Stock Analysts’ Upgrades for September, 19th (ARAY, ASOMF, BXS, CINF, COST, IMXCF, IPSEY, KORS, MSCC, NAVI)

Stock Analysts’ upgrades for Tuesday, September 19th:

Accuray (NASDAQ:ARAY) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Over the past year, Accuray has underperformed the broader industry with respect to price. Accuray reported wider-than-expected loss in the fourth quarter of fiscal 2017, primarily due to lackluster performance in the service revenue segment. The company issued solid fiscal 2018 guidance. Of the recent developments, orders for the latest Radixact System, solid revenue performance in APAC and Japanese regulatory approval for Radixact are key positives in our view. However, unfavorable product mix, declining service revenues, sluggish macro economic conditions and pricing headwinds are major concerns. Notably, China and Europe saw sluggish revenues in the fourth quarter. Accuray’s significant international presence helps broaden its customer base. However, fluctuations in currency exchange rates, particularly with a strong dollar, will continue to adversely impact the company’s backlog and top line.”

Asos Plc (OTC:ASOMF) was upgraded by analysts at Credit Suisse Group from an underperform rating to a neutral rating.

BancorpSouth (NYSE:BXS) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $34.00 price target on the stock. According to Zacks, “Shares of BancorpSouth have outperformed the industry over the past year. The performance was supported by the company’s impressive earnings surprise history.  It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Given a strong balance sheet position, the company has been steadily enhancing shareholders’ value through strategic acquisitions, dividend hikes and share buybacks. Notably, the company has entered into an Agreement and Plan of Reorganization whereby BancorpSouth will be merged with and into its wholly-owned bank subsidiary, BancorpSouth Bank. Further, its efforts to enhance non-interest income will go a long way in supporting the bottom line. Though, continued pressure on margin due to lower yields remains a major concern, BancorpSouth’s expense management initiatives keep us encouraged.”

Cincinnati Financial Corporation (NASDAQ:CINF) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $85.00 price target on the stock. According to Zacks, “Shares of Cincinnati Financial have outperformed the industry, quarter to date. Moreover, the company witnessed its 2017 and 2018 estimates moving north over the last 60 days. Cincinnati Financial’s low leverage, ample capital, consistent cash flow generation, favorable reserve release, share repurchases and consistent dividend hikes should drive growth. Management is appointing agencies and expanding product offerings to ramp up the business. The company continues to see net investment income growth and expects to retain the momentum in the near term as well. However, Cincinnati Financial’s exposure to cat losses and a continued turmoil in group benefits associated with the ACA are headwinds. The insurer has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss.”

Costco Wholesale Corporation (NASDAQ:COST) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $180.00 price target on the stock. According to Zacks, “Costco continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered. The stock has outpaced the industry in a year. This came on the backdrop of continued sturdy comps performance and upbeat results in third-quarter fiscal 2017, thereby sidelining the woes, which have gripped the brick-and-mortar retailers for some time now. Major chains are grappling with soft store and mall traffic as consumers choose to shop online. But Costco seems somewhat unfazed by tough retail scenario. We believe that the hike in annual membership fees and increased penetration of Citi Visa co-brand card program will also benefit the stock in the near term. We are also encouraged by Costco’s expansion strategy, as it remains committed to opening new clubs and expanding e-Commerce capabilities. However, stiff competition and cautious consumer spending remain causes of concern. Of late, estimates have been stable.”

Imax China Hldg In (NASDAQ:IMXCF) was upgraded by analysts at Goldman Sachs Group, Inc. (The) from a neutral rating to a buy rating.

Ipsen Sa Adr (OTCMKTS:IPSEY) was upgraded by analysts at Societe Generale from a hold rating to a buy rating.

Michael Kors Holdings Limited (NYSE:KORS) was upgraded by analysts at CIBC from a market perform rating to an outperform rating. The firm currently has $55.00 target price on the stock, up from their previous target price of $44.00.

Microsemi Corporation (NASDAQ:MSCC) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $56.00 target price on the stock. According to Zacks, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. Third-quarter fiscal 2017 non-GAAP earnings beat the Zacks Consensus Estimate while revenues were in line with the same. The company's focus on improving product mix, operational efficiency, and consolidation are driving revenues and margins through 2017. Moreover, we have confidence in the company's strategic positioning, strong fundamentals and growth prospects. Microsemi's scope for margin expansion and decent balance sheet are the other positives. However, pockets of weakness related to product transition at medical customers, push-out of some communications spending in China and a softer oil & gas market continue to impact revenues. Year to date, the stock has underperformed the industry it belongs to.”

