Over the next five years, Anadarko Petroleum (NYSE:APC) should grow production at an annual rate of 7 percent to 9 percent, says Barclays (NYSE:BCS).
"Anadarko reported an adjusted Q3 EPS headline miss of $0.21 vs. our $0.25 and consensus of $0.28. Higher-than-guided G&A contributed to the miss vs. our estimates as APC accrued a $30-million non-executive compensation charge related to a program designed to retain personnel after the Macondo incident. The company slightly raised 2010 production guidance and lowered spending - 3%. We continue to believe the long-term story is intact with APC poised to deliver 7-9% annual production growth for the next five years. The uncertainty surrounding potential liabilities from the Macondo incident is likely to steer performance in the intermediate term."
EPS estimates lowered from $1.85 to $1.55 for the full year 2010, and for the full year 2011 from $1.45 to $0.80.
Anadarko closed down at $63.64, dropping $0.18, or 0.28 percent. Barclays maintains an "Overweight" on them with a price target of $71, raised from $65.
Showing posts with label Price Target. Show all posts
Showing posts with label Price Target. Show all posts
Thursday, November 4, 2010
Kennametal (NYSE:KMT) Margins Look to Improve
While the majority of analysts have been falling all over themselves over Kennametal (NYSE:KMT) after their first earnings report, UBS (NYSE:UBS) was more subdued, maintaining their "Neutral" rating on them, while dropping their price target significantly.
UBS said, "We are raising our FY11E EPS to $2.35, from $2.10, largely to reflect an improved margin profile. We are tweaking our FY12 and FY13 EPS estimates, to $2.80 and $3.15, from $2.85 and $3.18, respectively."
Earnings projections from Kennametal were also raised from a range of $1.85 to $2.15 a share to $2.25 to $2.45.
Kennametal did raise their guidance for Fiscal 2011, with a moderate growth pace to continue in their eyes. Both earnings and sales projections were also raised.
Even so, UBS sees them struggling with their share price, and lowered their price target from $36 to $30.
Kennametal closed Wednesday at $33.80, losing $0.54, or 1.60 percent.
UBS said, "We are raising our FY11E EPS to $2.35, from $2.10, largely to reflect an improved margin profile. We are tweaking our FY12 and FY13 EPS estimates, to $2.80 and $3.15, from $2.85 and $3.18, respectively."
Earnings projections from Kennametal were also raised from a range of $1.85 to $2.15 a share to $2.25 to $2.45.
Kennametal did raise their guidance for Fiscal 2011, with a moderate growth pace to continue in their eyes. Both earnings and sales projections were also raised.
Even so, UBS sees them struggling with their share price, and lowered their price target from $36 to $30.
Kennametal closed Wednesday at $33.80, losing $0.54, or 1.60 percent.
Yingli Green (NYSE:YGE) Sales Rising, Costs Lowering
Yingli Green Energy Holding (NYSE:YGE) earnings per share estimate was upwardly revised by Auriga on expected higher sales over the next two quarters, and on remaining committed to being a low-cost leader.
"We raise Yingli's 3Q10 and 4Q10 estimates on higher sales, better than expected cost control, and currency tailwinds. Yingli's price-leader sales strategy stoked its channel while cost programs have run ahead of industry price declines. Yingli's near-term results clearly benefit from current industry trends, and we expect this to continue into 2011. We maintain our 2011 estimates ahead of the 3Q10 report and look for more clarity from the call before adjusting our 2011 view in-line with recent trends...We raise near-term estimates to reflect industry trends and increase 2010 Sales/GM%/EPS to $1.78b/32%/$1.30 from $1.67b/30.6%/$1.00, but maintain our prior 2011 estimates and $15 target," said Auriga.
They maintain their "Buy" rating on Yingli, which closed Wednesday down at $11.90, losing $0.06, or 0.50 percent. A price target of $15 was placed on Yingli by Auriga.
