Let’s take a look at analyst morning notes.
- MORGAN STANLEY: Grande growth. We are upgrading based on the company making transitions by 2012 including the resumption of both domestic and international growth, bringing its packaged coffee business in-house and entering the growing $3 billion global single-serve coffee market.
AMERICAN EAGLE (AEO):
- CITI: Retailer has strong outlook. We view any weakness around the quarter as an opportunity and reiterate our buy as the pressure builds to unlock value. Expenses will come into sharper focus. AEO has discussed closing 50 to 100 stores and has earmarked $20 to $30 million in expenses.
DEMAND MEDIA (DMD):
- GOLDMAN SACHS: Neutral. The online media company is currently digesting a 167% step-up in content investment in 2010 which should enable above-industry revenue growth in future years. We forecast Demand reinvesting $60 million into content creation in 2011.
LAS VEGAS SANDS (LVS):
- CREDIT SUISSE: Still safe. We find it very unlikely that LVS is in danger of losing its gaming licence in Nevada. It is our best estimate that a negative decision would lead to a substantial, but not game changing fine.
- CREDIT SUISSE: Expectations for growth. We have great confidence in the contract operators near-term growth prospects such as better than expected wireless, transmission and DTV work as well as the long-term value creation potential associated with increased electric transmission exposure.
PINNACLE ENTERTAINMENT (PNK):
- BARCLAYS: CFO exit will not hurt operations. Pinnacle has made significant progress in extending debt maturities providing the company with a runway to 2014. We are confident CEO Anthony Sanfilippo will choose a new CFO who has both the financial and operational wherewithal to support him and the company in its goals.
- DEUTSCHE BANK: Bullish. Saks core customer is back, spending with strength, and not shying away from even the highest price point products. Saks is the emerging leader within the luxury department store sector, poised to surpass their 8% EBIT margin goal and on a trajectory to match historic industry highs.
HOME INNS & HOTEL MANAGEMENT (HMIN):
- DEUTSCHE BANK: Long-term growth prospects. Near-term pressures are well understood with heavy pre-opening expenses but HMIN should offer encouraging commentary on near-term top line trends. We also believe FY11 consensus expectations are now in a better place. HMIN is less likely to buy Motel 168 in our view.
CADENCE PHARMACEUTICALS (CADX):
- JMP SECURITIES: Strong start raises bar going forward. Cadence is executing above our and Street expectations and therefore the focus can more quickly expand to measures of success beyond formulary approvals, eventually including sales and revenue growth.