Equities Research Analysts’ ratings reiterations for Friday, September 13th:
Associated Estates Realty Corp. (NYSE:AEC) had its hold rating reiterated by analysts at Jefferies Group. Jefferies Group currently has a $16.00 target price on the stock, down from their previous target price of $17.00. The analysts wrote, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.”
Alkermes PLC (NASDAQ:ALKS) had its neutral rating reiterated by analysts at Zacks. The firm currently has a $36.00 price target on the stock. Zacks’ analyst wrote, “Alkermes reported earnings of $0.24 per share for the 3-month period ended Jun 30, 2013. This compared unfavorably to the year-ago earnings of $0.32. Results were hurt by lower revenues. The company reported total revenues of 138.6 million, down 9%. Alkermes continues to expect adjusted earnings for the 9-month period in the range of $0.61 – $0.75 per share. Even though impressed with the purchase of Elan’s EDT unit, which significantly broadened Alkermes product portfolio, we believe the stock price already reflects the impact of this transaction. We were also impressed with the U.S. approval of type II diabetes drug, Bydureon. However, the drug appears to be struggling for market share in the crowded diabetes market. We currently have a Neutral stance on Alkermes.”
Amgen (NASDAQ:AMGN) had its neutral rating reissued by analysts at Zacks. The firm currently has a $119.00 price target on the stock. Zacks’ analyst wrote, “Amgen reported second quarter EPS of $1.88, up 3.3% and 17 cents above the Zacks Consensus Estimate. Revenues increased 5% to $4.7 billion, topping the Zacks Consensus Estimate of $4.5 billion. At first glance, Amgen’s second quarter results look impressive with the company beating by a huge margin. However, revenues included a positive Medicaid adjustment impact which boosted the bottom line by 16 cents. Earnings also benefited from a lower tax rate and share count. Amgen should be able to deliver on its long-term strategy based on expansion in key markets, launch of new manufacturing technologies, and pipeline development. We are also positive on the upcoming Onyx acquisition which should help make help make up for a part of the revenues that will be lost to generic competition. We expect 2013 and 2014 to be important for Amgen with results on several key pipeline candidates expected.”
Amarin Co. plc (NASDAQ:AMRN) had its buy rating reaffirmed by analysts at Aegis. They currently have a $30.00 price target on the stock.
AvalonBay Communities (NYSE:AVB) had its hold rating reissued by analysts at Jefferies Group. The firm currently has a $130.00 price target on the stock, down from their previous price target of $143.00. The analysts wrote, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.”
Baidu.com (NASDAQ:BIDU) had its hold rating reaffirmed by analysts at Jefferies Group. Jefferies Group currently has a $153.00 price target on the stock, up from their previous price target of $121.00. The analysts wrote, “On day two of Jefferies China TMT tour, we met with Baidu mgmt, and several top search agents. Advertisers are allocating incremental mobile ad budget as traffic shifts. Our channel checks point to potential budget going to Qihu for higher ROI. IQiyi mobile video traffic has recently surpassed PC. We revise up FY14/FY15 revenue est. by 3.6%/5.5% given better than expected mobile search monetization. Reiterate Hold; revise PT up to USD153 on 25x FY14 PE.”
Badger Meter (NYSE:BMI) had its underperform rating reiterated by analysts at Zacks. The firm currently has a $41.00 price target on the stock. Zacks’ analyst wrote, “Badger Meter’s earnings per share declined 15.4% year over year to $0.44 affected by the negative impact of litigation and pension charges. Total revenue increased 8% year over year in the second quarter to $88 million driven by higher sales of municipal water as well as industrial flow products. However, subdued growth for automation sales and higher operating costs remain concerns. Moreover, ongoing global economic weakness may affect the performance of Badger Meter, moving forward. We reiterate our Underperform recommendation on Badger Meter with a target price of $41.00.”
Dynamic Materials Corp. (NASDAQ:BOOM) had its buy rating reaffirmed by analysts at DA Davidson. They currently have a $27.00 price target on the stock, up from their previous price target of $24.00. The analysts wrote, “Following comments coming out of D.A. Davidson’s recent 12th annual E&C conference, we are optimistic that continued positive momentum in the development of North American oil and gas will drive sustained long-term growth for BOOM. Several of the companies attending the conference are key end market drivers for the Explosion Metalworking business of BOOM, which has contributed 55%-60% of total revenue over the past six quarters. While some E&C companies did point to the potential of some near-term delay in work, many of them have started to see some improvement already. Most of the E&C companies expect a surge in orders in 2014, which could last for five years or more.”
