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BlackRock, McAfee: Ratings Changes

BlackRock, McAfee and California Pizza Kitchen had their ratings changed by TheStreet.
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BOSTON (TheStreet) -- BlackRock (BLK) - Get Report, McAfee (MFE) and California Pizza Kitchen (CPKI) had their ratings changed by TheStreet's stock model.

The model downgraded restaurant operator California Pizza Kitchen to "hold."

Quarter

: First-quarter profit declined 3.6% to $2.5 million, or 10 cents a share, as revenue slipped 2.7% to $157 million. The operating margin narrowed from 2.6% to 2.2%. California Pizza Kitchen has $7.4 million of cash and $10 million of debt.

Stock

: California Pizza Kitchen has risen 38% during the past year, outperforming U.S. stock indices. It has a PEG ratio, a measure of value relative to growth, of 0.3, 70% less than estimated fair value. It's also cheap based on sales.

Consensus

: Of analysts covering California Pizza Kitchen, five, or 29%, advise purchasing its shares and 12 recommend holding them.

Roth Capital

expects the stock to advance 50% to $28.

Raymond James

(RJF) - Get Report

predicts the stock will hit $25.

The model downgraded security software maker McAfee to "hold."

Quarter

: First-quarter profit dropped 30% to $38 million, or 23 cents, as revenue climbed 12% to $503 million. The operating margin stretched from 11% to 13%. McAfee has $853 million of cash, converting to a quick ratio of 0.8, and no debt.

Stock

: McAfee has fallen 18% during the past year, underperforming benchmarks. It sells for a price-to-projected-earnings ratio of 11 and a price-to-sales ratio of 2.5, 48% and 69% discounts to peer averages. It's also cheap based on cash flow.

Consensus

: Of researchers following McAfee, 23, or 70%, rate its stock "buy" and 10 rate it "hold."

JPMorgan Chase

(JPM) - Get Report

TheStreet Recommends

offers a price target of $50, a potential return of 56%.

Stifel Financial

(SF) - Get Report

says the stock could hit $46.

The model upgraded investment manager BlackRock to "buy."

Quarter

: First-quarter net income quintupled to $423 million and earnings per share more than tripled to $2.17. Revenue doubled. The operating margin widened from 30% to 35%. BlackRock has $2.8 billion of cash and $5.4 billion of debt.

Stock

: BlackRock has appreciated 13% during the past year, trailing U.S. indices. It trades at a price-to-book ratio of 0.4 and a price-to-cash-flow ratio of 7.6, 74% and 58% discounts to capital markets industry averages. It's also cheap based on sales.

Consensus

: Of firms rating BlackRock, nine, or 64%, advocate purchasing its shares and five suggest holding them.

Credit Suisse

(CS) - Get Report

offers a price target of $241, leaving a potential return of 28%.

KBW

(KBW)

expects the stock to rise to $230.

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Ratings Upgrades Portfolio

and

Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.