. (NYSE: CLX) reported better-than-expected Q1 earnings, helped by healthy gross margins.
- Comcast Corp. (NASDAQ: CMCSA) posted better-than-expected Q3 earnings with modest revenue growth.
- Dean Foods Co. (NYSE: DF) Q3 revenue missed estimates but earnings came in better than expected.
- Expeditors International of Washington Inc. (NASDAQ: EXPD) traded lower after its Q3 earnings miss.
- Garmin Ltd. (NASDAQ: GRMN) beat earnings estimates in the week after the Google Navigation launch.
Continue reading Earnings highlights: CBS, Comcast, News Corp., Time Warner, UBS, Viacom ...
Dean Foods (DF) issues weak Q4 guidance
Dean Foods (NYSE: DF - option chain) stock traded lower Monday after the company reported Q3 earnings, posting an adjusted profit of 34 cents per share on revenue of $2.77 billion. While this beat analysts' expectations of 33 cents per share, the revenue targets were $2.94 billion. DF also forecast fourth-quarter EPS of 36 cents, missing analysts' projections of 39 cents. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on DF.
Monday, DF opened at $17.82. In early trading, the stock hit a high of $17.96 and a low of $16.43. As of 11:20, DF was trading at $16.59, down $1.64 (-9.0%). The chart for DF looks neutral and S&P gives DF a neutral 3 STARS (out of 5) hold ranking.
Analyst upgrades, downgrades and initiations: VIA, RIMM, ARO, JPM, BMY
Analyst upgrades:- Piper Jaffray upgraded Viacom (NYSE:VIA) to Overweight from Neutral to reflect the improving ad market and better ratings at key cable networks. The firm raised its target on shares to $35 from $29.
- Baird upgraded Research in Motion (NASDAQ:RIMM) to Outperform from Neutral on valuation as it views the recent weakness as a buying opportunity. The firm keeps an $84 price target on shares.
- Jefferies upgraded Usana (NASDAQ:USNA) to Buy from Hold as it believes direct selling companies have been gaining momentum. The firm raised its target on shares to $44 from $37.
- AK Steel (NYSE:AKS) was upgraded to Buy from Hold at Deutsche Bank.
- First Merit (NASDAQ:FMER) was upgraded to Perform from Underperform at Oppenheimer.
- Spectra Energy (NYSE:SE) was upgraded to Conviction Buy from Neutral at Goldman.
Continue reading Analyst upgrades, downgrades and initiations: VIA, RIMM, ARO, JPM, BMY
The week in preview: Seeking more signs of economic stability
Last week's Fed Beige Book report and GDP numbers suggested that the economy may be stabilizing, and this coming week will bring plenty of economic data to confirm or deny that suggestion. On the schedule are consumer credit, construction spending, factory orders, and pending home sales for June, the employment situation, the Import Price Index, and new motor vehicle sales for July, as well as the ISM Manufacturing and Non-manufacturing Indexes for July.
The week will also bring quarterly reports from home builders Beazer Homes USA Inc. (NYSE: BZH), D.R. Horton Inc. (NYSE: DHI), and Pulte Homes Inc. (NYSE: PHM). Yet again, analysts surveyed by Thomson Reuters expect all three to have narrowed their losses in the most recent quarter. However, they've all tended to post deeper-than-expected losses in recent quarters as well. Analysts also expect to see their revenue down 45% or more for the past quarter. They forecast long-term EPS growth of 7% or more, but none of these homebuilders has a First Call consensus buy recommendation, not surprisingly. Short interest is falling off for Beazer and D.R. Horton, and D.R. Horton and Pulte have been reporting positive cash flow from operations, but all three of them said they had more long-term debt than cash in hand last time around. Mortgage insurer PMI Group Inc. (NYSE: PMI) is likewise expected to report that it narrowed its second-quarter loss.
Continue reading The week in preview: Seeking more signs of economic stability
Analyst upgrades, downgrades and initiations: LEN, RDC, FFIN, SII, AN, ACHN, UA, LULU, JST
Analyst upgrades:- Citigroup upgraded Lennar (NYSE: LEN) to Buy from Hold as it believes the company's near-term liquidity profile is improved following the $400M debt issuance. The firm raised its target price to $12 from $11.
- Jefferies upgraded Rowan Companies (NYSE: RDC) to Buy from Hold as it believes jack-up drillers will continue to outperform deepwater names. The firm raised its target price to $27 from $20.
- Keefe Bruyette upgraded First Financial (NASDAQ: FFIN) to Market Perform from Underperform to reflect more positive loan data for the Texas banks. The firm raised its target price on shares to $44 from $38.
- MGM Mirage (NYSE: MGM) was upgraded to Overweight from Neutral at JP Morgan.
- Morgan Stanley (NYSE: MS) was upgraded to Outperform from Market Perform at JMP Securities.
- Brinker (NYSE: EAT) was upgraded to Overweight from Equal Weight at Barclays.
Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN
Analyst upgrades:- Merriman upgraded Dendreon (NASDAQ: DNDN) to Buy from Neutral on expectations shares will react positively to the full IMPACT data release on April 28. The firm thinks Provenge could represent the first cancer immunotherapy approved in the U.S. and raised its valuation range on the stock to $33-$34 from $18-$19.
- Piper Jaffray upgraded Andersons (NASDAQ: ANDE) as it believes the valuation is attractive, investor expectations are low, and the company's fertilizer and rail segments could recovery in FY10. The firm has a $19 target on shares. Goldman upgraded the auto sector to Neutral from Cautious and added Ford (NYSE: F) to its Conviction Buy list. The analyst does not believe Ford will have to declare bankruptcy and sees the company benefiting from Chrysler share declines and GM's (NYSE: GM) reduced product offerings. Ford's price target is $6
- Banc of America/Merrill upgraded U.S. Airways (NYSE: LCC) to Buy from Underperform.
- Broadcom (NASDAQ: BRCM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
- Caterpillar (NYSE: CAT) was raised to Overweight from Neutral at JP Morgan.



