Let’s take a quick look at analysts’ morning research notes.
- Ford: Buy. Our study of the past 11 years shows that Ford shares tend to make big Auto-show moves and February straddles profit on average. We expect the auto show to be more volatile than normal.
- JPMorgan and Wells Fargo: Buy. In October we became more positive on banks given low economic expectations. While valuations are less compelling with the 18% move in the KBW Bank Index since October we still see upside from current levels and expect banks stocks to outperform the broader market in the first half of this year.
- Alcoa: Downgrading to hold from buy. It is scheduled to release earnings after close on Jan.10. We are lowering our fourth quarter estimate to $0.17 from $0.19 due to the negative cost impact of a weaker dollar and an increase in certain input costs.
- eHealth: It is scheduled to miss consensus estimates in the fourth quarter and the company will also offer 2011 earnings guidance meaningfully below the market’s expectations. We are lowering our 2010 EPS estimate by $0.03 to $0.52 and reducing our 2011 estimate by $0.05.
- HiSoft Technology: Maintaining neutral rating. Raising estimates following two quarters of outperformance versus expectations. The price target was raised from $21 to $31. We continue to see upside potential to consensus estimates given HSFT’s strong revenue momentum.
- Boyd Gaming: Upgrading to overweight as we believe the Las Vegas Locals market is poised for recovery in 2011 and Borgata is holding up better than expected. Growth in the convention segment will improve this year in both Las Vegas and Atlantic City.