Revenue for investment banks from commodities dropped in 2012, with intrusive regulations and increased capital requirements resulting in less interest from clients. Another factor was volatility for the year was relatively low, also affecting interest in the sector.
The drop was a huge 25 percent from 2011, with revenue coming in at $6 billion for 2012, down significantly from the $8 billion in revenue generated the year before.
Ten banks were by consultant Coalition, including Bank of America/Merrill Lynch (BAC), Barclays (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JP Morgan (JPM), RBS (RBS), Goldman Sachs (GS), Morgan Stanley (MS) and UBS (UBS).
A report released by Coalition said, "Low volatility and reduced client activity led to a 24 per cent drop in revenues. Energy, investor products and precious metals options businesses were notably affected.
"Performance was also subdued by ongoing concerns about increased regulation and capital sensitivity, pushing banks to re-evaluate their commodities strategies."
In its quarterly results last month, Morgan Stanley said the commodity revenue for the fourth quarter was the lowest since 1995.
Showing posts with label UBS. Show all posts
Showing posts with label UBS. Show all posts
Thursday, February 14, 2013
Thursday, November 8, 2012
EU Private Sector Faltering
The recent announcements by a number of corporations participating in the EU concerning slashing tens of thousands of jobs, underscores the reality that the private sector continues to struggle, even as governments had hoped they would help turn the region around.
Among those recently announcing jobs being slashed are UBS (UBS), which said it'll be be getting rid of a massive 10,000 jobs - which has already begun. Other major employers cutting thousands of jobs (aggregately) are ING (ING), Kloeckner, Ericsson (ERIC) and Bombardier.
A growing number of economists believe the next couple of years in Europe will see jobless rates jump to even worse levels than they stand at now. We probably won't know until around the summer months because these current layoffs won't affect data until about six to nine months after the layoffs are implemented.
The major problem in Europe is that governments have finally started to shrink a little, causing bloated staffs to be laid off, but at a rate that the private sector can't keep up with.
Of course it was never a reality that outrageous government debt and spending could be compensated for by the private sector after years of abuse, fraud, and unsustainable promises and practices.
People in some countries don't even think in terms of the private sector as a legitimate work environment because they've been brainwashed into believing government is the great healer of nations. Most are finding out too late that that is a fallacy, and since the private sectors of nations were weakened by these outlooks and effects, it's impossible in a short period of time to rectify all the mistakes that have been made, even if they wanted to.
It has taken far too long for governments in the EU to shrink, and they're no paying for that ongoing irresponsible mindset, as austerity is forced upon the nations of Europe, with a private sector not robust enough to absorb the people being released from work.
The good news is over time this will be positive for the private sector as workers and the rest of the people realize that governments can't provide for them in the ways that were promised. It's productivity that results in prosperity, not artificially created government jobs that provide ridiculous benefits the productive are asked to shoulder. Those days are thankfully coming to an end, as are outrageous union demands.
Because Europe has played far too long with countries that long ago should have decreased the size of government, now the forced austerity is pressuring private companies who must operate under actual market conditions, and not the illusory markets created by governments throwing debt-induced money around while being enabled by central banks and failing Keynesian policies.
Yet some foolish economists continue to say things like there must be growth in the "public" or private sector if some of the nations in the EU are to stay in it. What about limited government and downsizing don't these quacks understand? It's inevitable. These governments and their debt coming from endless spending and programs are through. In a relatively short period of time what they were before the sovereign debt crisis will no longer exist.
There will be governments still in place of course, but the bloated monstrosities they have become will gradually be shrunk down in size to the benefit of everyone but the parasites that used them to their advantage.
In the months ahead we'll see growing pressure in Greece, and probably Spain and others in the eurozone to start thinking in terms of abandoning the euro for their own currencies. That would result in some short-term pain, but over the long haul it would be the best for all countries in the region, as well as the rest of the world.
