Analysts' Actions: Devon Energy, GT Advanced Tech, Williams-Sonoma

NEW YORK (TheStreet) -- RATINGS CHANGES

Century Aluminum (CENX) was upgraded at Goldman Sachs to neutral from sell. Twelve-month price target is $15.50. Company is cutting costs and is leveraged to higher aluminum prices, Goldman said.

Devon Energy (DVN) was upgraded at Citigroup to buy from neutral. Market undervalues Devon's midstream assets, Citi said. Twelve-month price target is $96.

GT Advanced Tech (GTAT) was downgraded at UBS to neutral from buy. Apple (AAPL) sapphire ramp appears more back end-loaded, UBS said. Twelve-month price target is $22.

Why Shares of GT Advanced Technology Are Down on Monday Morning

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iGate (IGTE) was upgraded at Noble to buy from hold. Company can post accelerated earnings growth, Noble said.

MobileIron (MOBL) was initiated at Barclays with an overweight rating. Company is one of the fastest growing enterprise mobility management vendors and is well-positioned to emerge as leader in mobile/corporate space, Barclays said. Twelve-month price target is $15.

NTT DoCoMo (DCM) was upgraded to buy at TheStreet Ratings.

Vantiv (VNTV) was initiated at Barclays with overweight rating, Barclays said. Recent acquisition of Mercury will improve revenue mix, Barclays said. Twelve-month price target is $40.

Vermilion Energy (VET) was upgraded to buy at TheStreet Ratings.

Western Refining (WNR) was upgraded at Citigroup to buy from neutral. Potential restructuring leads to increased free cash flow and growth, Citigroup said. Twelve-month price target is $55.​

Williams-Sonoma (WSM) was upgraded at Bank of America/Merrill Lynch to buy from neutral. Twelve-month price target is $82. Company has improved visibility and can deliver solid execution, Bank of America/Merrill Lynch said.

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Now let's look at TheStreet Ratings' take on some of these stocks.

TheStreet Ratings team rates WILLIAMS-SONOMA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WILLIAMS-SONOMA INC (WSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.00% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • WILLIAMS-SONOMA INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WILLIAMS-SONOMA INC increased its bottom line by earning $2.85 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.85).
  • 41.78% is the gross profit margin for WILLIAMS-SONOMA INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.73% trails the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 17.0% when compared to the same quarter one year prior, going from $39.47 million to $46.16 million.

TheStreet Ratings team rates DEVON ENERGY CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate DEVON ENERGY CORP (DVN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DVN's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 88.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 123.65% and other important driving factors, this stock has surged by 48.12% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DVN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DEVON ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DEVON ENERGY CORP continued to lose money by earning -$0.10 versus -$0.48 in the prior year. This year, the market expects an improvement in earnings ($5.77 versus -$0.10).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 124.2% when compared to the same quarter one year prior, rising from -$1,339.00 million to $324.00 million.
  • 45.23% is the gross profit margin for DEVON ENERGY CORP which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 8.69% is above that of the industry average.
This article was written by a staff member of TheStreet.

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