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Benzinga's Top Downgrades With Color for May 3, 2012

Chesapeake Energy Corporation Announces Closing of Sale of Its Interests in Chesapeake Midstream Partners to Global Infrastructure Partners for $2.0B
UPDATE: Bank of America Raises PO to $30 on Chesapeake Midstream Partners on CHKM Separation Possibility

Listed below are today's Top Downgrades at Benzinga:

Citigroup Downgrades Chesapeak Midstream Partners (NYSE: CHKM) to Neutral:

Citi commented in the report, "We are downgrading CHKM to Neutral and reducing our TP to $29/unit as we believe the partnership's risk profile has increased following the extreme stock price volatility of Chesapeake Energy (CHK.N; US$16.74; 2), the partnership's general partner and largest customer. Importantly, we are not drawing any conclusions as to the ultimate fate of CHK. However, it seems prudent to look at the potential impacts on the partnership should recent volatility lead to something more operationally material."

Bank of America Downgrades Visteon (NYSE: VC) to Neutral:

Bank of America Merrill Lynch (NYSE: BAC) stated, "We believe investors are becoming increasingly concerned by VC's financial reporting, which we think makes comparison to prior results and forecasts challenging. Furthermore, the company's lack of explicit actionable strategic roadmap is we think adding to investor concerns. While we believe VC may ultimately drive shareholder value by executing strategic actions (ie the purchase of Halla's 30% stub), similar discussions have been underway for over a decade with only small progress."

Credit Suisse Downgrades CACI International (NYSE: CACI) to Neutral:

Credit Suisse notes, "Organic sales growth in FQ3'12 was -1.5%, marking the first quarter of organic decline in 5 years. Weakness was attributed to lower pass through of ODCs, which are low profit, subcontracted goods. However, we worry that this pressure will eventually move to the more profitable direct labor portion of the business, as it has already with certain peers. We reduce our 2012/13/14 forecasts from $5.92/$6.13/$6.66 to $5.65/$5.26/$5.42, but note that our projections do not incorporate future acquisitions, which could mitigate some downside."

Piper Jaffray Downgrades Green Mountain Coffee Roasters (NASDAQ: GMCR) to Neutral:

Piper Jaffray stated, "We remain confident in the ongoing consumer transition to and adoption of single-serve coffee, and while we recognize Green Mountain's prior successes we believe it is prudent to revisit our long-term expectations. In light of what appears to be a sooner-than-expected flat-lining of the company's sales growth trajectory, in particular as it pertains to sales of its current brewer ecosystem and house K-Cup brands, we are taking this opportunity to revise our long-term model. We are also lowering our rating to Neutral and price target to $40 on GMCR shares."

All of Benzinga's Analyst Ratings news can be viewed here.

Latest Ratings for CHKM

Jul 2012BarclaysAssumesOverweight
Jun 2012Deutsche BankMaintainsBuy
May 2012Bank of AmericaMaintainsBuy

View More Analyst Ratings for CHKM
View the Latest Analyst Ratings

Posted-In: Bank of America Citigroup Credit Suisse Piper JaffrayAnalyst Color Downgrades Analyst Ratings Best of Benzinga


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