Let’s take a look at analysts’ morning notes.
- CITI: Brazilian acquisition is a good move. Heinz’s 80% stake in Coniexpress S.A. and its Quero brand will be slightly dilutive in 2012 but it adds $325 million in revenue and expands sales in emerging markets to over $2 billion.
ANNTAYLOR STORES (ANN):
- CITI: Solid outlook. Sales have started on a strong note and LOFT continues to address merchandise issues with a more balanced offering at the stores. There’s been some noise around the product offering, particularly at LOFT.
- DEUTSCHE BANK: Buy. Solid Q4 results, food inflation is getting passed through and competitive environment is rational. KR continues to gain share.
- CREDIT SUISSE: Underlying quality is strong. The selling gross margin was flat and somewhat disappointing to us, but better than recent trends. The company’s outlook was also encouraging, as it’s clear management is feeling better about underlying fundamentals.
RITE AID (RAD):
- CREDIT SUISSE: Stock is on an upward trend. Short-term outlook has improved. While its fundamental story is still challenging, the company should benefit from easy sales comparisons, a slowly improving consumer, and the 2012 generic drug wave which we believe could add $100 million to earnings.
BUFFALO WILD WINGS (BWLD):
- DEUTSCHE BANK: NFL lockout could add risk. The NFL season is very important for BWLD. Lost season would have a material impact on profits, we would not impact on the long-term DCF value of the company. Maintain buy.
- BARCLAYS: NFL lockout is now less likely which is positive for the stock. Loss of full NFL season would impact valuation by $2.40/share.
AGILENT TECHNOLOGIES (A):
- BARCLAYS: Well-oiled machine. The manufacturer of measuring instruments has a new, updated operating model that will help earnings. Product and geographic mix is driving strength across segments.
MARVELL TECHNOLOGY (MRVL):
- MORGAN STANLEY: Things will improve in the long term. It came in on the low end of earnings expectations. Mobile & Wireless declined 13% due mostly to seasonality. The arrangement with Research in Motion also hurt M&W but the headwind from this will be over in one quarter.
ANDY’S PHARMACEUTICALS (ANDS):
- COWEN: Expect growth. The manufacturer of generic drugs in the Chinese pharmaceutical market should grow by about 20-25%through 2015. Its key brands and generics should provide solid 15% revenue growth led by its two key franchise brands Edaravone and Endu. However healthcare reform could impact sales growth.