Good morning. Here’s your daily equity research roundup from the Street.
- Hospital Stocks (UHS, HCA, CYH, THC): Citi analyst Gary Taylor says he is “upgrading the hospital stocks into the Supreme Court’s ruling,” but doesn’t provide more detail on specific stocks. He notes that the most likely outcome of the Supreme Court’s ruling on upholding the individual mandate is that the Court finds the mandate “unconstitutional but severable,” which would be “slightly better than neutral to 2014-15 earnings power & the stocks might trade 5-10% higher on decision day as perceived uncertainty declines.” On individual names, Taylor says that UHS and HCA are still his favourite picks but for a high-beta play, look at CYH and THC.
- NVIDIA (NVDA): Analyst Uche Orji is upgrading NVDA to Buy from Neutral, maintaining a $15.50 price target on the stock. He cites the four following reasons: “1) attractive risk-reward with the recent share pullback, 2) emerging lead role for the Windows-on-ARM camp, 3) Kepler GPU product cycle coupled with likely resilient attach rates, 4) Professional Solutions Business continues to drive operating profit.”
- McDonald’s (MCD): Analyst Kieth Siegner is maintaining his Buy rating on MCD but is lowering his target price for the stock to $104 from $111 due to risks from fundamental and foreign exchange factors. Siegner says that “going forward, MCD presents a very compelling ‘better than bond’ alternative: a global market share gainer, generating high-single digit EPS growth and backed by 3.2% (soon higher) dividend yield.”
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