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Equity Brief: Ratings Changes for November 22nd: PDCO, PRE, SINA, STKL, TECD, TSL, WCRX, WMGI, WSH


A number of stocks were upgraded and downgraded by equities research analysts today, as reported by Analyst Ratings Network ( and Equity Brief:

Goldman Sachs upgraded shares of Patterson Companies Inc (NASDAQ: PDCO) to a neutral rating. Goldman Sachs now has a $29.00 price target on the stock, down previously from $30.00. They wrote, "We lower our FY13 EPS to $2.00 from $2.11 to reflect the FY2Q miss and guidance update. Our FY14/FY15 EPS also move lower to $2.25/$2.46 from $2.34/$2.53 largely on follow through of more conservative dental sales and margin assumptions. That said, we do reflect a slightly easier equipment comp in FY14 given FY2Q13's more transient Omnicam issue."

Barclays Capital raised its price target on shares of PartnerRe (NYSE: PRE) from $86.00 to $92.00. They have an overweight rating on the stock.

Deutsche Bank reiterated its buy rating on shares of Sina (NASDAQ: SINA). They have a $57.70 price target on the stock, up previously from $57.00. They wrote, "We attribute Sina's soft 4Q guidance largely to cyclical and one-off factors. Weibo remains structurally under-monetized against its large traffic and Weibo rev growth should significantly drive Sina's earnings growth over the next 2 years. From a valuation perspective, the portal's under-performance and Weibo's outperformance translate to a rev mix shift from a low multiple to a high multiple business. We value the portal at US$14/share or 25% of total TP."

Desjardins downgraded shares of Sunopta Inc. (NASDAQ: STKL) from a buy rating to a hold rating.

Zacks reiterated its neutral rating on shares of Tech Data Corporation (NASDAQ: TECD). They have a $47.00 price target on the stock. Zacks' analyst wrote, "Tech Data reported a dismal third quarter wherein both top line and bottom line fell short of the Zacks Consensus Estimate. Margin contractions due to unfavorable product mix, customer mix and competitive pricing negatively impacted the bottom line. The company provided a tepid outlook, which compels us to remain cautious in the near term. We believe that Tech Data faces number of headwinds in the near term, including a volatile European market (approximately 60.0% of revenue) as well as lack of visibility in government spending in the U.S. However, we believe that Tech Data's strategy of shifting resources from lower-performing regions to higher-growth regions, cost reductions (shutting down business in the loss-making Brazilian and Colombian units) and accretive acquisitions will drive growth over the long term. We remain Neutral and set a price target of $47.00. "

Avian Securities downgraded shares of Trina Solar (TSL) from a positive rating to a neutral rating.

Zacks reiterated its neutral rating on shares of Warner Chilcott (WCRX). They have a $12.00 price target on the stock. Zacks' analyst wrote, "Warner Chilcott's third quarter 2012 adjusted earnings of $0.99 per share easily beat the Zacks Consensus Estimate of $0.78 and the year-ago earnings of $0.89. Lower selling, general & administrative costs boosted earnings in the reported quarter. Warner Chilcott upped its 2012 adjusted earnings guidance. The company now expects adjusted earnings in the range of $3.75-$3.85 (previous guidance: $3.55-$3.65). Though impressed by the company's diversified product portfolio, we remain concerned regarding the generic threat faced by its drugs. Moreover, the weak late-stage pipeline at Warner Chilcott also bothers us. In view of these challenges, we see limited upside potential from current levels and hence retain our Neutral recommendation on the stock."

Zacks reiterated its neutral rating on shares of Wright Medical (WMGI). They have a $22.00 price target on the stock.

Zacks downgraded shares of Willis Group Holdings PLC (WSH) from a neutral rating to an underperform rating. Their analysts now have a $31.00 price target on the stock. Zacks' analyst wrote, "We are downgrading Willis Group to Underperform from Neutral on the back of weak performance in the third quarter. Operating earnings in the quarter fell short of the Zacks Consensus Estimate as well as the year-ago results. Lower revenue coupled with higher expenses weighed on the performance. Top line also missed the expectation and was lower than the year ago numbers due to lower commissions and fees and lower investment income. Willis Group completed its operational review in 2011 and expects annualized savings of approximately $135 million. With $42 million spent on share buyback in the third quarter, It exhausted the $100 million authorization. Also, the acquisition of Attain Consulting is expected to enhance Willis Risk's employee benefits business. Besides, the company scores strongly with the rating agencies. However, the weakness in the US economy will remain a headwind and restrict any significant top-line growth in the company."

Avondale Partners upgraded shares of Zipcar (ZIP) from an underperform rating to a market perform rating.

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Source: Equity Brief via Thomson Reuters ONE


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