Ciena Corp. (NASDAQ:CIEN) had its hold rating reiterated by analysts at Jefferies Group. Jefferies Group currently has a $22.00 target price on the stock, up from their previous target price of $20.00. The analysts wrote, “Ciena filed its 10-Q yesterday on an impressive fiscal Q3. However, we continue to remain concerned about longer-term profitability and declining legacy products. With the stock now trading into the $25+ range, we’re inclined to remain on the sidelines as we think the risk/return on the shares is balanced.”
Clearwater Paper Corp. (NYSE:CLW) had its buy rating reissued by analysts at DA Davidson. The firm currently has a $60.00 target price on the stock, down from their previous target price of $64.00. The analysts wrote, “The biggest fear surrounding Clearwater’s TAD tissue expansion at Shelby, N.C. appears to be materializing, as the acceptance and sell through of the new capacity is going slower than originally anticipated. When the new capacity was announced (before Shelby was chosen as the site) we indicated that ‘new machine’ was a ‘four letter word’, and this fear was exacerbated by similar moves by other East Coast competitors. While we grew more comfortable with the strategy as it became clear that Clearwater’s major customers (the grocers) needed a ‘Charmin knockoff’, we also postulated that the consumer’s posterior (and wallet) might be the real beneficiary of the tissue expansion orgy. Indeed this appears to be the case.”
Comerica (NYSE:CMA) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $42.00 price target on the stock. Zacks’ analyst wrote, “Comerica continued the trend of impressive results in its second-quarter 2013 earnings, which handily beat the Zacks Consensus Estimate. The results reflected improved revenues, driven by increased non-interest income and reduced expenses. Further, improved credit metrics and a rise in loans and deposits were the positives. However, a decline in net interest income was the dampener. Going forward, we believe that continuous geographic diversification beyond the company’s traditional and slower-growing Midwest markets could drive growth over the next cycle. Revenue synergies from the Sterling acquisition will likely augment top-line growth. Capital redeployment efforts are also encouraging, but an unsettled economic environment, regulatory overhangs and pressure on net interest margin continue to be our concerns.”
EOG Resources (NYSE:EOG) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $176.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on EOG Resources following better-than-expected second quarter 2013 results, which were driven by surging crude production in the Eagle Ford and Bakken. EOG’s large portfolio of high-return projects and strong technical competence are its key long-term drivers. Its guidance of 35% (up from 28% earlier) oil production growth for 2013 is indicative of the third successive year of significant double-digit volume growth. It is again supported by strong natural gas liquids growth of 17%. Although projected natural gas declines of around 11.5% in 2013 will impact overall production, the boost in higher margin products are expected to drive underlying cash flow growth. Although we view EOG as a favorable pick, the risk-reward pay-off for the company is still uncertain in the near future due to its natural gas weighted production, as well as cost overruns.”
Equity Residential (NYSE:EQR) had its hold rating reaffirmed by analysts at Jefferies Group. They currently have a $57.00 price target on the stock, down from their previous price target of $63.00. The analysts wrote, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.”
Essex Property Trust (NYSE:ESS) had its hold rating reiterated by analysts at Jefferies Group. They currently have a $165.00 price target on the stock, down from their previous price target of $180.00. The analysts wrote, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.”
FEI (NASDAQ:FEIC) had its buy rating reaffirmed by analysts at DA Davidson. The firm currently has a $100.00 price target on the stock, up from their previous price target of $84.00. The analysts wrote, “We believe business trends in 3Q are tracking in line with expectations and continue to model a recovery in 4Q. Last month, FEI released three new transmission electron microscopes for applications across the Electronics, Materials Science and Life Sciences end markets. Based on FEI’s technology leadership position combined with the current installed base, we expect orders for these tools across both existing and new customers to accelerate in 2H and should meaningfully contribute to 2014 revenue. Additionally, these tools should garner a more favorable margin profile. Thanks to the projected buildout of 14nm capacity by Intel (INTC* – $22.63), FEI’s largest customer, combined with continued high levels of investment from the leading foundries and increased memory spending, we foresee a healthy environment for ramping semiconductor capital spending over the next several quarters, benefiting FEI’s high margin Electronics segment.”
