Good morning, here’s your daily research takeout from the Street:
- Pioneer Natural Resources (PXD): Analyst John Gerdes is lowering target price to $119, from $123, on over-allotment from the company’s stock offering. Proceeds from the offering will go to adding a second horizontal Wolfcamp rig early next year, with an increase in activity to seven rigs by the end of 2012.
- Finish Line (FINL): Lightweight running sales are showing strong growth and Finish Line looks to benefit. Basketball sales have yet to see a substantive impact from the NBA lockout, nor is repositioning by Nike. Canaccord reiterates its $24 price target.
- MFA Financial (MFA): Deutsche Bank analyst Stephen Laws is lowering his target price from $9 to $8, but maintains his buy rating. As prepayments slow, the REIT should be better positioned. Prepayments eliminate future coupon payments and possible earnings.
- Dish Network (DISH): Goldman analyst Jason Armstrong is raising Dish price target a dollar to $22. Higher revenue from Blockbuster, offset by increasing costs, disappointed Armstrong.
- Rackspace (RAX): Quarterly results came in above expectations, with adjusted EBITDA of $88 million. Slower employee hiring helped increase margins as selling, general and administrative expenses were lower than anticipated. Analyst Scott Goldman reiterates his $54 price target and neutral rating.
- Expedia Inc. (EXPE): Morgan is downgrading the online travel site to a sell from neutral position. A slowing air segment, combined with greater hotel competition, may hurt Expedia.
- Ford (F): Weak fourth quarter outlook has tempered expectations for the auto manufacturer. Analyst Adam Jonas is trimming his estimates for the year, while maintaining an $18 price target. The company is expected to pay no more than $1.2 billion in dividends in 2012.
- Best Buy (BBY): The company’s decision to buy out Carphone Warehouse from its mobile phone operation could bolster Best Buy if sales in wireless continue to grow. Price target up to $28 from $26, while FY2012 EPS is five cents higher to $3.50.
- Urban Outfitters (URBN): New leadership at Anthropologie and Urban will help the company right assortment, but it will take some time for them to touch the full product line. UBS analyst Roxanne Meyer is lowering her third quarter estimate by a penny, to $0.31.