Tuesday, January 26th, 2010
Notable Analyst Upgrades and Downgrades
YES, I want free trades through Zecco.com!
VMWare, Inc. (NYSE:VMW), Potash Corp./Saskatchewan (NYSE:POT), and Halliburton Company (NYSE:HAL) are three notable analyst upgrades and downgrades during today’s session.
VMWare, Inc. (VMW), a provider of virtualization solutions from the desktop to the data center, was mentioned favorably by several analysts. Wedbush raised its estimates for the company to $60 from $51 per share, Needham raised its target to $59 from $51 per share, and Auriga raised its target price to $41 from $35 per share.
The news comes shortly after VMWare reported first quarter results that surpassed expectations. Sales came in at $580-600 million versus a consensus of $530.27 million, while earnings per share came in at 31 cents versus a 26 cents consensus. Meanwhile, the company noted that its near-term visibility also improved as customers moved up their IT investments.
Potash Corp./Saskatchewan (POT), an integrated provider of fertilizer and related industrial and feed products, was initiated with an Outperform at Macquarie. The move also comes after Credit Suisse noted earlier this week that they see a clear sentiment change in the potash markets given evidence of a strong demand recovery and talk of price increases.
Over the past year, fertilizer companies like Potash have experienced substantial declines as demand dried up and pricing fell sharply. However, many investors are analysts are now projecting a turnaround in the sector, making these stocks prime for a boost over the coming months and perhaps into 2011.
Halliburton Company (HAL), a energy products and services company, may have reported somewhat negative results, but two analysts view the pullback as a buying opportunity. RBC Capital recommended the stock if it underperforms the market as it doesn’t believe that the company’s fundamental trends have changed significant.
Meanwhile, Citigroup recommended using the recent sell-off in Halliburton as a buying opportunity and raised its price target on shares from $34 to $40 a piece. The firm also maintains a Buy rating on the stock.
Want to become a better trader? Click here to sign-up for a FREE trading e-course taught by a former floor trader!
-- Written by David Breen