But if nations continuing to use their central banks as a rich uncle not willing to rein in a spoiled kid's spending don't change, this will extend across the globe, as the United States is hanging on by a thread, and with over $220 trillion in unfunded liabilities facing the nation, and China having taken up some bad Keynesian money creation habits, it may be only time before pressure rises on all of them.
Thursday, September 22, 2011
Hansen (HANS) (HBHC) (JEF) (MPWR) (NDSN) Price Targets Changed
Hansen Natural Co. (NASDAQ: HANS), Hancock Holding (NASDAQ: HBHC), Jefferies Group, Inc. (NYSE: JEF), Monolithic Power Systems Inc (NASDAQ: MPWR) and Nordson (NASDAQ: NDSN) had their price targets adjusted by analysts.
Hansen Natural Co. (HANS) had its price target raised by UBS AG (NYSE:UBS) to $110.00. They have a “Buy” rating on the company.
Hancock Holding (HBHC) had its price target lowered by Sterne Agee to $35.00.
Jefferies Group, Inc. (JEF) had its price target lowered by FBR Capital from $23.00 to $15.00. They have a “Market Perform” rating on the company.
Monolithic Power Systems Inc. (MPWR) had its price target lowered by Needham & Company from $19.00 to $16.00. They have a “Buy” rating on the company.
Nordson (NDSN) had its price target lowered by BMO Capital Markets to $52.00. They have a “Market Perform” rating on the company.
Hansen Natural Co. (HANS) had its price target raised by UBS AG (NYSE:UBS) to $110.00. They have a “Buy” rating on the company.
Hancock Holding (HBHC) had its price target lowered by Sterne Agee to $35.00.
Jefferies Group, Inc. (JEF) had its price target lowered by FBR Capital from $23.00 to $15.00. They have a “Market Perform” rating on the company.
Monolithic Power Systems Inc. (MPWR) had its price target lowered by Needham & Company from $19.00 to $16.00. They have a “Buy” rating on the company.
Nordson (NDSN) had its price target lowered by BMO Capital Markets to $52.00. They have a “Market Perform” rating on the company.
Wednesday, September 21, 2011
Noble (NBL) (MHP) (MOH) (SLB) (VC) (WFT) Price Targets Changed
Noble Energy (NYSE: NBL), The McGraw-Hill Companies, Inc. (NYSE: MHP), Molina Healthcare Inc (NYSE: MOH), Schlumberger (NYSE: SLB), Visteon Co. (NYSE: VC) and Weatherford (NYSE: WFT) had their price targets adjusted by analysts.
The McGraw-Hill Companies, Inc. (MHP) had its price target raised by Benchmark Co. from $41.00 to $43.00. They have a “Hold” rating on the company.
Molina Healthcare Inc. (MOH) had its price target lowered by UBS AG (NYSE:UBS) from $21.00 to $18.00. They have a “Neutral” rating on the company.
Noble Energy (NBL) had its price target raised by Barclays Capital from $107.00 to $111.00. They have an “Overweight” rating on the company.
Schlumberger (SLB) had its price target lowered by RBC Capital from $113.00 to $95.00. They have an “Outperform” rating on the company.
Visteon Co. (VC) had its price target lowered by UBS AG from $88.00 to $82.00.
Weatherford (WFT) had its price target lowered by RBC Capital from $25.00 to $21.00. They have a “Sector Perform” rating on the company.
The McGraw-Hill Companies, Inc. (MHP) had its price target raised by Benchmark Co. from $41.00 to $43.00. They have a “Hold” rating on the company.
Molina Healthcare Inc. (MOH) had its price target lowered by UBS AG (NYSE:UBS) from $21.00 to $18.00. They have a “Neutral” rating on the company.
Noble Energy (NBL) had its price target raised by Barclays Capital from $107.00 to $111.00. They have an “Overweight” rating on the company.
Schlumberger (SLB) had its price target lowered by RBC Capital from $113.00 to $95.00. They have an “Outperform” rating on the company.
Visteon Co. (VC) had its price target lowered by UBS AG from $88.00 to $82.00.
Weatherford (WFT) had its price target lowered by RBC Capital from $25.00 to $21.00. They have a “Sector Perform” rating on the company.
Wednesday, June 8, 2011
Price Targets on (SCCO) (NWL) (STZ) (GR) (SUN) Updated
Analysts updated price targets on Southern Copper Corp (NASDAQ: SCCO), Newell Rubbermaid (NYSE: NWL), Constellation Brands, Inc. (NYSE: STZ), Goodrich Co. (NYSE: GR) and Sunoco Incorporated (NYSE: SUN).
Deutsche Bank (NYSE:DB) cut their price target on Newell Rubbermaid (NWL) to $21.00.
Societe Generale cut their price target on Southern Copper Corp (SCCO) to $42.00.
UBS AG (NYSE:UBS) raised their price target on Constellation Brands, Inc. (STZ) from $25.00 to $28.00. They have a “buy” rating on the company.
Morgan Stanley (NYSE:MS) raised their price target on Sunoco Incorporated (SUN) to $53.00. They have an “overweight” rating on the company.
Citigroup (NYSE:C) raised their price target on Goodrich Co. (GR) to $108.00. They have a “buy” rating on the company.
Deutsche Bank (NYSE:DB) cut their price target on Newell Rubbermaid (NWL) to $21.00.
Societe Generale cut their price target on Southern Copper Corp (SCCO) to $42.00.
UBS AG (NYSE:UBS) raised their price target on Constellation Brands, Inc. (STZ) from $25.00 to $28.00. They have a “buy” rating on the company.
Morgan Stanley (NYSE:MS) raised their price target on Sunoco Incorporated (SUN) to $53.00. They have an “overweight” rating on the company.
Citigroup (NYSE:C) raised their price target on Goodrich Co. (GR) to $108.00. They have a “buy” rating on the company.
Thursday, May 26, 2011
Ratings on (ORCL) (NETL) (NTAP) (CNH) (FITB) Upgraded
Ratings on shares of Oracle (NASDAQ: ORCL), NetLogic Microsystems, Inc. (NASDAQ: NETL), NetApp Inc. (NASDAQ: NTAP), CNH Global (NYSE: CNH) and Fifth Third Bancorp (NASDAQ: FITB) were upgraded by analysts today.
ThinkEquity upgraded Oracle (ORCL) from a “hold” rating to a “buy” rating. They have a price target of $40.00 on the company.
Raymond James (NYSE:RJF) upgraded NetLogic Microsystems, Inc. (NETL) from a “market perform” rating to an “outperform” rating. They have a price target of $40.00 on the company.
BMO Capital Markets upgraded NetApp Inc. (NTAP) from a “market perform” rating to an “outperform” rating. They have a price target of $65.00 on the company.
UBS AG (NYSE:UBS) upgraded CNH Global (CNH) from a “neutral” rating to a “buy” rating.
Sanford C. Bernstein upgraded Fifth Third Bancorp (FITB) from a “market perform” rating to an “outperform” rating.
ThinkEquity upgraded Oracle (ORCL) from a “hold” rating to a “buy” rating. They have a price target of $40.00 on the company.
Raymond James (NYSE:RJF) upgraded NetLogic Microsystems, Inc. (NETL) from a “market perform” rating to an “outperform” rating. They have a price target of $40.00 on the company.
BMO Capital Markets upgraded NetApp Inc. (NTAP) from a “market perform” rating to an “outperform” rating. They have a price target of $65.00 on the company.
UBS AG (NYSE:UBS) upgraded CNH Global (CNH) from a “neutral” rating to a “buy” rating.
Sanford C. Bernstein upgraded Fifth Third Bancorp (FITB) from a “market perform” rating to an “outperform” rating.
Ratings on (AEO) (AGCO) (ARO) (BKD) (BLUD) Upgraded by Analysts
Ratings on shares of American Eagle (NYSE: AEO), AGCO Corp. (NASDAQ: AGCO), Aeropostale, Inc. (NYSE: ARO), Brookdale Senior Living, Inc. (NYSE: BKD) and Immucor, Inc. (NASDAQ: BLUD) were upgraded by analysts.
