morning, here’s your daily equity research round up from the Street:
- AT&T (T): Baird met with company executives and remains bullish that AT&T will be able to close the T-Mobile merger. AT&T also said they were hopeful a new operating system, outside of Apple’s iOS and Google’s Android, would emerge.
- BB&T (BBT): The bank recently took over about $2.1 billion in performing loans from Bank Atlantic, which will help it increase market share in the Florida market. The acquisition did not carry credit-risk, so it should be accretive to earnings in 2012.
BMO Capital Markets:
- Colgate Palmolive (CL): BMO believes Colgate’s tight control of costs, even in the face of rising commodity prices and other inputs, will help maintain earnings in 2012. Margins will be hit by competitive pressures to the tune of 150-170 basis points, though management may be able to offset some of that.
- MetroPCS Communications (PCS): Higher churn is exacerbating MetroPCS’s abilities to compete with bigger carriers. The company has had to increase spend to grow its subscriber base, putting heavy pressure on margins and earnings.
- Pandora (P): Initiating the company with a buy rating and $20 price target. BMO analyst Edward Williams thinks the company can grow market share and is forecasting EPS of $0.02 and $0.12 in 2013 and 2014, respectively.
- Archer-Daniels-Midlands (ADM): Analysts are decreasing next year’s EPS to $3.14 from $3.31 as margin weakness hurts the agriculture services and commodity trading firm.
- CME Group (CME): Jefferies is lowering its price target from $315 to $297 as the company’s third quarter beat came mostly on expense savings, some of which will reverse next quarter. Soft volumes in October, which will remain depressed in the short-term following MF Global’s bankruptcy, could hurt the exchange.
- Simon Property Group (SPG): The company is aggressively growing in Asia, with development expectations of $500 million and $1 billion in 2011 and 2012, respectively. Analysts are raising the stock price target to $140 from $125 and see upside from continued luxury out performance, which will bode well for the mall operator.
- HCA Inc. (HCA): HCA’s recent bout of share repurchases, better than expected earnings and acquisitions has Oppenheimer analyst Michael Wiederhorn increasing 2012 EPS guidance to $3.55 from $2.89.
- OpenTable (OPEN): Oppenheimer believes that the company can grow, even with 42% and 7% share of the U.S. and International market place. However, recent pull backs as consumers eat at home will dent short-term growth. Analyst Jason Helfstein is lowering his price target from $93 to $54.