Continue reading Pearson Up on Earnings News

Pearson Up on Earnings News originally appeared on BloggingStocks on Mon, 26 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• RBC Capital upgraded Suncor (SU) to outperform from sector perform following the Q1 report and FY10 production guidance. The firm has a $46 target on the stock.
• Wells Fargo upgraded Clear Channel Outdoor (CCO) to outperform from market perform. The firm expects the company to report higher-than-expected Q1 revenue and guidance, as it thinks a late cycle ad recovery is occurring.
• Piper Jaffray upgraded Power Integrations (POWI) to overweight from neutral following the company's Q1 results and subsequent sell-off. The firm has a $43 price target for shares.
• ArcelorMittal (MT) was upgraded to buy from hold at ING Group.
• Sapient (SAPE) was raised to conviction buy from buy at Goldman and to buy from hold at Citigroup.
• Powerwave (PWAV) was upgraded to buy from hold at Befferies and to buy from neutral at Merriman.

Continue reading Analyst Calls: ACN, CCO, CLX, EHTH, HAS, HOLX, MT, POWI, SON, SU ...

Analyst Calls: ACN, CCO, CLX, EHTH, HAS, HOLX, MT, POWI, SON, SU ... originally appeared on BloggingStocks on Tue, 04 May 2010 12:10:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Goldman upgraded CTC Media (NASDAQ: CTCM) to Buy from Neutral on a better outlook for European Media names and raised its target on shares to $17.60 from $12.
• Morgan Joseph upgraded Movado (NYSE: MOV) to Buy from Hold after the company reported better-than-expected Q2 results. The firm set a $16 target on the stock.
• Needham upgraded LTX Credence (NASDAQ: LTXC) to Strong Buy from Hold following the company's Q4 results with a $3 price target.
• Canon (NYSE: CAJ) was upgraded to Outperform from Underperform at Macquarie.
• Whitney Holding (NASDAQ: WTNY) was upgraded to Buy from Neutral at SunTrust.
• Gafisa SA (NYSE: GFA) was upgraded to Overweight from Equal Weight at Morgan Stanley.

Continue reading Analyst upgrades, downgrades and initiations: ANF, CAJ, CTCM, MOV, MV, VMED ...

Analyst upgrades, downgrades and initiations: ANF, CAJ, CTCM, MOV, MV, VMED ... originally appeared on BloggingStocks on Fri, 04 Sep 2009 10:50:00 EST. Please see our terms for use of feeds.

• Citigroup upgraded MEMC Electronic (NYSE: WFR) to Buy from Hold after channel checks indicated solar poly price pressures are easing. The firm added MEMC to its Top Picks Live list and raised its price target on shares to $24 from $15.
  
• FBR Capital upgraded PHH Corp (NYSE: PHH) to Outperform from Market Perform to reflect an improvement in mortgage banking fundamentals and recent management changes at the company. The firm raised its target on shares to $23 from $13.
  
• Deutsche Bank upgraded PerkinElmer (NYSE: PKI) to Hold from Sell on valuation, seeing a balanced risk/reward at current levels. The firm raised its target on shares to $19 from $14.
• Pearson plc (NYSE: PSO) was upgraded to Outperform from Neutral at Credit Suisse.
  
• Dell (NASDAQ: DELL) was upgraded to Conviction Buy from Neutral at Goldman.
  
• Nymagic (NYSE: NYM) was upgraded to Market Perform from Underperform at Keefe Bruyette.

Continue reading Analyst upgrades, downgrades and initiations: DELL, IBM, IPCR, NETL ...

Analyst upgrades, downgrades and initiations: DELL, IBM, IPCR, NETL ... originally appeared on BloggingStocks on Fri, 10 Jul 2009 11:00:00 EST. Please see our terms for use of feeds.

• Deutsche Bank upgraded Portland General Electric (NYSE: POR) to Buy from Hold on valuation as it finds the risk/reward on shares attractive at current levels. The firm raised its target price to $22 from $20.
  
• FBR Capital upgraded Abercrombie & Fitch (NYSE: ANF) to Outperform from Market Perform after channel checks indicated recent sales are driving increased traffic and easing market share losses. The firm raised its target price on shares to $37 from $21.
• Barclays upgraded Yahoo (NASDAQ: YHOO) to Overweight from Equal Weight as it believes the company is well positioned for a rebound in advertising and that the valuation is compelling at current levels. The firm raised its target on shares to $20 from $15.
• Kohl's (NYSE: KSS) was raised to Overweight from Market Weight at Thomas Weisel.
  
