Showing posts with label Downgrade. Show all posts
Showing posts with label Downgrade. Show all posts
Tuesday, October 9, 2012
Arch Coal (ACI) (DO) (FNV) (TGB) (EOX) (HNRG) (PXD) (PPP) Ratings Changes and Initiations
Arch Coal, Inc. (ACI), Diamond Offshore Drilling, Inc. (DO), Franco Nev Corp (Canada) (FNV), Taseko Mines Limited (TGB), Emerald Oil Inc (EOX), Hallador Energy Co (HNRG), Pioneer Natural Resources (PXD) and Primero Mining Corp. (Canada) (PPP) had ratings adjustments or initiations on them.
Macquarie upgraded Primero Mining Corp. (Canada) (PPP) from a "Neutral" rating to an "Outperform" rating.
Goldman Sachs (GS) downgraded Arch Coal, Inc. (ACI) from a "Neutral" rating to a "Sell" rating. They have a price target of $5.00 on the company.
Morgan Stanley (MS) downgraded Diamond Offshore Drilling, Inc. (DO) from an "Overweight" rating to an "Equal Weight" rating. They have a price target of $85.00 on the company.
TD Securities downgraded Franco Nev Corp (Canada) (FNV) from a "Buy" rating to a "Hold" rating.
Canaccord Genuity downgraded Taseko Mines Limited (TGB) from a "Buy" rating to a "Hold" rating.
Canaccord Genuity initiated coverage on Emerald Oil (EOX). They have a "Buy" rating and a price target of $1.50 on the company.
Brean Murray initiated coverage on Hallador Energy Co (HNRG). They have a "Buy" rating and a price target of $10.00 on the company.
Wells Fargo & Co. (WFC) initiated coverage on Pioneer Natural Resources (PXD). They have an "Outperform" rating on the company.
Tuesday, September 18, 2012
Alcoa (AA) (GOLD) (MPC) (PSX) (RS) (SCHN) (STLD) Downgraded
Alcoa Inc. (AA), Randgold Resources Ltd. (GOLD), Marathon Petroleum (MPC), Phillips 66 (PSX), Reliance Steel & Aluminum (RS), Schnitzer Steel (SCHN) and Steel Dynamics, Inc. (STLD) were downgraded by analysts.
Jefferies Group (JEF) downgraded Alcoa Inc. (AA) from a "Buy" rating to a "Hold" rating. They have a price target of $11.00 on the company.
Stifel Nicolaus downgraded Randgold Resources Ltd. (GOLD) from a "Buy" rating to a "Hold" rating.
Credit Suisse downgraded Marathon Petroleum (MPC) from an "Outperform" rating to a "Neutral" rating. They have a price target of $63.00 on the company.
Credit Suisse downgraded Phillips 66 (PSX) from an "Outperform" rating to a "Neutral" rating. They have a price target of $46.00 on the company.
Jefferies Group downgraded Reliance Steel & Aluminum (RS) from a "Buy" rating to a "Hold" rating. They have a price target of $62.00 on the company.
Jefferies Group downgraded Schnitzer Steel (SCHN) from a "Buy" rating to a "Hold" rating.
Jefferies Group downgraded Steel Dynamics, Inc. (STLD) from a "Buy" rating to a "Hold" rating.
Jefferies Group (JEF) downgraded Alcoa Inc. (AA) from a "Buy" rating to a "Hold" rating. They have a price target of $11.00 on the company.
Stifel Nicolaus downgraded Randgold Resources Ltd. (GOLD) from a "Buy" rating to a "Hold" rating.
Credit Suisse downgraded Marathon Petroleum (MPC) from an "Outperform" rating to a "Neutral" rating. They have a price target of $63.00 on the company.
Credit Suisse downgraded Phillips 66 (PSX) from an "Outperform" rating to a "Neutral" rating. They have a price target of $46.00 on the company.
Jefferies Group downgraded Reliance Steel & Aluminum (RS) from a "Buy" rating to a "Hold" rating. They have a price target of $62.00 on the company.
Jefferies Group downgraded Schnitzer Steel (SCHN) from a "Buy" rating to a "Hold" rating.
Jefferies Group downgraded Steel Dynamics, Inc. (STLD) from a "Buy" rating to a "Hold" rating.
