Tuesday, May 26, 2009

Analyst actions 05/26/09

AlphaNinja - Joy Global (JOYG) and Bucyrus (BUCY) upped to buy at KeyBanc, based on a gradual economic recovery and rebounding commodity prices.

After a 10% jump today, Joy Global would offer 50% upside to Keybanc's $48 target. FCFY (Free cash flow yield) is 10% based on a rough $320million this year- a nice yield at this level but a stretch should the stock trade in the 40's.

Bucyrus has an approximate FCFY of 8%, and 54% upside to Keybanc's $40 target.

Both stocks have rebounded smartly off their lows, but could still prove to be valuation bargains if it (likely) turns out that estimates have overshot on the way down.


Blockbuster (BBI) raised to buy at Roth, see's 400% upside, as long as they remain solvent. Ah.

from briefing.com:

Blockbuster tgt lowered to $3.50 Roth; lowers EPS ests below consensus; still sees co as solvent in 2009, margins stable (0.66 ) : Roth is lowering their tgt to $3.50 from $5, their FY09 est to $0.18 from $0.24 and their FY10 est to $0.19 from $0.22 (consensus $0.21 and $0.22) following terms of the recently restructured debt and continued competitive pressures. They note game rentals and sales face tough comps in '09, but likely to remain stable. They note better content control and cost cuts are likely to offset weakness in rev; de-leveraging to largely offset higher rates. They believe BBI will remain solvent in '09 and margins appear to be stable, which will likely spur investor confidence between now and year-end.

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