Deutsche Bank Updates 6/17
Deutsche Bank made a number of updates in a research report published today.
Deutsche Bank initiated coverage of FXCM (NASDAQ: FXCM) with a Hold rating and a price target of $11.
In a research report published today, Deutsche Bank states, "We are initiating coverage on FXCM, a leading provider of retail FX trading, with a Hold rating, $11 PT, & 2011 & 2012 EPS est of $0.82 & $1.18. While FXCM is well positioned to generate attractive top line growth over time (via industry growth, share gains, & new products) as well as margin upside & cash opportunities (M&A/buybacks), given some industry regulatory risks & sluggish near term growth, we expect FXCM's valuation (& the industry) to remain a bit subdued in the near term, limiting the upside." On Thursday, FXCM closed the day at $9.65.
Goodrich (NYSE: GR) had its price target raised from $104 to $107.
The report states, "Our target price is raised to $107 (from $104) based on 16x our revised 2012 EPS estimate, which is in-line with GR's historical average (5-years). Risks for Goodrich include airline profitability, higher pension expense, delays in product development, and overall defense spending pressure." At the moment, Deutsche Bank has a Buy rating placed on the company's stock. On Thursday, Goodrich closed the day at $90.77.
Research In Motion (NASDAQ: RIMM) had its price target reduced from $45 to $20 and its rating maintained at Sell.
The report states, "RIM reported Q1 revenue of $4.9b, below our estimate of $5.4b and consensus of $5.2b. Pro-forma EPS of $1.33 was below our estimate of $1.38 but in-line with consensus. RIM guided Q2 below expectations and revised its full year guidance downwards from $7.50 to $5.63. Given the company's continued struggles, we reiterate our Sell rating and lower our price target to $20 based on our revised estimates." On Thursday, Research In Motion closed the day at $35.33. Its shares plummeted in today's pre-market trading, however, falling 16.22% to $29.60.
McKesson (NYSE: MCK) had its rating maintained at Buy and its price target reiterated at $108.
The report states, "mgmt. provided a deep dive into its core businesses and outlined the various drivers for sustaining 15% EPS growth. Additionally, MCK reiterated its FY12 guidance, and retained its commitment to a balanced capital deployment strategy (we continue to see BS upside optionality). Given our view that MCK will continue to benefit from broad generic tailwinds as well as contribution from USO in its DS segment, with MTS expected to show improved profitability, we reiterate our Buy rating and $108 PT." On Thursday, McKesson closed the day at $82.49.
Cooper Industries plc (NYSE: CBE) had its rating maintained at Hold and its price target reiterated at $69.
The report states, "Last year, CBE started to see low voltage transformer pricing “firm up". Since that time, pricing has “held up very well". However, given that the Power Systems business has seen a nice recovery to date, this is not the area where management is most concerned about its ability to take pricing. To this point, pricing challenges have largely resided within end markets that are still struggling, i.e. Commercial and Residential Construction." On Thursday, Cooper closed at $59.62.
Dover (NYSE: DOV) had its rating maintained at Buy and its price target reiterated at $75.
The report states, "Strength has continued within both the Energy platform and Industrial Products segments during 2Q... However, there were a few areas of weakness that management highlighted: 1) Hill Phoenix display cases: DOV has data through May and this suggests that the industry is down 5% Y/Y in 2Q; the good news is that DOV's market share is up 6-7ppts, which implies that HP volumes should still be positive. (2) DEK Solar: This business has seen extremely robust growth over the past few years, but bookings have moderated “significantly" in 2Q. Management expects this trend to reverse in 2H, and the backlog remains “strong and large". (3) NA Auto/Light Truck: This business is unsurprisingly coming in a bit weaker than expected due to Japan supply chain issues and soft consumer spending." On Thursday, Dover closed the day at $62.26.
Honeywell (NYSE: HON) had its rating maintained at Buy and its price target reiterated at $69.
The report states, "HON modestly tweaked down its SM revenue guidance because of a disruption in the supply of phenol, an input used in the production of caprolactam, forcing HON to cut back production in response. Demand for caprolactam remains robust - in fact, it is expected to exceed avaiable supply for the foreseeable future. As such, in order to avoid additional supplier problems, the company is in the process of purchasing the phenol plant - the deal is expected to close in July. Although it will not be dilutive to EPS, it will reduce segment margins by 50bps." On Thursday, Honeywell International closed the day at $56.35.
Ingersoll-Rand (NYSE: IR) had its rating maintained at Buy and its price target reiterated at $58.
The report states, "Most businesses increased prices during 1Q, including Resi HVAC, where IR recently announced another round of price increases that have been followed by other industry players. Price realization continues to meet expectations, and management feels good about guidance for 30bps price/cost headwind during 2011. Although lower commodity costs provides a nice tailwind to price/cost expectations, management also noted that this has come on the tails of macro concerns, which could clearly be more of a headwind." On Thursday, Ingersoll-Rand closed the day at $43.63.
Kaydon Corporation (NYSE: KDN) had its rating maintained at Hold and its price target reiterated at $40.
The report states, "Management commented that outside of Wind and Military, orders remain “strong and steady", and are up 20% QTD, inline with 1Q results. End markets that are driving the bulk of the growth also largely remain consistent with 1Q - General Industrial, Semiconductors and Medium/Heavy Equipment." On Thursday, Kaydon Corporation closed the day at $34.89.
Parker-Hannifin (NYSE: PH) had its rating maintained at Buy and its price target reiterated at $103.
The report states, "PH reiterated its 10% p.a. revenue growth target, with ~5% from organic growth, although still expects to maintain growth above that rate at this stage of the cycle. Management cautioned that order comp get considerably tougher during the June quarter - our sense is a deceleration into low double-digit range, down sharply from mid/high 20% levels." On Thursday, Parker-Hannifin added 0.89% to close the day at $86.92.
Textron (NYSE: TXT) had its rating maintained at Hold and its price target reiterated at $28.
The report states, "Textron Financial (TFC) continues to make progress on its liquidations, but losses are expected to continue through 2012. Our model currently has $140M loss estimated for 2011 and a $25M loss in 2012, vs. $237M and $294M loss reported in 2010 and 2009, respectively. Liquidy is improving within the resort and time share area, which should help from a cash conversion standpoint." At the moment, Textron is trading at $21.85, or 1.32% above yesterday's close.
Tyco International (NYSE: TYC) had its rating maintained at Buy and its price target reiterated at $56.
The report states, "TYC is now a little over a year into the integration process, and synergies are tracking “a little better than plan", while costs to achieve synergies have come in slightly below expectations. Management also noted that it will apply lessons they have learned from Broadview to the recent Signature Security acquisition." At the moment, Tyco is trading around $46.78, or 0.78% above yesterday's close.TYC is now a little over a year into the integration process, and synergies are tracking “a little better than plan", while costs to achieve synergies have come in slightly below expectations. Management also noted that it will apply lessons they have learned from Broadview to the recent Signature Security acquisition.
United Technologies (NYSE: UTX) had its rating maintained at Buy and its price target reiterated at $95.
The report states, "China order rates remain very strong; in fact growth rates at Otis China have accelerated driven by Western region infrastructure build-out and social housing programs. North American order rates at Otis continue to grow in the double- digits, with Europe also improving. Management is also seeing continued strength at Carrier Commercial HVAC in North America and China." At the moment, United Technologies trades around $84.76, or 0.49% above Thursday's close.
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