FBR Capital upgraded American Eagle (NYSE: AEO) from a “market perform” rating to an “outperform” rating. They have a price target of $17.00 on the company.
UBS AG (NYSE:UBS) upgraded AGCO Corp. (NASDAQ: AGCO) from a “neutral” rating to a “buy” rating. They have a price target of $60.00 on the company.
FBR Capital upgraded Aeropostale, Inc. (NYSE: ARO) from an “underperform” rating to a “market perform” rating. They have a price target of $20.00 on the company.
Goldman Sachs (NYSE:GS) upgraded Brookdale Senior Living, Inc. (NYSE: BKD) from a “neutral” rating to a “buy” rating.
RBC Capital upgraded Immucor, Inc. (NASDAQ: BLUD) from a “sector perform” rating to an “outperform” rating. They have a price target of $25.00 on the company, up from $19.00.
FBR Capital upgraded American Eagle (NYSE: AEO) from a “market perform” rating to an “outperform” rating. They have a price target of $17.00 on the company.
UBS AG (NYSE:UBS) upgraded AGCO Corp. (NASDAQ: AGCO) from a “neutral” rating to a “buy” rating. They have a price target of $60.00 on the company.
FBR Capital upgraded Aeropostale, Inc. (NYSE: ARO) from an “underperform” rating to a “market perform” rating. They have a price target of $20.00 on the company.
Goldman Sachs (NYSE:GS) upgraded Brookdale Senior Living, Inc. (NYSE: BKD) from a “neutral” rating to a “buy” rating.
RBC Capital upgraded Immucor, Inc. (NASDAQ: BLUD) from a “sector perform” rating to an “outperform” rating. They have a price target of $25.00 on the company, up from $19.00.
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.
Wednesday, November 3, 2010
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.
UBS (NYSE:UBS) Places US Steel (NYSE:X) on Short Term Buy List
Saying they expect steel prices to rise, UBS (NYSE:UBS) added US Steel (NYSE:X) to their Short Term Buy list.
"We put a Short-term Buy rating on U.S. Steel on the back of our conviction that steel prices are about to rise. We think it is a beneficiary, with Buy-rated Steel Dynamics (Nasdaq:STLD), because it has captive iron ore in the U.S. and can see margins improve when price hikes stick. We forecast HRC at $650 for 2011, up from recent spot at $520-$560. We think Nucor (NYSE:NUE) may underperform peers given it has less captive raw materials."
Having its own iron ore resources generates a competitive advantage for US Steel, which should enjoy stronger margins and earnings for the quarter.
UBS maintains their "Neutral" rating on US Steel. The steel producer closed Tuesday at $44.85, gaining $1.56, or 3.60 percent. UBS increased their price target from $42 to $43.
"We put a Short-term Buy rating on U.S. Steel on the back of our conviction that steel prices are about to rise. We think it is a beneficiary, with Buy-rated Steel Dynamics (Nasdaq:STLD), because it has captive iron ore in the U.S. and can see margins improve when price hikes stick. We forecast HRC at $650 for 2011, up from recent spot at $520-$560. We think Nucor (NYSE:NUE) may underperform peers given it has less captive raw materials."
Having its own iron ore resources generates a competitive advantage for US Steel, which should enjoy stronger margins and earnings for the quarter.
UBS maintains their "Neutral" rating on US Steel. The steel producer closed Tuesday at $44.85, gaining $1.56, or 3.60 percent. UBS increased their price target from $42 to $43.
Tuesday, November 2, 2010
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.
Monday, November 1, 2010
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
AK Steel (NYSE:AKS) Worst Pick Says UBS (NYSE:UBS)
UBS (NYSE:UBS) sees Thyssen's new mill as an overall drag on AK Steel (NYSE:AKS), which will hurt their more profitable businesses. Consequently, UBS said they're maintaining a "Neutral" rating on the company.
