Change in Ratings
upgraded at Credit Suisse to Outperform from Neutral. Says company has strong enough capital to weather the storm. Maintained $30 target price.
initiated at Jefferies with an Underperform rating and $17 price target. Introduces 2008 EPS estimates of $2.51.
downgraded at Goldman Sachs to Sell from Neutral based on expected deterioration in margins and earnings. Company remains highly dependent on hardware sales and pricing, both of which will suffer as demand continues to erode. Price target cut to $9 from $14.
price target cut at Goldman to $14 from $20 following disappointing Q3 results. Key negatives were increased marketing costs and a continued rise in churn. Note attractive valuation, but see no sign of turnaround happening soon. Maintained Neutral rating.
downgraded to Equal-weight from Overweight at Morgan Stanley due to dramatically weaker sales and margin outlook and higher pension headwinds. Morgan Stanley now forecasts $180 million in pension expense in FY09. Factoring in double-digit comp store sales declines through 1H09 and the pension expense, revised fiscal 2009 EPS estimate reduced to $1.40, 38% below consensus of $2.27.
Las Vegas Sands
upgraded to Neutral from Sell at Bank of America after completion of capital raise. BofA believes that the $2.1B capital raise reduces any near-term concerns and even with 45% dilution, Las Vegas Sands will likely now have enough cash on hand to remain in compliance with its covenants through at least 1H09. Maintain $5 price target.
coverage initiated at Goldman with a Sell rating due to competitive concerns. Despite strong secular smartphone trends, see limited chance for meaningful turnaround as increasing competition will likely drive market share losses. Also noted uncertainty over company's new software platform strategy. Price target at $2.60.
Stock Comments/EPS Changes
target cut at Credit Suisse to $120 from $135 to reflect its more conservative outlook for the PC industry. Maintained Outperform rating.
estimates reduced at Morgan Stanley due to a lower comp expectation and forex headwinds. Morgan Stanley is $0.14 below consensus and believes management will have to lower full-year guidance when they report on Dec. 11. 1Q09 estimate is $0.64 vs. consensus of $0.62. Maintain Equal-weight rating.
Dick's Sporting Goods
target lowered at Credit Suisse to $20 from $23 based on weakened outlook for consumer spending. However, sees immense growth opportunity beyond near-term. Maintained Outperform rating.
estimates reduced at Morgan Stanley but Equal-weight rating maintained. Morgan Stanley forecasts revenue decline of 11% in 2009 and gross margin decline by 1,100 bps by 2Q09. Intel estimates and price target reduced at BofA to $18 from $24. Revised CY09 EPS estimate is $0.80, down from $1.42 previously. BofA maintains Buy rating due to the belief that the current stock price represents tremendous value.
estimates reduced at Morgan Stanley. National lowered its November quarter revenue guidance range to $420 million-$425 million from $470 million-$480 million, citing the weak economy. Morgan Stanley reduced 2009 EPS estimate to $0.80 from $1.21 with a $14 price target to reflect the lowered guidance and a more conservative stance on demand through 1H09. Maintain Overweight rating.
This article was written by a staff member of TheStreet.com.