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KR

Kroger

$23.26

(0.00%)

, FDX

FedEx

$212.51

0.63 (0.30%)

09:25
07/22/17
07/22
09:25
07/22/17
09:25

Issuing debt to fund pensions 'not cause for worry,' Barron's says

Issuing debt to fund corporate pensions is a growing trend and several large companies have done it this year, such as Kroger (KR), FedEx (FDX), Delta Air Lines (DAL), and DuPont (DD), Amey Stone writes in this week's edition of Barron's. While to investors more accustomed to companies issuing debt to fund acquisitions and stock buybacks or issue dividends this may sound like a troubling trend, it is actually "a very good idea," she argues, as current interest rates are very low, corporate contributions to pension plans are tax-deductible, and with cost of having an underfunded pension growing. Reference Link

KR

Kroger

$23.26

(0.00%)

FDX

FedEx

$212.51

0.63 (0.30%)

DAL

Delta Air Lines

$52.26

-0.57 (-1.08%)

DD

Changed to DWDP

$84.54

-0.29 (-0.34%)

  • 25

    Jul

KR Kroger
$23.26

(0.00%)

06/21/17
LOOP
06/21/17
NO CHANGE
Target $25
LOOP
Hold
Competing Whole Foods bid would make sense for Kroger, says Loop Capital
Loop Capital analyst Andrew Wolf argues that Kroger (KR) putting in a competing bid for Whole Foods (WFM) has merit "both defensively and offensively," since such a deal would simultaneously make Kroger "by far" the largest natural/organic food retailer while hampering Amazon's (AMZN) effort to quickly scale its own grocery push. Wolf estimates that a $50 per share bid for Whole Foods would be about neutral to Kroger's EPS. The analyst, who also lowered his price target on Kroger to $25 from $27 to account for a lower valuation of the group amid the Amazon news, keeps a Hold rating on Kroger shares.
06/22/17
JPMS
06/22/17
NO CHANGE
JPMS
JPMorgan has 'hard time' seeing bidder topping Amazon deal for Whole Foods
Noting that Whole Foods (WFM) shares continue to trade above Amazon's (AMZN) agreed upon buying price of $42 per share, and that at least two other firm's raised their price targets above the deal price, JPMorgan's analyst team of Ken Goldman, Chris Horvers, and Doug Anmuth discussed their views on whether another strategic bidder is likely to top Amazon's takeover price with a rival bid. They have a "hard time seeing" Kroger (KR), Costco (COST), or Target (TGT) doing so, and while acknowledging that Wal-Mart (WMT) could make a bid, they think that its chance to beat out Amazon appears low and that Wal-Mart's primary opportunity is online, not grocery. The team concludes that they "don't believe a serious bid comes out of Bentonville that wouldn't be countered."
06/26/17
PIVT
06/26/17
DOWNGRADE
Target $20
PIVT
Sell
SpartanNash downgraded to Sell from Hold at Pivotal Research
Pivotal Research analyst Ajay Jain downgraded SpartanNash (SPTN) to Sell and cut his price target for the shares to $20 from $35. Setbacks at the company's Military Distribution Segment suggest revenue trends for the military commissary business are unlikely to stabilize soon, Jain tells investors in a research note. He believes the stock's valuation premium to Kroger (KR) and Supervalu (SVU) is not warranted.
06/23/17
LEHM
06/23/17
NO CHANGE
Target $48
LEHM
Overweight
Competing Whole Foods bid of $50 or higher 'not unrealistic,' says Barclays
Barclays analyst Karen Short said a potential strategic bidders for Whole Foods (WFM) can "rationally outbid" Amazon (AMZN) based on the roughly $750M in synergies she estimates for a buyer such as Kroger (KR) or Wal-Mart (WMT). For Kroger, she estimates that a 100% debt-financed bid at $50 could be about 6% accretive, and a Whole Foods bid up to $60 would still be accretive. For Wal-Mart, a 100% debt-financed bid at $50 could be about 2% accretive, though a could still be accretive bid up to $70 per share, she tells investors. Whole Foods was not "shopped," based on public documents, and the math indicates a superior, competing bid is "feasible," said Short, who also notes that Amazon could then outbid any other offer. Short has an Overweight rating and $48 price target on Whole Foods shares.
FDX FedEx
$212.51

0.63 (0.30%)

