Good morning. Here’s your daily equity research roundup from the Street.
Caterpillar (CAT): Citi analyst Timothy Thein is lowering his price target on CAT to $90 from $120 over concerns of a broad slowdown in global growth, writing, “As current aggregate capex forecasts for Citi’s global mining stocks show an 11% yr/yr decline in 2013, we trim our estimates for CAT further in that year and in 2014. Adding a further headwind, F/X is now expected to be a bigger headwind in 2012 given continued USD strength during the euro area crisis.”
WellPoint (WLP): Deutsche Bank analysts reiterate their Buy rating on WLP but say expenses related to the acquisition of Amerigroup will lower the addition to EPS that the deal was expected to generate in the first year. They write, “The company clarified that the accretion range of $0.40-$0.50 excludes ~$140 mln in deal-related costs in the first year. When including all merger-related expenses, WLP expects 2013 EPS accretion in the mid-teens, which we interpret to be in a range of $0.13-$0.18.”
Microsoft (MSFT): Morgan Stanley analyst Adam Holt reiterates his Overweight rating on MSFT but is cutting estimates for future sales of PCs, writing, “While FQ4 enterprise sales should be strong, we are cutting FQ4 PC ests. given weak demand. Some pre-Windows release PC weakness is expected and the stock has increasingly decoupled from PCs given its low multiple and myriad catalysts.”
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