After gaining 40 percent year-to-date, the steep ascent for Heico Corp (NYSE: HEI) may finally be over, and one Wall Street analyst thinks the stock has finally reached cruising altitude.
On Thursday, Deutsche Bank downgraded the high-flying jet engine part maker from Buy to Hold and said the stock has simply come too far, too fast.
The commercial aero group is up only around 12 percent in 2017, and analyst Louis Raffetto thinks Heico has reached the limit of its outperformance. Raffetto still loves Heico’s management team and business model, but he sees no compelling case for significant upside at this point.
Heico’s big ...
- Telsey Advisory Group upgraded Zoe's Kitchen Inc (NYSE: ZOES) from Market Perform to Outperform. Zoe's Kitchen shares climbed 8.98 percent to close at $12.26 on Wednesday.
- Analysts at Morgan Stanley upgraded Molina Healthcare, Inc. (NYSE: MOH) from Underweight to Overweight. Molina Healthcare shares rose 2.34 percent to $58.11 in pre-market trading.
- JP Morgan upgraded Manitowoc Company Inc (NYSE: MTW) from Underweight to Neutral. Manitowoc shares fell 0.25 percent to close at $7.95 on Wednesday.
- Analysts at JP Morgan upgraded Kennametal Inc. (NYSE: KMT) from Neutral to Overweight. Kennametal shares dropped 0.68 percent to close at $33.74 on Wednesday.
- MKM Partners upgraded Target Corporation (NYSE: TGT) from Neutral to Buy. Target shares fell 0.44 percent to $56.06 in pre-market trading.
- Analysts at Bernstein upgraded Hershey Co (NYSE: HSY) from Market Perform to Outperform. Hershey shares rose 0.63 percent to $106.71 in pre-market trading.
- Analysts at Morgan Stanley upgraded Commscope Holding Company Inc (NASDAQ: COMM) from Equal-Weight to Overweight. CommScope shares rose 1.43 percent to $33.32 in pre-market trading.
- Loop Capital upgraded National-Oilwell Varco, Inc. (NYSE: NOV) from Hold to Buy. National Oilwell Varco shares dropped 1.51 percent to close at $29.94 on Wednesday.
- JP Morgan downgraded Illinois Tool Works Inc. (NYSE: ITW) from Neutral to Underweight. Illinois Tool Works shares rose 0.64 percent to close at $140.03 on Wednesday.
- Analysts at KeyBanc downgraded Nucor Corporation (NYSE: NUE) ...
The sporting goods leader was hit with a slew of downgrades, with increasing fears that defending its market share will be difficult in a tough retail environment.
An Onslaught Of Downgrades
“We do not see any easy path out of the current downward trajectory in margins and associated impairment of earnings,” said Deutsche Bank analyst Mike Baker.
Related Link: Dick's Sporting Goods Revisits 2011 Lows After Q2 Miss
Deutsche Bank downgraded its rating from a Buy to a Hold and lowered its price target from $50 to $28.
Jefferies downgraded shares of Chicago Bridge & Iron Company N.V. (NYSE: CBI), citing the risks to 2017–19 earnings per share. This is despite the company's plan to sell tech, deleverage and cut costs.
The risks, according to the firm, included turbine cost overruns that persisted for the third straight quarter, with incremental costs coming from LNG.
Accordingly, Jefferies downgraded shares of Jefferies from Buy to Hold and lowered its price target from $35 to $12.
Troubling Cost Overruns
Analysts Martin Englert, Seth Rosenfeld and Alan Spence said cost overruns reemerged totaling $48 million on a pre-tax basis, with the company reporting a second quarter loss of $3.02 per share compared to the consensus earnings estimate of $0.88. The analysts clarified that the two problem gas turbine projects that hindered the last two quarters again impacted the second quarter by ...
- Bank of America upgraded Zions Bancorp (NASDAQ: ZION) from Neutral to Buy. Zions Bancorp shares rose 0.58 percent to close at $45.13 on Tuesday.
