Two analysts covering Gaylord Entertainment have slashed their price targets on the stock but are taking decidedly different outlooks on the company following its Q3 loss. David Katz at Jefferies has slashed his price target to $20 from $27 and lowered his EBITDA outlook. He sees 2012 revenue per available room growing just 2.1 percent, which is at the low end of Gaylord's already cautious forecast. But at Avondale Partners, Fred Lowrance is still upbeat in the stock's prospects, pointing out that — despite softness at its Orlando and D.C. properties — the company is still on track to meet its original 2011 forecasts. Nevertheless, he has taken his target down to $28 from $51.
While investors are unlikely to assign a full multiple to any lodging company in this market, especially to a company like GET with market concentration issues, we still see ample upside opportunity in GET shares even after reining in multiples to historically low levels on lower 2012 earnings prospects.
Sam Margolin at Global Hunter Securities says Delek US Holdings should see its valuation rise now that it has acquired full control of Lion Oil. The deal, he says, gives the Brentwood-based company a broader platform that lowers its risk proflile and attracts more investors. He has launched coverage of Delek (Ticker: DK) with a 'buy' rating and a $20 price target.
The board of Mapco parent Delek US Holdings has voted to pay out a special dividend of 18 cents per share next month. The move will cost the company about $10 million above and beyond its usual quarterly payments, but that's no biggie: Delek — whose shares are up more than 90 percent year to date — finished the second quarter with almost $150 million in cash on its books.
“Our decision to issue a special cash dividend at this time reflects both the current financial strength of our business as well as our Board’s long-standing commitment to maximizing returns for our shareholders,” said Uzi Yemin, President and CEO of the Brentwood-based holding company.
Adam Feinstein at Barclays Capital says the recent Barron's piece critical of HCA's accounting practices is wide of the mark and that investors should "take advantage on any disruption in the share price resulting from this article." Feinstein has HCA at 'overweight' and sees the stock (Ticker: HCA) going to $30.
The market watchers at Energy Stock Channel say the technical indicators for Delek US Holdings are signaling a bottom. The relative strength of the Brentwood-based company's shares (Ticker: DK) has fallen below 30 after a one-month slide of more than 20 percent.
Delek US Holdings last month extended the contract of Executive Vice President Assi Ginzburg, one of its main representatives on the board of Lion Oil, in which Delek earlier this year took a majority stake. As part of his new deal, the 36-year-old Ginzburg last week received a hefty stock grant worth almost $2.8 million.
Deutsche Bank analysts have tempered their expectations for shares of hospital companies, which have yet to recover much of the ground lost last month when regulators unveiled plans to cut Medicare reimbursement rates. Deutsche has lowered its price target — but kept its 'buy rating — for Community Health Systems (Ticker: CYH) to $27 from $43. They see LifePoint Hospitals stock (Ticker: LPNT), which has bounced back best from August's slide, going to $46.50 and expect Vanguard Health Systems — which is off 40 percent from its June IPO — to climb back to $17. In short, there's plenty of upside, but a lot of uncertainty, too.
Over at Barclays Capital, Paul Cheng has lifted his price target for Delek US Holdings to $18 from $16. Brentwood-based Delek (Ticker: DK) has almost doubled in 2011, primarily on the back of strong refining results.
Convenience Store News checked in with Mapco executive Russ Shrewsberry, who is leading the company's push to expand its private-label offerings and sales. Those amounted to about 4 percent of Mapco's Q2 sales, but Shrewsberry is aiming for 10 percent. Part of that plan will building a number of larger stores.
The headline numbers for Delek US Holdings' retail operations in the second quarter showed drops in the unit's growth rate and operating margins. But underneath that data are signs that the company's pushes into private labels — same-store sales were up 70 percent from the spring of 2010 — and foodservice still have momentum.
- ALEX B FRUIN INHERITANCE TRUST; CANDACE F STEFANSIC INHERITANCE TRUST; CANDANCE F STEFANSIC INHERITANCE TRUST; FRUIN, ALEX B TRUSTEE; FRUIN ALEX B INHERITANCE TRUST; STEFANSIC, CANDACE F TRUSTEE; STEFANSIC CANDACE F INHERITANCE TRUST; STEFANSIC CANDANCE F INHERITANCE TRUST
- ROSS, BRIDGETT D
- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS