Equities Research Analysts’ updated eps estimates for Tuesday, August 1st:
Allot Communications (NASDAQ:ALLT) had its hold rating reiterated by analysts at Oppenheimer Holdings, Inc..
Allison Transmission Holdings (NASDAQ:ALSN) was upgraded by analysts at Robert W. Baird from a neutral rating to an outperform rating. They currently have $51.00 price target on the stock, up from their previous price target of $43.00.
Baxter International (NYSE:BAX) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Baxter reported impressive results in the second quarter, wherein adjusted earnings and revenues beat the Zacks Consensus Estimate. Solid results were driven by favorable tidings on the regulatory front, strategic partnerships and product launches. The company recently completed the acquisition of Claris Injectables. Of the major positives, a favorable product mix, stringent cost control and expanding operating margin are notable. Solid U.S. sales of IV therapies, IV access sets, select anesthesia and critical care products are key catalysts at the moment. Buoyed by stellar growth in earnings and sales, the company raised its long-term outlook with solid sales growth from 2016 to 2020. Growing adoption of Baxter’s ‘parenteral nutrition therapies’ and international bio-surgery products boosted sales at the Hospital products segment.”
C.R. Bard (NYSE:BCR) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Over the past one year, C. R. Bard has outperformed the broader industry trends with respect to price performance. The company exhibited a solid second quarter of 2017, beating the Zacks Consensus on both lines. Looking forward C. R. Bard is expected to benefit from the impending merger with Becton, Dickinson and Company, especially in the areas of medication management and infection prevention. The $24 billion transaction is expected to close in the fourth quarter of 2017. We believe the development will provide benefits to the combined entity and bolster its foothold in the global medical devices market. The growing adoption of Lutonix DCB is also expected to drive top-line growth in the coming quarters.However, a challenging Med-tech environment is a major concern. The company witnesses significant pricing pressure as well. Additionally, cutthroat competition in the hernia fixation and peripheral stent businesses are likely to dent growth.”
Credit Acceptance Corporation (NASDAQ:CACC) had its underperform rating reaffirmed by analysts at JMP Securities. JMP Securities currently has a $195.00 target price on the stock, up from their previous target price of $180.00.
Carnival Corporation (NYSE:CCL) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $75.00 target price on the stock. According to Zacks, “Carnival shares have outpaced the industry in the past one year. Given burgeoning demand for cruise travel in 2017, the addition of new ships to its fleet bodes well. Carnival believes that it is well positioned for continued earnings growth, given the current strength in its bookings along with pricing trends for the year. Notably, its brand building efforts together with other marketing activities are driving bookings. Its strategy of growing beyond familiar itineraries and capitalizing on fast growing markets also bodes well. New onboard product offerings and strategic initiatives are expected to drive onboard yield gains. Cost containment efforts like lower fuel consumption could also aid profits. However, adverse forex translations, higher costs along with macroeconomic issues in key operating regions remain headwinds. A potential increase in fuel costs can also hamper its profitability.”
Cerner Corporation (NASDAQ:CERN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Cerner exited the second quarter of 2017 on a tepid note, missing the Zacks Consensus Estimates on both the counts. However, a stellar bookings growth rate, which marked an all-time high, has been the key highlight of the quarter. We believe that Cerner has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets. On the flipside, a downbeat guidance indicates looming concerns ahead. Support and maintenance business posted a lackluster performance in the second quarter. Over the past one month, Cerner has underperformed the broader industry with respect to price.”
Fidelity National Information Services (NYSE:FIS) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Fidelity National Information Services shares underperformed the industry, year to date. Estimates have been stable lately ahead of the company’s Q2 earnings release. Fidelity has positive record of earnings surprises in recent quarters. Further, it remains well positioned for growth backed by its attractive core business with a recurring revenue model, digitization, diversified product portfolio, benefits from strategic acquisitions, as well as several ongoing strategic initiatives. Moreover, cost-control efforts are also commendable. It anticipates 2017 adjusted earnings per share in the band of $4.15–$4.30, reflecting an increase of 9–13% year over year and cost synergies to exceed $300 million. We remain cautious owing to several issues, including the ongoing consolidation in the banking sector and stiff competition. Moreover, elevated debt level is also a concern.”