"We raise Yingli's 3Q10 and 4Q10 estimates on higher sales, better than expected cost control, and currency tailwinds. Yingli's price-leader sales strategy stoked its channel while cost programs have run ahead of industry price declines. Yingli's near-term results clearly benefit from current industry trends, and we expect this to continue into 2011. We maintain our 2011 estimates ahead of the 3Q10 report and look for more clarity from the call before adjusting our 2011 view in-line with recent trends...We raise near-term estimates to reflect industry trends and increase 2010 Sales/GM%/EPS to $1.78b/32%/$1.30 from $1.67b/30.6%/$1.00, but maintain our prior 2011 estimates and $15 target," said Auriga.
They maintain their "Buy" rating on Yingli, which closed Wednesday down at $11.90, losing $0.06, or 0.50 percent. A price target of $15 was placed on Yingli by Auriga.
Wednesday, November 3, 2010
Citigroup (NYSE:C) Sees Baker Hughes (NYSE:BHI) Performing Strong
Citing the recent strong quarter from Baker Hughes (NYSE:BHI), Citigroup (NYSE:C) sees them continuing on in that performance going forward.
Citigroup raised their 2010 EPS estimate from $1.75 to $2.02 a share, and its 2011 EPS forecast from $2.80 to $3.30 a share.
A "Hold" rating was maintained on Baker by Citi.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. Citigroup increased their price target on them from $49 to $56.
Citigroup raised their 2010 EPS estimate from $1.75 to $2.02 a share, and its 2011 EPS forecast from $2.80 to $3.30 a share.
A "Hold" rating was maintained on Baker by Citi.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. Citigroup increased their price target on them from $49 to $56.
Anadarko Petroleum (NYSE:APC) Raises Production Guidance for 2010
Based on their stronger-than-expected quarterly performance, Anadarko Petroleum (NYSE:APC) increased their production guidance for 2010, and UBS (NYSE:UBS) agrees with them, raising their price target on the oil company while maintaining a "Buy" rating on them.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
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.
Tuesday, November 2, 2010
Alliance Resource (Nasdaq:ARLP) Should Rebound in 2011
Alliance Resource Partners (Nasdaq:ARLP) should enjoy a rebound in 2011 says Barclays (NYSE:BCS), who raised the price target on the coal miner while maintaining their "Equalweight" rating on the company.
Barclays said, "Alliance Resource Partners reported 3Q10 earnings per unit of $1.48 vs. the consensus estimate of $1.69/unit and our estimate of $1.67/unit. The miss was driven in part by lower than expected coal volumes in Northern and Central Appalachia due to the heightened regulatory environment together with higher operating costs due to the ongoing ramp up of the River View mine...Our new $62 target price assumes a 6.5% yield on our 2012 distribution estimate of $4.00 per unit. Our prior price target of $55/unit assumed a 7.3% yield on our 2012 distribution estimate of $4.00 per unit."
Barclays did lower their earnings per share estimate on Alliance from $6.90 to $6.70 a share, but increased it significantly for full year 2011 from $5.70 to 6.75.
Alliance closed Monday at $59.45, gaining $0.61, or 1.04 percent. Barclays increased their price target on the company from $55 to $62.
Barclays said, "Alliance Resource Partners reported 3Q10 earnings per unit of $1.48 vs. the consensus estimate of $1.69/unit and our estimate of $1.67/unit. The miss was driven in part by lower than expected coal volumes in Northern and Central Appalachia due to the heightened regulatory environment together with higher operating costs due to the ongoing ramp up of the River View mine...Our new $62 target price assumes a 6.5% yield on our 2012 distribution estimate of $4.00 per unit. Our prior price target of $55/unit assumed a 7.3% yield on our 2012 distribution estimate of $4.00 per unit."
Barclays did lower their earnings per share estimate on Alliance from $6.90 to $6.70 a share, but increased it significantly for full year 2011 from $5.70 to 6.75.
Alliance closed Monday at $59.45, gaining $0.61, or 1.04 percent. Barclays increased their price target on the company from $55 to $62.
Mosaic (NYSE:MOS), CF (NYSE:CF) Will Benefit from Fertilizer Price Increases says Barclays (NYSE:BCS)
The increase in the price of corn and soybeans has been a gamechanger in the fertilizer industry, and Barclays (NYSE:BCS) sees CF Industries (NYSE:CF) and Mosaic (NYSE:MOS) benefiting strongly from it.
