Before Tuesday's opening bell, a number of big name dividend stocks were the subject of analyst moves. Below, we highlight the important analyst commentary for investors.
Four Firms Upgrade Medtronic
Four firms upgraded Medtronic, Inc. (MDT
) on Tuesday following reports that the company will acquire Covidien (COV) for $43 billion. In addition to the following upgrades, the firm was also upgraded at JP Morgan on Monday.
Morgan Stanley has upgraded MDT from “Equal Weight” to “Overweight” as the acquisition is expected to bring in large returns. The firm has a $73 price target on MDT.
BTIG raised its rating on MDT from “Neutral” to “Buy” as analysts see the acquisition as a great use of the company’s cash. The firm has a $70 price target on MDT.
Credit Suisse boosted its rating on MDT from “Neutral” to “Outperform” as the COV purchase is expected to add to earnings. The firm has a $70 price target on MDT.
RBC Capital has upgraded MDT from “Sector Perform” to “Outperform” as analysts believe the acquisition was a good move financially and strategically. The firm has $73 price target on MDT.
Booz Allen Hamilton Cut to “Underperform”
Booz Allen Hamilton Holding Corporation [BAH]] has been cut to “Underperform” from “Buy” at Bank of America/Merrill Lynch on a valuation call. The firm has a $22 price target on BAH, suggesting that the stock will remain flat at its current price. BAH has a dividend yield of 2.02%.
Brnchmark Downgrades Broadcom
Broadcom Corporation (BRCM) has been downgraded to “Hold” at Benchmark on a valuation call. BRCM has a dividend yield of 1.24%.
BofA/Merrill Cuts Rating on Domino’s Pizza
Bank of America/Merrill Lynch has downgraded Domino’s Pizza, Inc. (DPZ) from “Neutral” to “Underperform” as the company has low free cash flow estimates. DPZ has a dividend yield of 1.39%.
Exelon Upgraded to “Buy”
Exelon Corporation (EXC) has been upgraded to “Buy” at Jefferies on a valuation call. The firm has a $42.50 price target on the company, suggesting a 18% upside from Monday’s closing price of $36.11. EXC has a dividend yield of 3.43%.
Goldman Sachs Raises Rating/Price Target on DSW
Goldman Sachs has upgraded DSW Inc. (DSW) to “Buy” and has raised its price target to $35. This new price target suggests a 29% upside from Monday’s closing price of $27.38. DSW has a dividend yield of 2.74%.
Southwest Upgraded to “Buy”
Southwest Airlines Co (LUV) has been upgraded from “Hold” to “Buy” at Stifel Nicolaus and has been given a $30 price target. The upgrade is primarily due to an industry wide pullback which has created a buying opportunity. LUV has a dividend yield of 0.92%.
Public Service Enterprise Group Upgraded to “Buy”
Public Service Enterprise Group Inc. (PEG) has been upgraded to “Buy” at Jefferies due to an improved commodity outlook. The firm has a $44 price target on PEG, suggesting a 16% upside from Monday’s closing price of $37.99. PEG has a dividend yield of 3.90%.
BofA/Merrill Downgrades
No comments:
Post a Comment