From the Wires
Zacks Bull and Bear of the Day Highlights: PerkinElmer, NYSE Euronext, Ford Motor, General Motors and PSA Peugeot Citroen
By: PR Newswire
Nov. 9, 2012 09:30 AM
CHICAGO, Nov. 9, 2012 /PRNewswire/ -- Zacks Equity Research highlights PerkinElmer, Inc. (NYSE:PKI) as the Bull of the Day and NYSE Euronext, Inc. (NYSE:NYX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford Motor Co. (NYSE:F), General Motors Company (NYSE:GM) and PSA Peugeot Citroen (OTC:PEUGY).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
We upgrade our recommendation on PerkinElmer, Inc. (NYSE:PKI) to Outperform based on its third quarter results. Earnings per share of $0.45 surpassed the Zacks Consensus Estimate by a penny. PerkinElmer is a leader in several life science segments.
It has added new related areas as part of its reorganization and divested unrelated businesses. As a consequence, it has emerged as a higher-growth, higher-margin company. Its operations, both sales and manufacturing, are diversified on a geographic basis. The company has implemented cost containment measures. Growing recurring revenue stream and operating margin expansion are its pillars of strength.
In the end, our Outperform recommendation is supported from a valuation perspective and a favorable risk-reward tradeoff. Based on the company's recent performance, we upgrade our price target to $38.00, which is based on a P/E of approximately 18.4x our 2012 EPS estimate.
NYSE Euronext, Inc.'s (NYSE:NYX) third quarter earnings breezed past the Zacks Consensus Estimate but plunged year over year based on weak volumes and pricing across trading venues, which led to a reduced top line and lower operating margin. A low cash position and high debt raised the concerns of rating agencies.
NYSE has a bigger debt burden compared to its prime peers, which poses a competitive threat to the fundamental growth of the company. Higher debt and lower working capital in the first half of 2012 also impelled ratings agency S&P to downgrade its outlook to negative from stable, in August 2012.
Our six-month target price of $22.00 equates to about 11.7x our earnings estimate for 2012. With an annual dividend of $1.20, this price target implies a negative total return of 6.9% over that period. This is consistent with our long-term Underperform recommendation on the shares.
Latest Posts on the Zacks Analyst Blog:
Ford Considers Downsizing in Europe
Ford Motor Co. (NYSE:F) revealed that it would opt for production capacity cuts in Europe on top of its recent downsizing in the continent if the market conditions deteriorate further. At the end of last month, the automaker announced that it would trim production capacity in the continent by 18% or 355,000 vehicles.
Ford plans to restore profitability in its European operations by mid-decade and aims to achieve a long-term operating margin between 6% and 8%. The company continues to anticipate 2012 market share in Europe to be lower than 8.3% in 2011.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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SOURCE Zacks Investment Research, Inc.
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