Barclays expects and especially strong move from CF Industries, raising their price target on them from $105 to $130 over the next year, and for Mosaic, they raised the price target on them from $60 to $69.
For CF, Barclays sees them driven by higher raising nitrogen prices, increasing estimates for CF from $264 a ton to $296 a ton and its 2011 estimate from $257 to $288. The firms 2010 average phosphate price estimate was increased from $410 to $494 and its 2011 estimate raised from $408 to $474.
Concerning phosphate prices for Mosaic, Barclays boosted their 2011 and 2012 phosphate price estimate from $451 and $433 to $480 and $476.
CF closed Monday at $121.39, losing $1.14, or 0.93 percent. Mosaic closed down at $72.33, falling $0.83, or 1.13 percent.
Barclays expects and especially strong move from CF Industries, raising their price target on them from $105 to $130 over the next year, and for Mosaic, they raised the price target on them from $60 to $69.
For CF, Barclays sees them driven by higher raising nitrogen prices, increasing estimates for CF from $264 a ton to $296 a ton and its 2011 estimate from $257 to $288. The firms 2010 average phosphate price estimate was increased from $410 to $494 and its 2011 estimate raised from $408 to $474.
Concerning phosphate prices for Mosaic, Barclays boosted their 2011 and 2012 phosphate price estimate from $451 and $433 to $480 and $476.
CF closed Monday at $121.39, losing $1.14, or 0.93 percent. Mosaic closed down at $72.33, falling $0.83, or 1.13 percent.
Edison International (NYSE:EIX) Considered "Undervalued" by Jefferies
After solid third-quarter results by Edison International (NYSE:EIX), Jefferies raised their price target on the energy company while maintaining their "Buy" rating on them.
Jefferies said, "We believe that EIX is undervalued, trading at the discount of our estimated stand-alone utility value of about $41.50. We do not assign any value to the merchant business."
While upping their earnings per share estimate for 2010 from $3.30 to $3.50, for 2011 they lowered EPS from $2.90 to $2.65 and 2012 from $2.65 to $2.40.
Edison International closed Monday at $37.04, gaining $0.14, or 0.38 percent. Jefferies raised their price target on them from $38 to $41.50.
Jefferies said, "We believe that EIX is undervalued, trading at the discount of our estimated stand-alone utility value of about $41.50. We do not assign any value to the merchant business."
While upping their earnings per share estimate for 2010 from $3.30 to $3.50, for 2011 they lowered EPS from $2.90 to $2.65 and 2012 from $2.65 to $2.40.
Edison International closed Monday at $37.04, gaining $0.14, or 0.38 percent. Jefferies raised their price target on them from $38 to $41.50.
Commercial Metals (NYSE:CMC) Earnings Cut Hard by UBS (NYSE:UBS)
Although UBS (NYSE:UBS) maintained their "Neutral" rating on Commercial Metals (NYSE:CMC), while looking for the fourth quarter to gradually improve, they still see some challenges, and lowered their earnings outlook and price target on the company.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
Jinko Solar (NYSE:JKS) Should Push its Way to Higher Earnings
JinkoSolar Holding (NYSE:JKS) looks like after its third-quarter report they have a strong chance of pressing their way into higher earnings, according to analysis from Auriga.
Auriga said, "Jinko Solar's (JKS, Buy) 3Q10 results above Consensus and our recently raised estimates show the continuing potential upside from big capacity additions and better than expected cost reductions. While we do see declining margins into 2011 as a necessity, we also believe Jinko Solar's approach is correct by increasing capacity ahead of price declines and continuing down the cost curve. We raise our 2011 EPS estimate to $5.05 from $4.60 and increase our target."
"Risk increases on potential ASP and poly swings. Large potential variability in module ASPs vs poly costs represents the biggest risk to the stock - both upside and downside. Management spoke of module ASPs trending with poly cost, but this is not assured. While we model both poly price and module ASP declines, we also recognize that the two are not inextricably linked. Our model assumes JKS' poly cost peaks at $72/kg in 1Q11 and declines to $55/kg in 4Q11."