"We cut our Q4e EPS to a $0.64 loss to incorporate guidance of an $80/t EBIT loss on 10% fewer tons, and no planned repeat of a Q3 $8M+ FX gain. Seasonally weak Q4 volumes distort profits somewhat, but we see still challenging conditions into 2011. As such, we cut our 2011e to $0.30 from $0.42 and vs consensus $1.08," said UBS.
"AK is our least favorite pick...We have longer-term structural concerns over
pressure from Thyssen’s new mill, from both its high quality focus in AK’s auto niche business and just-started stainless steel capacity that can hurt AK's higher-profit businesses."
AK closed Wednesday at $12.40, losing $0.44, or 3.43 percent. UBS has a price target of $13 on them, lowering them from $14.
"We cut our Q4e EPS to a $0.64 loss to incorporate guidance of an $80/t EBIT loss on 10% fewer tons, and no planned repeat of a Q3 $8M+ FX gain. Seasonally weak Q4 volumes distort profits somewhat, but we see still challenging conditions into 2011. As such, we cut our 2011e to $0.30 from $0.42 and vs consensus $1.08," said UBS.
"AK is our least favorite pick...We have longer-term structural concerns over
pressure from Thyssen’s new mill, from both its high quality focus in AK’s auto niche business and just-started stainless steel capacity that can hurt AK's higher-profit businesses."
AK closed Wednesday at $12.40, losing $0.44, or 3.43 percent. UBS has a price target of $13 on them, lowering them from $14.
Hexcel (NYSE:HXL) Wind Growth Slowing Down
Alternative energy companies will remain under pressure, and that will be true of Hexcel (NYSE:HXL) as it pertains to their wind power segment, as the abundance of natural gas is expected to slow down demand and capital expenditure on companies producing wind products.
UBS (NYSE:UBS) said they're maintaining a "Neutral" on the company as recovery in the sector will take a long time. We don't see growth in that area for some time. After all, how long will it take for natural gas resources to slow down? It could be decades before they do, and probably into well over a 100 years. Not great news for the wind, solar and nuclear industries, among others.
"We have lowered our 2011 EPS estimate to $0.95 from $1.00 to account for a slower recovery in wind and also the headwind from a weaker dollar attributable to HXL’s significant Europe production. Our 2012-14 EPS estimates have also moved lower to account for a slower wind recovery. Vestas
today came out and forecast roughly 15% growth in shipments in 2011, below our prior forecast for wind. We remain cautious on HXL given the potential for wind growth to disappoint and A350 to slide to the right combined with its premium valuation."
Hexcel closed down Wednesday at $17.80, losing $0.29, or 1.60 percent. UBS has a price target of $18 on them.
UBS (NYSE:UBS) said they're maintaining a "Neutral" on the company as recovery in the sector will take a long time. We don't see growth in that area for some time. After all, how long will it take for natural gas resources to slow down? It could be decades before they do, and probably into well over a 100 years. Not great news for the wind, solar and nuclear industries, among others.
"We have lowered our 2011 EPS estimate to $0.95 from $1.00 to account for a slower recovery in wind and also the headwind from a weaker dollar attributable to HXL’s significant Europe production. Our 2012-14 EPS estimates have also moved lower to account for a slower wind recovery. Vestas
today came out and forecast roughly 15% growth in shipments in 2011, below our prior forecast for wind. We remain cautious on HXL given the potential for wind growth to disappoint and A350 to slide to the right combined with its premium valuation."
Hexcel closed down Wednesday at $17.80, losing $0.29, or 1.60 percent. UBS has a price target of $18 on them.
Tuesday, October 26, 2010
Bank of America (NYSE:C), Citigroup (NYSE:C), Deutsche (NYSE:DB), Goldman (NYSE:GS) and UBS (NYSE:UBS) Bookrunners on Korea Gas Notes
Bank of America (NYSE:C), Citigroup (NYSE:C), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS) and UBS (NYSE:UBS) were joint bookrunners on the sale of $500 senior unsecured notes in the 144a private placement market for Korea Gas Corp.
