The model upgraded oil-and-gas explorer Chesapeake Energy to "buy."
: Chesapeake swung to a first-quarter profit of $596 million, or $1.14, from a loss of $5.7 billion, or $9.63, a year earlier. Revenue increased 40%. The operating margin turned positive. Chesapeake has $12 billion of debt, equal to a debt-to-equity ratio of 1.
: Chesapeake has risen 12% during the past year, underperforming U.S. indices. It trades at a price-to-projected-earnings ratio of 8.6 and a price-to-cash-flow ratio of 3.6, 39% and 55% discounts to peer averages. It's also cheap based on book value.
: Of analysts covering Chesapeake, 18, or 58%, advise purchasing its shares, 11 recommend holding and two suggest selling them.
expects the stock to more than double to $49.
believes it will hit $43.
The model downgraded data and publishing company Thomson Reuters to "hold."
: First-quarter profit tumbled 33% to $127 million, or 15 cents, as revenue gained marginally. The operating margin declined from 15% to 13%. Thomson Reuters has $828 million of cash and $7.7 billion of debt, equal to a debt-to-equity ratio of 0.4.
: Thomson Reuters has advanced 20% during the past 12 months, less than major benchmarks. It sells for a price-to-book ratio of 1.6 and a price-to-cash-flow ratio of 11, 58% and 25% discounts to industry averages. It's expensive based on sales.
: Of researchers following Thomson Reuters, 10 rate its stock "buy", 10 rate it "hold" and two rank it "sell."
projects a target of $45, leaving a potential 23% return.
expects the stock to climb 12% to $41.
The model upgraded diversified media company News Corp. to "buy."
: Fiscal third-quarter profit tumbled 69% to $839 million, or 32 cents, as revenue expanded 19%. The operating margin extended from 11% to 14%. News Corp. has $8.2 billion of cash and $14 billion of debt, equal to a debt-to-equity ratio of 0.5.
: News Corp. has appreciated 65% during the past year, outperforming U.S. indices. It trades at a price-to-book ratio of 1.9 and a price-to-sales ratio of 1.4, 51% and 30% discounts to industry averages. It's also cheap based on projected earnings.
: Of firms rating News Corp., four advocate purchasing its shares and two recommend holding them.
Bank of America
believes the stock will rise 33% to $22.
predicts that it will ascend 8% to $18.
-- Reported by Jake Lynch in Boston.