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The writer is a long term value investor (over 10 years experience) seeking both value in long and short ideas. Besides stock positions, the writer likes to work with options to enhance the risk/return profile of the ideas. Disclaimer: This article provides opinions and information, but does not... More
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  • Review Of Analyst Upgrades This Week - Part IX 0 comments
    Jun 11, 2012 2:12 PM | about stocks: ADNC, BA, DKS, FIO, GWW, JACK, PX

    Analysts have been sending out research reports to their clients again this week. The following is a review of the most important upgrades for the week of June 4th till June 8th.

    Praxair

    R.W Baird raised its advice for Praxair (PX) from neutral to outperform with a $124 price target. Analysts see some 17% upside for the industrial gases supplier. Strength in North America and potential for improving trends in South America and Asia could be triggers for the stock in the short term, according to analysts. Shares trade flat so far this year after seeing a 10% correction in recent weeks when the stock fell from highs of $116 in early May to $106 at the moment.

    Audience

    Deutsche Bank initiated its advice for Audience (ADNC) with a buy rating and a $23 price target. Analysts see 15% upside potential for the provider of voice and audio solutions which improve users experiences in mobile devices. Shares gained 16% this week after analysts note that Audience is "expanding its presence among smartphone makers. The integration into Apple's A5 applications processor makes it a standard technology in all iPhones." Shares now trade up 17% compared to its public offering price of $17 in the beginning of May.

    Boeing

    Stifel Nicolaus upgraded its advice for Boeing (BA) from hold to buy with a $80 price target. Analysts see 14% upside potential for the company as they note that the speed-up of commercial airplane production protect the company from a downturn in defense spending. The company is on track to produce 10 new 787s per month by the end of 2013. Shares in Boeing have fallen 5% year to date amidst a 10% correction in May.

    Fusion-Io

    Sterne Agree raised its advice for Fusion-Io (FIO) to buy accompanied with a $24 price target. Analysts see some 26% upside potential for the provider of data-centric computing solutions. "The risk-reward is approaching an inflection point as the fundamentals remain well intact for the coming quarters." Shares have seen a 40% correction from $32 in March to $19 at the moment amidst worries about the company's valuation and a slowdown in key markets.

    Dick's Sporting Goods

    Wells Fargo raised its advice for Dick's Sporting Goods (DKS) from market perform to outperform. Shares have some 10% to 16% upside in the $52-$55 price range according to analysts. A number of catalysts could spur an upwards price move including a more appealing valuation on the back of the recent pull-back. Furthermore sales data indicates a re-acceleration in sales growth. Shares in the sporting goods retailer have returned 28% so far this year after the company announced a $200 million share repurchase program.

    W.W. Grainger

    UBS raised its advice for W.W. Grainger (GWW) from neutral to buy with a $225 price target, indicating some 18% upside potential. "The recent pullback created a buying opportunity in a high-quality growth story." Shares in the distributor of maintenance, repair and operating supplies are flat year to date after shares have seen a 15% correction in recent weeks amidst worries about slower economic growth.

    Jack in the Box

    Jefferies raised its advice for Jack in the Box (JACK) from hold to buy with a $31 price target. Shares of the owner of Jack in the Box and Qdoba Mexican Grill restaurants have gained 24% so far this year after the company issued a favorable full year outlook. Same store sales growth for 2012 is expected to come in between 3.5% and 4.5% and earnings per share are expected to come in between $1.28 and $1.50 for the full year of 2012. Analysts have "visibility that top-line drivers can continue to deliver outperformance and there will be margin expansion from refranchising and Qdoba acquisitions".

    Conclusion

    Stock markets have seen a strong rebound this week, trading up 4% on the week in the case of the S&P 500. Amidst the recovery in global markets brokers have sent out favorable research reports again to clients. Many of the recommendations were made after the release of earnings reports and often come after a large move to the upside. However on the day of the announcement, analyst recommendations can still move the stock price significantly.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: long-ideas Stocks: ADNC, BA, DKS, FIO, GWW, JACK, PX
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