Dividend Investing Ideas Center
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Mike Deane Jan 26, 2015
Before Monday’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.
Argus Upgrades Rockwell Collins
Rockwell Collins Liquid error: internal was upgraded from “Hold” to “Buy” at Argus, as COL is trading at a discount compared to its peers, and Argus believes the company’s management can improve margins and repurchase shares. COL has a dividend yield of 1.38%.
Oppenheimer Downgrades Graco Inc.
Graco Inc. (GGG ) was downgraded to “Perform” from “Outperform” at Oppenheimer, based on a valuation call and GGG’s $80 price target. Oppenheimer also sees GGG as having high currency risk. Oppenheimer’s PT on GGG suggests a 3.5% upside to the stock’s current price. GGG has a yield of 1.55%.
RBC Capital Upgrades Garmin
Garmin (GRMN ) was upgraded to “Outperform” from “Sector Perform” at RBC Capital, as GRMN can gain its market share in wearables and can expand its margins. RBC has a $67 price target on Garmin, suggesting a 26% upside to the stock’s current price. GRMN has a yield of 3.4%.
BofA/Merrill Lynch Downgrades LyondellBasell
LyondellBasell (LYB ) was downgraded to “Neutral” from “Buy” at BofA/Merrill Lynch, due to LYB’s lower ethanol margins. BofA/Merrill Lynch has a price target of $98 on LYB, suggesting a 21% upside to the stock’s current price. LYB has a yield of 3.47%.
Oppenheimer Upgrades Pier 1
Pier 1 Liquid error: internal was upgraded to “Outperform” from “Perform” at Oppenheimer, as the analyst firm believes that Pier 1 can improve its margins. Oppenheimer has a $20 PT on PIR, suggesting an 18% upside to the stock’s current price. PIR has a yield of 1.42%.
Two Firms Downgrade UPS
United Parcel Service (UPS ) was downgraded at Credit Suisse and Barclays. Credit Suisse lowered the company’s rating to “Neutral” from “Outperform,” due to UPS’s recent cut in its guidance. CS now has a price target of $102 on UPS, suggesting the stock will stay flat at its current price.
Barclays cut its rating on UPS to “Equal-weight,” as the analyst firm believes that business success has not found its way to UPS’s bottom line. Barclays now has a price target of $105 on UPS, suggesting a 3% upside. UPS has a yield of 2.6%.
Credit Suisse Boosts Numbers on Bank of New York Mellon
Bank of New York Mellon (BK ) had its estimates and price target raised at Credit Suisse, due to BK’s management’s cost-cutting. CS now has a PT of $39 on BK, suggesting the stock will rise by 6%. BK has a yield of 1.84%.
Jefferies Cuts Numbers on McDonald’s
McDonald’s (MCD ) had its estimates and price target cut at Jefferies, due to the fast food company losing market share. Jefferies has a price target of $91 on MCD, suggesting a 2% upside to the stock’s current price. MCD has a yield of 3.8%.