Article / 13 November 2012 at 10:31 GMT

Analyst Upgrades: Marathon's strong production, ABF's retail jump

Matt Bolduc Matt Bolduc
Equity Analyst
Denmark

Upgrades and Downgrades

Several listed companies were upgraded by analysts last week.

Computer Sciences Corporation (NYSE:CSC)

IT company Computer Sciences Corporation easily beat the market's consensus EPS when it reported its Q2 last week. CSC reported EPS of 0.83, which bested the market's estimate by more than 72% on revenue of USD 3.854M, in line with the market's expectations. The company had excellent results in all of its three business divisions, with growing sales and improving margins. In addition, the company raised guidance for its full year EPS from 2.30 to 2.50.

CSC snapshot

From all of the company's good news, the IT company's stock target price was upgraded 15.8% from 31.36 to 36.32. Although analysts liked the company's strong performance, many are still on the fence regarding the company's future with 69% of analyst having a 'HOLD' on the stock.

CSC recommendations

 

Marathon Oil Corporation (NYSE:MRO)

Marathon Oil reported its third quarter result last week and although EPS came in as expected, revenue easily beat expectations with USD 4161 against an expected USD 3317, a 25% surprise. The revenue beat came from higher-than-expected production, which averaged 392k boed vs management's previous guidance range of 365-380k boed. The increase in production mainly came from the company's production in shale oil in the US. The company now expects that fourth quarter production will be between 400 and 415k boed.

Marathon Oil snapshot

On the strong production numbers and the increased guidance, analysts bumped up the target price for the stock from 34.63 to 36.31. A full 60% of the analysts on the stock have a buy rating while the remaining 40% have a hold, a pretty bullish sign.

Marathon Oil recommendations

 

Associated British Foods (LON:ABF)

ABR reported strong preliminary 2012 annual results last week. Group revenue was up 11% from the previous year, and adjusted operating profit was up 17%, although EPS was only up 2%. The biggest factors for the company’s strong result were from high sugar yields and strong growth at its discount retailer Primark. 

ABF recommendations

ABF is up 23% for the year and after the preliminary results, analysts increased their price target for the stock by 4.4%.

 

Other notables shown below include Air France, which continues to be upgraded and French company Teleperformance, which upgraded its full year guidance on strong revenue growth.

Upgrades list

For additional details about these stocks, take a look at Saxo Bank’s Equity Research offering here.  

You can read about last week's analyst downgrades in my other article today: Analyst Downgrades: Vestas still blows, JCP turnaround drags on

--

I write about the previous week's analyst upgrades and downgrades every week on TradingFloor.com. If you'd like to be notified with an email whenever a new story is posted, become a member of TradingFloor.com - it's free, and you can sign in with Facebook, Twitter, LinkedIn or Google - and follow the tag "Broker Rating Changes."  You can also bookmark our upgrades/downgrades page.

Disclaimer

The Saxo Bank Group provides an execution-only service and all information provided on Tradingfloor.com is solely for general information. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com. Any information which could be construed as investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such should be considered as a marketing communication. Furthermore it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Please read our disclaimers:
- Notification on Non-Independent Investment Research
- Full disclaimer

Show latest activity
Dismiss
Sorry, there was a problem communicating with the TradingFloor.com servers. We are working hard to solve this. Please try again later.
Oops! There was a problem communicating with the OpenAPI Portfolio service.
Oops! There was a problem communicating with the OpenAPI History service.
Oops! There was a problem communicating with the OpenAPI Reference service.
Oops! There was a problem communicating with the OpenAPI Root service.
Oops! There was a problem communicating with the OpenAPI Trading service.
Sorry, there was a problem communicating with the Financial Calender servers. We are working hard to solve this. Please try again later.
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail