There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Qurate Retail Group Inc (NASDAQ:QRTEA), Scorpio Bulkers (NYSE:SALT) and PCM Inc (NASDAQ:PCMI) with bullish sentiments.
Qurate Retail Group Inc (QRTEA)
In a report released yesterday, Barton Crockett from B.Riley FBR maintained a Buy rating on Qurate Retail Group Inc, with a price target of $30. The company’s shares opened today at $22.40.
Crockett commented:
“Last week, Qurate (QRTEA – Buy, $30 PT) announced a 60% hike to its gross synergy target for the recent HSN merger. The upped synergy guide, we believe, pretty much collapses the margin differential between HSN and QVC U.S. and leaves potential, in our vlew, for even more HSN margin improvement down the road —if Qurate, over time, can transition HSN to QVC’s much better TV carriage terms. With this note, we adjust our estimates for the upped synergy guide, with reinvestment of some of this into new initiatives and 1x restructuring charges. We end up with 2H18E/2019E adjusted OIBDA over 4% above the FactSet consensus that does not yet seem to incorporate this extra cost cutting.”
According to TipRanks.com, Crockett is a 4-star analyst with an average return of 4.5% and a 54.5% 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 Sirius XM Holdings Inc.
Qurate Retail Group Inc has an analyst consensus of Moderate Buy, with a price target consensus of $26.33.
See today’s analyst top recommended stocks >>
Scorpio Bulkers (SALT)
B.Riley FBR analyst Liam Burke maintained a Buy rating on Scorpio Bulkers yesterday and set a price target of $9.50. The company’s shares opened today at $6.53, close to its 52-week low of $6.12.
Burke observed:
“We are maintaining our Buy rating and $9.50 per share price target on Scorpio Bulkers Inc. (SALT). Scorpio reported 3Q results that were consistent with increasing rates. We believe that Scorpio is well positioned to capitalize on favorable market supply/demand dynamics. It is a cost-effective operator with a very young fleet that is operating in an environment in which older vessels will be at an extreme cost disadvantage and where the supply of available vessels is tightening due to lower shipyard output and increased scrap rates. With a strong demand profile supported by high-quality assets, we expect Scorpio’s revenue growth and margin profiles to improve significantly, which should translate into strong free cash flow generation.”
According to TipRanks.com, Burke is a 1-star analyst with an average return of -0.7% and a 43.9% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, Lincoln Electric Holdings, and Carlisle Companies Inc.
Currently, the analyst consensus on Scorpio Bulkers is a Strong Buy with an average price target of $10.17, implying a 55.7% upside from current levels. In a report issued on October 11, Noble Financial also assigned a Buy rating to the stock with a $10 price target.
.
PCM Inc (PCMI)
In a report released today, Kara Anderson from B.Riley FBR maintained a Buy rating on PCM Inc, with a price target of $25. The company’s shares opened today at $18.03.
Anderson commented:
“Buy-rated PCM, Inc. (PCMI, $25 PT) will report 3Q18 results after market close on Wednesday, October 24. We forecast revenue, adjusted EBITDA, and adjusted EPS of $551.7 million, $12.9 million and $0.48, versus consensus of $555.5 million, $13.5 million and $0.50, respectively. We are looking for an in-line-with-consensus print. While our numbers are slightly below consensus, we believe there is still potential upside to our estimates, as we continue to model slightly below the low end of the company’s full-year EPS guide, which management increased at its last earnings release as a result of seeing more profitable sales engagements.”
According to TipRanks.com, Anderson is a 4-star analyst with an average return of 6.1% and a 45.0% success rate. Anderson covers the Services sector, focusing on stocks such as Spark Networks Plc, Nutrisystem Inc, and TheStreet.
Currently, the analyst consensus on PCM Inc is a Moderate Buy with an average price target of $23.50.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