• U.S. Steel (NYSE: X) and CB Richard Ellis (NYSE: CBG) were upgraded at Goldman to Neutral from Sell.
  
• Dolby Laboratories (NYSE: DLB) was upgraded at JP Morgan to Overweight from Neutral.

Continue reading Analyst upgrades, downgrades and initiations: ANF, YHOO, X, SLE, OSK ...

Analyst upgrades, downgrades and initiations: ANF, YHOO, X, SLE, OSK ... originally appeared on BloggingStocks on Mon, 01 Jun 2009 12:15:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Citigroup upgraded shares of Lennar (NYSE:LEN) to Buy from Hold on valuation as they believe the recent sell-off on concerns of fraud is overdone. The firm thinks the allegations made by Barry Minkow/Fraud Discovery Institute are unfounded and has an $11 target on shares.
  
• Merriman upgraded Nautilus Group (NYSE:NLS) to Neutral from Sell after meeting with management to reflect increased optimism on the company's turnaround.
  
• Baird upgraded Leap Wireless (NYSE:LEAP) to Outperform from Neutral based on valuation and strong subscriber trends.
  
• Transocean (NYSE:RIG) was added to Goldman's Conviction Buy List.
  
• Pearson PLC (NYSE:PSO) was raised to Neutral from Underweight at JP Morgan.
  
• Smith & Nephew (NYSE:SNN) was lifted to Outperform from Neutral at Credit Suisse.

• JP Morgan downgraded Bed Bath & Beyond (NASDAQ:BBBY) to Underweight from Neutral and lowered their target to $20 from $26 as they believe potential benefits from the Linens' N Things closing are being overstated and that the risk/reward is unfavorable at current levels.
  
• Keefe Bruyette downgraded Citizens Republic (NASDAQ:CRBC) to Market Perform from Outperform and cut their target to $3 from $7 to reflect the company's lower capital position.
  
• UBS downgraded Energizer (NYSE:ENR) to Sell from Neutral and lowered their target to $40 from $48 citing signs of a battery price war, Wal-Mart's (NYSE:WMT) reduction in space allocation, and the company's cuts in investment.
  
• Chevron (NYSE:CVX) was removed from Goldman's Conviction Buy List.
  
• MetroPCS (NYSE:PCS) was lowered to Sector Perform from Outperform at RBC Capital.
  
• Lincoln Electric (NASDAQ:LECO) was cut to Sell from Neutral at Piper Jaffray.

• Global Hunter believes Pep Boys (NYSE:PBY) is well-positioned to benefit from increased demand for replacement parts and maintenance services as new car purchases are deferred. Shares were initiated with a Buy rating and $5.50 target.
  
• Jefferies started Sanofi-Aventis (NYSE:SNY) with an Underperform rating and sees downside risk to the stock from the potential introduction of Lovenox generics in the U.S.
  
• Merriman assumed Alter Nrg (NYSE:ANRGF) with a Neutral rating and recommends waiting on the sidelines pending increased visibility on the company's gasification projects.
  
• JP Morgan (NYSE:JPM) was re-initiated with a Buy rating at Goldman. Shares were also added to Goldman's Conviction Buy List.
  
• Hudson City Bancorp (NYSE:HCBK) was assumed with an Overweight rating and $15 target at Barclays.
  
• DG FastChannel (NASDAQ:DGIT) was initiated at BWS Financial with a Strong Buy rating and $30 target.

Analyst upgrades, downgrades and initiations: LEN, LEAP, BBBY, ENR, JPM originally appeared on BloggingStocks on Mon, 26 Jan 2009 12:55:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Oppenheimer upgraded Inter Parfums (NASDAQ: IPAR) to Outperform from Perform on valuation and increased comfort with the company's outlook after meeting with management.
  
• Deutsche Bank raised Covidien (NYSE: COV) to Buy from Hold on the company's solid execution and ongoing restructuring, which they believe will drive EPS higher. The firm raised its target to $63 from $51.
• Regions Financial (NYSE: RF) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• American Eagle (NYSE: AEO) was lifted to Buy from Neutral at Banc of America.
  
• Goldman raised Healthways (NASDAQ: HWAY) to Neutral from Sell.

Analyst downgrades:

Continue reading Analyst calls: AAPL, BAC, MRK, NOK, YUM . . .

