The model upgraded oil-and-gas trust Baytex to "buy."
: Baytex swung to a first-quarter profit of $52 million, or 46 cents a share, from a loss of $8.5 million, or 9 cents, a year earlier. Revenue grew 68% to $220 million. The operating margin turned positive. Baytex holds $630,000 of cash and $414 million of debt.
: Baytex has more than doubled during the past year, outperforming U.S. indices. It trades at a price-to-book ratio of 3.5 and a price-to-cash-flow ratio of 9.8, 8% and 19% premiums to industry averages. It's also expensive based on trailing earnings and sales.
: Of analysts covering Baytex, seven advise purchasing its shares, one recommends holding and one suggests selling them.
expects the stock to rise 17% to $37.29.
forecasts that it will climb to $35.82.
The model upgraded CME Group, operator of futures exchanges, to "buy."
: First-quarter profit increased 21% to $240 million, or $3.62, as revenue grew 8.1% to $704 million. The operating margin remained steady at 60%. CME has $491 million of cash and $3.1 billion of debt, translating to a debt-to-equity ratio of 0.2.
: CME has advanced 20% during the past 12 months, trailing benchmarks. It sells for a price-to-projected-earnings ratio of 19 and a price-to-book ratio of 1.1, 17% and 19% premiums to peer averages. It's cheap based on trailing earnings.
: Of researchers following CME Group, 13, or 54%, rate its stock "buy," eight rate it "hold" and three rank it "sell."
offer a price target of $380, leaving a potential 15% return.
The Street Ratings
The model downgraded health care equipment maker Baxter to "hold."
: Baxter swung to a first-quarter loss of $63 million, or 11 cents, from a profit of $516 million, or 83 cents, a year earlier. Revenue gained 11%. The operating margin declined from 24% to 23%. Baxter has $2.7 billion of cash and $4.8 billion of debt.
: Baxter has dropped 12% during the past year, underperforming U.S. indices. It trades at a price-to-projected-earnings ratio of 10 and a price-to-cash-flow ratio of 9.1, 52% and 51% discounts to industry averages. It's expensive based on book value.
: Of firms rating Baxter, 10 advocate purchasing its shares and eight recommend holding them.
foresees the stock at $63, implying 40% of upside.
expects the shares to rise 36% to $61.
-- Reported by Jake Lynch in Boston.