Monday, November 8, 2010
Chesapeake Energy (NYSE:CHK) Continues to Struggle with Low Natural Gas Prices
Struggling in the midst of depressed natural gas prices, Chesapeake Energy (NYSE:CHK) has its rating downgraded by BMO Capital from "Outperform" to "Market Perform."
Over the last six months Chesapeake has dropped in share price, and over the last several months they've pretty much remained level.
Chesapeake closed Friday at $22.27, losing $0.02, or 0.09 percent. BMO dropped their price target on them from $30 to $26.
A growing number of natural gas companies have looked to the oil sector to drive up margins and earnings in the tough natural gas conditions, which have far too much supply at this time, and probably will have for years.
Over the last six months Chesapeake has dropped in share price, and over the last several months they've pretty much remained level.
Chesapeake closed Friday at $22.27, losing $0.02, or 0.09 percent. BMO dropped their price target on them from $30 to $26.
A growing number of natural gas companies have looked to the oil sector to drive up margins and earnings in the tough natural gas conditions, which have far too much supply at this time, and probably will have for years.
Thursday, November 4, 2010
Taseko (Amex:TGB) Loses Prosperity Mine Battle
Taseko Mines (Amex:TGB) got hit hard when the news came out they were denied permission to go forward with their Prosperity Mine by the Canadian government.
Cannacord Genuity downgraded them, as well as others, almost immediately afterward, lowering them from "Buy" to "Hold."
"We are downgrading our rating and lowering our 12-month target to C$5.25/share following the Federal Government’s decision to deny environmental approval for the company’s proposed Prosperity coppergold project in B.C. Our revised C$5.25 target is based on an unchanged 4.0x our 2011E EV/EBITDA (C$4.62) plus a substantially reduced in-situ value for Prosperity of C$0.59 (previously C$2.21), which reflects a markedly reduced probability weighting of only 20% (previously 75%). While we are lowering our rating to HOLD, we anticipate the shares to open sharply down on Wednesday, November 3, which could present a buying opportunity if the shares fall materially below C$5.00, in our opinion."
Taseko closed in New York at $4.91, dropping $1.57, or 24.23 percent. Canaccord dropped their price target on Taseko from C$6.85 to C$5.25.
Cannacord Genuity downgraded them, as well as others, almost immediately afterward, lowering them from "Buy" to "Hold."
"We are downgrading our rating and lowering our 12-month target to C$5.25/share following the Federal Government’s decision to deny environmental approval for the company’s proposed Prosperity coppergold project in B.C. Our revised C$5.25 target is based on an unchanged 4.0x our 2011E EV/EBITDA (C$4.62) plus a substantially reduced in-situ value for Prosperity of C$0.59 (previously C$2.21), which reflects a markedly reduced probability weighting of only 20% (previously 75%). While we are lowering our rating to HOLD, we anticipate the shares to open sharply down on Wednesday, November 3, which could present a buying opportunity if the shares fall materially below C$5.00, in our opinion."
Taseko closed in New York at $4.91, dropping $1.57, or 24.23 percent. Canaccord dropped their price target on Taseko from C$6.85 to C$5.25.
Wednesday, November 3, 2010
Moody's (NYSE:MCO) Downgrades EXCO Resources (NYSE:XCO), As Do Several Others
Moody's (NYSE:MCO) downgraded EXCO Resources (NYSE:XCO) from "Positive" to "Developing" on the proposed buyout of the company and taking it private being a distraction to management.
Other agencies joined the downgrade bonanza, with Morgan Keegan downgrading them from "Outperform" to "Market Perform," MBO Capital downgraded them from "Outperform" to "Market Perform" as well, and Scotia Capital also downgraded XCO from "Sector Outperform" to "Sector Perform."
Price targets stood at $20 from Morgan, increased from $17 to $21 by BMO, and from $20 to $20.50 by Scotia.
Standard & Poor's Rating Service put the "BB-" corporate credit rating and "B" senior unsecured debt rating on negative credit watch.
Ratings could be lowered depending on the success of the takeover and how the financing is structured, concluded Standard & Poor's.
Moody's sees the process itself as being detrimental to the company, no matter what the ultimate terms of the deal may end up being.
