FBR Capital

FBR Analyst: Annaly Capital Still an “Outperform,” but Wary of Possible Dividend Cut (NLY)

Filed in dividend, earnings, FBR Capital, Gold Investing, o, outperform, shares, target by on February 11, 2011 0 Comments

Analysts at FBR Capital on Friday passed along some interesting opinions regarding real estate-related investment manager Annaly Capital Management, Inc. ( NLY ) on Friday. Although the firm maintained its “Outperform” rating and $20 price target on NLY, it noted a dividend cut could be in the works for the company. An FBR analyst commented, “We reiterate our rating and price target on NLY shares despite last week’s weaker-than-expected 4Q10 earnings results. While the results give us pause as to the viability of the current dividend, we believe that shares remain attractive from a long-term, risk-adjusted total return perspective. With a historically steep yield curve, the FOMC estimated to be on hold for at least another year, and declining prepayment speeds, we continue to believe that the operating environment is set up for NLY to deliver mid-to-high teen ROEs, and likewise dividend yields, for the foreseeable future.” Annaly Capital shares were mostly flat in premarket trading Friday. The Bottom Line Shares of Annaly Capital ( NLY ) have a 14.29% dividend yield, based on last night’s closing stock price of $17.92. The stock has technical support in the $15-$17 price area. If the shares can firm up, we see overhead resistance around the $20 price level. Annaly Capital Management, Inc. ( NLY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Continue Reading »

Colonial Properties Trust (NYSE:CLP) Up On Stronger Multifamily Same Property NOI

Filed in Colonial Properties, FBR Capital, Gold Bullion prices, o, silver by on January 28, 2011 0 Comments

Colonial Properties Trust (NYSE:CLP) was able to beat estimate in the fourth quarter, getting the win on stronger multifamily same property NOI. FBR says, “CLP’s reported 4Q10 results beat both ours and consensus estimates for the quarter. Excluding a $0.01 per share charge related to the repurchase of $50 million 7.25% redeemable preferred units, the beat was driven by stronger multifamily same

Continue Reading »

Peabody Energy’s Estimates Upped at FBR Capital (BTU)

Coal producer Peabody Energy Corporation ( BTU ) on Wednesday saw its earnings estimates boosted by analysts at FBR Capital Markets. The firm also maintained its “Outperform” rating and $77 price target on BTU, which implies a 27% upside to the stock’s Tuesday closing price of $60.50. An FBR analyst commented, “We are modestly tweaking our 2011 EPS/EBITDA estimates to $4.83/$2,466M from $4.79/$2,518M, reflecting higher than earlier estimated sales volume (approximately 6 MTs), lower western U.S. realizations (approximately $1.3/ton), and lower tax rate expectations (25% versus 27%). We are also introducing our quarterly earnings estimates for 2011, with a 1Q11 EPS/EBITDA forecast of $0.61/$394M, which is toward the higher end of company-provided guidance. Furthermore, we are raising our 2012 EPS/EBITDA estimates slightly to $5.26/$2,735M from $5.14/$2,723M.” Peabody Energy shares rose 50 cents, or +0.8%, in premarket trading Wednesday. The Bottom Line Shares of Peabody Energy ( BTU ) have a .56% dividend yield, based on last night’s closing stock price of $60.50. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$65 price levels. Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed

Continue Reading »

FBR Capital Reiterates “Outperform” Rating on Peabody Energy (BTU)

Coal producer Peabody Energy Corporation ( BTU ) on Monday saw its “Outperform” rating reiterated by analysts at FBR Capital Markets. The firm also backed its $77 price target on BTU, which implies a 32% upside to the stock’s Friday closing price of $58.17. An FBR analyst commented, “The [coal] sector has declined off the top and is poised to react less to negative news and, hopefully, more favorably to positive news. BTU has lagged its U.S. and Australian peers by about 10%–15% for the one-, three-, and six-month periods, in part from 4Q10′s and 1Q11′s Australian flood impact and acquisition worries. We believe shares already discount the news and are now a bargain in front of several expected catalysts: (1) Australian production recovery, (2) West Coast port announcement, (3) formal sanctioning of Australia Millennium mine, (4) trading group upside with rising price volatility ($5/share value), (5) Mongolia optionality, (6) China project values becoming better understood, (7) acquisition risk overstated, with an outstanding track record.” Continuing, “While 2011 estimates may initially be reset due to 1Q11′s Australian supply issues, we believe estimates will be walked up over the rest of the year from rising prices, faster supply recovery, trading activity, and use of free cash flow.” Peabody Energy shares fell 25 cents, or -0.4%, in premarket trading Monday. The company is slated to reported its fourth quarter earnings results on Tuesday. The Bottom Line Shares of Peabody Energy ( BTU ) have a .58% dividend yield, based on last night’s closing stock price of $58.17. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$65 price levels. Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Continue Reading »

