Barrett Business Services (NASDAQ: BBSI) provides a range of human resource management services to small and medium-sized U.S. businesses. The company offers both temporary and long-term staffing to some 2,300 clients, focusing on light industrial, clerical, and technical specialties. It also outsources such human resource services as payroll management, benefits administration and recruiting to about 1,200 clients. Barrett operates primarily on the coasts, through a total of 45 offices.
The company pleased investors last week, when it reported Q2 EPS of 29 cents and revenues of $269.4 million. Analysts had been expecting 22 cents and $264.2 million. Management also guided Q3 EPS to 34-36 cents (28 cent consensus) and Q3 revenues to $277-$282 million ($269.32M consensus). Roth Capital subsequently upgraded BBSI to "buy" status.
AIG (NYSE:AIG) Cut to Market Perform at FBR, according to24/7 Wall St. The financial website also reported VMware (NYSE:VMW) Started as Underperform at Bernstein and Polo Ralph Lauren (NYSE:RL) Raised to Outperform at Morgan Keegan.
Credit Suisse downgraded Avon (NYSE:AVP) to Neutral from Outperform, according toBrieifing.com. The news service also reports that Jefferies downgrade UTStarcom (NASDAQ:UTSI) to Underperform from Hold.
JP Morgan downgraded Novartis (NYSE: NVS) to "neutral" from "overweight", according toBriefing.com. The news service also reports that Citigroup added Freeport McMoran (NYSE: FCX) to its "Top Picks" list.
Merrill upgraded shares of AstraZeneca (NYSE: AZN) to Neutral from Underperform to reflect the company's pipeline momentum and lack of negative catalysts.
Keefe Bruyette upgraded Deutsche Bank (NYSE: DB) to Outperform from Market Perform on valuation as they believe DB should trade at a higher multiple.
Merrill cut Novo Nordisk (NYSE: NVO) to Underperform from Neutral as the firm sees better opportunities elsewhere in the sector.
Merriman downgraded Rackable Systems (NASDAQ: RACK) to Neutral from Buy following the company's mixed Q2 results to reflect its customer concentration and fluctuating margins.
Janus Capital (NYSE: JNS) was downgraded at JP Morgan to Underweight from Neutral.
Fortress (NYSE: FIG) was cut to Sell from Hold at Citigroup.
Analyst initiations:
UBS believes Apple (NASDAQ: AAPL) has a competitive advantage and their checks indicate new Macs, new iPhone colors and potentially new iPods may come early on in the second half of 2008. The firm initiated shares with a Buy rating and $195 target. UBS also initiated Dell Inc. (NASDAQ: DELL) and Hewlett-Packard (NYSE: HPQ) at Neutral.
KeyBanc initiated Bed Bath & Beyond (NASDAQ: BBBY) with an Underweight rating and $25 target based on slowing core growth at Bed Bath and likely margin erosion from the ramp in growth at Christmas Tree Shops and buybuy Baby.
Infineon (NYSE: IFX) was initiated with a Buy rating at Deutsche Bank.
Amgen (NASDAQ: AMGN) is a biotechnology firm engaged in the discovery and manufacture of human therapeutics. It markets products in the areas of supportive cancer care, nephrology, inflammation, and metabolic diseases. Principal offerings include anemia treatments Aranesp and Epogen, rheumatoid arthritis drug Enbrel, and white blood cell stimulator Neupogen. Amgen has marketing alliances with Hoffmann-La Roche and Kirin. Baxter International (NYSE: BAX), Johnson & Johnson (NYSE: JNJ) and Novartis (NYSE: NVS) and major competitors.
The company pleased the Street late last month, when it announced Phase 3 trial results showing that its experimental osteoporosis drug significantly reduced the risk of bone fractures in post-menopausal women. As well, the firm reported Q2 EPS of $1.14 and revenues of $3.76 billion. Both measures topped consensus Street estimates ($1.02, $3.58 billion). Management also guided FY08 EPS to $4.25-$4.45 ($4.19 consensus) and FY08 revenues to $14.6-$14.9 billion ($14.42B consensus). Eight brokerages subsequently declared AMGN a "buy" and issued price targets in the range $67-$80.
