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Like its parts, Precision Castparts is soaring

With Precision Castparts Corp. (NYSE: PCP), as air travel goes, so go the profits, which is why I'm Reiterating my Buy rating for the company, first recommended on April 20, 2009, at a price of $61.92. If you bought PCP in April, you're up an impressive 50%.

Precision is a major maker of jet engine components, and PCP will benefit as engine orders ramp-up in FY2010. By most measures, an industrial bottom is occurring in the U.S. and global economies in Q3/Q4. Hence, rising demand coupled with the need to re-stock inventories of parts bodes well for Precision. The key revenue drivers: 1) emerging market economies that are modernizing their airline fleets and increasing fleet sizes and 2) Boeing's (NYSE: BA) new 787 Dreamliner, which should undergo its first test flight by the end of 2009.

Continue reading Like its parts, Precision Castparts is soaring

Boeing announces more 787s, receives an upgrade

According to FlightGlobal, Boeing (NYSE: BA) is going to "surge" (a very popular word nowadays) 787 production early in order to meet customer demand. The surge is part of the establishment of the Charleston 787 line. Boeing will use "transitional surge capability" until the second 787 line is on line; this capability will take place at Boeing's current Washington line. As far as the new South Carolina plant, the facility will support the testing and the delivery of the airplanes.

In addition to this news, Boeing received an upgrade from Macquarie Research, as the airliner was elevated to "outperform" from "neutral." Valuation was the main reason for the upgrade, as the brokerage feels that the current pullback may afford a good buying opportunity.

Continue reading Boeing announces more 787s, receives an upgrade

United Technologies knows the development of emerging markets has only just begun

The jet age is starting to re-assert itself, which is why I'm Reiterating my Buy rating for United Technologies (NYSE: UTX), first recommended on February 13, 2009 at a price of $47.09. If you bought UTX in February, you're up about 35%.

The projected 3-4% FY2010 revenue growth for UTX is looking a tad low, due to large order backlogs for both Boeing (NYSE: BA) and Airbus. Wall Street had factored-in some order deferments/cancellations, and that did weigh on United Technologies shares this summer, but now it appears the D/Cs will not be as large, which removes a potential revenue cloud.

Continue reading United Technologies knows the development of emerging markets has only just begun

Earnings highlights: Boeing, Coca-Cola, eBay, Microsoft, Pfizer, UAL, Yahoo! ...

Here are some highlights from last week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Boeing, Coca-Cola, eBay, Microsoft, Pfizer, UAL, Yahoo! ...

Economic espionage comes to trial, first time with a jury

True entrepreneurs will go to any length to get their companies off the ground. And, they're known for accepting the consequences of the risks they take. Some businesses never make it to launch, never bring in a dime, never lead to that killer IPO. In even rarer cases, these adventures can put two people behind the defendants' table on charges of corporate espionage. Lan Lee, an American, and Yuefei Ge, a Chinese citizen, allegedly swiped computer chip blueprints and tried to gain Chinese government support for a startup using these illicit goods. Now, they could face up to 65 years on charges of corporate espionage.

Continue reading Economic espionage comes to trial, first time with a jury

Buying Boeing requires bravery after Q3 loss

Boeing (NYSE: BA), an aerospace entity whose colleagues include Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT), had a very tough earnings report today. Reading about it is not for the shareholder who cannot stand even the smallest amount of pain. According to this Bloomberg article, Boeing missed estimates and posted a woeful loss because of delays for a couple of jet products.

Boeing lost $2.23 per share in the third quarter. The comparison is pretty tough, because in the similar quarter last year, the company earned 96 cents per share. Boeing was expected to lose somewhere around $2.12 per share, according to Earnings.com. Unfortunately, the guidance for the full fiscal year is pretty bad, too. What once was a range between $4.70 per share and $5.00 per share has now dropped to one with a low of $1.35 per share and a high of $1.55 per share.

Continue reading Buying Boeing requires bravery after Q3 loss

Analyst upgrades, downgrades and initiations: AMZN, BA, BAC, F, LUV, LYG T, WEN ...

