Safeway (NYSE:SWY): Following Safeway’s agreement to sell just over 200 stores in Canada, Cantor points out that Canada accounted for most Safeway’s consolidated earnings. The firm thinks that the company will be left with a fraction of its existing earnings base, a 1.3 percent operating margin business in the U.S., and keeps a Sell rating on the stock.
International Paper (NYSE:IP): Goldman Sachs has brought International Paper from Neutral to Conviction Buy, based on leverage to U.S. containerboard, improving free-cash flow, and shareholder cash returns through buybacks and dividends. The price target raised to $55 from $50.
Royal Bank of Scotland (NYSE:RBS): Deutsche Bank has downgraded the Royal Bank of Scotland to Sell from Hold, citing valuation and uncertainty from the departure of CEO Stephen Hester.
Infosys (NASDAQ:INFY): Following the announcement that Infosys will be initiating an 8 percent or so pay raise for its India-based employees and an approximately 3 percent raise for some non-India based employees, Wells Fargo points out that the company’s EPS is usually down year-over-year after it announces pay increases. The Street currently expects EPS to be flat in Q2, notes the firm, which keeps a Market Perform rating on the stock.
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