Other agencies joined the downgrade bonanza, with Morgan Keegan downgrading them from "Outperform" to "Market Perform," MBO Capital downgraded them from "Outperform" to "Market Perform" as well, and Scotia Capital also downgraded XCO from "Sector Outperform" to "Sector Perform."
Price targets stood at $20 from Morgan, increased from $17 to $21 by BMO, and from $20 to $20.50 by Scotia.
Standard & Poor's Rating Service put the "BB-" corporate credit rating and "B" senior unsecured debt rating on negative credit watch.
Ratings could be lowered depending on the success of the takeover and how the financing is structured, concluded Standard & Poor's.
Moody's sees the process itself as being detrimental to the company, no matter what the ultimate terms of the deal may end up being.
Friday, October 29, 2010
Wells Fargo (NYSE:WFC) Says Energen (NYSE:EGN) Valued Where it Should Be
Saying Energen Corp.'s (NYSE:EGN) valuation is in line with its performance realities, Wells Fargo (NYSE:WFC) downgraded them from "Outperform" to "Market Perform."
"We believe Energen is an attractively valued diversified energy company, the growth of which is primarily tied to its E&P business. EGN's strategy is designed to use its low leverage, liquidity, and free cash flow to opportunistically acquire and develop oil and gas assets. We think shares appeal to both energy and utility investors looking for a lower-risk way to gain exposure to commodities. In addition, EGN's modest dividend is largely supported by its gas utility," said Wells.
Energen closed Thursday at $44.65, losing $1.27, or 2.77 percent. Wells lowered their valuation range on them from $52-$54 to $51-$53.
"We believe Energen is an attractively valued diversified energy company, the growth of which is primarily tied to its E&P business. EGN's strategy is designed to use its low leverage, liquidity, and free cash flow to opportunistically acquire and develop oil and gas assets. We think shares appeal to both energy and utility investors looking for a lower-risk way to gain exposure to commodities. In addition, EGN's modest dividend is largely supported by its gas utility," said Wells.
Energen closed Thursday at $44.65, losing $1.27, or 2.77 percent. Wells lowered their valuation range on them from $52-$54 to $51-$53.
Wednesday, October 27, 2010
Bank of America (NYSE:BAC) Changes Ratings on CMS (NYSE:CMS) and NV Energy (NYSE:NVE)
Bank of America (NYSE:BAC) changed its ratings on NV Energy (NYSE:NVE) and CMS Energy (NYSE:CMS), upgrading one and downgrading the other.
In the case of CMS Energy (NYSE:CMS), they were downgraded from "Buy" to "Neutral." After remaining level for months, CMS caught fire in the early part of July, but seem poised for a pullback.
NV Energy has been on a more steady climb, and were upgraded by Bank of America from "Underperform" to "Buy," as it looks like it's their turn to start a more serious climb in price.
NV closed Monday at $13.50, gaining $0.51, or 3.93 percent. CMS ended the trading session at $18.33, dropping $0.39, or 2.08 percent.
In the case of CMS Energy (NYSE:CMS), they were downgraded from "Buy" to "Neutral." After remaining level for months, CMS caught fire in the early part of July, but seem poised for a pullback.
NV Energy has been on a more steady climb, and were upgraded by Bank of America from "Underperform" to "Buy," as it looks like it's their turn to start a more serious climb in price.
NV closed Monday at $13.50, gaining $0.51, or 3.93 percent. CMS ended the trading session at $18.33, dropping $0.39, or 2.08 percent.
Friday, October 22, 2010
Terex (NYSE:TEX) Plunges and is Downgraded: Time to Buy?
There is no way to spin the Terex (NYSE:TEX): In the short term they're a mess, as the recent quarterly results and resultant downgrade from Standpoint Research points to.
Standpoint downgraded the equipment maker from "Buy" to "Sell."
"Terex shares were nearing a two-year high before the (lack of) earnings announcement this morning. The shares are down 4% in light pre-market trading. Although the shares are trading at low multiples on earnings from 2005 (10X), 2006 (6X), 2007 (4X) and 2008 (4X), the company is not profitable at this time and it may take a couple of years before they match the $2.43 figure from 2005. We will not see them match the numbers from 2006 ($4.05), 2007 ($5.93) or 2008 ($5.64) any time soon. This was a $90 stock three years ago, but in my opinion it may take two years before we see the share price back at $30 … and we may very well break $20 to the downside before then. There are better risk-reward situations in the sector at this time. TEX has disappointed repeatedly in recent years and the announcement today was no exception. Annual revenues are now down below $5 bln … that is more than 50% off the $10 bln sales figure posted just two years ago," said Standpoint.