FLIR Systems (NASDAQ:FLIR) had its neutral rating reissued by analysts at Zacks. The firm currently has a $33.00 price target on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Flir Systems with a target price of $30.00. Both the company’s earnings and revenues for second quarter 2012 increased 30% and 15% year over year, respectively. The company’s moderated price structure and best quality services will continue to augment its growth in the future. Further, FLIR’s recent acquisitions will be accretive to its 2013 earnings. The company’s cost-control strategy is also very remarkable and beneficial. However, the competitive landscape in the industry is likely to hinder the company’s business, going forward. The current volatile macro-economic condition is also expected to hamper FLIR’s bookings activity, especially in the specified regions moving forward. Besides, government budgetary constraints, funding delays and stringent regulatory compliance remain headwinds.”
Hawaiian Electric Industries (NYSE:HE) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $26.00 target price on the stock. Zacks’ analyst wrote, “Hawaiian Electric Industries’ second quarter earnings beat the Zacks Consensus Estimate. The results reflect higher bank earnings compared with the same quarter last year. However, the positives were partly offset by lower utility earnings due to a customer refund recorded in the quarter. Again, ASB is well positioned to generate robust returns despite a challenging interest rate environment on the back of operational improvements and a de-risked balance sheet. However, lower electricity volume sales, a tourism-dependant Hawaiian economy, lowered guidance and uncertainty over the Japanese economy remain matters of concern for the company. Thus we maintain our market Neutral recommendation on the stock. “
Janus Capital Group (NYSE:JNS) had its neutral rating reaffirmed by analysts at Zacks. The firm currently has a $9.00 price target on the stock. Zacks’ analyst wrote, “Janus Capital’s second-quarter 2013 earnings were below the Zacks Consensus Estimate. Net outflows were a headwind for the quarter. Yet, top-line growth and reduced operating expenses depict prudent management. We believe Janus Capital has the best-in-class investment boutique with the potential for assets under management (AUM) and revenue along with competitive leverage growth. However, weak inflows remain a matter of concern. Though the fixed income segment and global operations are showing signs of improvement, the company’s equity-heavy portfolio makes it vulnerable to the volatilities of the equity market. Nevertheless, given its healthy balance sheet, we believe Janus Capital has the potential to perform well in the long run aided by a significant rebound in these markets. “
Lindsay Corp. (NYSE:LNN) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $84.00 target price on the stock. Zacks’ analyst wrote, “Lindsay’s third quarter 2013 earnings per share increased 50% y-o-y to $2.01, led by higher demand for irrigation equipment. Recovery in the U.S. construction sector and new projects will benefit Lindsay’s infrastructure business. The company’s backlog increased 80% year over year led by the irrigation order strength in Brazil. Lindsay will continue to benefit from the strong demand for irrigation systems in the international markets. On the flipside, Lindsay expects margin headwinds in the fourth quarter due to lower margin international irrigation project backlog and planned manufacturing maintenance projects. Lindsay has delivered record results for the first three quarters of fiscal 2013, driven by potential drought conditions. However, this might not continue in the future and will lead to tougher comparisons. We maintain our Neutral recommendation with a target price of $84.00.”
Lululemon (NASDAQ:LULU) had its neutral rating reaffirmed by analysts at DA Davidson. The firm currently has a $73.00 target price on the stock, down from their previous target price of $76.00. The analysts wrote, “LULU reported constant currency comps, revenue and EPS of 8%, $344.5 million and $0.39. This compares to consensus revenue and earnings of $343.9 million and $0.35 and our estimates of $344.1 million and $0.35. 2Q guidance called for comps of 5%-7%, revenue of $340-$345 million, and EPS of $0.33-$0.35. Store revenue climbed 18% year-over-year (y/y), Direct-to-consumer increased 39%, and Other revenue was up 34%. Gross margin decreased 113bp y/y to 54.0% largely due to the lower mix of black luon pants and a higher inventory reserve. SG&A grew 25% to $107.0 million, deleveraging ~70bp to 31% of sales.”
Level 3 Communications (NASDAQ:LVLT) had its neutral rating reaffirmed by analysts at DA Davidson. The firm currently has a $25.50 target price on the stock, up from their previous target price of $23.50. The analysts wrote, “On August 29th, LVLT announced a 6.5% global headcount reduction that equates to almost 700 people. The goal of the cut is to streamline LVLT’s organization. Most of the cuts will come in non-customer facing jobs, although the bottom quintile of the sales force is also under review. In the U.S., the majority of the cuts have already taken place, and internationally they will happen by the end of September. LVLT will take a Q3 severance charge of ~$30 million or $0.14 per share, according to the 8-K filed today. We expect $45-$50 million in annual SG&A savings due to the cuts and have added the one time severance expense into our model.”
