CB Richard Ellis Shares Skyrocket on Analyst Upgrade
Commercial real estate firm CB Richard Ellis ( CBG) shares jumped more than 60% in morning trading Wednesday, on the heels of a JPMorgan analyst upgrade. JPMorgan Securities upgraded the company to "overweight" from "neutral," citing the recently restructured debt agreement. CB Richard Ellis has secured covenant waivers on its loans, which some analysts believe will provide some breathing room for the company. In addition to the upgrade, analyst Anthony Paolone put a $7 price target on the stock. CBG shares have lost more than 77% of their value in the past year. Shares of CBG are way off all-time highs of $41 hit in July 2007. The stock is trading near all-time technical lows. If the shares can continue today's momentum, we see the $5.50-$7.50 as initial overhead resistance. We do not currently rate this non-dividend paying stock, but do follow the name and the commercial real estate market closely. CB Richard Ellis does not currently pay a dividend.
Automatic Data Processing Cuts Fiscal 2009 Profit, Sales Forecasts Again
Business outsourcing solutions company Automatic Data Processing ( ADP) trimmed its full-year profit and sales forecasts Wednesday for the second time in six months. The Roseland, N.J.-based company said that it now sees revenue growth of 1%-to-2% for the year, one percentage point lower than its previous forecast. The company lowered its outlook to that previous level in November. ADP also said that it now expects earnings per share (EPS) to come in at the low end of its 10%-to-14% growth forecast. The company cited worsening economic conditions for the outlook reduction, but also said that it still expects over $1 billion in new-business sales for the fiscal year. Sales are expected to fall around 13% from year-ago levels, however, compared to a previous forecast of a 10% decline.