Terex lost $89.2 million in the quarter, dropping to $0.82 a share. Analysts had been looking for a loss of $0.15, to show how badly they missed.
There is nothing much short term to be excited about with Terex. But when measured against rivals Deere (NYSE:DE), CNH Global (NYSE:CNH) and Caterpillar (NYSE:CAT), they will trade at even a larger discount than before, offering a possible lucrative buying opportunity for the long term.
Standpoint downgraded the equipment maker from "Buy" to "Sell."
"Terex shares were nearing a two-year high before the (lack of) earnings announcement this morning. The shares are down 4% in light pre-market trading. Although the shares are trading at low multiples on earnings from 2005 (10X), 2006 (6X), 2007 (4X) and 2008 (4X), the company is not profitable at this time and it may take a couple of years before they match the $2.43 figure from 2005. We will not see them match the numbers from 2006 ($4.05), 2007 ($5.93) or 2008 ($5.64) any time soon. This was a $90 stock three years ago, but in my opinion it may take two years before we see the share price back at $30 … and we may very well break $20 to the downside before then. There are better risk-reward situations in the sector at this time. TEX has disappointed repeatedly in recent years and the announcement today was no exception. Annual revenues are now down below $5 bln … that is more than 50% off the $10 bln sales figure posted just two years ago," said Standpoint.
Terex lost $89.2 million in the quarter, dropping to $0.82 a share. Analysts had been looking for a loss of $0.15, to show how badly they missed.
There is nothing much short term to be excited about with Terex. But when measured against rivals Deere (NYSE:DE), CNH Global (NYSE:CNH) and Caterpillar (NYSE:CAT), they will trade at even a larger discount than before, offering a possible lucrative buying opportunity for the long term.
Wednesday, October 20, 2010
Goldman (NYSE:GS) Downgrades Fluor (NYSE:FLR) Citing Write-downs
Saying execution risk and uncertainty concerning future write-downs could put downward pressure on the multiple of Fluor Corp. (NYSE:FLR), Goldman Sachs downgraded them from "Buy" to "Neutral."
With the $163 million charge against its Greater Gabbard Offshore Wind Project, Goldman said "we expect uncertainty surrounding future write-downs to suppress FLR's multiple."
At this time the cost over-runs for Flour with Gabbard is their responsibility because they priced it as a lump sum. Historically when these write-downs occur in this fashion, they continue on until the project being worked on is completed.
Goldman raised their EPS for the year on Flour from $3.05 to $3.25.
Flour closed at $48.99 Tuesday, dropping $0.24, or 0.49 percent. Goldman lowered their price target on Flour from $57 to $53.
With the $163 million charge against its Greater Gabbard Offshore Wind Project, Goldman said "we expect uncertainty surrounding future write-downs to suppress FLR's multiple."
At this time the cost over-runs for Flour with Gabbard is their responsibility because they priced it as a lump sum. Historically when these write-downs occur in this fashion, they continue on until the project being worked on is completed.
Goldman raised their EPS for the year on Flour from $3.05 to $3.25.
Flour closed at $48.99 Tuesday, dropping $0.24, or 0.49 percent. Goldman lowered their price target on Flour from $57 to $53.
Citigroup (NYSE:C) Slashes Ratings of Martin Marietta (NYSE:MLM) and Vulcan Materials (NYSE:VMC)
Citigroup isn't impressed with Martin Marietta Materials (NYSE:MLM) and Vulcan Materials (NYSE:VMC), and cut the rating on each company and lowered their price targets significantly as well.
The rating on both companies was dropped from "Hold" to "Sell," with the price target on Vulcan slashed from $45 to $33 and Martin Marietta from $82 to $72.
Vulcan closed at $35.89 Tuesday, falling $0.62. or 1.70 percent. Martin Marietta ended at $77.84, losing $0.82, or 1.04 percent.
The rating on both companies was dropped from "Hold" to "Sell," with the price target on Vulcan slashed from $45 to $33 and Martin Marietta from $82 to $72.
