KeyBanc Upgrades BWAY Holding (BWY) to Buy; Attractive Entry Point Feb 10, 2010 07:22AM

KeyBanc upgrades BWAY Holding Company (NYSE: BWY) from Hold to Buy. Price target $20.

KeyBanc analyst says, "Following 1Q10 results, we are upgrading our rating on BWY to BUY as we believe the sell-off in shares has created an attractive entry point, with BWY trading at 4.7x our 2010 EBITDA estimate (vs. the historical average of 5.3x) and a free cash flow yield of 14.3% (vs. historical average of ~12%). We view valuation as attractive based on a multitude of factors that we expect to play out during 2010, including: 1) Continued execution of cost reduction initiatives and acquisition integration that leads to our estimate of $1.60 for 2010; 2) Volume growth in 2Q10 and possibly for the full year that represents upside to our estimates; 3) Savings from recent plant closures, which once completed are likely to be followed by additional plant closures in 2H10; and 4) Potential for additional acquisitions that we believe BWY will likely close after the integration of recently acquired operations are complete. We are confident in our earnings estimates for 2010, where growth accounts primarily for continued momentum of cost reductions and synergies from recent acquisitions. We believe the most likely driver of upside is a potential volume recovery, as our recent conversations with industry participants suggests volumes in at least the very near term could be up low to mid single digits. If sustained for the year, this could add as much as $0.20 to our EPS estimate (although this may be partially offset by increased incentive compensation). Overall, in the context of attractive valuation, we believe the catalysts of near-term earnings upside, potential volume recovery and sustainable improvement in plastics segment margins will be sufficient for shares to advance over the next 12 months."

To see all the upgrades/downgrades on shares of BWY, visit our Analyst Ratings page.


Wells Fargo Upgrades Apollo Investment Corp (AINV) to Outperform; Risk/Reward Compelling Feb 10, 2010 07:15AM

Wells Fargo upgrades Apollo Investment Corporation (Nasdaq: AINV) from Market Perform to Outperform. Valuation Range: $11.00 to $12.00 from $10.00 to $11.00

Wells analyst says, "Our more favorable outlook is based on our view that AINV remains well positioned to capitalize on a growing set of investment opportunities and that credit quality should improve as the cycle progresses. We believe the recent pullback in the shares presents an attractive entry point for yield oriented investors. We are reducing our FQ4’10 estimate to $0.30 from $0.31 but are maintaining our FY2011 estimate of $1.26. We are also introducing a FY2012 estimate of $1.28 and are raising our valuation range to $11-12 from $10-11..We believe the company's strategic focus on mezzanine debt should enable it to continue to post an above-average portfolio yield and ROE, especially given recent credit market improvement."

To see all the upgrades/downgrades on shares of AINV, visit our Analyst Ratings page.

Apollo Investment Corporation (Apollo Investment) is a closed-end, non-diversified management investment company that has filed an election to be treated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act).


FBR Research Upgrades Gaylord Entertainment (GET) to Outperform Feb 10, 2010 07:11AM

FBR Research upgrades Gaylord Entertainment (NYSE: GET) to Outperform. Price target increased from $17 to $25.

FBR analyst says, "Following yesterday's lackluster stock performance (stock is down about 15% year to date versus S&P 500 down 4%) despite strong results and an outlook that was much stronger than we expected, we are upgrading our rating on shares of GET to Outperform. Our 2010 and 2011 CCF estimates go to $188M from $175M and to $207M from $191M, respectively. We were pleasantly surprised with 4Q RevPAR "only" down 7% versus the upper-upscale segment down roughly 11% YOY and 2010 company RevPAR expected to be -2% to +1%. At 9.7x 2010E CCF and 8.4x 2011E CCF, GET trades at the least expensive valuation of the hotel owners. By comparison, we estimate Host Hotels & Resorts (NYSE: HST), DiamondRock Hospitality (NYSE: DRH), and Sunstone Hotel Investors (NYSE: SHO) trade between 12x-13x on 2011E EV/EBITDA. Additionally, we find GET's 2010E and 2011E free cash flow yields of 10% and 12% very attractive. The following key points support our rating on the stock."

To see all the upgrades/downgrades on shares of GET, visit our Analyst Ratings page.

Gaylord Entertainment Company (Gaylord) is a hospitality and entertainment company operating, through its subsidiaries.


BofA/Merrill Lynch Upgraded Dell (DELL) to Buy Feb 10, 2010 07:02AM

Bank of America Merrill Lynch upgraded Dell (Nasdaq: DELL) from Neutral to Buy and raised their price target from $16.50 to $18, citing the shares underperformance since November.

The firm said low investor sentiment, high short interest, compressed valuation, possible enterprise refresh, and likely positive EPS revisions should provide better share performance this year.

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Soleil Securities Upgrades Zebra Technologies (ZBRA) to Gradually Accumulate; Valuation Call Feb 9, 2010 03:44PM

Soleil Securities upgrades Zebra Technologies (Nasdaq: ZBRA) from Hold to Gradually Accumulate. Price target increased from $23 to $33.

Soleil analyst says, "Valuation is allowing us to raise the rating to Gradually Accumulate, while improving order trends, mfg outsourcing, new products and market share gains are enabling us to increase our 2010 EPS estimate to $1.51 (vs $1.26 previously); Our early earnings estimate for 2011 is $1.72 per share, a new record...With the shares, adjusted for the $4.20 per share in cash, now trading for only 15.5 times forward estimated earnings of $1.51 per share or 119% of their 13% projected 3-to-5-year EPS growth rate, we are upgrading the shares. Our 12-month price target is now $33 per share and is based on the shares, adjusted for the cash, reaching 19-20 times our 12 month forward earnings estimate. Additional impetus for the rating upgrade is our belief quarterly comparisons will look very good versus depressed prior year figures."

To see all the upgrades/downgrades on shares of ZBRA, visit our Analyst Ratings page.

Zebra Technologies Corporation (Zebra), designs, manufactures and sells specialty printing devices that print variable information on demand at the point of issuance.


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