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Good morning, here’s your daily helping of equity research from the Street.Citi:
- Heinz (NYSE: HNZ): Heinz announced a significant change in strategy, and will invest $70 million in marketing efforts in both developed and developing countries. The consequence was a miss for FY13 guidance, but this is positive for future growth. Buy rating maintained, price target reduced to $62 on earnings.
- The Dow Chemical Company (NYSE: DOW): Dow will receive $2.2 billion in damages from Kuwait Petrochemical Industries. This is positive, and coupled with a high expected cash flow could have a solid impact on earnings. Outperform rating, and a $40 price target.
- Tiffany (NYSE: TIF): Long term there are opportunities for expansion. Short term momentum is negative, and Q2 and Q3 earnings are expected to contract. Hold rating is maintained, but price target is reduced from $75 to $68.
- Teva (NASDAQ: TEVA): Teva lowered EU guidance by $1 billion and US revenues by $540 million. This is all negative, and raises some questions, but low expected price to earnings and an upcoming pipeline update keep it interesting. Buy rating maintained, price target lowered to $52.