Mid-America Apartment Communities (NYSE:MAA) had its hold rating reiterated by analysts at Jefferies Group. The firm currently has a $64.00 target price on the stock, down from their previous target price of $69.00. The analysts wrote, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.”
Oracle Corp. (NASDAQ:ORCL) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $34.00 target price on the stock. Zacks’ analyst wrote, “Oracle reported mixed fourth quarter results. However, the company provided a positive guidance and an additional share buyback program. We believe that Oracle needs to improve top-line growth in order to boost investor confidence in the near term. We believe that the speedy adoption of engineered systems and cloud suites will drive incremental top-line growth going ahead. Moreover, improving sales execution will result in strong conversion as well as win rates in the near term. Hardware growth is also expected to rebound in the first quarter of 2014, driven by new product introductions. The recent partnerships with Salesforce will provide significant boost going forward. However, continuing macro-economic weakness and stiff competition from IBM remain major headwinds in the near term. Thus, we remain Neutral and set a price target of $34.00.”
Public Service Enterprise Group (NYSE:PEG) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $33.00 price target on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on the stock due to its steady earnings base and significant long-term growth prospects partly tempered by moderate electric demand. Despite the slow growth in the economy, the company’s second quarter results surpassed the Zacks Consensus Estimate on the back of stepped-up transmission investment, higher PJM capacity prices and an improvement in market prices for energy with an increase in the price of gas. Over the longer run, Public Service s growth will be driven by its diversified robust portfolio of regulated and non-regulated assets, operational excellence, disciplined investment and added generating capacities. But the increasing cost of coal, higher pension & financial costs and power-price volatility are areas of concern.”
Reynolds American (NYSE:RAI) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $50.00 target price on the stock. Zacks’ analyst wrote, “Reynolds’ second-quarter 2013 earnings of $0.84 per share surpassed the year-ago earnings by 6.3% and beat the Zacks Consensus Estimate by a penny. Earnings improved on the back of positive pricing and higher profit during the quarter. Net sales increased only 0.1% year over year due to declining cigarette volumes. However, core brands like Camel, Pall Mall and Santa Fe gained market share backed by brand-building initiatives. Reynolds’ continuous innovations in the smokeless and moist snuff products are helping it to maintain a dominant share in the smokeless category. Furthermore, the company’s advancement in the e-cigarette category with its brand, Vuse, is encouraging. However, the high excise tax imposed by the governments around the world is pressurizing the company’s margins. Moreover, anti-smoking regulations remain a persistent overhang. We, therefore, prefer to stay on the sidelines, “
Raven Industries (NASDAQ:RAVN) had its neutral rating reissued by analysts at Zacks. Zacks currently has a $34.00 target price on the stock. Zacks’ analyst wrote, “Raven’s second-quarter fiscal 2014 earnings came in at $0.23 per share, down 28% year over year. Total revenue decreased 8% year over year to $93.4 million, reflecting the current constraints on federal spending. Raven expects to return to the historic earnings growth levels in fiscal 2014, driven by acquisitions. In addition, the company remains optimistic on OEM demand, which will recover in the future. However, margins will be under pressure due to Raven’s investments in new initiatives and product development. The Aerostar segment will continue to face government uncertainty and sluggish demand. Moreover, falling commodity prices and lower manufacturing efficiencies remain headwinds in the upcoming quarters. We maintain our Neutral recommendation on Raven Industries with a target price of $34.”
