Kohl's, Tyco, Lorillard: Ratings Upgrades
BOSTON (TheStreet) -- Kohl's (KSS) - Get Report, Tyco Electronics (TEL) - Get Report and Lorillard (LO) were upgraded by TheStreet's stock model.
3.
The model upgraded tobacco seller Lorillard to "buy."
Quarter
: First-quarter net income increased 26% to $232 million, and earnings per share climbed 38% to $1.50. Revenue grew 20%. The operating margin expanded from 38% to 41%. Lorillard has $1.7 billion of cash and $735 million of debt.
Stock
: Lorillard has advanced 27% during the past year, less than U.S. stock-market indices. It trades at a price-to-projected-earnings ratio of 11 and a price-to-sales ratio of 3.1, modest discounts to peer averages. The shares offer a 5.1% dividend yield.
Consensus
: Of analysts covering Lorillard, nine, or 75%, advise purchasing its shares, two recommend holding and one suggests selling them.
UBS
(UBS) - Get Report
expects the stock to gain 27% to $100.
Goldman Sachs
(GS) - Get Report
projects that the shares will rise to $96.
2.
The model upgraded electronics maker Tyco to "hold."
Quarter
: Tyco swung to a fiscal first-quarter profit of $172 million, or 37 cents, from a loss of $37 million, or 7 cents, a year earlier. Revenue grew 6.6%. The operating margin extended from 6.6% to 11%. Tyco has $1.7 billion of cash and $2.4 billion of debt.
Stock
: Tyco has appreciated 74% during the past 12 months, more than U.S. benchmarks. It sells for a price-to-projected-earnings ratio of 13 and a price-to-cash-flow ratio of 8.5, 41% and 39% discounts to peer averages. It's also cheap based on book value.
Consensus
: Of researchers following Tyco, nine, or 90%, rate its stock "buy" and one ranks it "hold."
Credit Suisse
(CS) - Get Report
offers a price target of $34, leaving a potential 16% return.
Citigroup
(C) - Get Report
foresees the shares climbing to $33.50.
1.
The model upgraded department store Kohl's to "buy."
Quarter
: Fiscal fourth-quarter profit increased 28% to $431 million, or $1.40, as revenue expanded 8.5% to $5.7 billion. The operating margin rose from 11% to 13%. Kohl's has $2.3 billion of cash and $2.1 billion of debt, equal to a debt-to-equity ratio of 0.3.
Stock
: Kohl's has increased 28% during the past year, trailing U.S. stock-market indices. It trades at a price-to-projected-earnings ratio of 14 and a price-to-book ratio of 2.3, 31% and 19% discounts to industry averages. The shares are expensive based on sales.
Consensus
: Of firms rating Kohl's, 19, or 79%, advocate purchasing its shares and five recommend holding them. Citigroup predicts that the stock will rise 38% to $79.
Deutsche Bank
(DB) - Get Report
foresees the shares climbing 30% to $75.
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