Nashville-based Chateau Industries has announced equipment acquisitions and new clients, the latest moves as the commercial casework and millwork company once called Chateau Cabinets ramps up its local operations.
In a release, vice president of operations Mark Bruton said Chateau Industries is now doing work for, among others, HCA (at its office tower project in the North Gulch's Capitol View site) and for Universal Builders Supply related to the Tennessee Department of Children's Services and the Office of the Tennessee Attorney General.
In addition, Bruton said the company has acquired equipment that has allowed for the implementation of an assembly line-type construction process that enables Chateau craftsmen to increase their overall production rate tenfold.
The company is not disclosing the cost of the machinery.
Bank of America Merrill Lynch analyst Doug Leggate says investors looking for a deal will do well to buy into Delek US Holdings here. Making a valuation call — Delek is down by a third over the past three months — Leggate has lifted his rating on the Brentwood-based parent of Mapco to 'neutral' from 'underperform' and has raised his price target to $35. That leaves almost 30 percent of upside from where Delek (Ticker: DK) opened this morning — although the stock is down about 4 percent today.
Gov. Bill Haslam's 10-minute pep talk Wednesday on the latest happenings in Tennessee's business stratosphere lacked any mention of the state's most high-profile investment: Volkswagen. But Haslam did address the topic in remarks after his formal address to the two-day Governor's Conference on Economic and Community Development at the Renaissance Hotel.
The German auto company announced earlier Wednesday that Winfried Vahland, the head of North American operations for less than a month, has left the company over disagreements about how to restructure the business. The move leaves Volkswagen without a continental face following revelations that the company equipped vehicles with devices to skirt diesel emissions tests.
“He was actually supposed to have visited Tennessee this week or last. I guess we know now why he didn't come,” joked Haslam when talking to reporters after his speech at the 62nd Annual Governor's Conference on Economic and Community Development. “The key thing is for Volkswagen to define the problem and say what they're going to do about it. I think until they do that, everybody's going to be looking with some doubt about what they're doing when what we need them to do is say, 'Hey, we're making a lot of good vehicles.' And we need them to get back to selling those vehicles.”
Tennessee invested an estimated $360 million of incentives to lure Volkswagen to the Volunteer state, with local governments coughing up another $220 million to manufacture the Passat here. Another $260 million is on the way between state and local governments for a second line of vehicles.
Before hundreds of people at the annual conference downtown, Haslam stressed how easy it is to sell businesses on locating to Tennessee. Connecting education to the workforce is a must, he said, and the need for a rural development initiative is real and a new project of his administration. The state's work on development is a team effort, he added, and said despite occasional disappointments, the outlook is encouraging.
Shares of Genesco are getting a boost today thanks to C.L. King analyst Steven Marotta, who has hiked his rating on the Nashville-based company to 'strong buy' from 'buy.' As of 11:10 a.m., Genesco (Ticker: GCO) was up almost 5 percent to $60.65. The shares are still down about 20 percent year to date, though.
Brookdale Senior Living stock is headed in the other direction today, thanks to Kevin Fischbeck at Bank of America Merrill Lynch's downgrade of the company to 'neutral.' Fischbeck's call comes a day after Brian Tanquilut at Jefferies trimmed his price target for Brookdale to $40 from $44. Late this morning, Brookdale (Ticker: BKD) was trading at $23 and change.
And lastly, Roger Read at Wells Fargo has grown more constructive on several parts of the energy sector. That led him to lift his ratings this week on Delek US Holdings and other oil refiners to 'outperform' from 'market perform.' Delek shares (Ticker: DK) are up slightly Thursday to about $27.50 and are flat year to date.
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