Analyst calls: AAPL, BAC, MRK, NOK, YUM . . . originally appeared on BloggingStocks on Wed, 10 Sep 2008 12:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• UBS believes it is increasingly likely that Wachovia Bank (NYSE: WB) will need to raise capital. The firm said the company may need to raise $5B in equity and cuts its dividend to 1c, which will save $3B annually. UBS cut shares to Neutral from Buy and lowered its 2008 EPS estimate to ($1.98).
  
• Morgan Stanley downgraded shares of Deutsche Bank (NYSE: DB) to Underweight from Equal Weight as they believe DB may have to increase its tier 1 ratio, which could lead to dividend cuts or asset sales.
  
• Deutsche Bank downgraded Pearson (NYSE: PSO) to Sell from Hold as they believe the weak funding environment for Education will slow earnings growth.

• UBS lowered Thomson Reuters (NASDAQ: TRIN) to Sell from Neutral.
  
• Starwood Hotels (NYSE: HOT) and Gaylord Entertainment (NYSE: GET) were downgraded to Sell from Neutral at Goldman Sachs.

Analyst downgrades: WB, DB, PSO, TRIN, HOT, GET originally appeared on BloggingStocks on Mon, 14 Jul 2008 12:05:00 EST. Please see our terms for use of feeds.

Will Penguin pull fake gang story 'Love and Consequences' off shelves? originally appeared on BloggingStocks on Tue, 04 Mar 2008 14:42:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies downgraded shares of American Capital (NASDAQ: ACAS) to Hold from Buy citing the slowing M&A market and risk characteristics of the company.

• Soleil downgraded Doral Financial (NYSE: DRL) to Sell from Hold, on the belief that the recent reverse stock split will increase short-selling activity and discourage speculative buying.

• E-Trade Financial (NASDAQ: ETFC) was cut to Neutral from Buy at UBS, citing deteriorating trends in the credit/mortgage markets, lack of near-term catalysts; the firm does not see an M&A deal occurring near-term.

• Goldman downgraded Family Dollar (NYSE: FDO) to Neutral from Buy, citing weakness in the low-end consumer and increased pressure from Wal-Mart (WMT)...

• Wachovia downgraded Tween Brands (NYSE: TWB) to Market Perform from Outperform.

• Estee Lauder (NYSE: EL) was downgraded to Neutral from Outperform at Credit Suisse.

• Deutsche Bank cut Pearson (NYSE: PSO) to Hold from Buy.

• Matrix downgraded Talisman Energy (NYSE: TLM) to Hold from Buy.

Analyst downgrade: DRL, EL, ETFC and FDO originally appeared on BloggingStocks on Wed, 22 Aug 2007 10:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The FDA said no to Pristiq, an experimental Wyeth (NYSE: WYE) drug to treat the symptoms of menopause, reported the Wall Street Journal.
• The $3.1B sale of General Motors Corporation's (NYSE: GM) Allison Transmission to Carlyle Group and Onex has stalled in the debt financing market, thanks to difficulties raising debt from investors, reported the Wall Street Journal's "Heard on the Street" column.
• LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) is expected to acquire Les Echos from Pearson (NYSE: PSO) for $331.9M, reported the Wall Street Journal.

• Time Warner Inc's (NYSE: TWX) AOL is entering the behavioral-targeting ad market by purchasing Tacoda, which uses "behavioral targeting" techniques to track Web surfers' habits, reported the New York Post.
• Cerberus Capital Management's acquisition of DaimlerChrysler AG's (NYSE: DCX) Chrysler unit could be completed on Monday or Tuesday of next week, reported the Detroit Free Press.

Newspaper wrap-up 7-24-07: Chrysler sale could be completed next week originally appeared on BloggingStocks on Tue, 24 Jul 2007 09:15:00 EST. Please see our terms for use of feeds.

Fox to launch business channel; FT and CNBC look to join forces originally appeared on BloggingStocks on Fri, 13 Jul 2007 15:15:00 EST. Please see our terms for use of feeds.

General Electric out, News Corp in? originally appeared on BloggingStocks on Fri, 22 Jun 2007 13:25:00 EST. Please see our terms for use of feeds.

The battle for Dow Jones continues to heat up originally appeared on BloggingStocks on Mon, 18 Jun 2007 13:55:00 EST. Please see our terms for use of feeds.

