A Peek Into The Market Before The Trading Starts
Pre-open movers
US stock futures are higher this morning. Futures for the Dow Jones Industrial Average index gained 13 points to 11,522, while those for the S&P 500 index gained 1.6 points to 1,256. Futures for the Nasdaq 100 index moved up 5.75 points to 2,231.
A Peek Into Global Markets
European markets were mixed today. While STOXX Europe 600 Index has advanced 0.19%, London's FTSE 100 Index moved down 0.45%.
Asian markets ended in the positive territory, with Japan's Nikkei Stock Average adding 0.50%, Australia's S&P/ASX 200 moving up 0.07% and China's Shanghai Composite gaining 0.68%.
Broker Recommendation
Goldman Sachs has a Neutral rating and a $14 price target on shares of Graham Packaging Company Inc. (NYSE: GRM).
In a note sent to clients, Goldman writes, "We recently hosted Graham Packaging (GRM) senior management for a day of meetings with investors in New York. Our takeaways from the meetings are positive and underscore that GRM shares are a compelling long-term investment opportunity. While we are constructive on the shares, we rate GRM stock Neutral as we see more compelling risk/reward in Ball (BLL) and Crown (CCK) shares—both rated Buy."
Goldman goes on to say, "We have the following takeaways from our meetings: (1) GRM highlighted that the integration of the Liquid Container acquisition is going well, and GRM is positioned to exceed its $20 mn synergies target (over 2-years) as purchasing, SG&A and operations synergies are being achieved faster than initially anticipated. We raise our 2012 EPS estimate to $2.30 from $2.20 previously to reflect $20 mn of synergies savings vs. $10 mn previously. Our 2010-2011 EPS estimates are unchanged. (2) GRM is well positioned to boost its top line growth by 100-200 bp per annum over the next several years from continued conversions from glass and metal packaging into plastics. (3) Debt reduction will be the number one priority for FCF, but cash flow could also be utilized for bolt on acquisitions and organic growth. (4) Within its current capex budget, GRM is well positioned to grow internationally with on-site facilities scheduled to come online in Japan and Indonesia in 2011."
Shares of GRM lost 33 cents yesterday to close at $13.39, a loss of 2.4%.
Breaking news
- According to a report from the NY Post, Leonard Green & Partners is still interested in acquiring BJ's Wholesale (NYSE: BJ), and shares are up 8% in pre-market trading on this news. To read the full news, click here.
- Acacia Research Corporation (Nasdaq: ACTG) announced today that its subsidiary AdjustaCam LLC has entered into a license agreement with Jasco Products Company LLC. To read the full news, click here.
- Cogo Group, Inc. (Nasdaq: COGO) today announced its intent to acquire certain businesses of MDC Tech, Inc. The businesses will be merged into Cogo's existing Industrials business, which currently comprises about 18% of the company's total revenue and represents its fastest growing business segment. To read the full news, click here.
- SXC Health Solutions Corp. (NASDAQ: SXCI) announced today the completion of the previously disclosed acquisition of MedfusionRx, LLC. To read the full news, click here.
Read more from Benzinga's Markets.
