Update (9:45 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- UBS increased its target price on DDR Corporation (DDR) to $21 and set a "buy" rating. The firm noted the company's sale of Brazil investment removes overhang associated with region's macro issues and supply concerns in the retail real estate market.
The stock was rising 0.25% to $16.30 at 9:45 a.m. on Tuesday.
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Separately, TheStreet Ratings team rates DDR CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DDR CORP (DDR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DDR's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 144300.0% when compared to the same quarter one year prior, rising from -$0.01 million to $7.21 million.
- DDR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DDR CORP reported poor results of -$0.14 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$0.14).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, DDR CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for DDR CORP is rather low; currently it is at 20.15%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.75% significantly trails the industry average.
- You can view the full analysis from the report here: DDR Ratings Report