JinkoSolar soared in Monday's trading after smokin' the quarter, with revenue soaring by 261 percent to $215 million, smashing the $153.3 million analysts were looking for. Gross profit outperformed as well, increasing from $9.3 million to $72 million.
Two things the company has going for it in a slowing market is the continual commitment to lower costs, while also being able to land deal for 2011 when most the rest of the industry will struggle.
JinkoSolar closed Monday at $35.14, gaining $4.99, or 16.55 percent. Auriga raised their price target on JinkoSolar from $37 to $40 a share.
Auriga said, "Jinko Solar's (JKS, Buy) 3Q10 results above Consensus and our recently raised estimates show the continuing potential upside from big capacity additions and better than expected cost reductions. While we do see declining margins into 2011 as a necessity, we also believe Jinko Solar's approach is correct by increasing capacity ahead of price declines and continuing down the cost curve. We raise our 2011 EPS estimate to $5.05 from $4.60 and increase our target."
"Risk increases on potential ASP and poly swings. Large potential variability in module ASPs vs poly costs represents the biggest risk to the stock - both upside and downside. Management spoke of module ASPs trending with poly cost, but this is not assured. While we model both poly price and module ASP declines, we also recognize that the two are not inextricably linked. Our model assumes JKS' poly cost peaks at $72/kg in 1Q11 and declines to $55/kg in 4Q11."
JinkoSolar soared in Monday's trading after smokin' the quarter, with revenue soaring by 261 percent to $215 million, smashing the $153.3 million analysts were looking for. Gross profit outperformed as well, increasing from $9.3 million to $72 million.
Two things the company has going for it in a slowing market is the continual commitment to lower costs, while also being able to land deal for 2011 when most the rest of the industry will struggle.
JinkoSolar closed Monday at $35.14, gaining $4.99, or 16.55 percent. Auriga raised their price target on JinkoSolar from $37 to $40 a share.
Monday, November 1, 2010
Citigroup (NYSE:C) Sees Uncertainty Ahead for TC Pipelines (Nasdaq:TCLP)
While Citigroup (NYSE:C) maintained its "Hold" rating on TC Pipelines (Nasdaq:TCLP), while raising their price target on them, they said in a research note that going to 2011, EPU remain "unclear" for the company.
Also in spite of the uncertainty going forward, Citigroup raised their 2010 and 2011 earnings per share estimates from $1.98 to $2.71 for 2010, and from $2.54 to $2.84 for 2011.
In their latest quarterly results, TC Pipeline's EPU of $0.82 beat Citi's estimate of $0.51.
TC was trading at $48.90, losing $0.34, or 0.69 percent. Citigroup raised their price target on them from $42.50 to $48.50.
Also in spite of the uncertainty going forward, Citigroup raised their 2010 and 2011 earnings per share estimates from $1.98 to $2.71 for 2010, and from $2.54 to $2.84 for 2011.
In their latest quarterly results, TC Pipeline's EPU of $0.82 beat Citi's estimate of $0.51.
TC was trading at $48.90, losing $0.34, or 0.69 percent. Citigroup raised their price target on them from $42.50 to $48.50.
Has Enbridge Energy (NYSE:EEP) Finally Turned the Corner?
After reputation problems results from the pipeline spills, Barclays (NYSE:BCS) sees Enbridge Energy Partners (NYSE:EEP) as having turned the corner, maintaining their "Equalweight" on them while raising the price target.
Barclays said, "Turning the corner following pipeline spills. Combining better-than-expected 3Q results, a restart of Lines 6A and 6B, expected accretion from the Elk City acquisition and reaffirmation of distribution growth guidance, we feel EEP has turned the corner following the pipeline spills. While EEP will likely have a few messy accounting quarters and higher '11 maintenance capex, the spill overhang is largely removed, in our opinion."
Since the middle of September Enbridge has rebounded in share price nicely.
They closed Friday at $61.49, dropping $0.09, or 0.15 percent. Barclays raised their price target from $58 to $62 on Enbridge.
For earnings per share, that was adjusted for FY11 EPS from $2.72 to $2.92 and FY12 from $3.00 to $3.05.
