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Boeing’s Price Target Boosted at Bank of America/Merrill Lynch (BA)

Aircraft maker The Boeing Company ( BA ) on Thursday saw its price target lifted by analysts at Bank of America/Merrill Lynch. The analyst raised its price target for BA to $77 from $65, noting that the stock normally outperforms as we head into the summer Air Shows season. Bank of America/Merrill Lynch maintained its “Buy” rating on the stock. Boeing shares, which had closed at $70.01 on Wednesday, were mostly flat in premarket trading Thursday. The Bottom Line We have been recommending shares of BA since Aug.27, when the stock was trading at $47.82. The company has a 2.40% dividend yield, based on last night’s closing stock price of $70.01. The Boeing Company ( BA ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 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 .

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Boeing’s Price Target Boosted at Bank of America/Merrill Lynch (BA)

March 11, 2010   No Comments

Fortune Brands’ Estimates Cut at Goldman Sachs (FO)

Liquor and golf products maker Fortune Brands, Inc. ( FO ) saw its earnings estimates lowered on Thursday by analysts at Goldman Sachs. The analyst lowered its estimates for FO through 2012, noting that the recent sale of its Cobra golf unit will likely eat into earnings. Goldman maintained its “Buy” rating and $50 price target on the stock, however, which had closed at $47.03 on Wednesday. Fortune Brands shares were mostly flat in premarket trading Thursday. The Bottom Line We had removed shares of FO from our “recommended” list back on Sept.30, when the stock was trading at $43.48. The company has a 1.62% dividend yield, based on last night’s closing stock price of $47.03. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $50-$54 price levels. We would remain on the sidelines for now. Fortune Brands, Inc. ( FO ) 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 .

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Fortune Brands’ Estimates Cut at Goldman Sachs (FO)

March 11, 2010   No Comments

Dr Pepper Snapple Group Now Rated a “Buy” at UBS (DPS)

Beverage giant Dr Pepper Snapple Group Inc. ( DPS ) was upgraded to “Buy” on Thursday by analysts at UBS. The analyst also set a $42 price target on DPS shares, which had closed at $33.65 on Wednesday. In addition, UBS said it raised its earnings estimates for the company, citing strong fundamentals and future share buybacks. Dr Pepper Snapple Group shares rose 55 cents, or +1.6%, in premarket trading Thursday. The Bottom Line We have been recommending shares of DPS since Nov.20, when the stock was trading at $26.69. The company has a 1.78% dividend yield, based on last night’s closing stock price of $33.65. Dr Pepper Snapple Group Inc. ( DPS ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 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 .

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Dr Pepper Snapple Group Now Rated a “Buy” at UBS (DPS)

March 11, 2010   No Comments

Bed Bath & Beyond Cut to “Underperform” at FBR Capital (BBBY)

Home goods retailer Bed Bath & Beyond Inc. ( BBBY ) caught a big downgrade on Thursday from analysts at FBR Capital Markets. The analyst cut its rating on BBBY to “Underperform” from “Market Perform.” FBR also cut its downside price target for the stock, which had closed at $41.67 on Wednesday, to $38. The firm noted that “BBBY is expected to cycle market-share benefits from the liquidation of former competitor Linens ‘N Things (LIN), who had fully liquidated from the home furnishings market through December 2008; 34% of BBBY’s store base competes closely with a former LIN store (within five miles, 57% within 10 miles). We think removal of LIN from the market has likely helped BBBY comps in 2009 by +/- 400 bps. The 4Q09E sales and EPS should be good for BBBY, per se (we model comps of up 8.5%), on the heels of “Home” commentary out of others; yet we expect that recent trends represent the best it gets, with many companies now cycling trough “Home” trends of a year ago (3Q08/4Q08). In addition to this, BBBY, also cycles relatively extraordinary SG&A trends of a year ago, as the company retrenched its cost structure (“controllable expenses”), with notable SG&A leverage seen commencing in 1Q09 last year (cycles 1Q10E).” FBR Capital also said it much prefers Home Depot ( HD ) and Lowe’s ( LOW ) in the home goods sector. Bed Bath & Beyond shares fell 78 cents, or -1.9%, in premarket trading Thursday. The Bottom Line Shares are trading near the 52-week high levels of $43 a share. The stock has technical support in the $37-$40 price area. We do not currently rate this non-dividend paying stock, but we do follow the company closely. Bed Bath & Beyond Inc. ( BBBY ) does not currently pay a dividend. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Bed Bath & Beyond Cut to “Underperform” at FBR Capital (BBBY)

March 11, 2010   No Comments

FBR Capital Reiterates “Outperform” Rating for Goldman Sachs (GS)

Financial services juggernaut Goldman Sachs Group, Inc. ( GS ) saw its positive rating an price target maintained on Thursday b analysts at FBR Capital Markets. The analyst reiterated its “Outperform” rating on GS, as well as its $190 price target for the shares, which had closed at $171.94 on Wednesday. FBR Capital noted that “Following our meeting with Goldman Sachs’ CFO, David Viniar, we reiterate our Outperform rating and maintain our stance on GS shares as an FBR Top Pick. Within our coverage universe, GS is likely to accrete capital faster than peers, hence the relative Outperform rating. Additionally, we reiterate our belief that valuation remains compelling despite regulatory overhangs. We would characterize management comments as cautiously optimistic; and, although we expected 2010 results to be shy of those reported for 2009, we continue to expect GS to generate an ROE in excess of 15%, particularly in an environment that may allow more flexibility in compensation practices. While capital standards are likely to rise globally, we feel confident that mid- to high-teen ROEs are attainable, given our expectation of a commensurate increase in ROAs globally…Our price target of $190 is 11x our 2010 EPS estimate of $17.50, and 9.2x our 2011 EPS estimate of $20.5. Our price target represents 1.8x tangible book.” Goldman Sachs shares fell 74 cents, or -0.4%, in premarket trading Thursday. The Bottom Line We had removed shares

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FBR Capital Reiterates “Outperform” Rating for Goldman Sachs (GS)

March 11, 2010   No Comments

Yum! Brands’ Price Target, Estimates Lifted at Credit Suisse (YUM)

Quick service restaurant operator Yum! Brands, Inc. ( YUM ) saw its price target and earnings estimates boosted on Wednesday by analysts at Credit Suisse. The analyst said it raised its price target on YUM to $44 from $41, citing bigger domestic profits. Suisse also raised its 2011 earnings estimate for the company to $2.76, while maintaining its “Outperform” rating on the stock. Yum! Brands shares fell 20 cents, or -0.6%, in premarket trading Wednesday. The Bottom Line We recently removed shares of YUM from our recommended list back on Nov.2, when the stock was trading at $32.95. The company has a 2.30% dividend yield, based on last night’s closing stock price of $36.60. The stock has technical support in the $32-$33 price area. If the shares can firm up, we see overhead resistance around the $40 price level. We would remain on the sidelines for now. Yum! Brands, Inc. ( YUM ) 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 .

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Yum! Brands’ Price Target, Estimates Lifted at Credit Suisse (YUM)

March 10, 2010   No Comments

American Eagle Q4 Profit Surges 81%, Matching View (AEO)

Teen clothing retailer American Eagle Outfitters ( AEO ) said Wednesday that its fourth quarter profit jumped 81% from last year, matching analyst estimates. The Pittsburgh-based company reported fourth quarter net income of $59.3 million, or 29 cents per share, compared with $32.7 million, or 16 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 33 cents per share. Sales rose more than 7% from last year, to $972 million, while same-store sales were up 5%. On average, Wall Street analysts expected a matching profit of 33 cents per share, on lower revenue of $952.3 million. Looking ahead, the company forecast first quarter earnings to range from 15 to 17 cents per share, which would meet or exceed analysts’ current estimates of 15 cents per share for the quarter. American Eagles shares rose $1, or +5.8%, in premarket trading Wednesday. The Bottom Line We had removed shares of AEO from our “recommended” list last Sept.29, when the stock was trading at $15.90. The company has a 2.33% dividend yield, based on last night’s closing stock price of $17.15. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels. We would remain on the sidelines for now. American Eagle Outfitters ( AEO ) 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 .

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American Eagle Q4 Profit Surges 81%, Matching View (AEO)

March 10, 2010   No Comments

Starwood Hotels’ Price Target Raised at Bank of America/Merrill Lynch (HOT)

Hotel operator Starwood Hotels & Resorts Worldwide, Inc ( HOT ) saw its price target raised 15% on Wednesday by analysts at Bank of America/Merrill Lynch. The analyst said it now sees shares of HOT reaching $46, up from a prior target of $40. Bank of America/Merrill Lynch noted that Starwood’s real estate holdings could be undervalued by as much as 25%, and maintained its “Buy” rating on the stock. Starwood Hotels shares, which had closed at $41.34 on Tuesday, were mostly flat in premarket trading Wednesday. The Bottom Line Shares of HOT have a dividend yield of .48%, based on last night’s closing stock price of $41.34. The stock has technical support in the $35 price area. If the shares can continue to firm up, we see overhead resistance around the $45 price level. We would remain on the sidelines for now. Starwood Hotels & Resorts Worldwide, Inc ( HOT ) 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 .

