GENERAL ELECTRIC (NYSE:GE):
- UBS (NYSE:UBS): We do not believe GE has any direct liability for the accident at Fukushima. However, we do see some modest risks related to the accident at GECS. We believe any possible loss of future nuclear reactor sales will be more offset by additional nuclear safety inspection work, higher growth rates for GE’s gas service business and incrementally higher demand for gas and wind turbines over the next few years.
- CITI (NYSE:C): Growth engine. Sales have grown at a CAGR of +13.0% since 2005, triple the rate of Walmart U.S. and Sam’s Club. Walmart International is expected to serve as a growth engine, with 24.6 million additional square feet planned in 2011.
WALT DISNEY (NYSE:DIS):
- MORGAN STANLEY (NYSE:MS): Attractive outlook. Led by ESPN, a strong film slate, and a recovering U.S. consumer at its domestic theme parks, Disney is in the midst of growth period that should average 20% EPS growth through FY12. At the domestic parks, we see margins ramping in FY11 and FY12, due to rising attendance and per cap spending as well as the introduction of two new cruise ships.
BED BATH & BEYOND (NASDAQ:BBBY):
- DEUTSCHE BANK (NYSE:DB): Good outlook. Focus will be on margins. We believe results will be at least in line with consensus and more likely than not, ahead. We believe the key stock driver will be gross margin results, as well as the outlook for gross margins as investors become concerned with BBY’s ability to pass through cotton inflation in the short term and mix issues longer term.
UNDER ARMOUR (NYSE:UA):
- UBS (NYSE:UBS): Stock is charging ahead. We believe UA has near-term input costs under control and don’t expect a significant change to 1H GM guidance. 4Q cost pressure could be worse than recent guidance, but we believe select price increases (already successfully tested) and strong factory store trends can offset incremental pressure. We believe UA is in the early stages of planning very broad based price increases for 2012 (similar to Nike).
COLFAX CORPORATION (NYSE:CFX):
- UBS (NYSE:UBS): Downgrade to neutral. CFX remains one of our favorite long-term stories with late cycle end markets, an opportunity to roll-up a highly fragmented industry and with the potential for substantial operational improvement. Further, CFX’s exposure to the commercial marine end market could lead to lower organic growth rates at CFX vs. its peers over the next year.