Baxter International Remains Compelling and 4 Stock Analyses to Watch

Allison Transmission Holdings (NYSE:ALSN): Piper Jaffray has begun coverage on Allison Transmission Holdings by giving it an Overweight rating and a $24 price target. Piper Jaffray stated, “Like many cap equipment stocks, ALSN’s end markets are currently characterized by a high degree of uncertainty. However, automatic transmissions are used in less than 5% of trucks and buses outside of the U.S., and as penetration increases in developing countries like China and India, we believe Allison’s quasi-monopoly status will allow the company to expand internationally even without material growth in underlying truck, bus, and machinery markets. This potential for market outperformance, coupled with 45%+ gross margins, should give investors faith in our 2013 estimates and lead to an above-average multiple of 9x 2013 EV/EBITDA.”

Baxter International Inc. (NYSE:BAX): Cowen has stated that the investor thesis for Baxter continues to be compelling after its Investor Day. The firm mentioned the company’s forecasts of achievable top and bottom line growth, accelerating free cash flow generation, and exposure to stronger end markets. Shares have an Outperform rating.

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Fiserv, Inc. (NASDAQ:FISV): Cowen said Fiserv’s valuation continues to be attractive after its Investor Day event due to its focus on returning shareholder value, its long term growth opportunities, and attractive free-cash flow and yield. Shares have an Outperform rating.

Mistras Group, Inc. (NYSE:MG): According to Baird, the company should be bought on any out-sized weakness after its Q1 results. The company beat on earnings but suggested reduced guidance as a result of weak service gross margins. Baird believes that Mistras will be weak but states that they would buy if shares fall into the low $20’s. The firm keeps its Outperform rating and a $26 price target on the stock.

Morgan Stanley (NYSE:MS) 2012 EPS estimates has been reduced by Wells Fargo to 25c from 85c due to the effects of non-core items like DVA/CVA. The firm keeps its Market Perform rating on the stock.

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