There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Genco Shipping (GNK), Nexstar (NXST) and L Brands (LB) with bullish sentiments.
Genco Shipping (GNK)
B.Riley FBR analyst Liam Burke maintained a Buy rating on Genco Shipping yesterday and set a price target of $22. The company’s shares opened today at $10.10, close to its 52-week low of $9.75.
Burke said:
“We are maintaining our Buy rating and $22.00 price target on Genco Shipping & Trading Limited (GNK) with a Buy rating and a 12-month price target of $22.00 per share. With a diversified fleet to capture value in both major and minor commodity end markets, we believe that Genco is well positioned for steadily increasing time charter equivalents (TCEs) to drive strong operating leverage and free cash flow. The company continues to redirect its fleet by opportunistically investing in high-return assets in a favorable supply/demand environment while divesting of areas that are not core to management’s strategy. GNK shares have underperformed the market despite a positive fundamental outlook, and the company has a strong balance sheet to provide the flexibility to create shareholder value through selective investments in its fleet.”
According to TipRanks.com, Burke is a 1-star analyst with an average return of -0.9% and a 49.6% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, International Seaways Inc, and Carlisle Companies Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Genco Shipping with a $22.75 average price target.
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Nexstar (NXST)
B.Riley FBR analyst Barton Crockett maintained a Buy rating on Nexstar yesterday and set a price target of $92. The company’s shares opened today at $81.42.
Crockett commented:
“Nexstar’s (NXST-Buy, $92 PT) 3Q18 revenues, adj. EBITDA, and EPS topped estimates, as Nexstar joined peers in participating in a record surge of political ads on TV, and also booked a nice step up in retransmission. The company’s 3Q18 political advertising rose over 50% on a comparable station basis in 3Q18 from the 2014 mid-terms, and is pacing to “meaningfully exceed” the high end of full year political guidance. But the company isn’t disclosing the full year political figure in the release. Presumably, that will come on the call.”
According to TipRanks.com, Crockett is a 4-star analyst with an average return of 4.3% and a 54.6% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Lions Gate Ent Corp Cl A, and Qurate Retail Group Inc.
Currently, the analyst consensus on Nexstar is a Strong Buy with an average price target of $99.33, representing a 22.0% upside. In a report released yesterday, Barrington also maintained a Buy rating on the stock with a $110 price target.
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L Brands (LB)
In a report released today, Susan Anderson from B.Riley FBR reiterated a Buy rating on L Brands, with a price target of $44. The company’s shares opened today at $36.94.
Anderson noted:
“L Brands (LB) reported October SSS of +4.0%, well above the B. Riley FBR/consensus estimates of +1.4%/+1.0% and +2.0% LY driven by BBW. October’s merch margin declined significantly Y/ Y , driven by de-leverage at VS due to increased promotional activity, which more than offset better merch margin performance at BBW. Inventories per square foot increased +10% Y/Y , although management noted only a +5% increase on a 2-year basis, which was in line with their expectations. BBW significantly outperformed expectations once again, posting a +11% comp, following +13% SSS growth in September. We note that the strong result came despite a pullback of promotional activity.”
According to TipRanks.com, Anderson is a 4-star analyst with an average return of 6.2% and a 54.1% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.
The word on The Street in general, suggests a Hold analyst consensus rating for L Brands with a $32.16 average price target, implying a -12.9% downside from current levels. In a report issued on October 25, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $36 price target.
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