Navient Corporation (NASDAQ:NAVI) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Navient’s shares have underperformed the industry over the last six months. The company does not have an impressive earnings surprise history. It missed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Also, the U.S. student loan industry is currently under heightened regulatory scrutiny over alleged anti-consumer practices. Navient, which services large number of student loans, is under regulatory claims and litigation burden owing to its practices in handling loans. However, it benefits from the ongoing economic recovery and remains focused on leveraging its asset recovery & processing businesses. Further, we remain encouraged as the company remains focused on growth opportunities to boost overall business.”

People’s United Financial (NASDAQ:PBCT) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $19.00 price target on the stock. According to Zacks, “Shares of People’s United have underperformed the industry in the last three months. The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The company is steadily growing through acquisitions, which is likely to continue in the near future, given its strong balance sheet position. People’s United’s focus on improving credit quality is another positive factor. Also, the company’s steady capital deployment activities continue to enhance investors’ confidence. However, escalating expenses despite undertaking initiatives to curb costs remains a concern.”

PS Business Parks (NYSE:PSB) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $152.00 target price on the stock. According to Zacks, “Shares of PS Business Parks have outperformed the industry it belongs to, year to date. The stock has seen the Zacks Consensus Estimate for current-year funds from operations (FFO) per share being revised upward in two months’ time. Notably, the company’s diversified portfolio and ample liquidity augur well for long-term growth. While healthy fundamentals in the multi-tenant flex, office and industrial asset categories are anticipated to stoke growth, portfolio repositioning strategies will likely help the company emerge stronger. However, unfavorable leasing environment in certain markets and hike in interest rates remain key concerns.”

Synovus Financial Corp. (NYSE:SNV) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $49.00 target price on the stock. According to Zacks, “Shares of Synovus have outperformed the industry year to date. This price performance is backed by impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. We believe the company’s organic and inorganic growth strategies position the company well for the future. Further, Synovus’ focus on balance-sheet growth encourages us. The company’s impressive capital deployment activities reflect its strong capital position. Though escalating expenses remain a concern, the margin pressure also seems to be easing on the back of gradually improving rate scenario.”

State Street Corporation (NYSE:STT) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $106.00 price target on the stock. According to Zacks, “Shares of State Street have significantly outperformed the industry, over the past six months. This performance was supported by the company’s impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Further, the company remains on track to improve efficiency through its multi-year restructuring plan. New business wins, synergies from GE Asset Management deal, easing margin pressure and potential lesser regulations are likely to aid top-line growth. However, mounting expenses mainly owing to higher compensation and employee benefit costs are expected to hurt its profitability in the near-term.”

Texas Capital Bancshares (NASDAQ:TCBI) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. The firm currently has $90.00 price target on the stock. According to Zacks, “Shares of Texas Capital have outperformed the industry so far this year. This price performance is backed by the company’s decent earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company’s diversified fee income sources should continue driving its top-line growth. Moreover, Texas Capital’s strong capital position keep it well poised for opportunistic expansions. Though, lack of geographical diversification and significantly mounting expenses keep us apprehensive, Texas Capital’s margins have relaxed to some extent, following the three rate hikes since December 2016.”

Teradyne (NYSE:TER) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $40.00 target price on the stock. According to Zacks, “Teradyne is a leading provider of automated test equipment. On a year-to-date basis, the stock has outperformed the industry it belongs to. Also, Teradyne’s second quarter results surpassed the Zacks Consensus Estimate on earnings and revenue. A recovery in the core semiconductor business (processors, MCUs and power management), long-term opportunities in the high-growth wireless test market, growing memory market exposure, strong product lineup, lean cost structure and strong balance sheet are positives. Given the popularity of its products, the Universal Robots acquisition and the continuous design win momentum; the company is optimistic long-term prospects. However, weakness in the wireless test market could be a concern in the near term.”

Total System Services (NYSE:TSS) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $74.00 target price on the stock. According to Zacks, “Shares of Total System have outperformed its industry year to date. The company is set to benefit from its robust NetSpend business, while the TransFirst acquisition will support its merchant acquiring business. A number of acquisitions made by it have contributed to overall growth. Its second-quarter earnings beat the Zacks Consensus Estimate and grew year over year.  Following strong performance in first-half of the year, the company pulled up its 2017 earnings guidance, which instills investors' confidence. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.5% upward over the last 60 days. “

Tullow Oil (OTC:TUWLF) was upgraded by analysts at Credit Suisse Group from a neutral rating to an outperform rating.

Visa (NYSE:V) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $117.00 price target on the stock. According to Zacks, “Shares of Visa have outperformed the industry, year to date. Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for the company's long-term growth. Visa is well poised to gain from the growing electronic payment processing and strong international business. A solid balance sheet position ensures effective capital deployment. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.8% upward over the last 60 days.”

Vivendi SA (OTCMKTS:VIVHY) was upgraded by analysts at HSBC Holdings plc from a hold rating to a buy rating.

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