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Fly News Breaks for October 10, 2018
GE, DBX, MU, KMB, CHD, CLX, MCD
Oct 10, 2018 | 11:13 EDT
Check out today's top analyst calls from around Wall Street, compiled by The Fly. MCDONALD'S UPGRADED TO BUY: Guggenheim analyst Matthew DiFrisco upgraded McDonald's (MCD) to Buy from Neutral with a $200 price target as he believes the shares valuation discount to large cap peers has widened to an "unjustifiable" level given his outlook for stable to improving same-store sales and greater free cash flow generation. DEUTSCHE CUTS CONSUMER STAPLES STOCKS TO SELL: Deutsche Bank analyst Steve Powers downgraded Clorox (CLX), Church & Dwight (CHD) and Kimberly-Clark (KMB) to Sell from Hold and lowered his price targets to $123, $51, and $99, respectively. While investor appetite for defensive names remains elevated, the fundamental challenges facing Consumer Packaged Goods companies are "somewhat underappreciated," Powers believes. The analyst believes currency and emerging market volatility will pressure numbers in the near-term, while structural competitive and retail pressures will challenge momentum longer-term. PIPER STARTS MICRON AT NEUTRAL: Piper Jaffray analyst Harsh Kumar initiated coverage of Micron Technology (MU) with a Neutral rating and $48 price target. The analyst awaits more clarity surrounding the mid-term dynamics of the memory cycle before getting more constructive on the shares. The memory market as a whole has experienced favorable trends over the last few years, Kumar said. However, given the cyclical nature of the memory market, the analyst prefers to remain on the sidelines until he has a better grasp of the cycle. JPMORGAN ADDS DROPBOX TO FOCUS LIST: JPMorgan analyst Mark Murphy added Dropbox (DBX) to his firm's Analyst Focus List while keeping an Overweight rating on the shares with a $35 price target. While not convinced the "seven-day-old growth tech selloff is over," the analyst sees an improving risk/reward on Dropbox shares and potential for 30%-50% outperformance. He believes investors are "underestimating the stability and consistency of the Dropbox engine," and are overlooking the launch and adoption of its Premium plans. JPMORGAN SAYS GE TURBINE ISSUES MAY BE WORSE THAN THOUGHT: Recently published feedback from a General Electric (GE) H-frame user group event suggests more serious technology issues with the new flagship product, JPMorgan analyst Stephen Tusa said. While most of the focus has been on the technology around the blades, the event indicates a "myriad of shortfalls in other parts of the turbine that we find hard not to consider 'technology flaws,'" Tusa said. Tusa kept an Underweight rating on shares of General Electric.
News For MCD;CLX;CHD;KMB;MU;DBX;GE From the Last 2 Days
KMB
Mar 27, 2024 | 16:24 EDT
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
KMB
Mar 27, 2024 | 12:00 EDT
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here
KMB
Mar 27, 2024 | 07:10 EDT
Consensus $6.89. The company noted that the outlook it provided in January is consistent with its new long-term growth and return targets. The company continues to expect to deliver a low-to-mid single-digit percentage increase in 2024 organic net sales versus the prior year period, with growth in reported net sales forecast to reflect negative impacts of approximately 300 basis points from currency translation and 60 basis points from the Brazil Tissue divestiture. Adjusted operating profit is still expected to grow at a high single-digit to low double-digit rate on a constant-currency basis and adjusted earnings per share are expected to grow at a high single-digit rate on a constant-currency basis versus the prior year period. Reported growth in operating profit and earnings per share are still expected to be negatively impacted by approximately 400 basis points from currency translation. This outlook reflects assumptions subject to change given the macro environment.
MCD
Mar 27, 2024 | 06:19 EDT
Citi analyst Jon Tower raised the firm's price target on Krispy Kreme (DNUT) to $19 from $14 and keeps a Neutral rating on the shares. The company's "long-awaited" McDonald's (MCD) partnership came in better than expected, with Krispy Kreme set to see its products sold at most U.S. locations by 2027 versus earlier discussions of a couple thousand stores, the analyst tells investors in a research note. The firm estimates this partnership alone could add $400M in revenue and $85M in EBITDA after full rollout. While execution risk remains, the news is "clearly a positive" for Krispy Kreme and investors, providing greater sales visibility for a brand that's been struggling with GLP-1 headlines and softer spend from lower-income consumers, says Citi.
GE
Mar 27, 2024 | 05:45 EDT
Wells Fargo analyst Matthew Akers raised the firm's price target on General Electric to $200 from $177 and keeps an Overweight rating on the shares. The analyst sees opportunity for GE to cut 300-500 basis points of expenses in the coming years, 2-3 times what the company committed to at its recent investor day. The firm increased estimates to incorporate higher margins. The new price target reflects a 30-times price-to-earnings multiple on aerospace and $34 per share for Vernova.