Benzinga's Top Downgrades With Color for May 15, 2012
Listed below are today's Top Downgrades at Benzinga:
Deutsche Bank comments, "We continue to expect long-term earnings growth from Aon, built on the investments currently made in the business. However, as these upfront investments infringe on margins and associated revenues are not expected to pick-up materially before 2013, we find it difficult to recommend the stock at this time. With no short-term growth and trading at a mere 7% discount to its strongly executing peer, MMC, we do not see a near-term catalyst on the horizon."
Citi said, "Preannouncement aside, we are concerned about NextGen's deteriorating satisfaction scores as reported by KLAS and saturation in QSII's core end market. NextGen's core EMR offering is below average and falling further behind, doubling the gap within the last 12 months. NextGen's EPM offering, while above average, is declining at a greater rate than average and essentially now near average. Further, we believe QSII's NextGen offerings do not have enough exposure to the most attractive end-markets: hospitals and small physician practices that should remain the fastest growing off a small base."
Morgan Stanley said, "Our downgrading is based on: i) our view that the company's Niobrara inventory is becoming increasingly priced into the stock and ii) a slowing rate of improvement and potential upside in BCEI's Rockies and Mid-Con assets. Although we are reducing exposure, we continue to view BCEI as a more than capable operator with a low-risk development plan that is organically funded even at low gas prices."
Excellence Nessuah said, "1Q12 revenues totalled ILS1.58bn compared with our 1.67bn estimate and flat from last year. However, excluding the Netvision acquisition (an ISP company), sales are down 16.4% y/y. Leading the decline were cellular services revenues, down 21.6% y/y, with ARPU declining to ILS 90.5 vs. our 92.0 estimate and down from ILS 115.2 in 1Q11."
Piper Jaffray said, "For the 2nd consecutive quarter, Dynavox had surprising difficulty, as y/y revenues declined 16%, a stark contrast to the 5% y/y growth experienced in the first 9 months of CY11. Despite our previous ratcheting down of expectations, neither we nor management imagined the swift halt to school spending that began late last Fall and continued into the Spring. While our device estimate missed by $2M, coming in at $20.7M, our software forecast missed by $2.3 M on a tiny $5.6M original estimate."
Jefferies says, "We are downgrading XEL to Hold from Buy based on valuation. The stock is currently trading at an 8% P/E premium to our 2014 group average multiple which is close to our 10% target premium. When we initiated on the stock in September 2011, the company had been trading at almost a 5% P/E discount."
All of Benzinga's Analyst Ratings news can be viewed here.
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