Here are the data:
BORROWER: KOREA GAS CORP
AMT $500 MLN COUPON 4.250 PCT MATURITY 11/2/2020
TYPE SR NTS ISS PRICE 99.5010 FIRST PAY 5/2/2011
MOODY'S A1 YIELD 4.312 PCT SETTLEMENT 11/2/2010
S&P SINGLE-A SPREAD 170 BPS PAY FREQ SEMI-ANNUAL
FITCH A-PLUS MORE THAN TREAS NON-CALLABLE N/A
Here are the data:
BORROWER: KOREA GAS CORP
AMT $500 MLN COUPON 4.250 PCT MATURITY 11/2/2020
TYPE SR NTS ISS PRICE 99.5010 FIRST PAY 5/2/2011
MOODY'S A1 YIELD 4.312 PCT SETTLEMENT 11/2/2010
S&P SINGLE-A SPREAD 170 BPS PAY FREQ SEMI-ANNUAL
FITCH A-PLUS MORE THAN TREAS NON-CALLABLE N/A
Monday, October 25, 2010
Demand for Caterpillar (NYSE:CAT) Products Look Good
Handily beating earnings estimates last quarter, Caterpillar (NYSE:CAT) has garnered some solid support for growth in the near term.
While maintaining a "Neutral" on the equipment maker, UBS (NYSE:UBS) raised their price target from $74 to $85, and their earnings estimate too.
"Given an improved demand outlook and demonstrated impact of cost takeouts, we are raising our 2011E EPS to $4.00, from $3.60, and raising our 2011E and 2012E to $5.70 and $7.50, from $4.50 and $6.00, respectively," said UBS.
Caterpillar said in a statement, "2010 is shaping up to be one of the most significant year-over-year increases in sales and revenues in our history."
More significantly, Caterpillar's guidance for sales in 2011, was strong, with revenue estimated to reach $50 billion for the full year. That's about a 20.5 percent boost from guidance last year.
Credit Suisse (NYSE:CS) said if margins increase by 20 percent or more incrementally, earnings per share for Caterpillar could reach $6 a share for the year.
Caterpillar closed Friday at $78.33, losing $0.56, or 0.71 percent.
While maintaining a "Neutral" on the equipment maker, UBS (NYSE:UBS) raised their price target from $74 to $85, and their earnings estimate too.
"Given an improved demand outlook and demonstrated impact of cost takeouts, we are raising our 2011E EPS to $4.00, from $3.60, and raising our 2011E and 2012E to $5.70 and $7.50, from $4.50 and $6.00, respectively," said UBS.
Caterpillar said in a statement, "2010 is shaping up to be one of the most significant year-over-year increases in sales and revenues in our history."
More significantly, Caterpillar's guidance for sales in 2011, was strong, with revenue estimated to reach $50 billion for the full year. That's about a 20.5 percent boost from guidance last year.
Credit Suisse (NYSE:CS) said if margins increase by 20 percent or more incrementally, earnings per share for Caterpillar could reach $6 a share for the year.
Caterpillar closed Friday at $78.33, losing $0.56, or 0.71 percent.
Wednesday, October 20, 2010
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
BHP (NYSE:BHP), Teck (NYSE:TCK), Freeport (NYSE:FCX) and Rio Tinto (NYSE:RIO) Will Soar on Quantitative Easing
With the Federal Reserve poised to inflate via quantitative easing, a number of commodities will surge in price, which will strongly benefit diversified miners like BHP Billiton (NYSE:BHP), Teck Resources (NYSE:TCK), Freeport McMoran (NYSE:FCX) and Rio Tinto (NYSE:RIO).
According to UBS (NYSE:UBS), some of their top commodity picks include gold, copper, palladium, iron ore, thermal coal and zinc. They added they believe it's a "game changer" for commodities.
Talking on global capital flows, UBS said that should strengthen "credit creation in emerging markets." The giant bank concluded, "We believe that QE2 will prolong the bull market in commodities."
UBS' top pick in the commodity sector is palladium, which they see making significant gains through 2015.
