Let’s take a look at analysts’ morning notes.
- Apple (AAPL): Reiterate buy and raising our estimates for the first quarter. We expect revenue of $25.5 billion. We expect a gross margin of 37.3% and we give it a $390 price target.
- General Motors (GM): Reiterate buy. We were impressed with GM’s presentation at the Detroit Auto Show. They layed out encouraging marketing programs to enhance brand image and that will draw in younger audiences.
- Key products for General Motors include the new Chevrolet Volt, Chevrolet Sonic and Buick Verano.
- The company’s upcoming 2012-2014 product cycle may yield $3-4 billion in net pricing benefits.
- ITT: Hold. The company split is a smart move by CEO Steve Loranger to unlock the value. There are still a lot more details to come but we are increasing our price target from $55 to $66.
- It’s well-received move could cause other multi-industry companies to consider spin-offs.
- Verizon (VZ): Reiterate buy. We believe Verizon’s wireline assets are improving and will stablilize revenue this year.
- Company management also said it will be expanding its product portfolio with new cloud-based services and making an aggressive effort to reduce costs and capital expenditures that should help with margin and cash flow.
- Tech/Media/Telecom: Neutral. Remain constructive on strength in U.S. ad recovery.
- Disney (DIS) has the best portfolio, Viacom (VIA) is the most attractive and Scripps Network Interactive (SNI) has the strongest organic growth.
- Airfreight & Ground Transaport: Neutral. This sector has solid momentum.
- We raised the target on Union Pacific Corporation (UNP) from $94 to $110. We see potential gains and strong fundamentals for this year.
- Clarcor (CLC): reports better fourth quarter earnings. It beat analyst estimates.
- Boeing (BA): Dissapointing airlines, parts suppliers, passengers with Dreamliner delays.
- Chrysler: Readies for IPO with fewer sales than it had in 2010. It needs to sell about 1.5 million vehicles per year to break even.
- Global sales in 2010 rose about 21% to 1.6 million cars and trucks.
BMO Capital Markets
- Charles Schwab (SCHW): Upgrade to outperform. It reached settlement with the SEC, FINRA and Illinois regulators of $119 million for fee disgorgement, penalties and interest. There are a few claims still left but most are closed.
- Intel (INTC): Market Perform. Tablets will help the company. The chain appears stable.
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