Benzinga's Morning Upgrade Summary for June 1, 2012
Listed below are today's Top Upgrades covered by Benzinga:
Sterne Agee said in the report, "We are upgrading ZNGA shares based on valuation. However, our fundamental concerns are unchanged and revolve around: 1) a slowing social gaming market; 2) continued pressure on ZNGA's active user base; 3) lock-up expiration of 325 million shares earlier this week; 4) lack of visibility on the company's product pipeline; and 5) risk to 2013 estimates."
Citigroup said in the report, "Over the last year, it seems to us as if CLX has become more confident in its business—and today's analyst meeting revealed to us a mgmt team that seemed (i) happy with their current portfolio, (ii) satisfied with their solid execution over the last several quarters and (iii) genuinely excited about their prospects to deliver even stronger shareholder returns over the next several years."
Pritchard Capital Partners comments, "END yesterday announced the closing of the acquisition of an additional 23.43% WI in the Alba field in the UK North Sea from ConocoPhillips (COP, $52.16-NR) . We are putting the COP acquisition back in our numbers, thus raising our NAV and price target to $21 and $14 from $13 and $10. Our 2012 EPS/CFPS estimates go to $1.06/$4.10 from ($0.32)/$1.26 primarily driven by the increase in our production forecast to 11.9 MBoe/d from 6.6 Mboe/d which is slightly offset by higher operating expenses and the PRT tax."
Keefe Bruyette & Woods notes, "- TRMK announced the acquisition of BTFG for $105M for all common and to redeem BTFG's TARP. We estimate that deal could dilute TRMKs TBV by 11% (including TRMK shares issued). We raised our '13 EPS estimate $0.20 to $2.00, to reflect the deal and with the increase cash flow; we raised our Target Price $2 to $24; we also raised our rating to Market Perform from Underperform."
Keefe Bruyette & Woods says, "Credit remediation is likely to remain a top strategic priority in 2012 which could continue in a methodical manner or on an accelerated basis. While a large asset disposition doesn't appear imminent, FMBI's strong capital position affords it the luxury to consider more aggressive actions, which could improve earnings visibility and valuation. To us, the risk-reward at 1.1x TBV is compelling to the upside, which gets us off the sidelines."
Wunderlich Securities comments, "We are upgrading shares of Check Point (CHKP) to Buy from Hold, as we believe the recent pullback in CHKP shares offers a buying opportunity for investors looking to own a blue chip player in the security space. Moreover, we believe CHKP's recent introduction of its unified R75.4 and GAiA operating system and IPv6 adoption offer two potential catalysts for accelerated adoption of its software blade architecture, and an expanded up-sell opportunity resulting from customer adoption of the company's blade architecture. Our price target is unchanged at $60."
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