Analyst Upgrades

• Canaccord believes growth in DigitalGlobe's (DGI) commercial business will be a catalyst for shares. The firm upgraded shares to buy from hold and has a $38 price target on the stock.
• Standpoint upgraded Abercrombie & Fitch (ANF) to accumulate from hold based on valuation. The firm has a $47 target on the stock.
• Morgan Keegan upgraded Open Text (OTEX) to outperform from market perform based on the company's strong FY2011 EPS outlook.
• Devon Energy (DVN) was upgraded to overweight from equal weight at Morgan Stanley.
• Magna (MGA) was upgraded to outperform from sector perform at RBC Capital.
• EnCana (ECA) was upgraded to outperform from neutral at Macquarie.

Continue reading Analyst Calls: ANF, CRUS, DGI, EAT, EV, MELI, OTEX, PH, SIRI, WYNN ...

Analyst Calls: ANF, CRUS, DGI, EAT, EV, MELI, OTEX, PH, SIRI, WYNN ... originally appeared on BloggingStocks on Thu, 19 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

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

• Agilent Technologies Inc. (NYSE: A) topped estimates but offered an outlook below expectations.
• Best Buy Co. (NYSE: BBY) warned that it many not be able to maintain its earnings momentum.
• Charlotte Russe Holding Inc. (NASDAQ: CHIC) was upgraded because of its growth potential.
• Focus Media Holding Ltd. (NASDAQ: FMCN) shares tumbled after it reported Q3 numbers.
• HLS Systems International (NASDAQ: HOLI) earnings prospects and management impressed an analyst.
• JCPenney Co. Inc. (NYSE: JCP) reported a lower Q3 profit and lowered its guidance due to the recession.
• KKR Financial Holdings (NYSE: KFN) disappointing Q3 results led to analyst downgrades.
• MercadoLibre Inc. (NASDAQ: MELI) doubled its Q3 profit and beat earnings expectations.
• Nortel Networks Corp. (NYSE: NT) swung to a Q3 net loss and unveiled further restructuring measures.
• Perry Ellis International Inc. (NASDAQ: PERY) posted preliminary Q3 results and lowered its outlook.
• Siemens (NYSE: SI) Q4 net loss widened and it warned about meeting its profit target for the year.
• Starbucks Corp. (NASDAQ: SBUX) Q4 earnings were hurt by restructuring costs, revenue rose slightly.
• Toll Brothers Inc. (NYSE: TOL) posted dismal Q4 results and declined to offer guidance for next year.
• Tyson Foods Inc. (NYSE: TSN) solid Q4 results fell short of estimates and it offered a shaky outlook.
• Wells Fargo & Co. (NYSE: WFC) earnings prospects following its equity offering led to an analyst's upgrade.

Continue reading Earnings highlights: Starbucks, Best Buy, JCPenney, Agilent, Wells Fargo and others

Earnings highlights: Starbucks, Best Buy, JCPenney, Agilent, Wells Fargo and others originally appeared on BloggingStocks on Sat, 15 Nov 2008 15:40:00 EST. Please see our terms for use of feeds.

After hitting a one-year low of $21.00 in August, the stock hit a one-year high of $81.17 in December. MELI opened this morning at $28.50. So far today the stock has hit a low of $27.65 and a high of $30.73. As of 12:15, MELI is trading at $30.45, up $3.66 (13.7%). The chart for MELI looks bearish and steady.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just ten weeks as long as MELI is above $20 at September expiration. MELI would have to fall by more than 35% before we would start to lose money.

Continue reading Mercadolibre (MELI) CEO stops selling stock

Mercadolibre (MELI) CEO stops selling stock originally appeared on BloggingStocks on Wed, 09 Jul 2008 15:03:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Oppenheimer upgraded shares of Northrop Grumman (NYSE: NOC) to Outperform from Perform after the Pentagon selected the company over Boeing (NYSE: BA) for the newly designated KC-45A Aerial Refueling Tanker with a potential value of $35B.
  
• Citigroup upgraded shares of Groupe Danone (OTC: GDNNY) to Buy from Hold on valuation, as they believe the sell-off on commodity cost concerns is overdone.
  
• MercadoLibre (NASDAQ: MELI) was raised to Outperform from Sector Perform at RBC Capital, as they believe MELI's long-term thesis is more compelling now vs. six months ago and notes favorable reaction to Mercado Pago v2.0.

• Goldman upgraded Societe Generale (OTC: SCGLY) to Neutral from Sell.
  
• Jefferies upgraded Exelon (NYSE: EXC) to Buy from Hold.
  
• Deutsche Telekom (NYSE: DT) was raised to Neutral from Underweight at JP Morgan.

Analyst upgrades: NOC, GDNNY and MELI originally appeared on BloggingStocks on Mon, 03 Mar 2008 11:11:00 EST. Please see our terms for use of feeds.

Continue reading How to catch these four falling knives (GRMN, MELI, FSLR, EXPE)

How to catch these four falling knives (GRMN, MELI, FSLR, EXPE) originally appeared on BloggingStocks on Fri, 18 Jan 2008 10:10:00 EST. Please see our terms for use of feeds.

MercadoLibre (NASDAQ: MELI), the largest online trading and payment platform in Latin America, is recently up $2.01 to $74.86. MELI January option implied volatility of 105 is above its 11-week average of 81 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options update: MercadoLibre volatility spikes on rally originally appeared on BloggingStocks on Thu, 27 Dec 2007 12:55:00 EST. Please see our terms for use of feeds.

Continue reading Mercadolibre (MELI): The financial media's dream

Mercadolibre (MELI): The financial media's dream originally appeared on BloggingStocks on Mon, 17 Dec 2007 17:34:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• VMWare Inc (NYSE: VMW) was initiated by a host of firms: Banc of America believes the current valuation captures most of the upside potential, and started shares with a Neutral rating and $75 target. Wachovia started shares with a Market Perform rating and Deutsche Bank started shares with a Hold rating and $80 target on valuation. The stock was also started with a Buy rating and $92 target at UBS, with a Buy rating and $100 target at Citigroup and with an Overweight rating at JP Morgan and with a Neutral rating at Merrill Lynch.
  
• Validus Holdings (NYSE: VR) was started with a Buy rating and $29 target at UBS on valuation and benefits from the Talbots (NYSE: TLB) acquisition. Shares were also initiated at JP Morgan with a Neutral rating.
  
• CIBC resumed coverage of Hologic Inc (NASDAQ: HOLX) with a Sector Outperformer rating and $77 target as the firm is positive on Hologic's merger with Cytyc Corporation (NASDAQ: CYTC) and views it as one of the top mid-cap stories in the coming year.

• B. Riley initiated shares of EuroBancshares (NASDAQ: EUBK) with a Buy rating and $10 target.
  
• Rodman resumed coverage of Ziopharm Oncology Inc (NASDAQ: ZIOP) with a Market Outperform rating and $8 target.
  
• Citigroup started shares of Timken Company (NYSE: TKR) with a Buy rating and $43 target.
  
• MercadoLibre Inc (NASDAQ: MELI) was initiated with a Sector Perform rating and $39 target at RBC Capital.

Analyst initiations: VMW, VR and HOLX originally appeared on BloggingStocks on Mon, 24 Sep 2007 10:55:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Credit Suisse initiated coverage of the U.S. media sector with a Market Weight rating, shares of The Walt Disney Company (NYSE: DIS) with an Outperform rating and shares of Time Warner Inc (NYSE: TWX) and Viacom Inc (NYSE: VIA.B) with Neutral ratings.
  
• Bernstein initiated coverage of the oil services sector with a Positive Bias rating. The firm initiated Weatherford International Ltd (NYSE: WFT) with an Outperform rating and $84 target and Halliburton Company (NYSE: HAL), Baker Hughes Incorporated (NYSE: BHI) and Schlumberger Limited (NYSE: SLB) with Market Perform ratings and a $44 target, $103 target and $96 target, respectively.
  
• MercadoLibre Inc (NASDAQ: MELI) was initiated by American Technology with a Buy rating and $45 target, as the firm believes the e-commerce growth opportunity in Latin America is still in its infancy. Shares were also started at Pacific Crest with an Outperform rating and $37 target, as the firm believes the company should benefit from strong secular growth and company-specific drivers. MercadoLibre was also initiated at JP Morgan with an Overweight rating and at Merrill Lynch with a Buy rating and $35 target.
  
• Friedman Billings expects Horsehead Holding Corp's (NASDAQ: ZINC) EBITDA to increase even in a declining commodity environment and believes the company is well positioned to gain market share. Shares were started with an Outperform rating and $27 target also added to the firm's Top Pick List.

• Citigroup started shares of Companhia Vale do Rio Doce (NYSE: RIO) with a Buy rating and shares of StealthGas Inc (NASDAQ: GASS) with a Hold rating and $20 target.
  
• Roth Capital started shares of Internap Network Services Corporation (NASDAQ: INAP) with a Buy rating and $19 target.
  
• Raymond James initiated Atmel Corporation (NASDAQ: ATML) with an Outperform rating and Argo Group Internaional Holdings Ltd (NASDAQ: AGII) with a Strong Buy rating.

Analyst initiations: U.S. media, oil services, MELI and ZINC originally appeared on BloggingStocks on Wed, 19 Sep 2007 11:10:00 EST. Please see our terms for use of feeds.

It's been a mixed bag for IPOs this week. But, as for the MercadoLibre (NASDAQ: MELI)'s offering, things were certainly upbeat.

The IPO priced at $18 (at the top of the $16-$18 range) and raised a cool $332.8 million. So far, shares are trading up 38% to $25.

MercadoLibre operates the largest online trading platform in Latin America (which has about 550 million or so people). In fact, the region is experiencing high rates of internet penetration.

MercadoLibre has an assortment of services: product listings, which are based on either a fixed-price or auction-based format; classifieds; and secure payment solutions. There are more than 2,000 product categories, and the sites attract about 2.9 million listings per month.

The top-line growth has been impressive. From 2004 to 2006, revenues surged from $12.7 million to $52.1 million. During this time, operating expenses increased at a slower rate, going from $16 million to $46.7 million. In other words, the company is realizing operating leverage.

There is competition, such as from DeRemate and MasOportunidades.com. There is also pressure from large online communities like Google (NASDAQ: GOOG), Amazon.com (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Yahoo (NASDAQ: YHOO).

Also, eBay (NASDAQ: EBAY) owns roughly 19% of MercadoLibre. However, the strategic alliance has expired and eBay is now able to become a competitor as well.

The lead underwriters on the deal include J.P. Morgan Securities Inc. (NYSE: JPM) and Merrill Lynch (NYSE: MER).

You can find the prospectus at the SEC website. Also, if you want to check out more IPO pricings, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

MercadoLibre (MELI) is en fuego originally appeared on BloggingStocks on Fri, 10 Aug 2007 15:00:00 EST. Please see our terms for use of feeds.

MercadoLibre coming to America for an IPO originally appeared on BloggingStocks on Mon, 14 May 2007 12:25:00 EST. Please see our terms for use of feeds.