Benzinga's Top Downgrades With Color for May 17, 2012
Listed below are today's Top Downgrades at Benzinga:
Deutsche Bank writes, "Our Buy rating had been predicated on market share gains, particularly in the commercial business, improvements in DIY and expense savings. This had worked since our initiation with a Buy and the stock had outperformed even with recent weakness, up 17.9% YTD compared to the market up 5.3% and the S&P Retail Index up 17.7%. But, AAP's comp of 2.1% against easier comparison compared to ORLY's (Hold,$97.54) comp of 6.1% through March 31 and AZO's (Hold,$376.38) 5.9% through February 11th shows share loss even in the face of what appears to be improving industry data. As comparisons become more difficult, we'd expect trends to remain challenged. So, it looks like the share gain story in commercial as well as the improvements in DIY, which both occurred last quarter, have stopped."
Deutsche Bank said that it still has a very positive outlook on the health supplement space, and view VSI as well-positioned for continued growth. “Nonetheless, we are moving to the sidelines due to the post-1Q run-up in the stock (VSI is up +18.1% since 5/7 vs. -3.2% for S&P 500; & up +32.5% YTD vs. +5.3% for S&P).”
Goldman Sachs said that it downgraded GDOT to Neutral from Buy, as it now expects increased competition from large banks and other processors, and limited new retail distribution announcements to limit the growth profile for the model. “Since adding GDOT to the Buy List (8/15/2011), the shares are down 31.6% (vs. S&P +10.0%). Ytd GDOT is down 30.8% (vs. S&P +5.3%).”
Citigroup said that it has re-run its portfolio market valuations. “We estimate a current market value of net assets of $12.77/share, rising to just $13.50 a year from now ($170m acquisitions). We assume 4% normal annual economic depreciation for most aircraft types but increase this to 10-15% for less popular/older aircraft.”
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