Barclays said, "Turning the corner following pipeline spills. Combining better-than-expected 3Q results, a restart of Lines 6A and 6B, expected accretion from the Elk City acquisition and reaffirmation of distribution growth guidance, we feel EEP has turned the corner following the pipeline spills. While EEP will likely have a few messy accounting quarters and higher '11 maintenance capex, the spill overhang is largely removed, in our opinion."
Since the middle of September Enbridge has rebounded in share price nicely.
They closed Friday at $61.49, dropping $0.09, or 0.15 percent. Barclays raised their price target from $58 to $62 on Enbridge.
For earnings per share, that was adjusted for FY11 EPS from $2.72 to $2.92 and FY12 from $3.00 to $3.05.
Citigroup (NYSE:C) Sees Corn Products (NYSE:CPO) Soaring on Higher Prices
With corn prices expected to find continual support over the next year, Corn Product International (NYSE:CPO) was upgraded by Citigroup Inc. (NYSE:C) from "Hold" to "Buy."
Higher corn prices should mean higher margins, and ultimately, higher earnings for the next several quarters for Corn Products.
Since plunging to $28.94 on July 2, Corn Products International has soared to $42.55 a share as of close on Friday.
Citi has a price target of $51 on Corn Products, increasing it from $44.
Higher corn prices should mean higher margins, and ultimately, higher earnings for the next several quarters for Corn Products.
Since plunging to $28.94 on July 2, Corn Products International has soared to $42.55 a share as of close on Friday.
Citi has a price target of $51 on Corn Products, increasing it from $44.
FBR says be Cautious with PPL Corporation (NYSE:PPL)
Acknowledging they're well below street expectations for PPL Corporation (NYSE:PPL), FBR Capital still say it's a stock investors need to be cautious with them going forward. They maintain a "Market Perform" rating on them.
"We left the PPL earnings call with a slight case of indigestion. It would appear that hedges for 2011 and 2012 had more wiggle room than we assumed. No doubt, this will be the subject of numerous notes today. However, what we believe could be missing from the dialogue is the magnitude of the earnings contribution from the Kentucky utilities in 2011. This could be a key risk and we are well below street expectations in this respect. The basis for our view is enclosed. The new disclosure on the hedges, Kentucky earnings power, and other headwinds for next year leave us cautious on this stock. That said, we still see about $28 of intrinsic value for PPL based on our sum of the parts," said FBR.
FBR closed Friday at $26.86, gaining $0.42, or 1.59 percent. The price target was lowered to $28 a share.
"We left the PPL earnings call with a slight case of indigestion. It would appear that hedges for 2011 and 2012 had more wiggle room than we assumed. No doubt, this will be the subject of numerous notes today. However, what we believe could be missing from the dialogue is the magnitude of the earnings contribution from the Kentucky utilities in 2011. This could be a key risk and we are well below street expectations in this respect. The basis for our view is enclosed. The new disclosure on the hedges, Kentucky earnings power, and other headwinds for next year leave us cautious on this stock. That said, we still see about $28 of intrinsic value for PPL based on our sum of the parts," said FBR.
FBR closed Friday at $26.86, gaining $0.42, or 1.59 percent. The price target was lowered to $28 a share.
TECO Energy (NYSE:TE) Share Price Should Rise on Met Coal Market
FBR Capital raised their price target on TECO Energy, Inc. (NYSE:TE), citing an improved metallurgical coal market.
"Following a review of the quarter, we are raising our price target for TE to reflect an improvement in the met coal market and the benefit of cash proceeds from the DECA II sale. However, as TE stock trades near or above $18/share, we believe that it increasingly reflects an acquisition premium for TE Coal. We support this view with a detailed analysis enclosed performed in collaboration with the FBR Coal Team. Our base case valuation for TECO Coal reflects an $820 million enterprise value that incorporates strong upward momentum in pricing, offset by cost escalation. TE stock looks fairly valued to us but becomes stretched as it reaches our price target using current market multiples," FBR said.
FBR said they're maintaining their "Market Perform" rating on TECO, while raising the price target from $17 to $18 a share. TECO closed on Friday at $17.59, gaining $0.26, or 1.50 percent.