Analyst upgrades:

  • RBC Capital upgraded Bank of America (NYSE: BAC) to Outperform from Sector Perform and said the company has attractive franchise value and earnings power, and is nearing the start of a credit driven earnings recovery. The firm raised its target to $22 from $19.
  • Oppenheimer assumed coverage of Amazon.com (NASDAQ: AMZN) and upgraded shares to Outperform from Perform. The firm expects Amazon's revenue growth to re-accelerate over the next several quarters, making consensus estimates too conservative. Opco set a $130 price target on the stock.
  • Barclays upgraded Ford (NYSE: F) to Equal Weight from Underweight and believes the company will report Q3 results above the Street. The firm raised its Q3 EPS estimate to 7 cents from 16 cents, vs. consensus of 21 cents, and its price target to $8 from $7.
  • Charles River Labs (NYSE: CRL) was upgraded to Neutral from Sell at Goldman.
  • Briggs & Stratton (NYSE: BGG) was upgraded to Outperform from Neutral at Baird.
  • Sealed Air (NYSE: SEE) was upgraded to Equal Weight from Underweight at Barclays.

Continue reading Analyst upgrades, downgrades and initiations: AMZN, BA, BAC, F, LUV, LYG T, WEN ...

Extra airline fees to become the new 'normal'

If you think all those new airline fees were a temporary measure to help these beleaguered companies through an economic crisis, you're out of your mind. Now that they've had a taste of how much they can make by charging you for an extra bag or a little more leg room, they're hooked. More important, the fees are making up a meaningful portion of airline revenues and profits, so investors aren't likely to be satisfied with a return to normal – well, they can't. Extra fees are the new "normal."

Continue reading Extra airline fees to become the new 'normal'

Analyst upgrades, downgrades and initiations: BA, FRO, GENZ, JBLU, MS, VARI ...

Analyst upgrades:

  • FBR Capital upgraded Frontline (NYSE: FRO) to Market Perform from Underperform to reflect the company's above-average day rates and alleviated near-term financing pressures. The firm raised its target on shares to $23 from $14.
  • Baird upgraded Varian Medical (NASDAQ: VARI) to Outperform from Neutral and said checks at ESTRO meeting indicate European radiation therapy market demand will remain "respectable" in 2010 and that launch of Unique could drive incremental demand in developing markets. The firm has a $49 target on shares.
  • Goldman believes GameStop (NYSE: GME) Street expectations are beatable and valuation is attractive. The firm upgraded shares to Conviction Buy from Neutral and has a $28 target.
  • Borg-Warner (NYSE: BWA) was upgraded to Outperform from Market Perform at Wells Fargo.
  • KKR Financial (NYSE: KFN) was upgraded to Outperform from Market Perform at JMP Securities.
  • Cathay Pacific (OTC: CPCAY) was upgraded to Outperform from Neutral at Credit Suisse.

Continue reading Analyst upgrades, downgrades and initiations: BA, FRO, GENZ, JBLU, MS, VARI ...

Closing bell: The consumer's retreat takes Wall Street down (BBI, BA)

The only really important bit of financial news today was the Reuters/University of Michigan consumer sentiment figure for August. It declined to 63.2 from 66 in May. The consensus among economists polled by MarketWatch was the August's figure would be 69. The portion of the poll called the "expectations index" hit its lowest level since March.

That is particularly bad news because March was the depth of the recession. Analysts were at a loss to explain why the consumer's picture of the economy had turned sour so fast. It is certainly a sign a rebound in spending may be well off in the future, which could be bad news for the upcoming holiday season.

Today's unofficial closing numbers:

Dow 9,321.40 -76.79 (-0.82%)
S&P 500 1,004.09 -8.64 (-0.85%)
Nasdaq 1,985.52 -23.83 (-1.19%)

Continue reading Closing bell: The consumer's retreat takes Wall Street down (BBI, BA)

Boeing 787's wing flaw: A data point the U.S. economy does not need

Word that Boeing's next-generation plane, the 787 Dreamliner, may not fly until 2010, according to The Seattle Times, is bad news not just for the company, it's a negative data point for the U.S. economy.

