From Standard & Poor's Equity ResearchRBC DOWNGRADES PROLOGIS TO SECTOR PERFORM FROM OUTPERFORM
RBC analyst Dave Rodgers says, while Prologis (PLD) remains a driving force in global industrial development and fund management, he sees little opportunity near term. He says the shares are likely to gap down sharply at the open, but thinks buyers should be cautious as additional challenges lie ahead for this sector overall.
Rodgers notes that beyond slower lease-up and cap rate pressure related to development/contribution business, access to permanent financing could become an increasing problem. He also notes the relatively high level of leverage for PLD and less secure dividend on back of lower gain income could become greater concerns moving forward.
He cuts $4.80 2008 FFO a share estimate to $4.05 and $5.15 for 2009 to $4.22. He slashes $60 price target to $33.
KEYBANC CUTS ESTIMATES FOR CLARCOR
Keybanc analyst Jeffrey Hammond says Clarcor's (CLC) third quarter EPS missed his estimate. He notes CLC cut fiscal year 2008 (November) EPS guidance to $1.88-$1.93; consensus is $1.93.
Hammond believes that the fundamental attractiveness of engine/mobile and process filtration businesses are diluted by troubled slow-growth businesses in HVAC and packaging, which continue to precipitate inconsistent performance from CLC as a whole. He believes investors will revalue CLC, placing the shares at steeper discount to high-quality peers.
He thinks credibility continues to wane regarding the company's restructuring program and thinks it is becoming clear that its fiscal year 2008 goal of $10 million EBIT improvement will not be met. He cuts $1.92 fiscal year 2008 EPS estimate to $1.88, $2.15 fiscal year 2009 to $2.10. He keeps a hold opinion on the stock.
NEEDHAM REITERATES BUY ON WEBMD HEALTH
Needham analyst Mark May says that following recent talks with WebMD (WBMD) management and industry contacts, he's more confident in his third and fourth quarter estimates for WBMD. While other segments of the online display advertising market remain challenged, he thinks online health media segment in general, and WBMD specifically, are weathering the storm.
In the second half of 2008, May expects about 20% year-over-year online ad growth at WBMD. He adds Big Pharma online ad spending has stabilized since the second half of 2007 and remains healthy; Consumer Packaged Group companies are increasingly promoting products with health benefit claims to WBMD's audience; and WBMD is adding to its portfolio via internal R&D and acquisition.
He raises $380.3 million 2008 revenue view to $388 million, $430.1 million 2009 to $459.3 million. He has a $35 price target on the stock.