Analyst upgrades:

• Janney Montgomery upgraded Aqua America (NYSE: WTR) to Buy from Neutral on valuation, viewing the recent weakness as a buying opportunity. The firm has a $19 target on the stock.
• UBS upgraded Gildan Activewear (NYSE: GIL) to Buy from Neutral due to customer Broder's improved liquidity and the improved outlook for margins.
• RBC Capital upgraded State Street (NYSE: STT) to Top Pick from Outperform and raised its target to $55 from $40. The analyst said the $2B capital raise addresses TCE ratio concerns and large unrealized losses in the investment portfolio.
• Sherwin-Williams (NYSE: SHW) was upgraded to Overweight from Neutral at JP Morgan.
• Advance Auto Parts (NYSE: AAP) was upgraded to Buy from Underperform at Banc of America/Merrill.
• M&T Bank (NYSE: MTB) was upgraded to Outperform from Market Perform at Bernstein.

Continue reading Analyst upgrades, downgrades and initiations: WTR, GIL, STT, EHTH, AKZOY, MEOH, UTHR and HGG

Analyst upgrades, downgrades and initiations: WTR, GIL, STT, EHTH, AKZOY, MEOH, UTHR and HGG originally appeared on BloggingStocks on Tue, 19 May 2009 11:00:00 EST. Please see our terms for use of feeds.

Q. Vahan, although you primarily recommend US equities, your newsletter also includes a few international picks, such as American Oriental Bioengineering (NYSE: AOB) and Embraer (NYSE: ERJ). What factors made you choose these companies?

A. I do recommend foreign companies from time to time in the Forbes Growth Investor, but only if they trade on US exchanges and only if they show up at the top of my screens. I rely on a quantitative model that screens stocks based on the probability of out-performance over the next six to 18 months. I like AOB because it sells traditional Chinese plant-based pharmaceuticals in China. Demand is very strong for these natural products in that country. I like ERJ because it gives us exposure to Brazil, which has one the fastest growing economies in Latin America.

Q. Several of your recommendations are US-based multinationals, such as RPM (NYSE: RPM) and Amdocs (NYSE: DOX), both of whom do significant business around the world. How important was their international exposure to your selection, and why?

A: International exposure is not something I normally focus on. Besides, these days most mid- to large-sized companies have at least some international exposure. Because the global economic outlook is so uncertain at this time, I felt more comfortable with companies that have a diversified revenue stream.

Continue reading Global Q&A: Still a believer in growth

Global Q&A: Still a believer in growth originally appeared on BloggingStocks on Wed, 22 Oct 2008 11:05:00 EST. Please see our terms for use of feeds.

China introduced its first domestically manufactured regional jet Friday as the nation attempts to enter the crowded regional jet manufacturing marketplace to meet its jet needs, Reuters reported.

The ARJ21-700, or Advanced Regional Jet of the 21st Century, is being built by state-operated manufacturer AVIC I, which also makes fighter planes and bombers, Reuters reported.

Analyst C. Leonard Bauer, formerly of Prudential, told BloggingStocks on Friday that while China's introduction of the ARJ21-700 is a historic moment for Chinese aerospace development and engineering, the company and airplane manufacturing process in the world's most populous country still faces formidable hurdles.

Chief among these will be strong competition, Bauer said. Canada-based Bombardier and Brazil-based Embraer (NYSE: ERJ) are two manufacturers in the sector with demonstrated proficiency, he said, and it's unlikely that AVIC I will be able to match flight performance for at least five to seven years.

"More than likely, China's aviation officials will concentrate solely on China's market, which is what they should do, as there's not likely to be many foreign orders for the ARJ21-700 for at least a half decade," Bauer said. "Aviation is a big 'known-commodity' business, which means it will be some time before the ARJ21-700 builds a foreign order book."

Continue reading ARJ21-700 marks China's entry into regional jet market

ARJ21-700 marks China's entry into regional jet market originally appeared on BloggingStocks on Fri, 21 Dec 2007 17:40:00 EST. Please see our terms for use of feeds.

People tend to forget that Russia was one of the lead builders of military aircraft for the past several decades. The country is now trying to turn that advantage to the commercial section. And, why not? The Boeing Company (NYSE: BA) and Airbus bring in tens of billions of dollars. In one country alone, China, Boeing said that there may be 3,600 new planes needed in the next twenty years.

According to Reuters, the former Soviet Union's largest warplane maker Sukhoi, is about to launch a new commercial plane called the Superjet. The first model will hold up to 98 people. It is likely to be competition for Brazil's Embraer and Bombardier. But, a slightly larger aircraft could eventually compete with Boeing's 737.

While there is no guarantee that Russia will begin to build larger commercial planes, it would certainly be an intelligent extension of the Superjet program. The global market for larger planes is $60 billion a year. And, it has only two competitors.

There have been stories for some time that indicate that China may get into the business of building commercial planes, but its does not have the history of developing aircraft that Russia does.

Look for a larger plane to come out of Russia within the next five years. There's no reason for the country to leave the lion's share of the market to the U.S. and the Europeans.

Douglas A. McIntyre is a partner at 2/7 Wall St.

Boeing (BA): A challenge from Russia? originally appeared on BloggingStocks on Sun, 23 Sep 2007 14:40:00 EST. Please see our terms for use of feeds.