Vulcan closed at $35.89 Tuesday, falling $0.62. or 1.70 percent. Martin Marietta ended at $77.84, losing $0.82, or 1.04 percent.
Suntech (NYSE:STP), First Solar (Nasdaq:FSLR), Energy Conversion Devices (Nasdaq:ENER) Rated by Raymond James
For better or worse, the solar sector continues to garner a lot of attention, as Raymond James rated Suntech (NYSE:STP), First Solar (Nasdaq:FSLR) and Energy Conversion Devices (Nasdaq:ENER).
Suntech was upgraded by Raymond James from "Underperform" to "Market Perform." They had also been upgraded by Deutsche Bank AG (NYSE:DB) from "Hold" to "Buy."
For First Solar Raymond downgraded them from "Outperform" to "Market Perform," and Energy Conversion Devices was downgraded from "Market Perform" to "Underperform."
First Solar closed Tuesday at $143.92, falling $3.15, or 2.14 percent. Suntech ended the session at $8.85, dropping $0.59, or 6.25 percent. Energy Conversion Devices closed at $4.64, losing $0.35, or 7.01 percent.
Suntech was upgraded by Raymond James from "Underperform" to "Market Perform." They had also been upgraded by Deutsche Bank AG (NYSE:DB) from "Hold" to "Buy."
For First Solar Raymond downgraded them from "Outperform" to "Market Perform," and Energy Conversion Devices was downgraded from "Market Perform" to "Underperform."
First Solar closed Tuesday at $143.92, falling $3.15, or 2.14 percent. Suntech ended the session at $8.85, dropping $0.59, or 6.25 percent. Energy Conversion Devices closed at $4.64, losing $0.35, or 7.01 percent.
Northeast Utilities (NYSE:NU) Downgraded on NStar (NYSE:NST) Deal
Many commentators and analysts believe the deal by Northeast Utilities (NYSE:NU) to merge with Northeast SuperRegional Transmission Co (NYSE:NST) may do well over the long term, but short term is expected to drag the company down.
UBS (NYSE:UBS) was the latest to reveal what they thought as they downgraded Northeast from "Buy" to "Neutral."
"We are downgrading NU following this morning’s announcement that the CT company plans to merge with Boston-based NStar, not covered) in an MOE. Management expects 9-12 months for receipt of all regulatory approvals. Shareholders are expected to vote on the transaction in 1Q11 (two-thirds needed for approval). NST management will have key financial roles, while NU management retains key operational ones," said UBS.
The market ignored the downgrade, as Northeast continued its upward climb, which has been done incrementally since March 2009, when they were trading under $20 a share.
Northeast Utilities closed Tuesday at $30.79 a share, gaining $0.37,or 1.22 percent. UBS has a price target of $33 on them.
UBS (NYSE:UBS) was the latest to reveal what they thought as they downgraded Northeast from "Buy" to "Neutral."
"We are downgrading NU following this morning’s announcement that the CT company plans to merge with Boston-based NStar, not covered) in an MOE. Management expects 9-12 months for receipt of all regulatory approvals. Shareholders are expected to vote on the transaction in 1Q11 (two-thirds needed for approval). NST management will have key financial roles, while NU management retains key operational ones," said UBS.
The market ignored the downgrade, as Northeast continued its upward climb, which has been done incrementally since March 2009, when they were trading under $20 a share.
Northeast Utilities closed Tuesday at $30.79 a share, gaining $0.37,or 1.22 percent. UBS has a price target of $33 on them.
Tuesday, October 19, 2010
Wells Fargo (NYSE:WFC), UBS (NYSE:UBS Downgrade Northeast Utilities (NYSE:NU)
Saying the $4.17 billion bid by Northeast Utilities (NYSE:NU) for NSTAR (NYSE:NST) is dilutive, Wells Fargo (NYSE:WFC) downgraded Northeast from "Outperform" to "Market Perform."
Also downgrading the utility was UBS (NYSE:UBS), which dropped them from a "Buy" to "Neutral."
Wells said, "While we understand and appreciate the strategic rationale for the merger with NSTAR, the deal appears to dilute two of the underlying reasons for our positive rating (above average EPS growth and high concentration of FERC earnings). Until we gain greater clarity on some of the issues surrounding the proposed transaction, such as MA regulatory risk, we are moving to the sidelines on NU."