In what could be troubling news for aluminum producers like Alcoa (NYSE:AA), UBS sees aluminum and nickel, among other commodities whose supply has little constraint upon them as being less desirable and affected by quantitative easing.
Gold of course will continue to perform strongly for some time to come. In that space, besides companies mentioned above, they like gold mining giant Barrick Gold (NYSE:ABX).
UBS said they like gold mining stocks over ownership of physical gold.
According to UBS (NYSE:UBS), some of their top commodity picks include gold, copper, palladium, iron ore, thermal coal and zinc. They added they believe it's a "game changer" for commodities.
Talking on global capital flows, UBS said that should strengthen "credit creation in emerging markets." The giant bank concluded, "We believe that QE2 will prolong the bull market in commodities."
UBS' top pick in the commodity sector is palladium, which they see making significant gains through 2015.
In what could be troubling news for aluminum producers like Alcoa (NYSE:AA), UBS sees aluminum and nickel, among other commodities whose supply has little constraint upon them as being less desirable and affected by quantitative easing.
Gold of course will continue to perform strongly for some time to come. In that space, besides companies mentioned above, they like gold mining giant Barrick Gold (NYSE:ABX).
UBS said they like gold mining stocks over ownership of physical gold.
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.
Wednesday, October 13, 2010
POSCO (NYSE:PKX), US Steel (NYSE:X), Nucor (NYSE:NUE), Reliance (NYSE:RS) on UBS' (NYSE:UBS) Outlook for Industry
Citing soft flat-rolled volumes, UBS (NYSE:UBS) said Commercial Metals Company (NYSE:CMC) and United States Steel Corp. (NYSE:X) could miss earnings, pushing the entire sector down Tuesday.
Even more dramatic was the downwardly revised full-year profit estimate of POSCO (NYSE:PKX), which was slashed by 7 percent. Slowing demand and higher costs were the reasons given for the changes.
The one positive note was Schnitzer Steel Industries Inc. (NASDAQ:SCHN), which UBS said could generate better results in the third quarter than thought.
The Market Vectors Steel ETF (NYSE:SLX) closed at $64.88, losing $0.67, or 1.02 percent.
Reliance Steel & Aluminum closed Tuesday at $43.24, down $0.33, or 0.76 percent. Nucor Corp. (NYSE:NUE) finished the session at $39.88, losing $0.20, or 0.50 percent. AK Steel Holding Corp. (NYSE:AKS) dropped to $14.50, a loss of $0.14, or 0.96 percent.
Posco plummeted to $114.47, falling $5.03, or 4.21 percent. Schnitzer Steel Industries Inc. fell to an even $50, a slight loss of $0.03, or 0.06 percent. Commercial Metals Company was also off just a little, ending at $14.76, dropping $0.06, or 0.40 percent.
The steel industry overall is in for a rough ride as news continues to confirm demand is slowing.
Even more dramatic was the downwardly revised full-year profit estimate of POSCO (NYSE:PKX), which was slashed by 7 percent. Slowing demand and higher costs were the reasons given for the changes.
The one positive note was Schnitzer Steel Industries Inc. (NASDAQ:SCHN), which UBS said could generate better results in the third quarter than thought.
The Market Vectors Steel ETF (NYSE:SLX) closed at $64.88, losing $0.67, or 1.02 percent.
Reliance Steel & Aluminum closed Tuesday at $43.24, down $0.33, or 0.76 percent. Nucor Corp. (NYSE:NUE) finished the session at $39.88, losing $0.20, or 0.50 percent. AK Steel Holding Corp. (NYSE:AKS) dropped to $14.50, a loss of $0.14, or 0.96 percent.
Posco plummeted to $114.47, falling $5.03, or 4.21 percent. Schnitzer Steel Industries Inc. fell to an even $50, a slight loss of $0.03, or 0.06 percent. Commercial Metals Company was also off just a little, ending at $14.76, dropping $0.06, or 0.40 percent.
The steel industry overall is in for a rough ride as news continues to confirm demand is slowing.
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