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Analysts Weigh In on Stocks: Upgrades and Downgrades Across the Board

Strategic Insights

— 1 min read

As a result of recent discussions with industry experts and analysis of company performance, several ratings changes have been announced, with both upgrades and downgrades across various sectors. Keybanc upgraded Aspen Technology to sector weight from overweight, citing double-digit growth potential for license revenue and a rise in free cash flow to 18% to 20%. Conversely, J.P. Morgan downgraded Deere & Co. to underweight from neutral, attributing the decision to the current dire state of the agriculture industry.

Key Takeaways:

  • Aspen Technology was upgraded by Keybanc to sector weight from overweight, with a 12-month price target of $50.
  • Analysts believe license revenue could grow by double digits, and free cash flow could rise to 18% to 20%.
  • J.P. Morgan downgraded Deere & Co. to underweight from neutral, citing concerns about the agriculture industry's liquidity crunch.
  • Analysts recently met with industry experts, dealers, and farmers in the Midwest, finding that the industry is in dire straits with potential for a liquidity crunch.
  • BMO Capital Markets upgraded J.C. Penney to market perform from underperform, with a 12-month price target of $8.
  • Analysts are growing confident in J.C. Penney's ability to achieve its 2017 EBITDA target of $1.2 billion.
  • Kansas City Southern was downgraded by Credit Suisse to neutral from outperform, with a 12-month price target of $101.
  • Analysts are concerned about idiosyncratic service issues impacting core growth areas in the short term.
  • OCI Partners was downgraded by Citigroup to neutral from buy, with a 12-month price target of $18.
  • Citigroup's analysts view the risk/reward as less attractive due to proposed IRS regulations making methanol production less eligible for MLP qualifying income.

Statistics:

  • Aspen Technology's 12-month price target is $50.
  • Free cash flow for Aspen Technology could rise to 18% to 20%.
  • Deere & Co.'s 12-month price target is $84.
  • J.C. Penney's 12-month price target is $8.
  • Kansas City Southern's 12-month price target is $101.
  • OCI Partners' 12-month price target is $18.

Sources:

  • Keybanc research on Aspen Technology
  • J.P. Morgan research on Deere & Co.
  • BMO Capital Markets research on J.C. Penney
  • Credit Suisse research on Kansas City Southern
  • Citigroup research on OCI Partners
  • TheStreet Ratings on Precision Castparts
  • TheStreet Ratings on Thomson Reuters
  • Barclays research on Wynn Resorts
  • J.P. Morgan research on Yum! Brands

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