U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude falling below $120 a barrel on demand concerns due to the economic slowdown in the U.S. Commodities in general have been declining. Also today, the Federal Reserve will announce its decision regarding interest rates and it is widely expected they will remain unchanged. Similarly, the Fed's outlook statement about outlook and focus may also remain largely the same according to expectations. Meanwhile, overseas, both the ECB and BoE are expected to leave rates unchanged.
One of Yahoo! Inc. (NASDAQ: YHOO)'s largest shareholders, Capital Research Global Investors, had asked to review the vote in last week's re-election of the Internet giant's board. Specifically, I guess, it was surprising the vote showed strong support -- 85% -- for CEO Jerry Yang. There's no sense dancing around this issue; basically the shareholder implies suspicions of wrongdoings (or really really incompetent tallying of votes).
Bloomberg reports that analysts now expect Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record. The the biggest U.S. mortgage-finance companies report tomorrow and according to estimates will show a loss of 74 cents and 60 cents per share respectively. The losses may be greater than expected as we've seen before analysts underestimating the credit losses. It will not be pretty.
Wachovia Corp. (NYSE: WB) shares are down some 7.5% (which is at least better than today's earlier decline of about 10%), after a Morgan Keegan analyst recommended selling the shares. The call follows Wachovia's 30.9% jump last week and comes ahead of a meeting between new chief executive Robert Steel and investors.
The analyst, Robert Patten, who rates Wachovia at Underperform, made the profit-taking call this morning. In his opinion nothing has fundamentally changed to warrant last week's price appreciation. He attributes the gains to short-covering. Wachovia is still facing more credit losses as its option adjustable-rate mortgages (option-ARMs) and commercial real estate (CRE) loans are likely to continue defaulting at an increasing rate.
The analyst also noted that he has already seen this pattern of shares running ahead of fundamentals due to CEO changes. And as long as Wachovia needs to restructure its balance sheet, the stock price hike was premature.
Makes sense to me. With investors' approval of Steel, has Wachovia's balance sheet magically improved? And what can he do to improve it so soon after taking the top job? And even though he said he wouldn't, could that include raising more capital by issuing more common shares (diluting shareholders)?
Anyone who actually had the nerves of steel it takes to play financials this past year may want to pay attention to Patten's call. Recall that Wall Street's leading financial analyst, Meredith Whitney, also downgraded WB to Underperform in July. If you choose to go against her, good luck to you!
Jefferies upgraded shares of Akamai (NASDAQ: AKAM) to Buy from Hold on valuation, as they see a long-term buying opportunity following the recent correction. The firm maintains a $29 target.
Moody's (NYSE: MCO) was upgraded to Overweight from Underweight at Lehman.
Boyd Gaming (NYSE: BYD) was upgraded to Neutral from Underperform at Merrill Lynch.
Analyst downgrades:
Jefferies downgraded shares of Nortel Networks (NYSE: NT) to Hold from Buy on concerns about the company's ability to hit expectations and drive margin expansion in the face of an eroding CDMA revenue stream. The firm lowered their target to $7.25 from $11.
B. Riley cut Charlotte Russe (NASDAQ: CHIC) to Neutral from Buy on concerns about how well the company can perform with the interim management team, especially in light of the current retail environment. The firm lowered their target to $14 from $17. Roth Capital downgraded shares to Sell from Hold to reflect the management uncertainty and lowered their target to $9 from $14.
Goldman cut Warner Music (NYSE: WMG) to Sell from Neutral and Deere (NYSE: DE) to Neutral from Buy.
Analyst initiations:
Banc of America expects top-line growth at Amgen (NASDAQ: AMGN) to be driven by Denosumab and for investors to look to the stock for biotech exposure following the potential acquisition of Genentech (NYSE: DNA). The firm started shares with a Buy rating and $70 target.
Sirius Satellite (NASDAQ: SIRI) was initiated at JP Morgan with a Neutral rating.
Varian Medical Systems (NYSE: VAR) manufactures medical devices for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy. The company also provides X-ray detectors for industrial/security applications and software for managing radiotherapy centers. The firm has manufacturing sites in North America, Europe and China and operates some 60 sales/support offices around the world.
