Why Stifel Likes BJ's Restaurants, CyrusOne, Grand Canyon Education, Norwegian Cruise Line Holdings

In a report published Thursday morning, Stifel analysts raised their price targets on a few stocks, amongst which we can find BJ's Restaurants, Inc. BJRI, CyrusOne CONE, Grand Canyon Education, Inc. LOPE and Norwegian Cruise Line Holdings NCLH. Wonder why?

BJ's Restaurants’ price target was boosted from $55 to $60 on the back of “much better” than expected fourth quarter 2014 results. The research firm reiterated a Buy rating on the stock, and upped its EPS estimates for fiscal 2014 and fiscal 2015, from $0.95 to $1.04, and from $1.25 to $1.30, respectively.

The analysts “remain pleased with management’s implementation of several key initiatives (see below) and continue to expect more cost-cutting and margin-enhancing leveraging opportunities, especially given improving tailwinds from the Stifel-declared ‘Rising Tide’ dining-out recovery.”

CyrusOne (Buy) also felt Stifel’s bullishness, as its price target was elevated from $32 to $34. The analysts “view 4Q results as further evidence that CONE's flexible and service-driven model continues to gain traction with enterprise customers, creating a virtuous circle of same-store growth and high retention rates. Lease velocity remains robust, with 4Q capping off a record year of leasing volume in terms of square footage, megawatts, and MRR signed. Importantly, we [the analysts] believe management assuaged investor fears regarding headwinds from its large oil & gas exposure, removing a key overhang on valuation. Despite recent outperformance, shares remain at a discount to peers at 11.6x our 2016 EBITDA estimate.”

For its part, Grand Canyon Education (Buy) had its price target lifted from $52 to $53 as it continues to explore the option of converting to a nonprofit -- this would involve a buyout deal. The firm’s valuation analysis “suggests a deal in the $50-$60 range.” Moreover, fourth quarter results were strong again, beating on most metrics, while guidance seemed conservative.

Finally, Norwegian Cruise Line Holdings (Buy) witnessed a raise in its price target too, from $40 to $55, to reflect the application of a 14.5x multiple on

EPS estimates for 2016.