Lowe's upgrade, Square downgrade among today's top calls on Wall Street » 10:0605/2105/21/20
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Check out today's top…
RBC Capital starts Cubic at Sector Perform with $37 price target » 16:2205/2005/20/20
RBC Capital analyst…
RBC Capital analyst Michael Eisen initiated coverage of Cubic with a Sector Perform rating and $37 price target. While the company's "Digital Pivot" should lead to improved sales growth and margin expansion in the long-term, in the near-term the stock's performance will be limited by the cease of public transportation in key markets and elevated leverage, Eisen tells investors.
Cubic initiated with a Sector Perform at RBC Capital » 16:1505/2005/20/20
RBC Capital analyst…
RBC Capital analyst Michael Eisen initiated coverage of Cubic with a Sector Perform rating and $37 price target.
|Over a week ago|
Cubic undertakes cost reduction, cash preservation program » 16:0805/0605/06/20
In response to the…
In response to the uncertainties arising from the COVID-19 pandemic, the Company has undertaken a cost reduction and cash preservation program, which is expected to result in cumulative net savings of $30 million to $35 million through fiscal 2021. The Company has taken the following actions to reduce costs: Reduced discretionary expenses, Optimized overhead costs, Reduced and deferred select research and development (R&D) investments while continuing critical investments to support near-term growth; expect fiscal 2020 investment in innovation to increase compared to fiscal 2019; Reduced Board and CEO cash compensation by 15% and CFO by 7.5% for remainder of fiscal 2020; Suspended employee salary merit increases through fiscal 2021 and 401(k) match for remainder of fiscal 2020; Implemented hiring freeze for indirect and overhead positions; Utilized stimulus benefits, including the monetization of certain net operating losses and the deferral of certain tax payments.
Cubic reports Q2 adjusted EPS (12c), consensus (11c) » 16:0705/0605/06/20
Reports Q2 revenue…
Reports Q2 revenue $321.5M, consensus $342.23M. "Our number one priority at Cubic is the health and safety of our team members, customers, partners and communities. I want to thank our employees for their commitment to serve our customers during these unprecedented times. We are supporting our customers and communities impacted by COVID-19 by repurposing our capabilities to produce protective gear, ventilators and game-based training solutions," said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. "While we are experiencing short-term impacts and challenges, we have taken the necessary actions to navigate this environment and the long-term fundamentals of our businesses remain strong. Cubic is well-positioned to drive growth by solving our customers' hardest challenges."
|Over a month ago|
Cubic price target lowered to $62 from $82 at Raymond James » 07:4704/1504/15/20
Raymond James analyst…
Raymond James analyst Brian Gesuale lowered the firm's price target on Cubic to $62 from $82 and keeps a Strong Buy rating on the shares. Gesuale tells investors in a research note that he believes an overly pessimistic view of the future of mass transit as budget losses pile up as well as a higher than average company debt load versus the S&P 500 has catalyzed significant year-to-date underperformance versus the broader market. The analyst believes shares provide a safer train to ride with less fundamental COVID exposure than markets reflect at current levels given his view that COVID-19 doesn't mark the extinction of urban mass transit coupled with Cubic's heavy element of quasi-recurring revenue.
Glasshouse Research issues short report on Cubic, sees 54% downside » 10:0404/0204/02/20
In a new short report…
In a new short report published on its website, Glasshouse Research said: "Cubic Corporation's suspect percentage-of-completion accounting infers that CUB has continued to miss milestones regarding their major projects...Contrary to sell-side analysts' initial comments, the COVID-19 Virus and ensuing 'shelter-in-place' laws will materially impact CUB's major projects in New York, Boston, San Francisco, and Chicago. We believe this will exacerbate CUB's already weak balance sheet and push milestone delays into massive losses for the firm... As such, we believe a fair share-price for the firm stands currently at $17.80 which represents a 54% downside to the share-price." Reference Link
Cubic enters partnership agreement with UAH for prototype ventilator » 07:2103/3103/31/20
Cubic announced that it…
Cubic announced that it has entered a partnership agreement with the University of Alabama in Huntsville, or UAH, College of Nursing to use the Learning and Technology Resource Center's, or LTRC, human patient simulator iStan to test an emergency ventilator device the company is developing in anticipation of ventilator shortages arising from the COVID-19 pandemic. Cubic's Huntsville operations is the main development and manufacturing facility for its Cubic Mission Solutions business division's GATR satellite communication and networking systems. In collaboration with the staff at the College of Nursing's LTRC, the GATR team used the iStan high-fidelity simulator and reference ventilators to rapidly develop and test the emergency ventilator. The project, called VentiGATR, has now completed initial tests at the UAH College of Nursing and is in collaboration with Huntsville Veterinary Specialists and Emergency for live animal testing. The GATR inflatable satellite antenna is a lightweight, versatile satellite terminal extensively used across the Department of Defense to quickly establish communications for multi-domain operations for any mission, anywhere. The GATR team has repurposed off-the-shelf inflation components of the ISA to develop the compact VentiGATR prototype that is being used for testing.
Wolfe Research to hold a forum » 04:5503/1103/11/20
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FinTech Forum 2020 to be…
FinTech Forum 2020 to be held in New York on March 9-11.
JPMorgan upgrades 'relative safe haven' Cubic to Overweight » 08:4903/1003/10/20
JPMorgan analyst Mark…
JPMorgan analyst Mark Strouse upgraded Cubic to Overweight from Neutral with an unchanged price target of $67. The stock has declined 24% year-to-date and is now trading at a 28% discount to the 2020 year-end price target, Strouse tells investors in a research note. The analyst believes the pullback is overdone and that the company's $3.8B backlog and relative lack of exposure to China positions Cubic as a "relative safe haven during the current market volatility."