Since General Electric Co. (NYSE: GE) and Pearson Plc. (NYSE: PSO) face daunting odds in trying to challenge Rupert Murdoch's $5 billion bid for Dow Jones & Co. (NYSE: DJ), why are so many leakers trying to keep this story alive?

The Wall Street Journal reports that the two companies are talking -- and it's nothing more than that -- about bidding for the New York-based media company. They would combine CNBC, Pearson's Financial Times and Dow Jones into a privately held joint venture that would be controlled by both companies with a minority stake held by the Bancrofts.

Dow Jones' controlling family would be able to sell their stakes in the company if they want or convert their Dow Jones stock into the new company avoiding a big capital gains tax. The paper said that the Bancrofts would even be willing to accept a LOWER bid than the $60 per share offered by Murdoch's News Corp (NYSE: NWS) to protect the Journal's integrity.

As I've argued before, the Bancrofts professed love for the Journal is a bit hard to believe. Maybe some faction of the family is trying to keep the media's hope that someone may thwart Murdoch's plans to buy Dow Jones to squeeze more money out of the Australian tycoon. That may explain why all of these stories are caveated with phrases such as "long shot."

I would go even farther say that the odds of a competing bid emerging for Murdoch for Dow Jones are slim to none. Chances of GE and Pearson buying the company are even lower. Even if the companies bid, Murdoch would raise his insane offer high enough to deter any rational buyer.

A GE-Pearson bid for Dow Jones makes no sense financially.

As The Journal points out, if the Bancrofts kept a 15 percent in the new company, General Electric and Pearson would have to come up with $4.25 billion in cash, most of which would probably have to come up debt and cash contributions from the U.K. publisher.

Moreover, this would be a bear to manage. Running a news operation is like herding cats on a good day. Running three organizations (CNBC, The Journal and the FT)) each competing for the same audience and the same stories would be Byzantine in complexity. There also would be epic bureaucratic turf wars since both companies would have equal say in managing the company. I suspect allowing the Bancrofts to continue to have a say the venture's affairs would create an additional set of headaches.

Since it's obvious that the GE-Pearson deal won't happen, why are people still trying to talk it up? My hunch is that the chatter is coming from across the Atlantic. Pearson is under pressure from its shareholders to dump the FT and focus on higher-growth businesses such as textbooks. General Electric would probably be keen on the idea of having Dow Jones as a buffer against the nascent Fox Business Channel.

Regardless, Dow Jones is just a business to both companies. For Murdoch, it's an object of lust. At the end of the day, emotion will trump logic.

If GE-Pearson bid for Dow Jones is a longshot, why the chatter? originally appeared on BloggingStocks on Mon, 18 Jun 2007 12:27:00 EST. Please see our terms for use of feeds.

Pearson Plc.'s (NYSE: PSO) is reportedly interested in making a bid for Dow Jones & Co. (NYSE: DJ) to counter the $5 billion unsolicited offer from Rupert Murdoch's News Corp. (NYSE: NWS). The problem is that the U.K. company can't beat Murdoch on its own and will have difficulty finding partners willing to take on the Australian media mogul.

The Wall Street Journal says that the owner of the Financial Times as been trying in recent weeks to recruit partners to pursue a bid for Dow Jones though a formal offer is a "long shot." General Electric Co.'s (NYSE: GE) NBC Universal has rebuffed Pearson which also approached Hearst Corp., the paper said.

Since nothing has actually happened yet, the question arises about who leaked the story. Was it the Bancrofts who control Dow Jones trying to find a white knight to rescue them from the evil Murdoch? Maybe it was a Pearson banker or a banker from one of the companies that was approached by the publisher.

Investment bankers have been known to leak information about deals that they hope might happen to drum up business. Pearson also could have floated a trial balloon to see how shareholders would react to the leak.

Their answer was pretty clear. Shares of Dow Jones rose a whopping 1.9 percent Friday to $59.01. Wall Street is holding its breath for a counter offer.

I suppose combining the Financial Times and Wall Street Journal would create a financial news juggernaut. The FT's strength in Europe would compliment the Journal's strength in the U.S. The problem is that it doesn't make much sense financially.

As the Journal points out, News Corp's $60 a share offer for Dow Jones values the company at 40 times 2007 earnings, less than half of the valuation of the U.K.-based publisher. That would dilute Pearson's shares significantly.

News Corp's has a market cap of $70.3 billion compared with $13.9 billion for Pearson. In boxing terms, this would be like a middleweight taking on a heavyweight. The contest wouldn't even be close.