"Following a review of the quarter, we are raising our price target for TE to reflect an improvement in the met coal market and the benefit of cash proceeds from the DECA II sale. However, as TE stock trades near or above $18/share, we believe that it increasingly reflects an acquisition premium for TE Coal. We support this view with a detailed analysis enclosed performed in collaboration with the FBR Coal Team. Our base case valuation for TECO Coal reflects an $820 million enterprise value that incorporates strong upward momentum in pricing, offset by cost escalation. TE stock looks fairly valued to us but becomes stretched as it reaches our price target using current market multiples," FBR said.
FBR said they're maintaining their "Market Perform" rating on TECO, while raising the price target from $17 to $18 a share. TECO closed on Friday at $17.59, gaining $0.26, or 1.50 percent.
Chart Industries (Nasdaq:GTLS) Orders Expected to Accelerate Says Barclays (NYSE:BCS)
Citing a global energy infrastructure buildout cycle starting up again, Barclays (NYSE:BCS) said orders for Chart Industries (Nasdaq:GTLS) should accelerate in 2011.
Barclays said, "We continue to believe Chart represents a solid long term investment and is a good way to gain leverage to the global energy
infrastructure buildout cycle which is restarting. We expect orders to
accelerate and drive backlog higher in the coming quarters.
"We are raising our 2011 and 2012 EPS estimates to $1.80 (from $1.70) and
$2.50 (from $2.40) reflecting higher margin assumptions for the Energy &
Chemicals and BioMedical businesses. We are increasing our price target to
$34. We are now keying our price target for GTLS off of 2012E earnings vs.
2011 previously) given increased confidence in a recovery in demand for energy infrastructure equipment and our view that 2012 will represent a more normalized earnings year for the company."
Barclays reiterated an "Overweight" on Chart, raising their price target from $27 to $34. Chart closed Friday's trading session at $23.30, losing $0.83, or 3.44 percent.
Barclays said, "We continue to believe Chart represents a solid long term investment and is a good way to gain leverage to the global energy
infrastructure buildout cycle which is restarting. We expect orders to
accelerate and drive backlog higher in the coming quarters.
"We are raising our 2011 and 2012 EPS estimates to $1.80 (from $1.70) and
$2.50 (from $2.40) reflecting higher margin assumptions for the Energy &
Chemicals and BioMedical businesses. We are increasing our price target to
$34. We are now keying our price target for GTLS off of 2012E earnings vs.
2011 previously) given increased confidence in a recovery in demand for energy infrastructure equipment and our view that 2012 will represent a more normalized earnings year for the company."
Barclays reiterated an "Overweight" on Chart, raising their price target from $27 to $34. Chart closed Friday's trading session at $23.30, losing $0.83, or 3.44 percent.
SolarWinds (NYSE:SWI) Still Has to Prove Themselves Says FBR Capital
FBR Capital noted after the recent quarterly report from SolarWinds, Inc. (NYSE:SWI) that they've made a strong step forward, but pointed to the fact that they must show they can do this on a sustainable level if they're going to make believers out of investors.
"Last night (Thursday October 28), SolarWinds delivered stronger-than-expected September results, which were a 'breath of fresh air for investors,' in our opinion, in light of the company’s recent track record of posting disappointing numbers. It appears after a rough few quarters that SolarWinds has fixed some of its execution/forecasting issues and is back on the road to recovery. While last night’s call/guidance was an important first step towards coming out of the investor penalty box, we believe SolarWinds remains a 'prove me' story until the company can show that sustainable growth and 50%
operating margins are attainable for the next 12 to 18 months," said FBR.
SolarWinds closed Friday at $18.15, gaining $0.17, or 0.95 percent. FBR has a price target of $21 on them, raising it from $20. They also maintain their "Outperform" on the solar company.
"Last night (Thursday October 28), SolarWinds delivered stronger-than-expected September results, which were a 'breath of fresh air for investors,' in our opinion, in light of the company’s recent track record of posting disappointing numbers. It appears after a rough few quarters that SolarWinds has fixed some of its execution/forecasting issues and is back on the road to recovery. While last night’s call/guidance was an important first step towards coming out of the investor penalty box, we believe SolarWinds remains a 'prove me' story until the company can show that sustainable growth and 50%
operating margins are attainable for the next 12 to 18 months," said FBR.