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Starwood Hotels’ Price Target Raised at Bank of America/Merrill Lynch (HOT)

March 10, 2010   No Comments

Abbott Labs to Buy Facet Biotech; Wins FDA Approval for Cataract Treatment (ABT)

Healthcare giant Abbott Laboratories ( ABT ) said Wednesday that it will acquire drugmaker Facet Biotech for $450 million in cash, and also announced FDA approval for its latest cataract treatment. In pursuant to the deal, Abbott will pay $27 for each Facet share, which represents a 67% premium over Facet’s Tuesday closing price of $16.21. The total purchase price of the deal will actually be around $722 million, which includes $272 million in Facet’s cash and marketable securities. Back in December, Facet rejected a buyout offer of $17.50 per share from Biogen Idec, saying the bid grossly undervalued the company. In a separate announcement, Abbott said that it has received FDA approval for its Tecnis Multifocal 1-Piece intraocular lens, which was developed for cataract patients with and without presbyopia. The lens is implanted in a patient’s eye after the natural lens has been removed. Abbott shares fell 30 cents, or -0.6%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of ABT since Oct.14, when the stock was trading at $49.65. The company has a 3.21% dividend yield, based on last night’s closing stock price of $54.80. Abbott Laboratories ( ABT ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 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 .

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Abbott Labs to Buy Facet Biotech; Wins FDA Approval for Cataract Treatment (ABT)

March 10, 2010   No Comments

Kraft Foods’ Price Target Boosted at Citigroup (KFT)

Packaged foods giant Kraft Foods Inc. ( KFT ) saw its price target raised on Tuesday by analysts at Citigroup. The analyst lifted its price target for KFT shares, which had closed at $29.17 on Monday, to $36 from $33, citing bullish sentiment from the Cadbury ( CBY ) acquisition. Citigroup set its 2010 and 2011 EPS estimates for the company at $2.10 and $2.35, respectively, and reiterated its “Buy” rating on the stock. Kraft Foods shares rose 20 cents, or +0.7%, in premarket trading Tuesday. The Bottom Line We have been recommending shares of KFT since May 5, when the stock was trading at $24.26. The company has a 3.98% dividend yield, based on last night’s closing stock price of $29.17. Kraft Foods Inc. ( KFT ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 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 .

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Kraft Foods’ Price Target Boosted at Citigroup (KFT)

March 9, 2010   No Comments

Kroger’s Q4 Profit Plunges 27%, Still Beats View (KR)

Supermarket chain operator The Kroger Co. ( KR ) said Tuesday that its fourth quarter profit fell 27% from last year, despite higher sales, but results still beat analyst estimates. The Cincinnati-based company reported fourth quarter net income of $255.4 million, or 39 cents per share, compared with $349.2 million, or 53 cents per share, in the year-ago period. Sales rose 7% from last year, to $18.6 billion, aided by higher fuel sales as a result of gas discounts for regular customers. On average, Wall Street analysts expected a smaller profit of 34 cents per share, on much lower revenue of $17.73 billion. Kroger shares fell 70 cents, or -3.1%, amid a broad market sell-off in premarket trading Tuesday. The Bottom Line We have avoided shares of KR since our early June 2008 coverage began, when the stock was trading at $27.30. The company has a 1.66% dividend yield, based on last night’s closing stock price of $22.90. The shares have technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $25 price level. We would remain on the sidelines. The Kroger Co. ( KR ) 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 well as a detailed explanation of our ratings system here .

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Kroger’s Q4 Profit Plunges 27%, Still Beats View (KR)

March 9, 2010   No Comments

Dick’s Sporting Goods Q4 Profit Narrowly Beats View (DKS)

Sporting goods retailer Dick’s Sporting Goods, Inc. ( DKS ) said Tuesday that it swung to a fourth quarter profit, helped by higher sales and lower costs, edging out analyst expectations. The Pittsburgh-based company reported fourth quarter net income of $67.4 million, or 56 cents per share, compared with a net loss of $105.6 million, or 94 cents per share, in the year-ago period. Sales jumped 11% from last year, to $1.3 billion. On average, Wall Street analysts expected a slightly smaller profit of 55 cents per share, on matching revenue of $1.3 billion. Looking ahead, the company forecast fiscal 2011 earnings of $1.32 to $1.35 per share, which would meet or exceed analysts’ current estimates of $1.32 per share for the year. Dick’s shares fell 63 cents, or -2.5%, amid a broad market sell-off in premarket trading Tuesday. The Bottom Line Shares of DKS are trading right near 52-week highs of $26 a share. The stock has technical support in the $22 price area. If the shares can firm up, we see overhead resistance around the $30 price level. We do not currently rate this non-dividend paying stock, but we do follow the company closely. Dick’s Sporting Goods, Inc. ( DKS ) does not currently pay a dividend. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Dick’s Sporting Goods Q4 Profit Narrowly Beats View (DKS)

March 9, 2010   No Comments