A number of analysts have tweaked their price targets for shares of Dollar General following the company’s second-quarter profit report, which investors met with a good bit of antipathy. Most of the Street moves so far have been positive, though: Scott Ciccarelli at RBC Capital has taken his target to $88 from $86 — Dollar General (Ticker: DG) is changing hands this morning around $74 — and Matt Boss at JPMorgan Chase is even more upbeat, having taken his target to $90 from $87.
Paul Trussell at Deutsche Bank is a little less upbeat — even though he is keeping his ‘buy’ rating — and has tweaked his target to $84 from $85. And Meredith Adler at Barclays is even less optimistic. She has an ‘equal weight’ rafting on Dollar General and, with a $76 target (up from $74), still sees the stock going nowhere for a while.
The equity research team at RBC Capital Markets says investors should stay in (or get back into) many of the names that were doing well before the market's recent slide. Among these "market darlings," they say, is Nashville-based HCA Holdings, which has fallen 10 percent in the past month — right in line with the S&P 500 Index. HCA (Ticker HCA) fell 1.7 percent Tuesday to $83.09.
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.
Shares of Dollar General (Ticker: DG) are up about 1.5 percent to about $77 after RBC Capital's Scott Ciccarelli upgraded the company to 'outperform' from 'sector perform' and lifted his price target to $86 from $82. Ciccarelli's upgrade came a day after Raymond James analyst Dan Wewer hiked his rating on Dollar General by two notches to 'strong buy,' saying the company is poised to crank its revenue growth up a notch. Wewer sees the stock climbing to $90.
Analysts at RBC Capital and Telsey Advisory Group have raised their price targets on shares of Dollar General after the retailer reported first-quarter profits that beat expectations. At RBC, Scott Ciccarelli now sees Dollar General (Ticker: DG) climbing to $82 from its Tuesday close of $74.92. His previous target had been $79. Making a similar call at Telsey is Joe Feldman: He now expects Dollar General will hit $83 in the coming quarters, up from his previous target of $80.
RBC Capital analyst Frank Morgan has reiterated his 'buy' rating for HCA Holdings.
Morgan also raised his price target for the Nashville company to $88. Last fall, his price target for HCA Holdings, which Wednesday previewed better than expected Q1 earnings, was $83.
Shares of HCA (Ticker: HCA) were down nearly 2 percent Thursday afternoon to $77.78. Year to date, they're up almost 6 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.
Investors in Louisiana-Pacific aren't going to have a very happy Thanksgiving after RBC Capital Markets analyst Paul Quinn downgraded shares of the building materials maker to 'underperform' from 'sector perform.' Quinn, who sees LP (Ticker: LPX) falling to $13 from its Tuesday close of $15.89, says prices for the company's core oriented strand board product will remain "depressed" for the next year because manufacturers have — again — ramped up production beyond what the market needs right now.
At about 11 a.m., LP shares were down more than 3 percent to $15.36. Volume was on pace to nearly double the stock's daily average.
RBC Capital analyst Frank Morgan has raised his price target on Acadia Healthcare to $78 from $58, the highest target among Acadia's analysts. He also affirmed his 'outperform' rating on the company.
Paula Torch at Avondale Partners also has lifted her price target on Acadia — to $75 from $58 — and maintained her 'outperform' rating. Torch called the company's acquisitions of CRC Health Group and Partnerships in Care "profitable and strategic" and expects future growth, both organically and through additional acquisitions.
Shares of Acadia (Ticker: ACHC) were up slightly to $60.61 Tuesday afternoon. Year to date, they're up 27 percent.
RBC Capital analyst Frank Morgan reiterated his 'outperform' rating for LifePoint Hospitals and raised his price target for the Nashville company to $94 from $89. The move comes after LifePoint reported strong Q3 numbers last week.
Separately, Paula Torch with Avondale Partners also reiterated her 'outperform' rating and $84 price target for the company. Torch said improvements in expense management, patient volumes and payer mix could accelerate growth, though economic pressures could increase the number of self-pay patients and affect positive volume trends.
Shares of LifePoint (Ticker: LPNT) fell 1 percent to $68.49 Monday. Year to date, they're up 31 percent.
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