Benzinga's Downgrade Summary for June 27, 2012
Listed below are today's Top Downgrades covered by Benzinga:
Canaccord Genuity notes, "We have cut our Q2/12 CP forecast to reflect the nine-day strike in Q2/12, which shut the Canadian part of the railway during that period. We adjusted our volume assumptions per the strike impact and incorporated strike-related increased costs. We also added $14 million of proxy battle related costs. These negative forecast factors are partially offset by lower costs related to lower volumes and reduced compensation to striking employees. The net impact of the changes is a $0.25 decrease in our Q2/12E EPS. The remainder of our forecast is relatively unchanged."
Citigroup notes, "Based on our latest checks, we believe it will be difficult for Hasbro to achieve sales growth in 2012 (vs consensus of +1%) given weakness within its Games business as well as Girls. In addition, Nerf, Beyblades, and Preschool are likely to be flat for the year at best. The big wildcard has been movie related properties and while we've seen favorable box office results from Avengers, we think this property will only generate $150-$200mm in toy sales for the year (vs recent street ests of $300-$500mm). Spiderman toys are getting traction (ahead of 7/3 release), but are likely to be quickly dampened when Batman is released on 7/20. We'd expect Spiderman toy sales to be around $200-$250mm. Battleship has also been a disappointment in our view."
Deutsche Bank notes, "Shanda Games plans to launch major expansion packs (EP) of its legacy games (Mir 2 and Woool) in 3Q12. The co guides a weak 15-20% sequential top-line decline for 2Q12 as monetization of the two games (50% of rev in 1Q12) slows. We view EP as only a partial remedy for usage loss. Earnings visibility over the next 12 months decreases on declining usage and major updates. In addition, we view recent expansion in value of related party transactions with parentco Shanda Interactive as introducing possible conflicts between parentco and public (minority) investors."
All of Benzinga's Downgrade coverage can be viewed here.
Latest Ratings for CP
|Dec 2014||Bank of America||Maintains||Buy|
|Dec 2014||Goldman Sachs||Downgrades||Buy||Neutral|
|Oct 2014||Credit Suisse||Maintains||Buy|
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