Stock Picks: Chevron, NYSE Euronext, J. Crew, Analogic

Wall Street analyst opinions on stocks making headlines in Wednesday's market

Chevron Corp.: Bank of America Merrill Lynch analyst Doug Leggate lowered his rating on shares of Chevron Corp. (CVX) to neutral from buy on Mar. 10.

In a note, Leggate said that in the near term, production for the second-largest U.S. energy company looks "flat"; the improving margin trend vs. the company's peers is "largely done", while "elevated" capital spending over the next few years would "challenge" relative returns.

"Oil leverage differentiates CVX," the analyst wrote, "but only the conviction that prices move higher drives upside vs. peers and is reflected in [the stock's] relative performance within the [oil majors] group".

Regarding Chevron's refining and marketing business, Leggate said reducing refining exposure "is likely welcomed ... [c]urrent downstream weakness is probably priced in [to the stock] while any reward for paring exposure at the low of the cycle may be limited".

The analyst forecast EPS of $8.84 for 2010, $9.13 for 2011, and $8.69 for 2012.

"Absolute value and an attractive dividend position CVX as a staple in energy portfolios for those with a long-term view," Leggate said. "[N]ear term, we believe the value proposition has shifted to Exxon Mobil Corp. (XOM)," which he rates buy.

Leggate lowered his price target on Chevron shares to $90 from $95.

NYSE Euronext: Raymond James analyst Patrick O'Shaughnessy maintained his outperform rating on shares of NYSE Euronext (NYX) on Mar. 10.

In a note, O'Shaughnessy said he was raising earnings per share (EPS) estimates on the owner of the world’s largest stock exchange to reflect stronger-than-expected derivatives trading in Europe. His new 2010 and 2011 EPS estimates are $2.34 and $2.67, up from $2.24 and $2.57, respectively.

Based on quarter-to-date trends, the analyst said he was also raising his expectations on U.S. equities volumes, but lowering his forecast for European equities volumes.

As for the company's Mar. 10 announcement that it completed the sale of a minority stake in its U.S. futures exchange, NYSE Liffe, to six banks and brokers including Citadel Investment Group LLC and Goldman Sachs Group Inc. (GS), the analyst said that "[w]hile we continue to be skeptical that NYSE Liffe U.S. will be able to compete effectively with CME Group [CME], we acknowledge the downside of the venture is relatively limited."

"With a combination of top-line revenue growth opportunities and continued cost-cutting, NYSE Euronext has the opportunity for strong earnings growth in 2010 and 2011 and is currently our top exchange investment recommendation," O'Shaughnessy said.

The analyst has a $33 price target on the shares.

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