FBR Capital Boosts Target, Estimates for Goldman Sachs (GS)

Financial services giant Goldman Sachs Group, Inc. ( GS ) on Thursday saw its price target and earnings estimate raised by analysts at FBR Capital Markets. FBR Capital maintained its “Outperform” rating on GS while lifting its price target from $180 to $190. That new target implies a 14% upside to the stock’s Wednesday closing price of $166.49. An FBR analyst commented, “We are maintaining our rating on GS and revising our 2011 EPS estimate from $17.55 to $18 and our price target modestly higher to $190. While the quarter didn’t leave much to get excited about, we are encouraged that Goldman Sachs eked out a respectable 13% ROE in a period where client activity levels were depressed, where investment banking revenue hasn’t fully rebounded, and capital management was practically non-existent. To the extent that any or all of these issues improve through 2011, we believe Goldman is set to post ROEs that are more reflective of our $190 price target.” Goldman Sachs shares were mostly flat in premarket trading Thursday. The Bottom Line We have been recommending shares of Goldman Sachs ( GS ) since Dec.22, when the stock was trading at $168.23. The company has a .84% dividend yield, based on last night’s closing stock price of $166.49. Goldman Sachs Group, Inc. ( GS ) is

Continue Reading »

RadioShack Downgraded to “Market Perform” at FBR Capital (RSH)

Electronics retailer RadioShack Corporation ( RSH ) on Monday caught a downgrade from analysts at FBR Capital Markets on multiple retail concerns. The firm said it downgraded RSH from “Outperform” to “Market Perform” with a $20 price target. That target implies a 9% upside from the stock’s Friday closing price of $18.36. An FBR analyst commented, “We downgrade RadioShack for the time being. Sales of gadgets, such as navigation, digital imaging, and portable audio, have been soft for others in the sector this holiday season, as smartphones and tablets have cannibalized these types of products. The personal electronics and modern home categories represent collectively 20% of RSH sales, and our Black Friday checks at the start of the holidays suggested that RSH holidays (beyond wireless) probably started off soft. The expected loss of the wireless kiosk agreement with Sam’s (announced after the close Friday 1/7/11) will hurt earnings by more than we would have expected. Finally, we require visibility into when RSH will have an agreement with Verizon (NYSE: VZ) as a fourth postpay carrier.” RadioShack shares fell 29 cents, or -1.6%, in premarket trading Monday. The Bottom Line Shares of Radio Shack ( RSH ) have a 1.36% dividend yield, based on Friday’s closing stock price of $18.36. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $20 price levels. RadioShack Corporation ( RSH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Continue Reading »

FBR Capital Gets Bearish on Fixed Income, Downgrades Franklin Resources and Legg Mason (BEN, LM)

Fixed-income concentrated asset managers Franklin Resources, Inc. ( BEN ) and Legg Mason, Inc. ( LM ) both caught downgrades from analysts at FBR Capital Markets on Wednesday. The firm downgraded BEN from “Outperform” to “Market Perform” while cutting its rating on LM from “Market Perform” to “Underperform,” citing a trend of investors straying from fixed-income funds. An FBR analyst commented, “Consistent with our expectation of an investor rotation out of fixed-income mutual funds, we are lowering our ratings on the more fixed-income-concentrated managers under coverage, Legg Mason (NYSE: LM) and BEN. Note, fixed-income products comprise 55% and 39% of LM and BEN assets under management (AUM), respectively, versus the peer group average of 28%.” Franklin Resources shares fell 75 cents, or -0.7%, in premarket trading Wednesday, while Legg Mason shares were off 46 cents, or -1.3%. The Bottom Line Shares of Franklin Resources ( BEN ) have a .89% dividend yield, based on last night’s closing stock price of $112.15. Shares of Legg Mason ( LM ) have a .66% dividend yield, based on last night’s closing stock price of $36.24. Franklin Resources, Inc. ( BEN ) and Legg Mason, Inc. ( LM ) are both rated “Neutral,” holding Dividend.com DARS™ Ratings of 3.4 and 3.2 out of 5 stars, respectively. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Continue Reading »

Discover Financial’s Target Boosted at FBR Capital (DFS)

Filed in dividend, FBR Capital, Gold Investment, o, shares, target by on December 31, 2010 0 Comments

Credit card issuer Discover Financial Services ( DFS ) on Friday saw its price target raised by analysts at FBR Capital Markets. The firm said it now expects DFS shares to reach $22, which implies a 21% upside to the stock’s Thursday closing price of $18.17. FBR Capital noted the company is focused on boosting its receivables, and could soon raise its quarterly dividend payout. Discover Financial shares rose 8 cents, or +0.4%, in premarket trading Friday. The Bottom Line Shares of Discover Financial ( DFS ) have a .44% dividend yield, based on last night’s closing stock price of $18.17. The stock has technical support in the $16-$17 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels. Discover Financial Services ( DFS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Continue Reading »

