TSC Ratings' Updates: City National

CYN's share price is down 18.96% over the past year. We believe this reflects several factors -- the market's overall decline (which was actually deeper), the sharp decline in the company's earnings per share and other weaknesses. Despite the decline in its share price over the last year, this stock is still more expensive (when compared with its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

CYN had been rated a hold since January 7, 2008.

Carlisle Companies(CSL Quote) has been downgraded from buy to hold. Carlisle Companies engages in the manufacture and sale of construction materials in the U.S. and internationally. It operates in five segments: construction materials, industrial components, transportation products, specialty products and general industry. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures.

However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded the industrial conglomerates industry average. The net income increased by 1.7% when compared with the same quarter one year prior, going from $53.40 million to $54.30 million.

Despite its growing revenue, the company underperformed as compared with the industry average of 19.4%. Since the same quarter one year prior, revenue rose by 16.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.