Northeast closed Monday at $30.42, losing $0.28, or 0.91 percent. Wells has a range on them from $32 to $33 a share.
Also downgrading the utility was UBS (NYSE:UBS), which dropped them from a "Buy" to "Neutral."
Wells said, "While we understand and appreciate the strategic rationale for the merger with NSTAR, the deal appears to dilute two of the underlying reasons for our positive rating (above average EPS growth and high concentration of FERC earnings). Until we gain greater clarity on some of the issues surrounding the proposed transaction, such as MA regulatory risk, we are moving to the sidelines on NU."
Northeast closed Monday at $30.42, losing $0.28, or 0.91 percent. Wells has a range on them from $32 to $33 a share.
Goldman (NYSE:GS) Says Alpha Natural Resources (NYSE:ANR) Has Limited Upside
Saying Alpha Natural Resources (NYSE:ANR) has discounted $200/MT, Goldman Sachs (NYSE:GS) sees little upside for the going forward.
The banking giant said, "We continue to like ANR's met and NAPP thermal coal assets, but believe a Neutral rating is appropriate, given the stock is already discounting $200/MT, limiting further upside vs. expectations."
Goldman downgraded Alpha Natural Resource from "Buy" to "Neutral."
Alpha ended Monday's trading session at $45.87, falling $0.80, or 1.71 percent. Goldman raised their price target from $52 to $53.
The banking giant said, "We continue to like ANR's met and NAPP thermal coal assets, but believe a Neutral rating is appropriate, given the stock is already discounting $200/MT, limiting further upside vs. expectations."
Goldman downgraded Alpha Natural Resource from "Buy" to "Neutral."
Alpha ended Monday's trading session at $45.87, falling $0.80, or 1.71 percent. Goldman raised their price target from $52 to $53.
Copano Energy (Nasdaq:CPNO) Distribution Rates Slowing
Saying the slower distribution rates of Copano Energy (Nasdaq:CPNO), they should underperform their peers, said Barclays (NYSE:BCS), which downgraded them from "Overweight" to "Equalweight."
"We downgrade CPNO due to slower distribution growth prospects compared to its Overweight rated peers: Given expected tight distribution coverage in 2010 and 2011 we estimate CPNO will leave its distribution flat and resume growth at 2-5% level in 2012-2014, based on our assumption that it can successfully deploy $150-200 mm of growth capital per year at 5x return multiple. While this requires strong execution skill, which CPNO has demonstrated in the past, we note that CPNO's growth forecast falls below our Overweight rated G&P MLPs that have either started to raise distribution or should be in a position to raise distribution in 2011 and beyond by 5-10% range," said Barclays.
Earnings per share estimates were lowered by Barclays for FY11 from $0.06 to -$0.09 and FY12 from $0.46 to $0.26.
Morgan Keegan also downgraded them from "Outperform" to "Market Perform."
Copano closed at $28.76, falling $0.80, or 2.71 percent.
"We downgrade CPNO due to slower distribution growth prospects compared to its Overweight rated peers: Given expected tight distribution coverage in 2010 and 2011 we estimate CPNO will leave its distribution flat and resume growth at 2-5% level in 2012-2014, based on our assumption that it can successfully deploy $150-200 mm of growth capital per year at 5x return multiple. While this requires strong execution skill, which CPNO has demonstrated in the past, we note that CPNO's growth forecast falls below our Overweight rated G&P MLPs that have either started to raise distribution or should be in a position to raise distribution in 2011 and beyond by 5-10% range," said Barclays.
Earnings per share estimates were lowered by Barclays for FY11 from $0.06 to -$0.09 and FY12 from $0.46 to $0.26.
Morgan Keegan also downgraded them from "Outperform" to "Market Perform."
Copano closed at $28.76, falling $0.80, or 2.71 percent.
Monday, October 18, 2010
Qiagen NV (Nasdaq:QGEN) Pipeline Concerns Dragging on the Company
Although Leerink Swann likes the long-term prospects of Qiagen NV (Nasdaq:QGEN), but looking at the short-term concerns over their pipeline menu, they downgraded them from "Outperform" to "Market Perform."