Varian pleased investors last week, when it reported Q3 EPS of 58 cents and revenues of $513 million. Analysts had been looking for 46 cents and $480.3 million. The CEO noted that faster than expected acceptance of Varian's oncology products was a major factor leading to the successful quarter. Management also guided FY08 EPS to about $2.23 ($2.11 consensus) and FY08 revenues to about $2.08-$2.096 billion ($2.05B consensus). Needham and Lazard Capital subsequently reiterated "buy" ratings on the shares.
Jefferies upgraded shares of Omnicare (NYSE: OCR) to Buy from Hold and raised their target to $37 from $24.50 following the company's Q2 results to reflect improving earnings visibility.
Piper upgraded Motorola (NYSE: MOT) to Neutral from Sell following the company's Q2 results to reflect its continued execution in cost management. The firm raised its target to $9 from $7.
Capital One Southcoast upgraded Patterson-UTI Energy (NASDAQ: PTEN) to Add from Neutral based on additional new builds already under contract and rig reactivations. The firm raised its target to $36 from $32.
Analyst downgrades:
Citigroup downgraded shares of ImClone (NASDAQ: IMCL) to Hold from Buy despite thinking the initial offer from Bristol Myers (BMY) will be raised, as they do not advise chasing shares at current levels. The company's target was raised to $73 from $56.
Morgan Keegan initiated Cicso Systems (NASDAQ: CSCO) with a Market Perform rating, citing the difficult macro environment; the firm believes 2H08 estimates will come down.
Banc of America reinstated coverage of MF Global (NYSE: MF) with a Buy rating and $8.36 target.
U.S. stock futures were mixed Friday morning after General Motors reported a massive loss and sales decline and ahead of what could yet another worriesome jobs report. Unemployment rate is expected to inch higher to 5.6%, while economists expect nonfarm payroll to show a decline 75,000 jobs during July. Other economic reports as well as July car sales could impact the market throughout the session. Seem, though, that after digesting GM's results, futures turned negative, indicating a lower start on Wall Street.
General Motors (NYSE: GM) will likely see some action as the automaker swung to a second-quarter loss of $15.5 billion, or $27.33 a share, as revenue dropped 18% to $38.2 billion. If you think this number missed analyst estimates because of massive charges, you're right, but earnings excluding special items also missed them -- by a mile. Excluding items GM would have lost $6.3 billion, or $11.21 a share. Ouch! Analysts polled by FactSet Research expected a loss of $2.85 a share on revenue of $42.6 billion. GM has been the subject of rumors it is heading straight into bankruptcy, from a quick glance at the results, these will likely not alleviate any such fears. Even as Wagoner cuts costs by $9 billion this year by another 20% trim of payroll and stopping dividend payment, as he plans to boost cash by $17 billion, at this point, I wonder what GM can do to save itself, if it can do anything at all. GM shares are down 7% in premarket trading.
GM will not be alone in the spotlight as Ford (NYSE: F) and other automakers report their U.S. sales for July. Auto sales tracker Edmunds.com is forecasting a 3.3% drop in auto sales compared to a year ago. This comes a day after Standard & Poor's Ratings Services cut its ratings for all three of the U.S.-based automakers further into junk status. S&P expects further sales decline for the rest of the year, with car companies mounting cash losses.
Charter Equity upgraded Motorola (NYSE: MOT) from "underperform" to "market perform", according toBriefing.com. The news service also reports that Morgan Keegan initiated Cisco (NASDAQ: CSCO) at "market perform."
Cablevision (NASDAQ:CVC) Raised to Buy at Citigroup according to24/7 Wall St. The financial site also writes EMC (NYSE: EMC) Raised to Outperform at FBR.
Douglas A. McIntyre is an editor at 247wallst.com.
Merrill upgraded Schering-Plough (NYSE: SGP) to Buy from Neutral citing the company's better near-term pipeline outlook with two potential blockbusters to be approved over the next year. Schering-Plough's target was raised to $23 from $20.
