Majesco Entertainment Company (COOL), Denny’s Corporation (DENN) and Xerium Technologies Inc. (XRM) are three stocks that were favorably mentioned by analysts this week. In this article, we’ll take a look at these three recommendations and the catalysts that are driving the analyst interest.
Majesco Zooms Ahead with Zumba Fitness
Majesco Entertainment Company (COOL), a provider of video game products focused on family-orientated, mass-market consumers, was initiated by Northland Securities with an Outperform rating and $4.25 per share price target. At a significant 55% premium to the current market price, the analyst is very bullish on the company’s future outlook.
Last quarter, the entertainment company reported a 60% increase in revenue and swung to a net profit of $1,889,000, or $0.05 per share. The growth was primarily driven by sales of Zumba Fitness, which was released during the first quarter of 2011 on three platforms. Meanwhile, the firm’s Cake Mania 4 and Spy Kids titles could help further improve results moving forward.
Denny’s Outperforms Its Industry Group
Denny’s Corporation (DENN), an operator of approximately 1,500 restaurant chains throughout the United States, was initiated with a Buy rating and $5.00 per share price target by B. Riley. At a significant 32% premium to the current market price, the analyst’s price target reflects a very bullish outlook on the company’s future.
Last quarter, the popular restaurant chain reported a 2.6% increase in same-store sales and several bottom line improvements helped yield a 47% jump in net income. The company also recently underwent some management changes that could help improve its overall strategic direction, which could help pull it ahead of the competition.
Xerium Swings to a Profit on End Market Growth
Xerium Technologies Inc. (XRM), a manufacturer and supplier of consumable products used in the production of paper, was initiated with a Buy rating and $17.00 per share price target by Roth Capital. At a significant 68% premium to the current market price, the analyst’s price target reflects a very bullish outlook on the company’s future.
Last quarter, the consumable products supplier posted a 13.3% increase in its net revenue and swung to a net profit. The growth was primarily driven by an increase in its roll covers segment, which increased 16% due to higher sales and favorable currency effects. With this new-found profitability, this company may be one worth watching over the coming quarters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.