Analysts: Bank of America’s Liability a Minor Negative and 3 More Research Notes to Peruse
Bank of America Corp. (NYSE:BAC): Wells Fargo sees the New York jury finding that Bank of America’s Countrywide Financial and one of its former executives are liable for defrauding Fannie Mae and Freddie Mac as a modest negative for the company; the firm believes Bank of America is likely to absorb the cost of the penalty within its unspecified litigation reserve.
Safeway Inc. (NYSE:SWY): Credit Suisse believes a potential buyout of Safeway by Cerberus makes compelling logic and that the company could fetch as high as $45 per share. The analyst said the benefits of a Safeway-Cerberus deal include a combined entity that would be the No. 1 or 2 player in 80 percent of 25 of its top markets, significant cost synergies, minimal FTC risk, a more rational competitive marketplace, and a more attractive public company in the future. Shares of Safeway are Outperform rated with a $45 price target, up from $40.
Skechers USA Inc. (NYSE:SKX): Susquehanna said the weakness in Skechers following its third-quarter results should be seen as a buying opportunity; the firm cited expectations for top-line growth and margin momentum driven by share gains in the U.S. and internationally. The firm rated Skechers shares a Positive with a $36 price target.
Urban Outfitters (NASDAQ:URBN): Atlantic Equities upgraded Urban Outfitters to Overweight from Neutral, noting such factors as valuation, overly negative sentiment, unique brand assortment, customer loyalty, and a higher income focus; the firm’s price target for Urban Outfitters stock is $44.