07/10/17
OPCO
07/10/17
NO CHANGE
OPCO
Oppenheimer recommends buying American Airlines, United Continental
Oppenheimer analyst Ari Wald continues to make the case that interest rates are bottoming, reflationary sectors are positioned for a stronger second half, and market internals should strengthen as well. The analyst sees additional upside for both Banks and Transports, and within the last, its high-conviction idea is to keep buying airlines, such as Alaska Air (ALK), American Airlines (AAL), Delta Air Lines (DAL), JetBlue (JBLU), Southwest (LUV), and United Continental (UAL). Elsewhere in Transports, Wald is bullish on the breakout in shares of FedEx (FDX) and Old Dominion (ODFL), and views Norfolk Southern (NSC) and Landstar System (LSTR) as attractive pre-breakout candidates.
06/29/17
BERN
06/29/17
NO CHANGE
BERN
UPS, FedEx to benefit from growth of e-commerce, says Bernstein
Bernstein analyst David Vernon says that UPS (UPS) and FedEx (FDX) will benefit from the growth of e-commerce because the cost of labor for e-commerce deliveries is set to rise significantly. As labor costs increase, the companies' higher productivity will become more valuable, according to Vernon. The analyst keeps a Market Perform rating on FedEx and an Outperoform rating on UPS.
06/21/17
AGIS
06/21/17
NO CHANGE
AGIS
FedEx results 'lackluster,' says Aegis
Aegis analyst Jeffrey Kaufman says that FedEx reported "lackluster" Q4 results and provided "tepid" guidance. The analyst says that the company's "true underlying" Q4 EPS missed expectations "largely because of investment and acquisition costs." He adds that the company's fiscal 2018 EPS guidance range is about 5% below the consensus outlook. However, the analyst expects the company's EPS and cash flow to rebound into 2020, and he keeps a Buy rating on the shares.
06/21/17
SPHN
06/21/17
NO CHANGE
Target $246
SPHN
Overweight
FedEx price target raised to $246 from $222 at Stephens
Stephens analyst Jack Atkins reiterates an Overweight rating on FedEx and raised his price target on the shares to $246 from $222 following its Q4 report and FY18 guidance, stating that he continues to believe in the company's "meaningful earnings power."
DAL Delta Air Lines
$52.26

-0.57 (-1.08%)

06/29/17
BOFA
06/29/17
NO CHANGE
BOFA
BofA/Merrill raises Airline estimates, Delta and Southwest best positioned
BofA/Merrill analyst Andrew Didora raised Airline estimates and price target to reflect lower fuel pricing and remains positive on the industry said to remain selective into second-half 2017. The analyst believes Buy rated Delta Air Lines (DAL) and Southwest (LUV) are best positioned for sequential unit revenue improvement in the second half due to decelerating and easing comps and raised their price targets to $71 and $75 from $64 and $62, respectively. The analyst expects capacity to increase modestly in 2018 to +3.4% from +2.8% in 2017 and expects Delta to accelerate capacity growth to +1.9% and Southwest to +5%. As part of the sector note, Didora raised Buy rated United Continental's (UAL) price target to $105 from $85, Alaska Air's (ALK) to $120 from $115, Spirit Airlines' (SAVE) down to $68 from $75, and raised Underperform rated American Airlines' (AAL) to $42 from $40 and lowered Hawaiian Holdings' (AAL) to $43 from $47.
07/14/17
BERN
07/14/17
NO CHANGE
BERN
Delta Air Lines guidance positive, valuation attractive, says Bernstein
Bernstein analyst David Vernon says that Delta reported in-line Q2 results and provided "positive" guidance. Calling the stock's valuation "attractive," the analyst raised his price target on the shares to $65 from $60 and keeps an Outperform rating on the stock.
06/22/17
DBAB
06/22/17
NO CHANGE
DBAB
Buy
Deutsche sees Qatar interest in American as positive for U.S. airline stocks
Deutsche Bank analyst Michael Linenberg notes that several U.S. air carriers have made cross-border investments over the past several years and he saw it as "only a matter of time" before a non-US carrier would consider buying into an attractively valued U.S. airline. He views Qatar Airways' interest in acquiring an approximately 10% stake in American (AAL) as a positive for U.S. airline stocks that reinforces their relative "cheapness." The analyst, who thinks the fact that the U.S. airline industry is on track to account for more than 50% of global airline profits again in 2017 does not appear to be fully appreciated, has Buy ratings on American, Delta (DAL), Southwest (LUV) and United (UAL).
DD Changed to DWDP
$84.54

-0.29 (-0.34%)

04/03/17
FBCO
04/03/17
NO CHANGE
Target $77
FBCO
Outperform
FMC Corporation price target raised to $77 from $65 at Credit Suisse
Credit Suisse analyst Christopher Parkinson raised his price target for FMC Corporation (FMC) to $77 from $65 after the company announced the acquisition of significant crop protection assets from DuPont (DD). The analyst views the acquisition accretive upon close and with synergy upside potential. He reiterates an Outperform rating on FMC Corporation's shares.
07/19/17
BERN
07/19/17
NO CHANGE
BERN
DuPont Q2 results likely to beat expectations, says Bernstein
Bernstein analyst Jonas Oxgaard expects DuPont to report Q2 EPS of $1.41 versus the consensus outlook of $1.28. He is upbeat due to what he sees as "continued improvement in performance culture across the company, growth in the seed segment through Xtend sales and expansion in Brazil, as well as positive trends in health and wellness." He keeps a $99 price target and an Outperform rating on the stock.
04/26/17
FBCO
04/26/17
NO CHANGE
Target $87
FBCO
Neutral
DuPont price target raised to $87 from $76 at Credit Suisse
Credit Suisse analyst Christopher Parkinson raised his price target for DuPont to $87 from $76 after "solid" cost-cutting execution and better volumes drove a Q1 beat. The analyst reiterates a Neutral rating on the shares.
04/03/17
SUSQ
04/03/17
UPGRADE
Target $86
SUSQ
Positive
FMC Corporation upgraded to Positive at Susquehanna
As reported previously, Susquehanna analyst Donald Carson upgraded FMC Corporation (FMC) to Positive from Neutral citing the acquisition of DuPont's (DD) insecticide portfolio and cereal herbicide portfolio, which along with its supporting R&D and pipeline programs transforms FMC into one of the five global innovators in crop protection chemicals. Carson raised his price target to $86 from $62 on FMC Corp. shares.

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