For Immediate Release
Chicago, IL – January 20, 2012 – Zacks Equity Research
highlights Western Union Co. ( WU) as the Bull of
the Day and ICICI Bank Ltd. ( IBN) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis on
Caterpillar Inc. ( CAT), Joy Global
Inc. ( JOY) and CNH Global NV ( CNH).
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
We are reiterating our recommendation on the shares of
Western Union Co. ( WU) at Outperform prior to its
fourth quarter earnings release slated on February 7, 2012. For the
first nine months of 2011, Western Union has shown a solid earnings
performance.
In our view, the company is poised for long-term growth, which
is validated by the combination of demographic trends, new market
opportunities and its advantages of scale. Several new initiatives
like B2B, prepaid, banking, mobile and wu.com also poise the
company well for long-term growth. The company also benefits from a
continued strong cash flow, allowing shareholders to be rewarded
with acquisitions, share buybacks and increased dividends.
Our six-month target price of $23.00 equates to about 12.8x our
earnings estimate for 2012. We view the annual dividend of $0.32
per common share as secure, implying an expected return of about
23% over that period. This is consistent with our Outperform
recommendation on the stock.
Bear of the Day:
We are downgrading our recommendation on ICICI Bank
Ltd. ( IBN) to Underperform primarily on rising operating
expenses. Net earnings for the second quarter of fiscal 2012
increased, but a substantial increase in operating expenses was the
headwind.
We anticipate continued synergies from the company's increased
dependence on domestic loans, an almost stable funding base and
market leadership in the insurance business. However, we are
concerned about ICICI's highly competitive operating environment
and below-average credit quality.
Our six-month target price of $26.00 per ADS equates to about
12.3x our earnings estimate for fiscal 2012. This target price
implies an expected negative total return of 8.6% over that period.
This is consistent with our Underperform recommendation on the
ADSs.
Latest Posts on the Zacks Analyst Blog:
CAT Selling Bucyrus Distribution
Caterpillar Inc. ( CAT) is selling the
distribution and support unit, formerly operated by Bucyrus
International Inc. in South America, Western Canada and the United
Kingdom, to Finning International Inc. of Vancouver, Canada, for
$465 million. The sale of the unit is part of its integration of
Bucyrus.
The distribution and support business generates revenues of
around $600 million. The unit was included in Caterpillar’s
purchase of Bucyrus Inc., a South Milwaukee-based manufacturer of
surface and underground mining equipment, in July 2011. The $8.8
billion buyout was the biggest deal ever in Caterpillar’s history.
It capitalized on the rising demand for coal and minerals triggered
by growth in emerging nations. Earlier in December, Caterpillar
sold a part of the Bucyrus distribution business to the Industrial
Division of Sime Darby Berhad for $360 million.
The Caterpillar-Bucyrus combined portfolio broadens
Caterpillar's mining equipment product line, resulting in the most
expansive product offering in the mining equipment industry.
Furthermore, Caterpillar can leverage Bucyrus’ strong presence in
the emerging markets, its successful aftermarket parts business and
support services for its equipment. The Bucyrus acquisition
positions Caterpillar as the leading global mining original
equipment manufacturer. The combined product portfolio dwarfs
Joy Global Inc. ( JOY), the only other
manufacturer of surface and underground mining equipment in the
US.
Caterpillar is riding the wave of heightened construction and
mining activity in the developing markets, answering to a demand
for more coal, copper and iron ore. The company expects this demand
to grow over the next decade. We thus expect Caterpillar to
maintain its revenue and EPS growth trajectory. Further, given its
strong balance sheet and cash position, we expect another dividend
increase from the company.
Shares of Caterpillar presently retain a Zacks #1 Rank
(short-term Strong Buy recommendation).
Peoria, Illinois-based Caterpillar Inc. is the manufacturer of
construction and mining equipment, diesel and natural gas engines,
and industrial gas turbines. The company is one of the few leading
U.S. companies in an industry that competes globally from a
principally domestic manufacturing base. Caterpillar operates three
divisions – Machines, Engines and Financial Products. Caterpillar
competes with the likes of CNH Global NV (
CNH).
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
stocks that are likely to outperform (Bull) or underperform (Bear)
the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides
analysis from Zacks Equity Research about the latest news and
events impacting stocks and the financial markets.
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Continuous analyst coverage is provided for a universe of 1,150
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are six-month time horizons.
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CATERPILLAR INC (CAT): Free Stock Analysis Report
CNH GLOBAL NV (CNH): Free Stock Analysis Report
ICICI BANK LTD (IBN): Free Stock Analysis Report
JOY GLOBAL INC (JOY): Free Stock Analysis Report
WESTERN UNION (WU): Free Stock Analysis Report
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Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024