Equity Brief: Ratings Changes for November 28th: REN, RH, RMTI, SCHN, SDRL, SHW, SN, SPPI
A number of stocks were upgraded and downgraded by equities research analysts today, as reported by Analyst Ratings Network (http://bit.ly/equitybriefdaily) and Equity Brief:
BMO Capital Markets downgraded shares of Resolute Energy Corp (NYSE: REN) from an outperform rating to a market perform rating.
Robert W. Baird initiated coverage on shares of Restoration Hardware Holdings Inc (NYSE: RH). They issued an outperform rating on the stock and set a $43.00 price target.
Stifel Nicolaus initiated coverage on shares of Restoration Hardware Holdings Inc (NYSE: RH). They issued a hold rating on the stock.
Piper Jaffray initiated coverage on shares of Restoration Hardware Holdings Inc (NYSE: RH). They issued an overweight rating on the stock and set a $42.00 price target.
Goldman Sachs initiated coverage on shares of Restoration Hardware Holdings Inc (NYSE: RH). They issued a neutral rating on the stock and set a $34.00 price target.
Bank of America initiated coverage on shares of Restoration Hardware Holdings Inc (NYSE: RH). They issued a neutral rating on the stock and set a $39.00 price target. They wrote, "We forecast a 20% long-term EPS growth rate, which is ahead of peers and should support a high multiple for the stock. We expect sales growth to be driven by outsized store comps from the rollout of new categories. RH's unique real estate strategy will drive sales productivity over the long term while its direct business benefits from effective catalog distribution, in our view. The stock's valuation reflects strong growth at 28x our F2013 EPS est. of $1.35 versus the peer group at 19x."
Dawson James initiated coverage on shares of Rockwell Medical Tec (NASDAQ: RMTI). They issued an outperform rating on the stock and set a $12.00 price target. They wrote, "We arrive at our target valuation via a combination of methodologies, including DCF and our standardized CAGR valuation approach. Our confidence in RMTI shares achieving our target valuation is derived from the company's demonstrated successful execution of its base business strategy, which targets the nearly 400,000 ESRD patients in the US and approximately 2MM worldwide that require hemodialysis."
Bank of America upgraded shares of Schnitzer Steel (NASDAQ: SCHN) from an underperform rating to a neutral rating. They wrote, "We upgrading SCHN to Neutral after Tuesday's FQ1E (Nov end) guidance was worse than expected, as we now see more limited downside to the thesis. Positives we note include: 1) incrementally better global sentiment; 2) a breaking point for FCF driving more cost cutting; 3) lower cost scrap procurement as NUE ramps up its DRI scrap substitute. Disappointing FQ1 results are likely a trough as mkt uncertainty has hurt demand, but SCHN has seen conditions recover."
Deutsche Bank downgraded shares of Seadrill Ltd (NASDAQ: SDRL) from a buy rating to a hold rating. Their analysts now have a $37.00 price target on the stock, down previously from $41.00.
Nomura downgraded shares of Sherwin Williams (SHW) from a buy rating to a neutral rating. Their analysts now have a $170.00 price target on the stock.
Sanford C. Bernstein reiterated its market perform rating on shares of Smith & Nephew (SN). They have a $11.06 price target on the stock.
Dawson James initiated coverage on shares of Spectrum Pharma (SPPI). They issued an outperform rating on the stock and set a $15.00 price target. They wrote, "Spectrum is a mid-cap, oncology/hematologyfocused biotechnology company with a rich portfolio of marketed and development stage drugs. . Spectrum stock is currently trading at $11-12 range, and has dropped >37% from its 52- week high of $17.48. From a valuation standpoint, the shares trade at 2.1 times FY12 and 1.6 times FY13 revenues, and <6 and <4 times our FY12 and FY13 EPS estimates, levels more commonly associated with shares of manufacturers of generic drugs. We consider the recent weakness in stock an excellent buying opportunity for investors."
Dawson James initiated coverage on shares of Sarepta Therapeutic (SRPT). They issued an outperform rating on the stock.
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