- Analysts at Citigroup upgraded Mylan N.V. (NASDAQ: MYL) from Neutral to Buy. Mylan shares rose 3.55 percent to $31.20 in pre-market trading.
- Analysts at Morgan Stanley upgraded UDR, Inc. (NYSE: UDR) from Underweight to Equal-Weight. UDR shares rose 0.31 percent to close at $39.13 on Tuesday.
- Raymond James upgraded Home Depot Inc (NYSE: HD) from Market Perform to Outperform. Home Depot shares rose 0.42 percent to $150.80 in pre-market trading.
- Analysts at Bank of America upgraded Spirit Realty Capital, Inc (New) (NYSE: SRC) from Underperform to Buy. Spirit Realty Capital shares gained 2.59 percent to $8.70 in pre-market trading.
- Morgan Stanley upgraded Paychex, Inc. (NASDAQ: PAYX) from Underweight to Equal-Weight. Paychex shares rose 1.22 percent to close at $55.59 on Tuesday.
- Analysts at Bank of America upgraded Eastgroup Properties Inc (NYSE: EGP) from Neutral to Buy. EastGroup Properties shares dropped 0.73 percent to close at $85.57 on Tuesday.
- Analysts at Jefferies downgraded Chicago Bridge & Iron Company N.V. (NYSE: CBI) from Buy to Hold. Chicago Bridge & Iron shares fell 8.43 percent to close at $11.19 on Tuesday.
- Susquehanna downgraded Dicks Sporting Goods Inc (NYSE: DKS) from Positive to Neutral. Dick's Sporting shares fell 1.15 percent to $26.56 in ...
RBC Capital Markets' Tyler Broda turned slightly less bullish on Rio Tinto plc (ADR) (NYSE: RIO) by downgrading the London-listed stock rating from Top Pick to Outperform with an unchanged 4,200p price target, which implies upside from Tuesday's opening price of 3,382.50p.
One of the reasons to support a continued bullish stance can be traced to Chinese structural reforms that benefit Rio Tinto, the analyst stated. China's supply side reforms and increased focus on the environment benefits Rio's iron ore and aluminum exposure, which is expected to account for 79 percent of the company's 2017 ...
- Analysts at Goldman Sachs upgraded GoPro Inc (NASDAQ: GPRO) from Sell to Neutral. GoPro shares rose 3.70 percent to $10.10 in pre-market trading.
- Analysts at Cantor Fitzgerald upgraded Snap Inc (NYSE: SNAP) from Neutral to Overweight. Snap shares rose 3.57 percent to $13.05 in pre-market trading.
- Deutsche Bank upgraded Wynn Resorts, Limited (NASDAQ: WYNN) from Hold to Buy. Wynn Resorts shares rose 2.45 percent to $131.32 in pre-market trading.
- Piper Jaffray upgraded IBERIABANK Corp (NASDAQ: IBKC) from Neutral to Overweight. IBERIABANK shares rose 1.07 percent to $80.05 in pre-market trading.
- Guggenheim upgraded Nabors Industries Ltd. (NYSE: NBR) from Neutral to Buy. Nabors Industries shares rose 2.56 percent to $6.80 in pre-market trading.
- Analysts at Longbow Research upgraded NetApp Inc. (NASDAQ: NTAP) from Neutral to Buy. NetApp shares gained 1.69 percent to $42.74 in pre-market trading.
- Analysts at FBR Capital upgraded American Eagle Outfitters (NYSE: AEO) from Neutral to Buy. American Eagle shares gained 0.18 percent to $10.98 in pre-market trading.
- JP Morgan upgraded Cabot Corp (NYSE: CBT) from Neutral to Overweight. Cabot shares gained 0.70 percent to close at $51.94 on Monday.
- Cantor Fitzgerald upgraded Allscripts Healthcare Solutions Inc (NASDAQ: MDRX) from Neutral to Overweight. Allscripts Healthcare shares rose 0.47 percent to close at $12.73 on Monday.
