Equity Analysis: Navistar, Zoll Medical, eResearch Tech, Intuitive Surgical, PPG
Navistar International Corp. (NYSE:NAV): Deutsche Bank says it does not expect Navistar to change its EGR emissions strategy despite growing investor concern. Deutsche finds it unfortunate that Navistar elected to delay addressing its emissions strategy until the company’s analyst day on February 1, but adds that while emissions credit shortfalls could hurt earnings, the company would still be able to produce engines and sell trucks even if the credits ran out. Deutsche Bank keeps a Buy rating on Navistar shares.
ZOLL Medical Corp. (NASDAQ:ZOLL): SunTrust named ZOLL Medical a Top Pick due to its margin expansion story and top line growth. Shares are Buy rated with a $100 price target.
eResearch Technology (ERT): Leerink believes shares of eResearch may continue to rise on takeover speculation in the near-term following yesterday’s report that he company may put itself up for sale, but the firm is not convinced eResearch will be able to sell itself. Leerink believes believe CEO Jeff Litwin wants to try and improve margins and turn the company around before possibly selling the business, and says it is not a buyer of the stock. However, Leerink thinks a larger competitor in the clinical CRO business or Oracle (NASDAQ:ORCL) could make suitable acquirers of the company.
Intuitive Surgical, Inc. (NASDAQ:ISRG): Collins Stewart notes that while Intuitive Surgical’s Q4 results topped expectations across most metrics, the company’s procedure growth of 27% missed the firm’s 30% estimate, which management attributed to a temporary slowdown in European procedures at the end of the quarter. Collins Stewart expects Intuitive Surgical shares to take a breather before resuming another leg higher, and keeps a Buy rating on the stock with an increased price target.
PPG Industries Inc. (NYSE:PPG): Susquehanna raised its price target on PPG Industries following Q4 results. The firm cited lower natural gas prices, growth in auto, industrial coatings, and optical products, and improved gross margins. Shares are Positive rated.
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