"We are raising our F2Q estimate from $0.72 to $0.85 by raising our top-line growth assumption in the Paints group, as well as our margin expectation," Credit Suisse analysts wrote in a May 2 report. "For subsequent quarters, we are currently maintaining our estimates until we get a better handle on the magnitude of the weather benefit in the current quarter as well as to remain cautious on currently soft Asian (Chinese) paint volumes. In addition, we would note that if the housing recovery and coatings demand continue to improve, this along with sustained titanium ore cost increases could result in the pace of TiO2 prices starting to speed up again. With this risk still persisting as well as a rather full valuation on our new estimates, we remain on the sidelines with the stock. While are raising our TP to $54 (to reflect ~9.5x our new F2013 EBITDA), we are maintaining our Neutral rating."Shares of Valspar hit a 52-week high Thursday of $52.71. The stock's 52-week low of $27.44 was set on Aug. 8. Valspar's forward P/E is 14.74; the average for building materials and fixtures companies is 33.31. For comparison, Masco (MAS) has a higher forward P/E of 23.04. Eight of the 13 analysts who cover Valspar rated it hold; five analysts gave the stock a buy rating. The stock has risen 35.75% year to date.
News Corp The media company reported on Wednesday third-quarter net income of $937 million, or 38 cents a share, up from year-earlier earnings of $639 million, or 24 cents a share. On an adjusted basis, third-quarter earnings were 37 cents a share. Analysts, on average, expected earnings of 31 cents a share, according to Thomson Reuters. Shares of News Corp hit a 52-week high Thursday of $20.50. The stock's 52-week low of $13.38 was set on Aug. 9. News Corp's forward P/E is 12.01; the average for broadcast and entertainment companies is 25.35. For comparison, Walt Disney (DIS) has a higher forward P/E of 13.13. Nineteen of the 29 analysts who cover News Corp rated it buy. Nine analysts gave the stock a hold rating and one rated it sell. The stock has risen 15.19% year to date.
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