Schlumberger, Credit Suisse: Ratings Changes
BOSTON (
) --
Xerox
(XRX) - Get Report
,
Credit Suisse
(CS) - Get Report
and
Schlumberger
(SLB) - Get Report
had their ratings changed by
TheStreet's
stock model.
3.
The model downgraded office-electronics company Xerox to "hold."
Quarter
: Xerox swung to a first-quarter loss of $42 million, or 4 cents a share, from a profit of $42 million, or 5 cents, a year earlier. Revenue grew 33%. The operating margin widened from 6.4% to 8.6%. Xerox has $1 billion of cash and $11 billion of debt.
Stock
: Xerox has nearly doubled during the past year, outperforming U.S. stock-market benchmarks. It trades at a price-to-projected-earnings ratio of 11 and a price-to-sales ratio of 1, 69% and 31% discounts to peer averages. It's also cheap based on cash flow.
Consensus
: Of analysts covering Xerox, five advise purchasing its shares and six recommend holding them.
Cross Research
expects the stock to gain 31% to $15.
Citigroup
(C) - Get Report
and
Barclays
(BCS) - Get Report
predict that the shares will rise 22% to $14.
2.
The model upgraded investment bank and asset manager Credit Suisse to "hold."
Quarter
: First-quarter profit rose 12% to $2 billion, or $1.57, as revenue stretched 7.6% to $12 billion. The operating margin extended from 41% to 50%. Credit Suisse has $273 billion of cash and $361 billion of debt, equal to a debt-to-equity ratio of 10.
Stock
: Credit Suisse has risen 25% during the past year, less than stock-market benchmarks. It sells for a price-to-projected-earnings ratio of 7.9 and a price-to-cash-flow ratio of 3.5, 47% and 73% discounts to peer averages. It's also cheap based on sales.
Consensus
: Of researchers following Credit Suisse, three, or 75%, rate its stock "buy" and one rates it "hold."
Bank of America
(BAC) - Get Report
believes the stock will climb 32% to $63.50. Dick Bove of
Rochdale Securities
thinks the shares will rise to $60.
1.
The model downgraded oilfield-services company Schlumberger to "hold."
Quarter
: First-quarter profit tumbled 28% to $672 million, or 56 cents, as revenue declined 6.7%. The operating margin narrowed from 20% to 16%. Schlumberger has $4.2 billion of cash and $19 billion of debt, equal to a debt-to-equity ratio of 0.3.
Stock
: Schlumberger has risen 46% during the past year, more than the
S&P 500 Index
. It trades at a price-to-projected-earnings ratio of 19, a 24% discount to its peer average. The shares are expensive based on book value and sales.
Consensus
: Of firms rating Schlumberger, 26, or 79%, advocate purchasing its shares, six recommend holding and one suggests selling them.
Morgan Stanley
(MS) - Get Report
believes the stock will soar 92% to $140.
BMO
(BMO) - Get Report
thinks it will hit $110.
Visit Stockpickr's
and
-- Reported by Jake Lynch in Boston.