"While we continue to favorably view QGEN's long-term strategy, we are concerned that pipeline menu could be further delayed, and current Street expectations could prove optimistic...Additionally, we believe QGEN's ambitious clinical plans could ramp operating expenses more than people expect in the near term. Finally, we believe the Street's expectation
that QGEN returns to 13% organic revenue growth as early as next year is a
bit aggressive," said Leerink.
They added, "Our 12-month valuation on QGEN shares is $19 to $21 on 10x our 2012 EBITDA (ex options) estimate."
Qiagen NV closed Friday at $18.38, losing $0.07, or 0.38 percent.
"While we continue to favorably view QGEN's long-term strategy, we are concerned that pipeline menu could be further delayed, and current Street expectations could prove optimistic...Additionally, we believe QGEN's ambitious clinical plans could ramp operating expenses more than people expect in the near term. Finally, we believe the Street's expectation
that QGEN returns to 13% organic revenue growth as early as next year is a
bit aggressive," said Leerink.
They added, "Our 12-month valuation on QGEN shares is $19 to $21 on 10x our 2012 EBITDA (ex options) estimate."
Qiagen NV closed Friday at $18.38, losing $0.07, or 0.38 percent.
Friday, October 15, 2010
Wells Fargo (NYSE:WFC) on Penn Virginia (NYSE:PVR) Alliance (Nasdaq:ARLP) and Oxford Resource (NYSE:OXF)
Commenting on Coal MLPs, Wells Fargo (NYSE:WFC) took a quick look at Penn Virginia Resource Partners, L.P. (NYSE:PVR), Alliance Resource Partners, L.P. (Nasdaq:ARLP), and Oxford Resource Partners, L.P. (NYSE:OXF).
"We are increasing valuation range for Penn Virginia Resource Partners, L.P. to $24 to $26 from $23 to $25. We are downgrading Alliance Resource Partners, L.P. to Underperform from Outperform based on valuation. Our top Outperform pick in this subsector is Oxford Resource Partners, L.P," said Wells.
Penn Virginia Resource Partners, L.P. closed Thursday at $26.05, losing $0.03, or 0.12 percent. Alliance Resource Partners ended the session at $60.86, losing $0.64, or 1.04 percent. Favorite Oxford Resource Partners, L.P. ended the day up at $21.33, gaining $0.42, or 2.01 percent.
"We are increasing valuation range for Penn Virginia Resource Partners, L.P. to $24 to $26 from $23 to $25. We are downgrading Alliance Resource Partners, L.P. to Underperform from Outperform based on valuation. Our top Outperform pick in this subsector is Oxford Resource Partners, L.P," said Wells.
Penn Virginia Resource Partners, L.P. closed Thursday at $26.05, losing $0.03, or 0.12 percent. Alliance Resource Partners ended the session at $60.86, losing $0.64, or 1.04 percent. Favorite Oxford Resource Partners, L.P. ended the day up at $21.33, gaining $0.42, or 2.01 percent.
Wells Fargo (NYSE:WFC) Talks Magellan (NYSE:MMP), Plains All American Pipeline, (NYSE:PAA), Sunoco Logistics (NYSE:SXL) Kinder Morgan (NYSE:KMR)
Commenting on various segments fo the pipeline sector, one grouping Wells Fargo (NYSE:WFC) targeted was large cap pipeline MLPS. There they gave their insights into Magellan Midstream Partners, L.P. (NYSE:MMP), Plains All American Pipeline, L.P. (NYSE:PAA), Sunoco Logistics Partners, L.P. (NYSE:SXL) and Kinder Morgan Management, LLC (NYSE:KMR)."
Wells said, "We are increasing valuation ranges across our large cap
pipeline MLP coverage universe by an average of 1%. Our revised valuation
ranges suggest median total return potential of 8% for the subsector. On
average, we are raising our 2011 DCF per unit estimates by 3%. We are
downgrading Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P., and Sunoco Logistics Partners, L.P. to Market Perform from Outperform based on valuation. Our top Outperform pick in this subsector is Kinder Morgan Management, LLC."
Magellan Midstream Partners closed Thursday at $53 even, falling $0.47, or 0.88 percent. Plains All American Pipeline, L.P. dropped to $63.56, down $0.82, or 1.27 percent. Sunoco Logistics Partners , L.P. ended the session at $79.62, dropping $0.68, or 0.85 percent, and Kinder Morgan Management, LLC closed at $62.14, down $0.29, or 0.46 percent.
