2012-11-08 16:20:16 -
A number of stocks were upgraded and downgraded by equities research analysts
today, as reported by Analyst Ratings Network ( bit.ly/equitybriefdaily)
and Equity Brief:
Sidoti upgraded shares of LivePerson Inc (LPSN) from a neutral rating to a buy
rating. Sidoti now has a $16.00 price target on the stock.
Sanford C. Bernstein upgraded shares of Lloyds TSB Group plc (LYG) from a market
perform rating to an outperform rating.
Raymond James upgraded shares of Mid-Con Energy Partners (MCEP) from a market
perform rating to an outperform rating.
Zacks downgraded shares of Magellan Midstream (MMP) from an outperform rating to
a neutral rating. Their analysts now have a $46.00 price target on the stock.
Zacks' analyst wrote, "Following Magellan Midstream's weak third quarter
showing, we are downgrading the oil pipeline and storage partnership
from Outperform. The Tulsa, Oklahoma-based firm recently posted dull September
quarter results on the back of poor contributions from all its business units.
We believe that the operating scenario for pipeline operators will remain
critical in the near to medium term. Magellan is also susceptible to lower-than-
expected demand for refined products, commodity price fluctuations and cost
overruns on expansion projects. However, we acknowledge the partnership's strong
portfolio of energy infrastructure assets, capacity expansion plans and a sound
liquidity position. Other positive attributes include its investment grade
rating and strong track record for distribution growth."
Jefferies Group raised its price target on shares of Mindray Medical
International Limited (MR) from $34.00 to $36.00. They have a buy rating on the
stock. They wrote, "MR put up a mixed 3Q with a drastic slowdown in PMLS, a
sequential stepback in the margin profile, but in-line non-GAAP EPS. Language
regarding deterioration in developed markets, abrupt CEO change, and still
unresolved supplier dispute leave lingering questions but overall growth profile
still among upper tier."
Bank of America initiated coverage on shares of Morgan Stanley (MS). They issued
a neutral rating on the stock and set a $20.00 price target. They wrote, "[We]
are reinstating coverage on Morgan Stanley (MS) with a Neutral rating and a $20
price objective. Management has made significant progress in repositioning the
firm and increasing the contribution from wealth management. However, we expect
returns to remain below average (7.5% ROTE) and we see limited upside in the
near term due to sub-par margins in wealth management, the potential to lose
some share in FICC as the industry consolidates, and cost reductions that are
taking more time than peers."
Zacks reiterated its neutral rating on shares of Myriad Genetics (MYGN). They
have a $32.00 price target on the stock. Zacks' analyst wrote, "Myriad began
fiscal 2013 on a positive note with a 24% growth in EPS to $0.36, surpassing the
Zacks Consensus Estimate of $0.32. Revenues increased 21% to $133.4 million,
well above the Zacks Consensus Estimate of $130 million. Bracanalysis, the
company's flagship product, continued to record robust growth on the back of
increasing penetration in both Oncology and Women's Health market. We are also
impressed with the company's progress in Europe. Besides, a strong cash balance
enables the company to repurchase shares, expand into new markets and launch
more products. We are also encouraged by the company raising guidance for 2012.
However, European expansion and pipeline development have pushed up operating
expenses, thereby putting pressure on the margin. We reiterate our Neutral
recommendation on the stock."
Cantor Fitzgerald reiterated its buy rating on shares of Netflix, Inc. (NFLX).
They have a $85.00 price target on the stock, up previously from $68.00. They
wrote, "EBITDA grows at a 29% CAGR with unlevered FCF going from ($12.9M) in
FY:13 to $685.3M by FY:20."Cantor notes that Netflix recently reported record
low churn and average viewing per member increasing 30 percent in its recent
quarter, all while major broadcasters continue to bleed subs.Cantor also echoes
sentiment from Carl Icahn, who said the Netflix is undervalued given its
dominant market position. On Icahn, Cantor noted, "[g]iven Netflix' staggered
board, recently announced poison pill and timing for the next shareholder
meeting (June/July), we believe Mr. Icahn's best possible outcome is a quick
strategic sale of the company. His next best option, which we believe is more
likely, would be to nominate directors and gradually affect change from within,
as he is known to do."
Jefferies Group lowered its price target on shares of NYSE Euronext (NYX) from
$26.00 to $24.00. They have a hold rating on the stock. They wrote, "We are
lowering our 4Q12 and 2013 EPS estimates to reflect the continued slowdown in
technology as well as the ongoing sluggishness in trading volumes. The company
continues to struggle with aligning its cost base with the slowing revenue
environment. While NYX has made progress on its cost cutting initiatives the
pressure on earnings doesn't appear to be abating in the short term."
Zacks reiterated its underperform rating on shares of NYSE Euronext (NYX). They
have a $22.00 price target on the stock.
Piper Jaffray downgraded shares of Orbitz Worldwide, Inc. (OWW) from a neutral
rating to an underweight rating. Their analysts now have a $1.75 price target on
the stock. They wrote, "Q3 results were mixed with bookings below consensus for
both domestic & international, but EBITDA was ahead of estimates. Guidance for
Q4 is well below consensus for bookings & EBITDA. The company continues to lag
peers in diversification toward hotel & international. While Orbitz should be a
beneficiary of the same secular tailwinds as others (PCLN, EXPE) in the space,
the company is having difficulty capitalizing. Therefore we are downgrading to
Underweight and lowering our price target to $1.75. We have reduced our target
multiple from 4.5x to 3.5x 2013E EV/EBITDA to account for the inability of
Orbitz to maintain share in the categoryand difficulty in shifting mix to non-
air based bookings."
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