Paula Torch at Avondale Partners really likes the look of AmSurg following the surgery center and physician services company's second-quarter profit report. The integration of the Sheridan physician services business is running smoothly, she says, while organic growth is topping expectations and the acquisition pipeline is solid. In response, Torch has hiked her price target for AmSurg (Ticker: AMSG) all the way to $90 from $74. After popping this week on the heels of the Q2 report, AmSurg is changing hands Thursday morning at almost $84.
Given the 1H performance and Management's execution thus far, 2015 guidance could still wind up being conservative as we expect strong ASC and PS metrics to continue. Furthermore, we feel more comfortable with AMSG's cross-selling initiatives, which are above internal expectations and its ability to execute on JV partnerships.
RBC Capital Markets analyst Brad Heffern has reiterated his 'outperform' rating on shares of Delek US Holdings in the wake of the company's Q2 earnings report. But he has lifted his price target for the Brentwood-based company to $44 from $42. That leaves more than 25 percent of upside from where Delek (Ticker: DK) is changing hands Thursday morning.
Building materials manufacturer Louisiana-Pacific on Tuesday posted a second-quarter loss of $19.5 million, a year after it eked out a small profit. Sales fell 5 percent during the quarter to $493 million, with shipments of the company's core oriented strand board products rising 11 percent but prices falling 15 percent.
"The continued weakness in OSB pricing in the quarter, we believe, was caused by the reduction in demand due to very wet weather in the middle of the country, including Texas," said CEO Curt Stevens. "With the distribution channel relatively full coming out of the first quarter, re-ordering was at a slower pace than anticipated."
Stevens said the second-half outlook for housing starsts is promising. In mid-morning trading, shares of LP (Ticker: LPX) were down slightly to $15.61.
Executives at oil refiner and marketer Delek US Holdings said the company's Q2 profit came in at $48.3 million, down from $54.9 million in the year-earlier period. Revenues slipped to $1.69 billion from $2.37 billion as oil prices and operating income fell to $79.8 million from $106 million.
Chairman, President and CEO Uzi Yemin said the company's Texas refinery put up strong numbers after a March expansion project and that their Arkansas refinery now has access to crude oil from an Exxon pipeline that that company recently reversed. Delek's 360-store retail business saw its fuel margin slip to 15.3 cents from 19.3 cents, which cut its contribution margin 14 percent to $14.3 million.
Looking ahead, Yemin said Delek's capital spending needs will drop off in the second half, "which should create the potential for increased free cash flow from our operations." At about 11:15 a.m., shares of the company (Ticker: DK) were changing hands at $34.64, up 0.6 percent on the day.
Brian Martin at FIG Partners has lowered his rating on shares of Pinnacle Financial Partners to 'market perform' from 'market outperform' following the bank holding company's Q2 profit report. Before the report, Martin's price target was $53, just a bit above where Pinnacle (Ticker: PNFP) is changing hands today. Over at SunTrust Robinson Humphrey, analysts have trimmed their price target for Nashville-based Pinnacle to $62 from $63 but maintained his 'buy' rating.
Macquarie analyst Vikas Dwivedi has launched coverage of several refining stocks with positive ratings, saying the sector will benefit from tight capacity and solid financials. Among the companies getting 'outperform' ratings is Brentwood-based Delek US Holdings. Mid-morning Tuesday, Delek (Ticker: DK) was trading at about $36.50. So far this year, they're up 34 percent.
The board of Delek US Holdings has grown to six as a result of the company's recent purchase of 48 percent of Texas-based Alon USA Energy. Yonel Cohen, one of the Alon USA board members who stepped aside to make room for five Delek representatives, was added to the Delek board last week and will hold his seat until the company's 2016 annual meeting.
One of the biggest names in the global hedge fund industry likes the look of Delek US Holdings. In a filing with the Securities and Exchange Commision, the managers at Citadel say they now own 5.6 percent of Brentwood-based Delek, which last month said it planned to buy nearly half of Texas-based Alon USA Energy. Chicago-based Citadel, which manages $25 billion in capital, becomes the seventh entity to hold at least 5 percent of Delek.
Shares of Delek (Ticker: DK) are up about 1 percent this morning to $35.75. So far this year, they've climbed about 30 percent.
RBC Capital Markets analyst Paul Quinn has boosted his rating on shares of Louisiana-Pacific to 'sector perform' from 'underperform,' citing a positive outlook for the price of oriented strand board because of limited inventory coming to market soon. But Quinn's price target of $15 is still about 8 percent below where LP (Ticker: LPX) ended Monday's session.
Over at Goldman Sachs, analyst Neil Mehta has gone the other way with shares of Delek US Holdings and a number of other oil refiners, cutting them from 'buy' to 'neutral.' Mehta now has a price target of $43 on Delek, which has climbed about 40 percent year to date. His call helped take Delek down almost 5 percent Monday, with shares (Ticker: DK) closing at $37.80.
"While we recognize further upside may exist from restructuring/M&A optionality at DK: (1) risk/reward appears more balanced after share price strength and (2) we expect WTI-Midland differentials will stay compressed with new pipeline capacity additions," the analysts explained.
Delek Logistics Partners will pay almost $62 million to Delek US Holdings, aka The Mothership, for a storage tank at Delek US' refinery in Tyler, Texas, and some unloading racks at its Arkansas plant. The acquisition will add $6.7 million annually to Delek Logistics' EBITDA, which Chairman and CEO Uzi Yemin wants to get to $150 million by year's end. Check out more details here.
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