The Zacks Analyst Blog Highlights: Kimco Realty, Target, Nordstrom, Wal-Mart Stores and Chicago Bridge & Iron

 The Zacks Analyst Blog Highlights: Kimco Realty, Target, Nordstrom, Wal-Mart
                       Stores and Chicago Bridge & Iron

PR Newswire

CHICAGO, July 15, 2013

CHICAGO, July 15, 2013 /PRNewswire/ announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Kimco Realty Corp. (NYSE:KIM-Free
Report), Target Corp. (NYSE:TGT-Free Report), Nordstrom Inc. (NYSE:JWN-Free
Report), Wal-Mart Stores Inc. (NYSE:WMT-Free Report) and Chicago Bridge & Iron
(NYSE:CBI-Free Report).


Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Kimco Reveals 2Q Transaction Update

Kimco Realty Corp. (NYSE:KIM-Free Report) – a retail real estate investment
trust (REIT) – recently unveiled its second-quarter 2013 transaction
activities. During the quarter, the company's investments totaled to around
$172 million, while the proceeds from divestitures amounted to about $307


During the quarter, Kimco bought 2 former joint venture (JV) properties namely
'The Marketplace at Factoria' and 'Canyon Square Plaza'. The assets spanning
607,000 square feet were acquired for $146.6 million.

Wash.-based shopping center, The Marketplace at Factoria is situated in the
prosperous Seattle community of Bellevue. The property, which is 94% leased,
boasts a cluster of retail giants such as Target Corp. (NYSE:TGT-Free Report),
Nordstrom Inc. (NYSE:JWN-Free Report) and Wal-Mart Stores Inc. (NYSE:WMT-Free
Report). On the other hand, Calif.-based Canyon Square Plaza is in the Los
Angeles-Long Beach-Santa Ana MSA (Metropolitan Statistical Area). The property
is a grocery-anchored center and occupied by a North American grocery company,

Moreover, during the quarter, Kimco increased its stake in 3 existing
institutional JVs – Kimco-UBS ('KUBS'), Kimco Income Fund I ('KIF I') and
Kimco Income REIT ('KIR') – for $133.3 million.


During second-quarter 2013, Kimco disposed 11 U.S. shopping centers for $71.6
million, of which the company's share was $36.9 million.Since the initiation
of its asset-recycling program in 2010, Kimco has sold 121 properties spanning
11.9 million square feet, for $907.2 million. Of this, Kimco's share was
$551.4 million.

In addition, the company sold 9 assets of its Mexican shopping center
portfolio to a local real estate operator for 3.35 billion Mexican pesos ($274
million), of which company's share was $93 million.

Non-Retail Portfolio Update

In tune with the monetization of non-retail assets, Kimco reduced its
non-retail investment portfolio by $177.9 million (46%) during second-quarter
2013. Notably, the non-retail portfolio is presently at its lowest level,
since 2010, and represents below 2% of gross assets.

Moreover, during the second quarter, Kimco and its JV partner – American
Industries – decided to sell their interests in several trusts that hold
Mexican industrial properties portfolio. The assets proposed for sale to
Terrafina – a Mexican REIT – were valued at about $600 million.

Our Viewpoint

We remain impressed with Kimco's strategic move of restructuring the overall
portfolio through divestiture of non-strategic assets and acquisition of
high-quality properties. Moreover, acquiring interests in existing JVs go well
with the company's core operating strategy. This augurs well for future
earnings as the properties are positioned mostly in high-income, high-growth
areas. Moreover, the high credit tenant retention limits the downside risks
and provides a long-term steady source of rental income for the company.

Kimco is scheduled to release second-quarter 2013 results on Jul 30, after the
closing bell. The Zacks Consensus Estimate for second-quarter funds from
operations (FFO) is currently pegged at 33 cents per share.

Kimco has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of 0.00%
for the second quarter. This, along with its Zacks Rank #3 (Hold), reduces the
chances of a positive earnings surprise.

Note: FFO, a widely accepted and reported measure of the performance of REITs
is derived by adding depreciation, amortization and other non-cash expenses to
net income.

Chicago Bridge & Iron: Strong Buy

On July 11, Zacks Investment Research upgradedChicago Bridge & Iron
(NYSE:CBI-Free Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Strong order activity coupled with rising demand for energy infrastructure,
especially in the liquefied natural gas (LNG), gas processing and oil sands
markets across the world, are expected to lead to a positive earnings surprise
in the upcoming quarter.

The surge in shale gas revolution in North America and the recent approval
from the U.S. Department of Energy (DOE) for the export of LNG has created a
strong opportunity and thereby a good market for Chicago Bridge & Iron. The
company is benefiting from this potential in LNG market and has been receiving
a steady inflow of orders from the world's largest refineries and oil & gas
facilities. The company's order pipeline primarily comprises front-end
engineering and design (FEED) analysis of key projects. 

In addition, CBI is already an established niche player in the LNG market,
supported by its ability to participate in multiple stages of development and
strong base for investments. Given the potential surge in the manufacturing
and export of LNG worldwide, CBI expects strong demand specifically for
LNG/low temperature storage systems (petrochemicals), an area where Chicago
Bridge & Iron plans to aggressively capture market share. 

On May 6, 2013, CBI reported first quarter fiscal 2013 results, with earnings
per share of 82 cents, down 20.4% from the Zacks Consensus Estimate of $1.03.
However, earnings were up 36.7% year over year driven by strong project
activities and robust backlog during the reported quarter.

Revenues for the quarter jumped 87.4% year over year to $2.3 billion, driven
by the rising demand for energy infrastructure.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.

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