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Fly News Breaks for March 3, 2016
SUNE, CHSP, BA, PTEN, NDLS
Mar 3, 2016 | 10:18 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Noodles & Company (NDLS) downgraded to Underweight at Piper Jaffray with analyst Nicole Miller Regan citing a lack of confidence following the company's "series of lowered projections." 2. Patterson-UTI (PTEN) downgraded to Underweight at Stephens by analyst Matthew Marietta, who said he expects the company's condition to deteriorate as the oil downturn continues lower. He also expects its leverage to rise over the next 12-18 months. 3. Boeing (BA) downgraded to Hold at Canaccord by analyst Ken Herbert, who sees incremental free cash flow outlook risk from 777 rate and pricing pressure, and backlog risk from increased airline investments in older aircraft. 4. Chesapeake Lodging (CHSP) downgraded to Market Perform and Sector Perform at Wells Fargo and RBC Capital, respectively. Wells Fargo analyst Jeffrey Donnelly cited further upside potential is limited with the company "increasingly reliant upon a pursuit of strategic alternatives to maximize value." 5. SunEdison (SUNE) downgraded to Neutral and Hold at Macquarie and Needham, respectively, with analysts saying the suspension of dividend payments signals the company is facing a "liquidity crunch." Macquarie analyst Angie Storozynski said the company's complex financial disclosures make it impossible to accurate assess its liquidity position. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
News For NDLS;PTEN;BA;CHSP;SUNE From the Last 2 Days
BA
Mar 28, 2024 | 06:35 EDT
Citi lowered the firm's price target on Boeing to $252 from $263 and keeps a Buy rating on the shares. The analyst says the fundamental outlook for commercial aerospace and Boeing has not changed as demand for new aircraft remains robust and there are only two major competitors that can fulfill it. While Boeing has stumbled on execution, this is not a permanent state, the analyst tells investors in a research note. Once fixed, Boeing's balance sheet repair will be the focus, as it should be, says Citi. The firm, however, sees no quick fix, and believes patience is required.
BA
Mar 26, 2024 | 13:45 EDT
Moody's placed the Baa2 senior unsecured rating and Prime-2 short-term rating of Boeing on review for downgrade. The rating outlook was previously stable. "Placing the ratings on review for downgrade follows Moody's belief that Boeing will be unable to deliver 737 narrow-body aircraft at the volumes required for it to materially expand its free cash flow and retire debt in a reasonable timeframe," the ratings agency said in a statement. The aftereffects of the door plug ejection on Alaska Airlines flight 1282 on January 6, and investments in components and parts inventory in an attempt to reduce travelled work in the production of 737s will result in about $4.5B of negative free cash flow in Q1, it points out. Moody's says Boeing's cash will fall well below $10B come March 31.
BA
Mar 26, 2024 | 13:17 EDT
Japan looks to collaborate with the private sector to develop a next-generation passenger aircraft, hoping to avoid the pitfalls that doomed Mitsubishi Heavy Industries' (MHVYF) SpaceJet by encouraging the participation of multiple companies and helping create technology standards, Nikkei's Riho Nagao reports. The project is expected to explore propulsion systems beyond jet engines that are mainstream now, including the development of hydrogen-combustion engines, the report says. Other publicly traded companies in the space include Boeing (BA) and Airbus (EADSY). Reference Link