Fuchs Petrolub SE (FRA:FPE) had its sell rating reissued by analysts at DZ Bank AG.
Graco (NYSE:GGG) had its market perform rating reaffirmed by analysts at Wolfe Research.
Genomic Health (NASDAQ:GHDX) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Over the past one month, Genomic Health has been trading below the broader industry. Moreover, we are concerned about the company’s rising operating losses. Apart from this, management has not issued any guidance which is discouraging. Its sole reliance on profitability of Breast Oncotype DX test is also a growing concern. On a positive note, the company continues to experience strong growth with its cancer scores. Recently the company presented several favorable results related to its Oncotype DX tests. The company is also witnessing healthy progress with regard to establishing coverage for its breast cancer test. We are also encouraged about declining cost of sales combined with gross margin expansion, on account of higher revenue growth.”
Intercept Pharmaceuticals (NASDAQ:ICPT) had its outperform rating reiterated by analysts at Oppenheimer Holdings, Inc.. The firm currently has a $200.00 target price on the stock.
The Kraft Heinz (NASDAQ:KHC) had its hold rating reissued by analysts at Susquehanna Bancshares Inc.
Kimco Realty Corporation (NYSE:KIM) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Kimco’s second-quarter 2017 adjusted FFO came per share came in line with the Zacks Consensus Estimate. In addition, the company has reported growth in revenues. Further, the company remains on track with the strategic 2020 Vision, which envisages the ownership of premium assets in major metro markets in the U.S., as well as a reduction in the joint-venture portfolio. Also, the company is aiming to enhance its small shops portfolio. These shops comprise service-based industries, enjoy frequent customer traffic and are internet resistant. However, decreasing footfall at malls amid shift of consumers toward online channels, store closures and bankruptcy of retailers are likely to continue to hurt performance of this retail REIT. Also, rate hike and dilutive impact of asset sales add to its woes. Further, Kimco’s shares have underperformed the industry it belongs to, year to date.”
Coca-Cola Company (The) (NYSE:KO) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Coca-Cola reported better-than-expected second-quarter 2017 results. Lower SG&A expense (down 19.9%), higher gross margin (up 210 basis points or bps), and higher operating margin (up 375 bps) helped it to come up with better numbers. Organic revenues were up 3%, driven by 3% growth in price/mix. However, Coca-Cola’s total sales decreased 16%, marking the ninth consecutive quarterly decline in revenue. Although top line need to show sustained improvement, we are encouraged by the company’s strategic efforts in making its portfolio as a total beverage company with improved marketing and innovation, focus on driving revenues by improved price/mix, digital focus, and productivity initiatives toward driving margins. Further, successful rollout of Coke Zero Sugar globally (growing mid-teens), as evident from Coca-Cola’s ability to leverage successful innovation to support top-line growth, is quite encouraging.”
Masco Corporation (NYSE:MAS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Masco’s earnings were in line with the Zacks Consensus Estimate while revenues missed the same by 0.6%. Earnings grew 30.4% on a 3% rise in revenues, courtesy of strong sales growth in Plumbing and Decorative Architectural Products. Masco’s adjusted operating margin improved 90 basis points in the quarter. The company is well poised in the near term on expectations of continued momentum in housing. Positives like an improving economy, modest wage growth, low unemployment levels, low interest rates and positive consumer confidence raise optimism over the sector’s performance. Increased repair and remodeling activity has been driving Masco’s revenues over the last few quarters. Strong demand from repair and remodeling products led to a 4% increase in North American sales in the quarter. However, the negative impact of currency translation has been a major headwind, impacting sales by $23 million in the second quarter.”
Mateon Therapeutics (NASDAQ:MATN) had its hold rating reaffirmed by analysts at Maxim Group.
MercadoLibre (NASDAQ:MELI) had its market perform rating reiterated by analysts at Susquehanna Bancshares Inc. They currently have a $275.00 target price on the stock.
Pandora Media (NYSE:P) had its neutral rating reissued by analysts at Credit Suisse Group. They currently have a $8.95 target price on the stock, up from their previous target price of $8.55.
