Canon, Visa, MetLife: Ratings Changes

Canon, Visa and MetLife had their ratings changed at TheStreet.
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BOSTON (TheStreet) -- MetLife (MET) - Get Report, Visa (V) - Get Report and Canon (CAJ) - Get Report had their ratings changed by the TheStreet's stock model.

3.

The model upgraded insurer MetLife to "hold."

Quarter

: Fourth-quarter profit tumbled 68% to $320 million, or 35 cents, as revenue fell 12% to $12 billion. The operating margin narrowed from 13% to 4.1%. MetLife has $28 billion of cash and $33 billion of debt, amounting to a debt-to-equity ratio of 1.

Stock

: MetLife has advanced 68% during the past year, outperforming U.S. stock-market indices. The stock trades at a price-to-projected-earnings ratio of 8.6 and a price-to-sales ratio of 0.9, 31% and 18% discounts to insurance industry averages.

Consensus

: Of analysts covering MetLife, 12, or 71%, advise purchasing its shares, four recommend holding and one suggests selling them.

Sterne, Agee & Leach

expects the stock to rise 26% to $57.

Citigroup

(C) - Get Report

predicts the shares will hit $55.

2.

The model downgraded credit-card company Visa to "hold."

Quarter

: Fiscal first-quarter net income jumped 33% to $763 million and earnings per share expanded 44% to 75 cents. Revenue climbed 13% to $2 billion. The operating margin extended from 57% to 60%. Visa has $6.5 billion of cash and $53 million of debt.

Stock

: Visa has appreciated 60% during the past 12 months, more than major stock-market benchmarks. The stock sells for a price-to-book ratio of 3, a 56% discount to its peer average. It's expensive based on trailing earnings, sales and cash flow.

Consensus

: Of researchers following Visa, 31, or 82%, rate its stock "buy" and seven rate it "hold."

Janney Montgomery Scott

offers a price target of $125, leaving a potential 33% of upside.

Piper Jaffray

(PJC) - Get Report

thinks it will hit $121.

1.

The model upgraded office-electronics maker Canon to "buy."

Quarter

: Fourth-quarter profit expanded 22% to $652 million, or 53 cents, as revenue tumbled 35% to $9.8 billion. The operating margin rose from 6.8% to 9.9%. Canon's balance sheet stores $8.8 billion of cash, equal to a quick ratio of 1.8, and $106 million of debt.

Stock

: Canon has returned 47% during the past year, more than the

Dow Jones Industrial Average

and

S&P 500 Index

. It trades at a price-to-projected-earnings ratio of 24, a 42% discount to the industry average. It's expensive based on sales and cash flow.

Consensus

: Just two firms rate Canon, both ranking its stock a "hold."

Bank of America

(BAC) - Get Report

expects the shares to gain 7% to $49.44.

TheStreet's

model predicts they will climb 34% to $62.17. It awards Canon a financial strength score of 8.9 out of 10.

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Ratings Upgrades Portfolio

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Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.