The problem that Pearson or any other potential rival to Murdoch faces has nothing to do with money. Murdoch wants to own the Journal badly enough to pay an outrageously high price for the company that owns it. The odds of Pearson being able to find a deep-pocketed partner willing to join it in bidding for Dow Jones are slim to none.

Pearson is no match against Murdoch for Dow Jones originally appeared on BloggingStocks on Fri, 15 Jun 2007 22:47:00 EST. Please see our terms for use of feeds.

The powerful head of News Corp (NYSE: NWS.A), Rupert Murdoch, has been doggedly pursuing The Wall Street Journal these past few weeks, but the Journal's controlling family, the Bancrofts, keep rebuffing his advances (that come in the form of a $5 billion takeover bid). In a letter Murdoch sent them last weekend, apparently one of the many assurances he made to the family was the vow to bolster The Wall Street Journal's presence in Europe. This would require bringing down the market share leader, the Financial Times, owned by Pearson PLC (ADR) (NYSE: PSO).

This UK-based education and information company publishes textbooks throughout the world, as well as books through the respected publishing imprint Penguin Group, among other imprints, and publishes the Financial Times, along with other business newspapers, magazines, and specialist information.

Rumor has it that the impressive and highly respected head of Pearson, Marjorie Scardino, has always insisted that the Financial Times isn't for sale. But if Murdoch indeed buys the WSJ, she might be tempted to sell the FT after all. When Murdoch promises to beat the competition, he often succeeds. The share price of Pearson has wavered on fears of what will happen to the Financial Times should the WSJ change hands.

Continue reading Pearson: Murdoch's Plan B?

Pearson: Murdoch's Plan B? originally appeared on BloggingStocks on Mon, 21 May 2007 09:30:00 EST. Please see our terms for use of feeds.

Dow Jones & Company's (NYSE: DJ) Wall Street Journal (a.k.a., The Towel) occupies a unique spot in the media firmament. As I pointed out earlier in the year, it changed its footprint and now looks to me like a Holiday Inn bath towel. Towel Talk offers a perspective on its news and views.

News Corp.'s (NYSE: NWS) bid for The Towel has plunged a fiery torch into the viper's nest of conflict and ambition at the paper. And this conflict has opened up the possibility of numerous bidders and targets in the beleaguered newspaper business.

I come to this story with some conflicts of my own. I have done consulting work for News Corp.'s Chairman and CEO and have worked with several reporters from The Towel. But what I find most interesting about this takeover is that it plunges right to the heart of the conflict within The Towel between the Bancroft family, which I imagine backs the Towel's arch conservative editorial page, and the reporting side, whose union representatives have opposed the deal.

Continue reading Towel Talk: Dow Jones' red state blues

Towel Talk: Dow Jones' red state blues originally appeared on BloggingStocks on Wed, 02 May 2007 13:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Citigroup cut First Data Corp (NYSE: FDC) to Hold from Buy and AG Edwards cut the Colorado-based Computer Services company to Hold from Buy, following the acquisition by KKR; AG Edwards also removed First Data from its Focus Portfolio.

• Bernstein downgraded Molson Coors Brewing Co (NYSE: TAP) to Market Perform from Outperform based on valuation.

• Goldman Sachs removed MetLife Inc (NYSE: MET) from its Conviction Buy List.

• Bear Stearns cut GSI Commerce (NASDAQ: GSIC) to Underperform from Outperform based on valuation.

• Matrix USA downgraded Foundation Coal Holdings Inc (NYSE: FCL) to Sell from Buy.

• Jefferies downgraded Novell, Inc (NASDAQ: NOVL) to Hold from Buy on valuation after yesterday's "April Fool's-inspired" rally as the firm believes upside from the initial Microsoft-(MSFT) driven SLES deals and restructuring are priced in.

• Stifel downgraded Pearson PLC (NYSE: PSO) to Hold from Buy on valuation.

• Benchmark downgraded ConocoPhillips (NYSE: COP) to Sell from Hold on valuation.

• Buckingham downgraded Diebold Inc (NYSE: DBD) to Neutral from Accumulate on valuation.

• CIBC downgraded Ipsco Inc (NYSE: IPS) to Sector Performer from Outperform based on valuation.

Analyst downgrades 4-03-07: First Data, Molson, Novell all downgraded today originally appeared on BloggingStocks on Tue, 03 Apr 2007 11:07:00 EST. Please see our terms for use of feeds.