Wells said, "We are increasing valuation ranges across our large cap
pipeline MLP coverage universe by an average of 1%. Our revised valuation
ranges suggest median total return potential of 8% for the subsector. On
average, we are raising our 2011 DCF per unit estimates by 3%. We are
downgrading Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P., and Sunoco Logistics Partners, L.P. to Market Perform from Outperform based on valuation. Our top Outperform pick in this subsector is Kinder Morgan Management, LLC."
Magellan Midstream Partners closed Thursday at $53 even, falling $0.47, or 0.88 percent. Plains All American Pipeline, L.P. dropped to $63.56, down $0.82, or 1.27 percent. Sunoco Logistics Partners , L.P. ended the session at $79.62, dropping $0.68, or 0.85 percent, and Kinder Morgan Management, LLC closed at $62.14, down $0.29, or 0.46 percent.
Agrium (NYSE:AGU) Downgraded by TD Newcrest on Valuation
A lot of companies have been getting the same treatment Agrium (NYSE:AGU) has been getting, as they were downgraded by TD Newcrest based on valuation from the recent runup in share price.
TD downgraded Agrium from "Action List Buy" to "Buy," saying it was "due mainly to stock price appreciation of 26% since our upgrade in mid-August."
This represents what TD evidently thinks will be a potential short-term pullback, as they raised their price target on the agricultural company from $95 to $105 a share.
Some things they see needing to happen support in nitrogen prices, as "domestic urea price has increased by 40% to about US$350/ton (fob NOLA) by the end of Q3/10, and continues to show reasonable strength so far into Q4/10." Additionally, "...the U.S. urea wholesale inventory as of the end of August is still - 14% lower than it was in the equivalent 2008 period..."
They also like the company if the price of corn continues to find support. "The corn price has rebounded over 75% since reaching an annual low in June 2010, while wheat, soybean, and rice price increased 59%, 24%, and 38%, respectively, over the same period."
Agrium closed Thursday at $86.33, down $0.48, or 0.55 percent.
TD downgraded Agrium from "Action List Buy" to "Buy," saying it was "due mainly to stock price appreciation of 26% since our upgrade in mid-August."
This represents what TD evidently thinks will be a potential short-term pullback, as they raised their price target on the agricultural company from $95 to $105 a share.
Some things they see needing to happen support in nitrogen prices, as "domestic urea price has increased by 40% to about US$350/ton (fob NOLA) by the end of Q3/10, and continues to show reasonable strength so far into Q4/10." Additionally, "...the U.S. urea wholesale inventory as of the end of August is still - 14% lower than it was in the equivalent 2008 period..."
They also like the company if the price of corn continues to find support. "The corn price has rebounded over 75% since reaching an annual low in June 2010, while wheat, soybean, and rice price increased 59%, 24%, and 38%, respectively, over the same period."
Agrium closed Thursday at $86.33, down $0.48, or 0.55 percent.
Silver Wheaton (NYSE:SLW) Downgraded by GMP
The downgrade of Silver Wheaton (NYSE:SLW) by GMP wasn't too convincing, and investors ignored the change, as the silver royalty company continues on its upward run.
That's not to say Silver Wheaton won't correct and/or slow down, as they're up almost 50 percent in about three months. No stock can move at that pace without pulling back.
Underlying fundamentals for silver are too strong to have a company with a business model like Silver Wheaton downgraded in this economic environment.
Either way, GMP dropped them from a "Buy" to a "Hold," obviously on valuation.
Silver Wheaton closed Thursday at $27.84, gaining $0.36, or 1.31 percent. GMP lowered their price target from $28.50 to $25 on the company.
That's not to say Silver Wheaton won't correct and/or slow down, as they're up almost 50 percent in about three months. No stock can move at that pace without pulling back.
Underlying fundamentals for silver are too strong to have a company with a business model like Silver Wheaton downgraded in this economic environment.
Either way, GMP dropped them from a "Buy" to a "Hold," obviously on valuation.
Silver Wheaton closed Thursday at $27.84, gaining $0.36, or 1.31 percent. GMP lowered their price target from $28.50 to $25 on the company.
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