From Standard & Poor's Equity ResearchCOWEN DOWNGRADES WATERS TO NEUTRAL FROM OUTPERFORM
Cowen analyst Doug Schenkel says Waters (WAT) cut fourth quarter sales guidance to $410-$420 million and $1.08-$1.12 EPS to $0.94-$0.99.
Schenkel notes instruments and recurring revenues are coming up light; most geographies other than China are challenging. He says the timing is a bit of a surprise given back-loaded nature of its fourth quarter. He cuts $3.32 2008 EPS estimate to $3.18, $3.65 for 2009 to $3.00 and $4.05 for 2010 to $3.45.
He notes as of yesterday's close, comparable stocks were trading at a 12.6 p-e; Agilent (A), which recently reduced its outlook, is trading at 12 times earnings; he ultimately believes WAT could settle in at close to these levels.
BB&T CAPITAL UPGRADES ANDERSONS TO BUY FROM HOLD
BB&T analyst Heather Jones says the fundamental outlook for Andersons (ANDE) is still challenged, but he believes the sell-off in ANDE shares has been overdone and discounts a more dire outlook than she views to be likely.
Jones notes ANDE recently lowered its 2008 guidance due to fertilizer inventory writedowns; however, she says producers have begun to constrain production and thinks demand should pick up early next year. Also she thinks it's worth emphasizing that ANDE benefits from a diversified business model, and conservative and competent management team.
She sets $24 12-month price target on the stock.