Markets & Finance

S&P Picks and Pans: Amazon.com, Exxon Mobil, P&G, Sunpower, Juniper Networks


Analysts' opinions on stocks in the news Friday

From Standard & Poor's Equity ResearchS&P MAINTAINS BUY RECOMMENDATION ON SHARES OF AMAZON.COM (AMZN; 50.00):

Fourth quarter EPS of $0.52, vs. $0.48, is $0.08 higher than our view. Even more impressive, in our view, is the 18% rise in sales despite headwinds including forex translation and an unprecedented slowdown in retail spending, where online sales declined 3% over holiday season. While gross margins were pressured modestly, AMZN's perpetual focus on providing value to consumers through price and selection should lead to continued marketshare gains. We are raising our 2009 EPS estimate to $1.56 from $1.48, and setting 2010's at $1.88. We are also lifting our DCF-based target price to $68 from $59. -M. Souers

S&P REITERATES STRONG BUY RECOMMENDATION ON SHARES OF EXXONMOBIL (XOM; 78.56):

Our preliminary calculation indicates that XOM posted fourth quarter operating EPS of $1.55, vs. $2.06, reflecting lower crude oil prices, higher operating expenses, lower chemical volumes, and the impact of Gulf of Mexico hurricanes. Results were in line with our estimate. Oil & gas production declined 3.3%, in line with our expectations, reflecting lower entitlement volumes, OPEC quota effects, divestments and field declines. Refining & marketing earnings rose 6.5% on higher international results. We will update after morning conference call. -T. Vital

S&P MAINTAINS STRONG BUY OPINION ON SHARES OF PROCTER & GAMBLE (PG; 56.56):

PG says its total global market share is basically holding, however, it is seeing consumers trading down from its premium brands to its value brands and is experiencing retailer and consumer de-stocking, a 5% negative forex impact, and still-high commodity costs. Also, restructuring costs following the Folgers sale are running higher than expected. As a result, December-quarter EPS of $0.94 was $0.01 less than our forecast, and we are reducing our full fiscal year 2009 (June) EPS estimate by $0.08 to $3.65; we are setting FY 2010's at $3.97. We are trimming our 12-month target price by $5 to $71. -L. Braverman-CFA

S&P KEEPS HOLD OPINION ON SHARES OF SUNPOWER CORP (SPWRA; 32.01):

Fourth quarter operating EPS of $0.49, vs. $0.22, is $0.11 above our estimate. Sales rose 79% on strong global demand. Gross margin was above our model, widening on internal sourcing, healthy selling prices and cost cuts. Operating margin also rose. With guidance a bit below our view, we trim our non-GAAP 2009 EPS estimate by $0.35 to $1.64. We also lower our 12-month target price by $6 to $44. Although we see the solar industry facing demand and oversupply hurdles, we keep our hold opinion on these volatile shares due to our favorable view of SPWR's differentiated products and business model. /C.Montevirgen

S&P REITERATES SELL OPINION ON SHARES OF JUNIPER NETWORKS (JNPR; 16.97):

JNPR reports fourth quarter EPS of $0.29, vs. $0.24, above our $0.24 estimate, aided by cost management and reduced share count. Sales, however, declined 3% from third quarter, at the low end of guidance, on weak telecom spend. We believe fundamentals are worsening, as evidenced by first quarter guidance for a roughly 12% sequential sales decline. Despite the sharp drop in demand, the company aims to increase R&D investment by 15% annually, which should materially pressure operating margin. We are lowering our 2009 EPS estimate by $0.35 to $0.80, and our 12-month target price by $3 to $12, 15 times our 2009 EPS projection. -A. Bensinger


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus