Photo: Steve Kovach, Business Insider
Good morning, here’s your morning equity research from the Street:Bank of America Merrill Lynch:
- Occidental Petroleum (OXY): Reiterating a buy and increasing price target from $138 to $150. The firm is expecting to hit near-record production levels in the contiguous U.S. and by the year’s end, rig count will likely double.
- Marriott International (MAR): BAML is lowering EPS estimates for 2012 and 2013 to $1.60/$2.01 from $1.65/$2.09. Analysts note the coming spinning off Marriott Vacations Worldwide may pressure shares.
- Dow Chemical (DOW): Barclays is lowering price target by a buck to $33 as high commodity prices continue to pressure. Higher margin business lines surprised, but could not fill slow growth in other units.
- Advanced Micro Devices (AMD): The company is aggressively cutting costs to regain server market share. Analyst Patrick Wang thinks this could allow AMD to hit 10-15% share, but at the cost of margins. He maintains $6 price target.
- Lincoln National (LNC): Evercore analyst Mark Finkelstein is increasing the company’s price target from $20 to $24 as the firm posted healthy quarterly results, freed up capital, and sound review by the Indiana Department of Insurance. 2011/12/13 estimates up to $4.20/$3.90/$4.24 from $4.10/$3.87/$4.26.
- Prudential Financial (PRU): Price target up seven dollars to $67 as analysts hope the company to aggressively deploy capital through share buybacks and dividends.
- Barnes & Noble (BNS): Analyst Matthew Fassler remains relatively upbeat on the company’s research and development, tech focus and upcoming Nook launch. But pressure by Kindle Fire entry price will take a bite out of profits. Price target lowered to $15 from $16 and EPS guided to a loss of $0.26 from break even.
- Medtronic (MED): Goldman is lowering estimates for Medtronic by a penny on lower sales of orthobiologics. Next year’s EPS now stands at $3.41. Price target unchanged.
- ANN, Inc. (ANN): The retailer is still facing some drag at core Ann Taylor stores, but will see uplift at Loft and outlets. Analyst Roxanne Meyer see a potentially 40% growth in EPS on growth in those division. Increasing price target to $33 from $31.
- Molson Coors (TAP): Beer growth in the U.S. and U.K. remains weak. At the same time, price input pressures continue to mount and TAP will have to continue spending on IT and marketing. UBS is lowering Coors price target to $46 from $51.