2011 Stock Market Predictions

2011 Stock Market Predictions

I have no idea what will happen in 2011. None whatsoever… But who would? Main Street has just about given up on Wall Street, withdrawing some $77 billion from mutual funds. We’ve watched as Bernanke lied to us about dollar monetization and inflationary threats… We witnessed the Fed pump billions into the pipelines, the fight over health care, Greece’s implosion, imbecilic actions in D.C., stupidity on trading room floors, unrest in Europe, dollar devaluations… and so much more. And someone is supposed to know what’s coming next? As we say goodbye to 2010, here’s what the smart money seems to be betting on: Commodities will continue to explode. Gold will rally to $1,500. Silver will break $30… again. Copper will nail new highs. And oil could easily run amok above $100 a barrel again. Coal will spike higher. FBR Capital just upped 2011-2012 coal prices by about 9.5% and 5.8%. “Part of our steam-coal price forecast is tied to higher exports and raising our natural-gas price forecast to $5.50 per thousand cubic feet (Mcf),” they said. And there’s news of power plant coal shortages in China, which supports higher demand. Buy if you haven’t yet. Rare earth stocks will skyrocket on supply-demand issues. China is increasing tariffs, and there’s no end to low export quotas out of China… Molycorp (MCP), Rare Earth Elements (REE), the Rare Earth ETF (REMX), and our $1.50 Greenland stock will pick up momentum. Buy rare earths now. Housing will not recover— not until 2014 at the earliest. And banks will suffer. Mortgage troubles are rising as prices continue to fall in vulnerable markets; there aren’t enough buyers to pick up the overhang, declines, or coming foreclosures. Even RealtyTrac doesn’t see a recovery until 2014. And don’t forget that mortgage rates will rise again in 2011, dampening any demand and cutting back on affordability. The agflation threat will continue to increase …

Continue Reading »

CONSOL Energy Upgraded to “Outperform” at FBR Capital (CNX)

Filed in dividend, EPS, FBR Capital, Gold Investment, o, outperform, shares, target, upgrade by on December 20, 2010 0 Comments

Coal and natural gas producer CONSOL Energy Inc. ( CNX ) on Monday caught an upgrade from analysts at FBR Capital Markets. The firm said it upgraded CNX from “Market Perform” to “Outperform” with a $61 price target, while implies a healthy 42% upside to the stock’s Friday closing price of $42.91. An FBR analyst commented, “After sitting on the sideline for the past few months, we have upgraded CONSOL Energy to Outperform based on several key tenets: (1) raising 2H11+ natural gas forecast to $5.50/Mcf, (2) steam coal assets to capitalize on exports, (3) gas productivity to continue to improve, (4) asset sales and FCF (lower gas capex) to significantly improve the balance sheet by year-end 2011, and (5) rising 10-year interest rates to limit near-term legacy liability drag and to turn into tailwinds in 2012. This morning, we also raised our 2011 and 2012 EPS and EBITDA estimates by 15% and introduced a 2013 forecast that is about 16% higher than 2012 estimates.” CONSOL Energy shares rose 89 cents, or +2.1%, in premarket trading Monday. The Bottom Line Shares of Consol Energy ( CNX ) have a .93% dividend yield, based on last night’s closing stock price of $42.91. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance around the $46-$47 price levels. CONSOL Energy Inc. ( CNX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as

Continue Reading »

Why FBR Likes Equity LifeStyle Properties (NYSE:ELS)

Filed in FBR Capital, Gold Prices, o by on December 17, 2010 0 Comments

With snowbirds set to travel south for the winter, Equity LifeStyle Properties (NYSE:ELS) should get a nice boost from the additional business.FBR said, “As 2010 draws to a close, we are reminded that one of Equity Lifestyle Properties’ core demographics is preparing to migrate to warmer climates (the November–April “season”). Despite notable YTD underperformance by the stock, several reasons

Continue Reading »

Raymond James Financial (NYSE:RJF), Morgan Stanley (NYSE:MS) FBR’s Leading Retail Broker Picks

Filed in FBR Capital, Gold Bullion prices, morgan-stanley, o, Raymond James by on December 13, 2010 0 Comments

With capital markets expected to improve in 2011, pure investment banks may be eyed more by investors, but FBR believes the ongoing environment still works in the favor of retail brokers, and their favorite picks in the sector are Raymond James Financial (NYSE:RJF) and Morgan Stanley (NYSE:MS). FBR said, “With an improving economic environment, lower equity and fixed-income market volatility,

Continue Reading »