SolarWinds closed Friday at $18.15, gaining $0.17, or 0.95 percent. FBR has a price target of $21 on them, raising it from $20. They also maintain their "Outperform" on the solar company.
BHP's (NYSE:BHP) Potash (NYSE:POT) Bid Not Only Factor Driving Share Price
Although there can be no doubt the bid by BHP Billiton (NYSE:BHP) for Potash Corp. (NYSE:POT) has pushed the price of the fertilizer company up beyond its market value, it is not the only factor in the soaring share price of Potash, as evidenced by increasing corn and soybean prices which is expected to increase the amount of fertilizer farmers buy for spring planting.
UBS (NYSE:UBS) agrees with that assessment as well, maintaining their "Buy" on Potash, noting their strong support based on the pricing mentioned.
"Results were the second-highest for the third quarter in company history and were 61% above the same period last year...We revised our 2010/2011/2012 estimates from $5.77/8.35/8.68 to $5.98/8.70/9.82 to reflect the higher potash prices, updated guidance and the quarterly results."
"We believe POT’s share price is being impacted by BHP Billiton (NYSE:BHP)’s hostile bid...Given the improved fertilizer market we believe the shares would be trading above $130/share in the absence of a bid. On their Q3 call POT indicated they thought the hypothetical unaffected share price could be over $155/shr. Investment Canada is expected make its decision on the potential deal on Nov 3rd," said UBS.
If the deal is rejected by Canada, we'll all see Potash shares come crashing down, finding the actual value of the company based on market factors and not the bid.
If the deal is allowed to proceed, there may not be much more than a temporary surge in share price for Potash, as a lot of that has already been priced into the shares.
Potash closed on Friday at $145.09, soaring $2.56, or 1.80 percent. UBS has a price target of $175 on Potash, increasing it from $170 a share.
UBS (NYSE:UBS) agrees with that assessment as well, maintaining their "Buy" on Potash, noting their strong support based on the pricing mentioned.
"Results were the second-highest for the third quarter in company history and were 61% above the same period last year...We revised our 2010/2011/2012 estimates from $5.77/8.35/8.68 to $5.98/8.70/9.82 to reflect the higher potash prices, updated guidance and the quarterly results."
"We believe POT’s share price is being impacted by BHP Billiton (NYSE:BHP)’s hostile bid...Given the improved fertilizer market we believe the shares would be trading above $130/share in the absence of a bid. On their Q3 call POT indicated they thought the hypothetical unaffected share price could be over $155/shr. Investment Canada is expected make its decision on the potential deal on Nov 3rd," said UBS.
If the deal is rejected by Canada, we'll all see Potash shares come crashing down, finding the actual value of the company based on market factors and not the bid.
If the deal is allowed to proceed, there may not be much more than a temporary surge in share price for Potash, as a lot of that has already been priced into the shares.
Potash closed on Friday at $145.09, soaring $2.56, or 1.80 percent. UBS has a price target of $175 on Potash, increasing it from $170 a share.
Thursday, October 28, 2010
Trina Solar (NYSE:TSL) Has Strong Competitive Position, Low Cost Structure
While acknowledging the solar sector has a good third quarter, Wedbush doesn't see that continuing, and among the major competitors, only rates Trina Solar (NYSE:TSL) as an "Outperform."
Wedbush said that "given the company’s low cost structure and competitive position," they remain positive on the company.
When reporting on November 15, Trina should report quarterly sales of $419.2 million GAAP EPS of 88c, concluded Wedbush.
Trina closed Wednesday at $27.60, gaining $0.13, or 0.47 percent. Wedbush has a price target of $34 on them.
Wedbush said that "given the company’s low cost structure and competitive position," they remain positive on the company.
When reporting on November 15, Trina should report quarterly sales of $419.2 million GAAP EPS of 88c, concluded Wedbush.
Trina closed Wednesday at $27.60, gaining $0.13, or 0.47 percent. Wedbush has a price target of $34 on them.
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