Wells Fargo (NYSE:WFC): Sterne Agee has downgraded shares of Wells, from Buy to Neutral, on the belief that the bank’s earnings growth is slowing, and it thinks the stock’s multiple is unlikely to meaningfully expand. It puts a $42 price target on the shares.
Safeway (NYSE:SWY): The sale of its high return Canadian asset should not be viewed as a catalyst for value expansion, but rather should lead to valuation challenges that are not reflected in the current share price, according to Susquehanna, which rates the shares at Negative with a $14 price target. The firm expects the remaining company to trade at a discount to where it was prior to the transaction.
Restoration Hardware (NYSE:RH): RW Baird has raised the price target from $60 to $74, following the company’s better than expected Q1 results. The firm believes the company’s business opportunities continue to grow supported by top line trends, an improved housing sector, and its real estate transformation. It rates the shares at Outperform.
Cliffs Natural Reseources (NYSE:CLF): JPMorgan believes Cliffs Natural’s contract extension with Essar Steel Algoma has positive implications for Cliffs’ core Great Lakes market, and questions why Algoma would extend the contract if the region faced a flood of new iron ore supply. It keeps an Overweight rating on the shares.
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