NEW YORK (TheStreet) -- RATINGS CHANGES
Amazon.com (AMZN) was downgraded to neutral at Citigroup. Twelve-month price target is $395. Company lacks transparency, and management continues to invest heavily in the business, Citigroup said.
American Axle (AXL) was upgraded at J.P. Morgan to neutral from underweight. Estimates were also increased, given recent production trends, J.P. Morgan said.Herb Greenberg: Allergan's Dilemma The End of Quantitative Easing and What It Means for Commodities JetBlue, With Expectations Low, Could Face Changes Amcon Distributing (DIT) was upgraded to buy at TheStreet Ratings. Evolving Systems (EVOL) was upgraded to buy at TheStreet Ratings. Five Below (FIVE) was upgraded at Wells Fargo to outperform. Company's growth opportunity is increasing and management continues to execute, Wells Fargo said. Hasbro (HAS) was upgraded at Barclays to overweight from equal weight. Drivers include strong POS trends, strength of boys revenue growth, and growth in girls segment, Barclays said. Twelve-month price target is $59. Matador Resources (MTDR) was downgraded at Stifel Nicolaus to hold from buy. Primarily a valuation call, Stifel Nicolaus said. Although the company's first three Permian Basin wells are clearly outperforming the average of nearby competitors, the stock appears to be reflecting most of this potential, Stifel Nicolaus said. Realogy (RLGY) was upgraded at Citigroup to buy. Twelve-month price target is $43. Company should benefit from rising existing-home sales, Citigroup said. Sanmina (SANM) was upgraded at Deutsche Bank to hold from sell. Twelve-month price target is $24. Higher sales across the board are leading to better margins, Deutsche Bank said. Valspar (VAL) was upgraded at Goldman Sachs to buy from neutral. Company was also placed on the Conviction List. Twelve-month price target is $97. Company offers quality growth at a discount valuation, Goldman Sachs said. VCA (WOOF) was upgraded at Stifel Nicolaus to hold from sell. Valuation call, Stifel Nicolaus said. Editor's note: To see analysts' stock comments and changes to price targets and earnings estimates, go to "Street Notes" which is available only to Real Money subscribers. To find out how to become a subscriber, please click here. Follow TheStreet on Twitter and become a fan on Facebook.
Now let's look at TheStreet Ratings' take on some of these stocks. TheStreet Ratings team rates AMERICAN AXLE & MFG HOLDINGS as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN AXLE & MFG HOLDINGS (AXL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to other companies in the Auto Components industry and the overall market, AMERICAN AXLE & MFG HOLDINGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 360.3% when compared to the same quarter one year prior, rising from $7.30 million to $33.60 million.
- AMERICAN AXLE & MFG HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN AXLE & MFG HOLDINGS reported lower earnings of $1.24 versus $4.84 in the prior year. This year, the market expects an improvement in earnings ($2.44 versus $1.24).
- The gross profit margin for AMERICAN AXLE & MFG HOLDINGS is rather low; currently it is at 19.66%. Regardless of AXL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AXL's net profit margin of 3.91% compares favorably to the industry average.
- You can view the full analysis from the report here: AXL Ratings Report
TheStreet Ratings team rates SANMINA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANMINA CORP (SANM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, SANM's share price has jumped by 48.50%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SANM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SANMINA CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SANMINA CORP reported lower earnings of $0.92 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus $0.92).
- Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.10 is sturdy.
- You can view the full analysis from the report here: SANM Ratings Report
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