Equity Insights May 11th: Goodyear, Nordstrom, Harley-Davidson, JPMorgan, Alere
JPMorgan Chase & Co. (NYSE:JPM): Citigroup lowered its price target for JPMorgan to reflect lower earnings and higher uncertainty after the company disclosed a $2B trading loss on synthetic credit positions. Citi is more concerned about regulatory and reputational risks as it believes JPMorgan’s balance sheet can handle the loss, and keeps a Buy rating on the stock.
Goodyear Tire & Rubber Co. (NYSE:GT): After spending time with management, Deutsche Bank said it has increased confidence in Goodyear Tire’s earnings outlook. The firm believes the stock looks increasingly attractive and keeps a Buy rating on the name with a $20 price target.
Nordstrom Inc. (NYSE:JWN): Citigroup reiterates a Buy rating and $63 price target on shares of Nordstrom following the company’s weaker than expected Q1 results. The firm believes that while investors may be disappointed with the company’s incremental spending, the investments should support high single-digit top-line growth over time.
Harley-Davidson, Inc. (NYSE:HOG): Citigroup’s channel checks indicate Harley-Davidson’s U.S. retail sales in are trending up 1%-3% in April/early May, following a 29% increase in March. Citi says that while investors may view the data point as negative, trends are volatile month to month and May/June sales should be more normalized. The firm keeps a Buy rating on the stock with a $61 price target.
Alere Inc. (NYSE:ALR): Leerink expects shares of Alere to be pressured further after the company disclosed that the FDA inspection related to certain Triage products has been clarified to incorporate all Triage meter-based products. The firm views the Department of Health and Human Services investigation as incremental sentiment downside, but keeps an Outperform rating on the stock. Leerink says the worst case scenario would be Alere’s Triage meter-based products being removed from the market, which it estimates would result in a 39c earnings hit.
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