Dollar General Guidance Remains Conservative and 4 Stock Analyses Sparking Chatter

SPX Corporation (NYSE:SPW): Baird thinks that an acquisition of Gardner Denver (NYSE:GDI) by SPX corp (NYSE:SPW) could potentially be both a strategic fit and a be positive long-term. If a deal does begin, the firm predicts near-term weakness in SPX, and it continues to have worries regarding management execution and its pushed out earnings story. Despite the headwinds, SPX Corp. shares continue to have an Outperform rating and an $85 price target.

ALLETE, Inc. (NYSE:ALE): After the company’s reduced 2013 guidance, Baird claims that they would be buyers on any weakness in Allete. The firm thinks that the industrial customer growth story will keep to unfolding, and the company continues to be on track to provide a higher than average earnings growth over the long-term. Shares have an Outperform rating and a $47 price target.

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Dollar General Corporation (NYSE:DG) reported higher Q3 EPS than previously predicted, but the company also gave lower than expected FY12 adjusted EPS guidance. This has influenced RBC Capital to believe that the company’s guidance is probably conservative. The firm keeps its Outperform rating but reduces its price target to $54 from $61 on the stock.

Liquidity Services, Inc. (NASDAQ:LQDT) reported a lower than expected rise in its November GSS, causing Oppenheimer to think that the company’s Q1 gross merchandise volume has begun to trend below its guidance. The firm believes thatthe company’s commercial segment could be its weak link, but it keeps its Outperform rating on the stock.

Genpact Ltd. (NYSE:G) shares are predicted by Baird to be weak after the announcement of a secondary offering. The firm is convinced that the ongoing secondary risk is minimal, and it believes that the company’s risk/reward is favorable due to its strong management team, execution, and potential upside to Q4 estimates. The firm gives the shares an Outperform rating and a $20 price target.

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