Benzinga's Top Downgrades With Color for May 16, 2012
Listed below are today's Top Downgrades at Benzinga:
JP Morgan said, "[We] are downgrading KLAC and other SemiCap stocks (LRCX/NVLS) to Underweight from Neutral. In addition, we are trimming our C12 rev/PF EPS estimates and price target. We expect semi capex in C2H12 to trend lower as foundry capex declines and memory and logic capex looks to remain relatively low. While we don't expect the down cycle to be severe, we think it's a good time for investors to take some profits and look for outperformance elsewhere."
Imperial Capital said, "We are downgrading our rating to In-Line from Outperform and reducing our price target to $5 from $9 following disappointing first quarter results (5/14/12). With lower earnings expectations and no EPS growth expected in 2012, we believe investors will be less willing to ascribe a premium multiple to the shares in the near term. Our new $5 price target assumes 10x our 2013 EPS estimate of $0.53."
Wunderlich Securities notes, "Despite solid operating results in 1Q12, the negative impact from charter default/damages and depressed forward charter rate expectations resulted in the reduction of the quarterly dividend to $0.085 from $0.16 per share. While GLBS continues to have a strong balance sheet and excellent assets that position the company well for a future recovery in charter rates, the timeline for a rate recovery has been pushed further out. The rate recovery delay combined with near-term headwinds in 2Q12 will keep pressure on earnings and the dividend, limiting upside potential over the next 12 months."
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