- Jefferies upgraded Sabra Health Care REIT Inc (NASDAQ: SBRA) from Hold to Buy. Sabra Health Care shares rose 2.38 percent to $22.38 in pre-market trading.
- Analysts at Goldman Sachs downgraded Corning Incorporated (NYSE: GLW) from Neutral to ...
Maxim Group downgraded of Pure Storage Inc (NYSE: PSTG) on Monday. The firm believes the smart bets on IT Departments having inertia will eventually prove short-sighted.
Accordingly, the firm downgraded shares from Buy to Hold and the price target goes from $20 to $15. Elsewhere, Baird maintained its Neutral rating and $14 price target for the shares of Pure Storage.
Analyst Nehal Chokshi of Maxim Group believes management will continue to place bets that IT departments have inertia. This is despite the channel checks indicating that FlashArray differentiation remains high due to superior data reduction ratios the company is able to achieve relative to the bellwether All Flash Arrays.
The analyst said Pure Storage remains a loved OEM with on-premise IT departments that resist change. By betting on IT departments resisting all other changes other than movement to data management simplicity and All Flash Arrays, the analyst indicated the company is betting against IT departments looking to simplify overall IT operations by using hypervisor as the substrate for automation, and IT departments leveraging the benefits of public ...
Analysts at BMO Capital Markets no longer hold a bullish rating on Rayonier Inc. (NYSE: RYN), a leading timberland real estate investment trust. Mark Wilde downgraded Rayonier's stock from Outperform to Market Perform with an unchanged $31 price target.
Rayonier has been operating over the past 10 years in an environment characterized by subpar demand while at the same time it has been improving its forest productivity, Wilde explained. As such, this has created an inventory buildup which would be hard to work through at a time when southern sawlog prices ...
Shares of timber giant Weyerhauser Co (NYSE: WY) drifted lower by 4 percent over the past six months, but bulls may have even longer to wait for the stock to regain its positive momentum. On Sunday, BMO Capital Markets analyst Mark Wilde downgraded Weyerhauser from Outperform to Market Perform based on concerns about log prices.
According to Wilde, improving production coupled with a decade of slumping demand has created too many headwinds for Weyerhauser. While CEO Doyle Simon has made major business improvements at the company, including margin expansion on limited capital investment, even Simon won’t be able to fight a softening market, ...
Big Blue? Meet Big Mac.
Wall Street often refers to International Business Machines Corp. (NYSE: IBM) as “Big Blue” because of its status as a venerable blue chipper. But McDonald's Corporation (NYSE: MCD) is another blue-chip stock that has managed to weather the world’s flirtation with healthier food.
In fact, the burger business is back with a belch-inducing vengeance, and McDonald’s is leading the pack.
Bank of America Merrill Lynch analyst Gregory R. Francfort gives four reasons why the burger king is the best buy in a strengthening sector and three reasons he sees continued upside:
- “30-yr treasury yields falling from 3.0% to 2.87%”
- “Fund flows out of retail stocks and into restaurants.”
- “Positive sales trends in the category.”
- “Higher beef prices potentially forcing franchisees to reduce their aggressive price discounting.”
Reasons For Continued Upside
- “Value: Aggressive value plans for early 2018. According to news ...
- Evercore ISI Group upgraded FirstEnergy Corp. (NYSE: FE) from In-Line to Outperform. FirstEnergy shares rose 0.47 percent to $32.32 in pre-market trading.
- Maxim Group upgraded NetApp Inc. (NASDAQ: NTAP) from Hold to Buy. NetApp shares rose 0.51 percent to close at $41.49 on Friday.
- Analysts at Credit Suisse upgraded NiSource Inc. (NYSE: NI) from Underperform to Outperform. NiSource shares fell 0.08 percent to close at $26.35 on Friday.
- Analysts at Argus upgraded Orbital ATK Inc (NYSE: OA) from Hold to Buy. Orbital ATK shares gained 0.91 percent to $107.55 in pre-market trading.