Rowan Companies PLC (NYSE:RDC) had its neutral rating reiterated by analysts at Zacks. Zacks currently has a $40.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our long-term Neutral recommendation on Rowan Companies plc. Second quarter revenues and earnings beat the respective Zacks Consensus Estimate, due mainly to higher average day rates, increased activity from fleet additions and higher utilization of existing rigs between periods. In an important milestone, Rowan contracted one of its ultra-deepwater drillship, Rowan Reliance, for a three-year period. The company’s backlog is at an all-time high and provides ample visibility into its future prospects. However, we remain concerned about the volatile macro backdrop, along with operational hindrances that could put pressure on the company’s performance in the upcoming quarters. As such, we see a restricted upside potential for Rowan’s shares and expect the company to perform on par with the industry. “
Sears Holdings Corp. (NASDAQ:SHLD) had its neutral rating reiterated by analysts at Zacks. They currently have a $62.00 price target on the stock. Zacks’ analyst wrote, “We remain cautious about Sears Holdings’ future performance as declining sales continue to weigh on the company’s bottom-line results as reflected in the last reported quarter. The persistent weak performances at its Sears Canada and Kmart stores that have been adversely affected by Wal-Mart and dollar stores’ aggressive pricing and expansion strategies which are major drags on the company’s top-line results. However, we appreciate Sears Holdings’ efforts to improve its financial performance and liquidity position through various strategic measures. Sears is also focusing on cost containment, inventory management and merchandise initiatives to inflate margins. We commend the company’s strategy of capitalizing on opportunities, while increasing profitability through its revamped organizational structure and new operating model, which should enhance its top and bottom lines.”
Sonoco Products (NYSE:SON) had its neutral rating reiterated by analysts at Zacks. They currently have a $40.00 target price on the stock. Zacks’ analyst wrote, “Adjusted earnings per share for Sonoco Products edged up 2% to $0.59 in the second quarter, while net sales increased 2% to $1.23 billion. Sonoco’s consumer business appears to have turned the corner with volumes picking up in its high-margin composite can business. New products, geographical expansion, promotional activities and price increase will support revenues for the segment. The Energizer contract as well as customer wins will provide a boost to the Display and Packaging segment. However, uncertainty among its customers given the slow recovery in the U.S. and ongoing European weakness remain headwinds for the company. We, thus, maintain our Neutral recommendation on Sonoco Products with a target price of $40.00. “
Sonic Corp. (NASDAQ:SONC) had its hold rating reissued by analysts at Jefferies Group. They currently have a $18.00 price target on the stock, up from their previous price target of $15.50. The analysts wrote, “SONC pre-announced F4Q EPS $0.30 vs. our/cons $0.28 as SSS +5.9% beat 2% consensus. F14 EPS outlook is essentially in-line with consensus (+14-15%), but stock rallying on stronger SSS & the hope that initial F14 EPS guide is conservative. We think modest EPS upside is possible, but stock fairly reflects improving visibility for positive SSS & double digit EPS growth.”
Staples (NASDAQ:SPLS) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $15.00 price target on the stock. Zacks’ analyst wrote, “Staples continues to disappoint as lower sales and product margins took a toll on the second-quarter fiscal 2013 earnings. Both the top and bottom-line missed the Zacks Consensus Estimates while decreasing 2.2% and 15.8%, respectively. Going forward, we expect the demand for office products to remain soft. Moreover, margins are likely to remain under pressure owing to the company’s price investment and macroeconomic headwinds. Given the near-term challenges, the company lowered its earnings and sales guidance for fiscal 2013. However, Staples has shifted focus toward improving store productivity, accelerating growth in adjacent categories, increasing market share in core office supplies and streamlining its cost structure, which we believe would benefit the company as the economy rebounds and consumer spending increases. Currently, we maintain our Neutral recommendation on the stock. “
Southwestern Energy (NYSE:SWN) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $40.00 target price on the stock. Zacks’ analyst wrote, “We are reiterating our Neutral recommendation on Southwestern Energy following its stable second quarter 2013 results. The performance was backed by higher production, primarily at its Fayetteville shale operations, as well as lower operating expense. Going forward Southwestern Energy enjoys strong acreage positions in the Fayetteville and Marcellus shales, which offer ample opportunities for newer natural gas discoveries. The company’s effort to build its New Ventures acreage outside of New Brunswick is an added positive. Brown Dense is expected to be a key play in its portfolio. However, we prefer to stay on the sidelines, considering the weak natural gas scenario in the U.S. Other risk factors such as technological failures and lack of a diversified asset base also add to our negative sentiment. “
Telephone & Data Systems (NYSE:TDS) had its neutral rating reaffirmed by analysts at Zacks. They currently have a $30.00 target price on the stock. Zacks’ analyst wrote, “We maintain our Neutral recommendation on Telephone and Data Systems. The company reported mixed second quarter results, with earnings surpassing the Zacks Consensus Estimate and improving year over year. Revenues, however, were down year over year and missed our expectation. Within the wireless segment, higher churn in the post-paid segment, increased equipment subsidies and investments in network upgrade would continue to affect results. Further, access line losses due to wireless substitution and other alternative services remain detrimental to growth. However, we believe these headwinds can be largely mitigated by several initiatives taken by the company like increasing handset offerings and expansion of LTE technology in the wireless business. Moreover, expansion into the rapidly developing managed hosting and cloud service offerings will likely aid profitability going forward.”