The 787's engineers must correct a wing flaw that extends to inside the plane: 17 long stiffening rods, called "stringers," on each wing's upper skin, sustained damage that occurred just beyond the aircraft's "limit load," which is the maximum load the wing is expected to bear in service, The Times said. In other words, the wing damage occurred when the wing was well below the load the wings must bear to be federally certified to carry passengers.

Continue reading Boeing 787's wing flaw: A data point the U.S. economy does not need

Analyst upgrades, downgrades and initiations: BA, EXEL, FINL, NTAP, UNH, WU ...

Analyst upgrades:

  • B. Riley upgraded Finish Line (NASDAQ: FINL) to Buy from Neutral to reflect the potential for improving trends in second half of 2009. The firm raised its target on shares to $10.50 from $9.
  • Merriman upgraded OptionXpress (NASDAQ: OXPS) to Neutral from Sell following the company's better than expected Q2 results. The firm notes higher commissions per trade more than offset weak DARTs and the decline in customer additions in the quarter.
  • RBC Capital upgraded Gardner Denver (NYSE: GDI) to Outperform from Sector Perform and raised its target to $34 from $28 citing the additional scale of restructuring, better tone to end-markets, and few downside catalysts. Baird upgraded Gardner Denver to Outperform from Neutral and raised its target to $35 from $32 based on a bottom in fundamentals and compelling valuation.
  • BE Aerospace (NASDAQ: BEAV) was upgraded to Outperform from Market Perform at FBR Capital.
  • Shire (NASDAQ: SHPGY) was upgraded to Perform from Underperform at Oppenheimer.
  • UnitedHealth (NYSE: UNH) was upgraded to Outperform from Neutral at Credit Suisse.

Continue reading Analyst upgrades, downgrades and initiations: BA, EXEL, FINL, NTAP, UNH, WU ...

Boeing downgraded by Barclays Capital

Bright and early this morning, Barclays Capital decided to take its downgrade stick to Boeing (NYSE: BA). The aerospace firm was cut to Equal Weight from Overweight and its price target was slashed to $46 from $60. The analyst said the delays for the 787 project are largely the reason for the downgrade, noting that Boeing has yet to determine the schedule for the airplane or the financial impact of the delays.

This latest downgrade is yet another hit for the Dow component, as it struggles to deal with the 787 project - which has caused a lot of problems for the company.

Continue reading Boeing downgraded by Barclays Capital

Raytheon increases profit, beats the analysts in Q2

Raytheon (NYSE: RTN), a defense contractor whose related companies include Northrop Grumman (NYSE: NOC) and Boeing (NYSE: BA), posted second-quarter results earlier in the week. The company seems to be performing pretty well, judging by the growth in the stats.

Net sales increased 4%. Okay, that might not sound so robust, but income from continuing operations rose 25% to $1.24 per share. According to Earnings.com, the market was only looking for $1.13 per share from Raytheon. Operating cash flow also looked good, especially once you take into account a timing element related to cash contributions for pension plans.

Continue reading Raytheon increases profit, beats the analysts in Q2

Closing Bell: Despite action, tech wants to rule (AMD, AAPL, BA, GE, SBUX, YHOO)

This was a very light economic day that was again sort of trumped by a Ben Bernanke speech, but this was to the Senate panel rather than yesterday's House panel. Earnings dominated the trends of the news and the markets spent all day trying to figure out if they wanted to be up or down. However, tech stocks have managed to rise and rise. And rise. Right before the closing bell, this looked to be the eleventh day up in a row.

Here were today's unofficial closing bell levels:

Dow 8,881.26 -34.68 (-0.39%)
S&P 500 954.06 -0.52 (-0.05%)
Nasdaq 1,926.38 +10.18 (0.53%)

Major Analyst Upgrades

Continue reading Closing Bell: Despite action, tech wants to rule (AMD, AAPL, BA, GE, SBUX, YHOO)

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Symbol Lookup
IndexesChangePrice
DJIA+73.0010,270.47
NASDAQ+18.862,167.88
S&P 500+6.241,093.48

Last updated: November 15, 2009: 06:54 PM

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