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Equity Brief: Ratings Changes for November 15th: HPQ, HTCH, HWD, IAG, KMT, MAKO, MGI, MTSI, NSM


A number of stocks were upgraded and downgraded by equities research analysts today, as reported by Analyst Ratings Network (http://bit.ly/equitybriefdaily) and Equity Brief:

UBS AG lowered its price target on shares of Hewlett-Packard (NYSE: HPQ) from $14.00 to $12.75. They have a sell rating on the stock.

Craig Hallum initiated coverage on shares of Hutchinson Technology Incorporated (NASDAQ: HTCH). They issued a buy rating on the stock and set a $4.00 price target.

BMO Capital Markets upgraded shares of Harry Winston Diamond (NYSE: HWD) from a market perform rating to an outperform rating. BMO Capital Markets now has a $16.00 price target on the stock, up previously from $13.00. They wrote, "On BMO Research's estimates, the acquisition is 26% NPV accretive and accretive to earnings from the point of acquisition. However, BMO notes that the limited amount of information available from BHP's historical results means that estimates are somewhat provisional, pending guidance from Harry Winston. This is important in relation to the debt assumed by Harry Winston to finance the transaction. On BMO's forecasts, gearing is definitely manageable (peaking at 40%), but if estimates are incorrect, then an equity raise may be required. However, comfort can be gained from the high levels of free cash flow generated by Ekati in recent years (e.g., US$308M in 2011)."

Credit Suisse downgraded shares of IAMGOLD Corp (NYSE: IAG) from a neutral rating to an underperform rating. Their analysts now have a $12.00 price target on the stock, down previously from $17.00.

Barrington Research upgraded shares of Kennametal Inc. (NYSE: KMT) from a market perform rating to an outperform rating. They wrote, "Our investment thesis has changed following the October organic orders, which improved slightly from September. October organic orders declined 6%, which was a modest improvement from the decline of 7% in September. KMT commented that a negative impact from Hurricane Sandy may have been a slight negative during October. . Continued sequential order improvement could result in Q2/13 sales and EPS upside. In our view, KMT is a high quality company that has improved its cost structure and return characteristics."

Goldman Sachs lowered its price target on shares of MAKO Surgical (MAKO) to $16.00. They wrote, "On Wednesday, November 14, MAKO Surgical completed a common stock offering of 3.04mn shares at $13.15 per share. This compares to the November 13 closing price of $13.21. We note that shares of MAKO were down 9.1% on November 13 vs. the Russell 2000 down 0.6% ahead of the company's announced offering that was issued after the market close. We update our model for a higher share count as well as the cash inflow associated with the secondary share issuance (approximately $45mn). . The completed financing removes a risk, as the company should maintain a cash cushion."

Credit Suisse downgraded shares of MoneyGram International, Inc. (MGI) from an outperform rating to a neutral rating. Their analysts now have a $16.00 price target on the stock.

Jefferies Group reiterated its buy rating on shares of MA-COM Technology Solutions Holdings (MTSI).

FBR Capital initiated coverage on shares of Nationstar Mortgage Holdings (NSM). They issued an outperform rating on the stock and set a $30.00 price target.

Raymond James upgraded shares of NetApp Inc. (NTAP) from a market perform rating to an outperform rating. Raymond James now has a $35.00 price target on the stock.

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Source: Equity Brief via Thomson Reuters ONE

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