Jefferies Downgrades Core-Mark Holding (CORE) to Hold
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Jefferies downgraded Core-Mark Holding (NASDAQ: CORE) from Buy to Hold with a price target of $33.00.
Analyst Christopher Mandeville commented, "Although we appreciate CORE's disciplined bidding approach and believe the industry has not entered a new period of price wars, we are concerned over the loss of Circle K's Southeast as this could lead to N-T deleverage at the company's Tampa DC. While realignment efforts could provide some level of offset, we still see 2017 earnings risk vs.expectations (we are ~2% below cons.). Other topics that bear monitoring include Couche-Tard’s acquisition of CST (a top 5 acct.) and the need to still renew several Circle K regions (West/Southwest/ franchisees), which could both lead to L-T price concessions, and the bid process for CORE’s expiring RAD business (McLane services WBA). While valuation has come off highs and reflects the known negatives, we believe further multiple compression and/or earnings risk remains if any of the aforementioned unknowns come to fruition. L-T, we still believe CORE will be a winner within c-store distribution given its superior scale yet nimble/consistent execution; however, navigating the next few quarters could be difficult."
Shares of Core-Mark Holding closed at $36.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Downgrades Community Health (CYH) to Underperform
- Jefferies Remains Bullish Following Owens Corning's (OC) 3Q
- UPDATE: Stifel Downgrades Boston Properties Inc. (BXP) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesJefferies & Co, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!