Stock Upgrades, Downgrades From TheStreet.com Ratings: March 18
Shares have slipped 7.8% in the past year. With a price-to-earnings ratio of 23.49, the stock is now selling for less than others in its industry. However, its valuation does not justify a buy rating at this time. Autodesk had been rated buy since TheStreet.com Ratings initiated coverage on March 13, 2006.
GlaxoSmithKline (GSK), a pharmaceutical company, has been downgraded to hold. Strengths such as its growth in earnings per share and revenue are balanced by a disappointing stock-price performance. For the third quarter, EPS increased 6.5% year over year to 99 cents, and revenue rose 6% to $11.65 billion. For 2008, the market expects an improvement in full-year EPS to $3.79 from $3.71 in 2007. The company's gross profit margin is very high at 78%, and its net profit margin of 24% compares favorably with the industry average. Return on equity has decreased to 54% from 55% a year ago but still exceeds the industry average. Shares have lost 25% in the past year, netting a price-to-earnings ratio of 10.49. Although this P/E makes the stock cheaper than others in its industry, we do not feel it is a good time to buy. GlaxoSmithKline had been rated buy since TheStreet.com Ratings initiated coverage on March 13, 2006.
Westar Energy (WR), an electric utility, has been downgraded to hold. Strengths such as revenue growth, a reasonable valuation and an increase in net income are held back by feeble EPS growth, disappointing return on equity and weak operating cash flow. For the fourth quarter, revenue rose 15% year over year to $392.9 million, but EPS declined by a penny to 14 cents. Return on equity has slightly decreased to 9% year over year. This implies a minor weakness in the organization. In addition, the company's return on equity trails the industry average. Net operating cash flow has decreased 62% to $37.6 million from the year-ago quarter. In addition, when comparing the cash generation rate with the industry average, the firm's growth is significantly lower. Westar Energy had been rated buy since TheStreet.com Ratings initiated coverage on March 13, 2006.
Additional ratings changes from March 14 are listed below.
|Ticker||Company Name||Change||New Rating||Former Rating|
|ADGF||ADAMS GOLF INC||Upgrade||Buy||Hold|
|ATAC||AFTERMARKET TECHNOLOGY CORP||Downgrade||Hold||Buy|
|AMAC||AMERICAN MEDICAL ALERT CORP||Downgrade||Hold||Buy|
|ASPM||ASPECT MEDICAL SYSTEMS INC||Downgrade||Sell||Hold|
|GTN.A||GRAY TELEVISION INC||Downgrade||Sell||Hold|
|GTN||GRAY TELEVISION INC||Downgrade||Sell||Hold|
|JAX||J. ALEXANDER'S CORP||Downgrade||Hold||Buy|
|MCHP||MICROCHIP TECHNOLOGY INC||Upgrade||Buy||Hold|
|NPBC||NATIONAL PENN BANCSHARES INC||Upgrade||Buy||Hold|
|WR||WESTAR ENERGY INC||Downgrade||Hold||Buy|
|EXLS||EXLSERVICE HOLDINGS INC||Initiated||Hold|
|ULTR||ULTRAPETROL BAHAMAS LTD||Downgrade||Sell||Hold|
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