PerkinElmer (NYSE:PKI) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $74.00 target price on the stock. According to Zacks, “PerkinElmer holds ground on a strong global foothold, courtesy of its impending acquisition of Germany-based EUROIMMUN and takeover of India-based Tulip Diagnostics. The company continues to offer a global diagnostics portfolio focused on reproductive health, infectious disease screening and genomics offerings for oncology and other molecular tests. With an enhanced focus on product innovation and expansion into emerging markets, PerkinElmer has considerable potential upside. PerkinElmer delivered a solid first quarter, beating the Zacks Consensus Estimate on both the counts. The quarter witnessed solid organic revenue growth across all the business segments. Furthermore, a positive guidance instills our confidence on the stock. On the flipside, despite having a solid portfolio, unfavorable foreign exchange is a primary concern for PerkinElmer. Furthermore, PerkinElmer’s share price movement in the past one year has been unsatisfactory.”
Dipexium Pharmaceuticals (NASDAQ:PLXP) was upgraded by analysts at Redburn Partners to an outperform rating.
Qiagen N.V. (NASDAQ:QGEN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “QIAGEN’s second-quarter earnings and revenues both beat the Zacks Consensus Estimate. We are impressed with balanced growth across all of segments. Meanwhile, QIAGEN’s commitment to return more to its shareholders through increased share repurchases reflects solid cash position. We are also upbeat about the company’s strategic focus to drive growth through Sample to Insight offerings. In this space, the company recently received FDA approval for QuantiFERON-TB Gold Plus. The company is also forming collaborations in the personalized homecare space. Also, QIAsymphony continued to grow towards the target of 2,000 cumulative placements by 2017 end. However, adverse currency translation continues to be a drag on overall sales. Furthermore, declining HPV sales in the U.S. continues to be a drag. Competitive landscape and strong reliance on collaborations also continue to be concerns. Over the last one month, QIAGEN has been trading below the broader industry.”
SBA Communications Corporation (NASDAQ:SBAC) had its overweight rating reaffirmed by analysts at Barclays PLC. Barclays PLC currently has a $148.00 price target on the stock.
Shopify (NYSE:SHOP) (TSE:SH) had its hold rating reissued by analysts at Oppenheimer Holdings, Inc..
Thermo Fisher Scientific (NYSE:TMO) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $197.00 target price on the stock. According to Zacks, “Thermo Fisher ended the second quarter on a promising note with both adjusted earnings and revenues beating the Zacks Consensus Estimate. We are particularly upbeat about the company gaining entry into the CDMO market through the agreement to acquire Patheon for $7.2 billion. We are also encouraged by the company’s series of product launches along with major progress in precision medicine initiatives. Thermo Fisher’s acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. This bullish trend has been reflected in the company’s share price performance too. Over the last three months, Thermo Fisher is trading above the broader industry. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.”
United Rentals (NYSE:URI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “United Rentals came up with better-than-expected results in the second quarter of 2017. Earnings and revenues also improved from the year-ago level buoyed by solid volume growth, record time utilization along with improved rate trend. Volume of equipment on rent increased 17.4% year over year. Notably, shares of United Rentals have outperformed the broader market significantly in the last one year. The addition of NES Rentals is expected to significantly drive the stock’s performance in the upcoming quarters as well. NES contributed $105 million to revenues and $46 million to adjusted EBITDA in the second quarter of 2017. However, rental rates continue to decline (down 1.2% year over year in the quarter). Also, adjusted EBITDA margin declined 100 basis points (bps) from the prior-year quarter.”
Yum! Brands (NYSE:YUM) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $85.00 price target on the stock. According to Zacks, “Yum! Brands has performed relatively well in the domestic and many key international markets. The strategic transformation plan of employing greater focus on the development of its three iconic global brands, increasing franchise ownership and creating a leaner, more efficient cost structure post the spin-off of its China division bodes well. In fact, the company’s efforts have started to reap benefits as shares have outpaced the industry, post separation. Enhanced focus on bold restaurant development and increased investments in technology-based initiatives should further drive growth. Notably, the company has positive record of earnings surprises in recent quarters while estimates have been stable ahead of its second-quarter earnings release. Yet, macroeconomic concerns and negative currency translation raise concern while refranchising efforts is likely to take time to play out.”
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