- Stifel Nicolaus upgraded Antero Midstream GP LP (NYSE: AMGP) from Hold to Buy. Antero Midstream shares gained 0.16 percent to close at $18.97 on Friday.
- Analysts at Pivotal Research upgraded Interpublic Group of Companies Inc (NYSE: IPG) from Hold to Buy. Interpublic Group shares fell 0.53 percent to close at $20.67 on Friday.
- Analysts at Piper Jaffray upgraded Tempur Sealy International Inc (NYSE: TPX) from Neutral to Overweight. Tempur Sealy shares rose 1.13 percent to $60.82 in pre-market trading.
- DA Davidson upgraded International Paper Co (NYSE: IP) from Neutral to Buy. International Paper shares rose 0.40 percent to $52.80 in pre-market trading.
- BTIG Research upgraded Masimo Corporation (NASDAQ: MASI) from Neutral to Buy. Masimo shares rose 1.88 percent to close at $83.58 on Friday.
- Mizuho upgraded Brixmor Property Group Inc (NYSE: BRX) from Neutral to Buy. Brixmor ...
Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA)'s management recently made the difficult decision to slash the company’s 6.5-percent dividend by 75 percent, lowering the stock’s yield to just 1.2 percent. The decision will save the company some much-needed cash, but it has done a number on its share price and sent Wall Street analysts running for the hills.
Friday’s 1.5 percent loss marks Teva’s 12th consecutive day in the red, a period of time that has cost the company roughly half its market cap. News of the dividend cut prompted Morgan Stanley to downgrade the stock from Equal Weight to Underweight and slash its price target from $36 to $16. Credit ...
Citi analyst Mark May downgraded Blue Apron Holdings Inc (NYSE: APRN) to Neutral, like other analysts citing the IPO’s disappointing quarterly results due to issues with the opening of a new fulfillment center.
Opening For The Competition Or Ripe For An Acquisition?
“Because of these issues, management plans to lower its marketing spend by ~30% y/y in order to manage order growth and customer satisfaction. 2H17 revenue is forecasted to decline y/y and adj. ...
- Stephens & Co. upgraded Wal-Mart Stores Inc (NYSE: WMT) from Equal-Weight to Overweight. Wal-Mart shares rose 0.05 percent to $80.70 in pre-market trading.
- Citigroup upgraded Hess Midstream Partners LP (NYSE: HESM) from Neutral to Buy. Hess Midstream Partners shares fell 4.13 percent to close at $18.80 on Thursday.
- Analysts at Goldman Sachs upgraded Perrigo Company plc (NYSE: PRGO) from Sell to Neutra. Perrigo shares closed at $76.84 on Thursday.
- Analysts at Mizuho upgraded Public Service Enterprise Group Inc. (NYSE: PEG) from Neutral to Buy. Public Service Enterprise shares gained 0.37 percent to close at $45.61 on Thursday.
- Jefferies upgraded Edison International (NYSE: EIX) from Hold to Buy. Edison shares gained 0.28 percent to close at $79.67 on Thursday.
- Analysts at Stifel Nicolaus upgraded Galapagos NV (ADR) (NASDAQ: GLPG) from Hold to Buy. Galapagos shares gained 0.54 percent to $81.50 in pre-market trading.
- Analysts at Piper Jaffray upgraded Huntington Bancshares Incorporated (NASDAQ: HBAN) from Neutral to Overweight. Huntington Bancshares shares fell 2.73 percent to close at $12.81 on Thursday.
- Credit Suisse upgraded Kohl's Corporation (NYSE: KSS) from Underperform to Neutral. Kohl's shares fell 1.14 percent to $39.05 in pre-market trading.
- JP Morgan upgraded Axalta Coating Systems Ltd (NYSE: AXTA) from Neutral to Overweight. Axalta Coating shares fell 0.46 percent to close at $28.18 on Thursday.
- Clarksons Platou upgraded Aegean Marine Petroleum Network Inc. (NYSE: ANW) from Neutral to Buy. Aegean Marine Petroleum shares rose 18.59 percent to $5.04 in pre-market trading.