2012-10-23 16:26:49 -
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:
Standpoint Research downgraded shares of Supervalu (SVU) from a buy rating to a
hold rating.
Credit Suisse initiated coverage on shares of AT&T Inc. (T). They issued an
outperform rating on the stock and set a $36.50 price target. They wrote, "We
are assuming coverage of AT&T. We maintain our estimates, target price and our
Outperform rating. We believe AT&T and Verizon will continue to report solid
results for 2H12, with wireless churn continuing to improve y/y and margins
significantly better. We don't think 3Q12 results will be a major catalyst -
investors are aware of the 3Q12 iPhone launch. We think full 2H12 results will
provide proof
for our thesis - upgrades will fall y/y in 2H12 (although likely
higher in 3Q given the iPhone), contrary to expectations, and margins will be
better. We will be watching these data points closely when T reports its 3Q12
results on Weds, as improvement in these data points (e.g., churn, upgrades)
remains at the core of our overweight thesis."
Morgan Stanley initiated coverage on shares of Transdigm Group (TDG). They
issued an underweight rating on the stock. They wrote, "TDG has a solid track
record of generating growth through acquisitions, but with shares up over
50%YTD, we do not think the current valuation reflects the impending slowdown in
revenue growth, modest returns on capital and potential margin pressure. . TDG's
management team has done an excellent job over the past several years executing
on its growth-through-acquisitions strategy, but at >4x Net debt/EBITDA, greater
competition for acquisitions, and an increasingly large revenue base, it will be
difficult for TDG to sustain recent growth trends through acquisitions. With the
stock trading at 20.2x F13e, near all-time highs on both an absolute basis and
relative to peers, TDG appears priced for perfection."
JPMorgan Chase upgraded shares of Teekay Offshore Part (TOO) from a neutral
rating to an overweight rating. They wrote, "Our upgrade to an Overweight
recommendation reflects an updated accounting of likely fleet growth over the
next 18 months resulting in accelerated average DPU growth (2013e 6% vs.
previous 1%) and a likely continuation of a narrowing discount to the Alerian
MLP index (current 8.4% '13e yield, 6.7% at our target vs. Alerian 6.1%). Our
upgraded PT (+6%) implies c.30% upside potential."
- Raymond James reiterated its market perform rating on shares of Total System
Services, Inc. (TSS).
Gabelli downgraded shares of Texas Instruments (TXN) from a buy rating to a hold
rating.
Buckingham Research initiated coverage on shares of United Continental (UAL).
They issued a buy rating on the stock.
Feltl & Co. raised its price target on shares of Vascular Solutions Inc (VASC)
from $15.25 to $16.25. They have a buy rating on the stock. They wrote,
"Vascular Solutions represents a unique type of company in the market in which
it operates. While none of its over 60 products are likely to be home runs
within the vascular space, the company consistently hits singles and doubles
with many niche products that do not see much, if any, competition from larger
(or smaller) players. We believe the company has proven that it is able to
execute on its strategy of continuously developing, distributing, or acquiring
products with which to leverage its sales force. They currently plan on
introducing about ten products per year and believe that their current sales
force can drive at least $1.5 million per employee per year (up from the present
~$1.0 million run rate). With 30 products in their current development pipeline
and additional opportunities for tuck-in acquisitions and distribution
agreements, we believe the company will be able to drive low-teens top-line
growth for the next several years. As this occurs, the company will drive
operating leverage and we estimate that Vascular Solutions will be able to grow
EPS at approximately double their revenue growth rate for the foreseeable
future."
Barclays Capital reiterated its overweight rating on shares of Vornado Realty
Trust (VNO). They have a $89.00 price target on the stock.
Jefferies Group downgraded shares of Ventas (VTR) from a buy rating to a hold
rating. Their analysts now have a $66.00 price target on the stock. They noted
that the move was a valuation call. They noted that the move was a valuation
call.
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