Ulta Salon Cosmetics & Fragrance (NASDAQ:ULTA) had its buy rating reaffirmed by analysts at Jefferies Group. The firm currently has a $120.00 target price on the stock, up from their previous target price of $110.00. The analysts wrote, “We are encouraged by ULTA’s solid 2Q results, which beat Street and company expectations. Though the outlook for 3Q and full year seem light, and beatable, in our view, we like the long term growth story, differentiated positioning and mgmt’s execution on strategic initiatives. As fundamentals continue to improve, we are very positive on the growth opportunity in this name and see favorable risk/reward. Reiterate Buy and raise PT to $120.”
Ulta Salon Cosmetics & Fragrance (NASDAQ:ULTA) had its outperform rating reaffirmed by analysts at Wells Fargo & Co.. The firm currently has a $124.00 target price on the stock.
Ultra Petroleum Corp. (NYSE:UPL) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $22.00 target price on the stock. Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Ultra Petroleum shares, reflecting the company’s portfolio repositioning initiatives. Taking a cautious view of gas prices, Ultra has focused its capital program on the promising liquids-rich plays, which is a major shift away from dry natural gas development. The company has trimmed its current year capex by 50% from last year’s level, while still looking for robust production. While subscribing to management’s outlook, we believe the realignment of Ultra will take some time to bear results. The company also lacks geographic diversification, which somewhat hampers its competitive positioning. As such, we see the stock performing in line with the broader market.”
URS Corp. (NYSE:URS) had its buy rating reissued by analysts at DA Davidson. The firm currently has a $60.00 price target on the stock, up from their previous price target of $55.00. The analysts wrote, “Following the company’s recent Board meeting, URS announced a commitment to return at least $500 million to shareholders through share repurchases and/or dividends through 2015. This commitment offers a nearly 13% potential return to shareholders based on current market value. Management further indicated the company does not expect to pursue any major acquisitions. Historically the company has grown through a series of large acquisitions, which have led to increased financial leverage with mixed returns to shareholders. Based on our earnings projections and assumption for cash-flow, we expect the company will be able to fully fund this planned distribution of cash from operations while continuing to substantially reduce debt as previously committed. Our estimates call for $5.00 per share in 2014 which implies free cash flow of $7.85 per share. Please see our recent reports. These estimates do not incorporate benefits from additional share repurchases.”
Willis Group Holdings PLC (NYSE:WSH) had its neutral rating reissued by analysts at Zacks. The firm currently has a $45.00 price target on the stock. Zacks’ analyst wrote, “Willis Group’s second-quarter earnings surpassed the Zacks Consensus Estimate but remained flat with the year-ago quarter. Top line fared better on the back of higher commission and fees. Moreover, each segment delivered organic growth for the third consecutive quarter. With solid retention levels and new business growth, we expect the company to continue the momentum. Its inorganic growth story also looks impressive. The company’s cost savings initiative is expected to aid margin expansion that otherwise remains constrained due to increasing expenses. Willis Group remains focused on enhancing its shareholders’ value. However, the soft macro conditions might restrict any significant top-line growth in the company. Additionally, with weak interest rate environment we expect investment income to remain pressurized. We, therefore, maintain a Neutral recommendation on Willis Group Holdings. “
Zumiez (NASDAQ:ZUMZ) had its neutral rating reaffirmed by analysts at Zacks. Zacks currently has a $29.00 target price on the stock. Zacks’ analyst wrote, “Building on its long-term growth strategies and strength in assortments, Zumiez beat earnings expectations in second-quarter fiscal 2013, marking its 19th consecutive quarterly beat. Going forward, we believe that Zumiez’s store expansion policy and enhancement of e-Commerce will help boost the company’s top and bottom lines. We also remain impressed with the Blue Tomato acquisition, which has provided the company a solid platform to capitalize on emerging opportunities. However, we are skeptical about the company’s future comps performance, due to the fall in comparable store transactions in recent times. Further, we believe that intense competition from rival specialty retailers, the seasonal nature of the business and risks associated with sourcing merchandise from foreign countries may undermine the company’s results. Hence, our long-term Neutral recommendation on the stock remains in place.”