Jefferies downgraded shares of Hologic (NASDAQ: HOLX) to Hold from Buy as they see limited near-term catalysts after the company reported a Q3 miss and lowered top-line guidance for FY08. The firm lowered their target to $24 from $28.
Baird downgraded California Pizza (NASDAQ: CPKI) to Neutral from Outperform as they see limited near-term upside given the uncertain 2H08/2009 outlook. The company's target was lowered to $15 from $17.
JP Morgan downgraded Jones Lang LaSalle (NYSE: JLL) and CB Richard Ellis (NYSE: CBG) to Neutral from Overweight due to the continued challenging economic environment.
Analyst initiations:
BC Capital initiated Dollar Financial(NYSE: DLLR) with an Outperform rating and $24 target. The firm likes Dollar's geographically diversified business and valuation.
Baird upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Outperform from Neutral following strong Q2 results as they expect comps momentum, operating leverage, and potentially favorable chicken wing costs to support healthy trends in 2H08.
RBC Capital upgraded Myriad Genetics (NASDAQ: MYGN) to Outperform from Sector Perform citing solid core molecular diagnostics growth and increased confidence that the spin-out will generate better shareholder value.
Analyst downgrades:
Citigroup downgraded shares of Wyeth (NYSE: WYE) to Sell from Hold following the disappointing bapineuzumab data and lowered their target to $39 from $49.
Molson Coors (NYSE: TAP) was downgraded to Neutral from Overweight at JP Morgan.
Sony (NYSE: SNE) was downgraded to Underweight from Neutral at HSBC.
Analyst initiations:
Citigroup initiated Intercontinental Exchange (NYSE: ICE) with a Hold rating and $112 target. The firm believes regulatory concerns and a potential deceleration in energy trading volumes could limit upside in the stock near-term.
Banc of America assumed Walgreen Co. (NYSE: WAG) with a Buy rating and $38 target and believes fewer new pharmacies openings removes an impediment to higher ROIC.
Citigroup upgraded shares of Amgen Inc. (NASDAQ: AMGN) to Buy from Hold and raised the target price to $70 from $50 following AMGN's better-than-expected Q2 results and positive Dmab results.
Credit Suisse upgraded Electronic Data Systems (NYSE: EDS) to Neutral from Underperform and expects the Hewlett-Packard (NYSE: HPQ) transaction to close at the $25/share price.
Analyst downgrades:
JP Morgan downgraded OmniVision (NASDAQ: OVTI) to Neutral from Overweight citing slowing growth and increased competition, as well as the impact on margins.
KeyBanc said Visa's (NYSE: V) strengths are its recurring revenue model, significant pricing power, no consumer credit risk, operating leverage, expense flexibility, and considerable free cash flow, among other reasons. The firm initiated shares with a Buy rating and $94 target.
Regal Entertainment (NYSE: RGC) was assumed at Caris with an Average rating and $18 target. The firm sees tough comps ahead for the company and does not expect any meaningful price increases.
Caris also initiated Marvel Entertainment (NYSE: MVL), as they are positive on the company's new financing vehicle. Shares were initiated with a Buy rating and $45 target.
a range of human resource management services to small and medium-sized U.S. businesses. The company offers both temporary and long-term staffing to some 2,300 clients, focusing on light industrial, clerical, and technical specialties. It also outsources such human resource services as payroll management, benefits administration and recruiting to about 1,200 clients. Barrett operates primarily on the coasts, through a total of 45 offices.
.gif){kind=logo}
U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude 
U.S. stock futures were mixed Friday morning after General Motors reported a massive loss and sales decline and ahead of what could yet another worriesome jobs report. Unemployment rate is expected to inch higher to 5.6%, while economists expect nonfarm payroll to show a decline 75,000 jobs during July. Other economic reports as well as July car sales could impact the market throughout the session. Seem, though, that after digesting GM's results, futures turned negative, indicating a lower start on Wall Street..gif){kind=logo}
Editor's Note: You can now print BloggingStocks' posts
Cuomo gets Citi to buy back $7 billion worth of Auction Rate Securities
Does Sumner Redstone care about Midway Games?
