Standpoint Goes Positive on Gap (NYSE:GPS)

Gap had its rating boosted by Standpoint Research, as they said it was among the worst performers in the S&P during January, it was oversold.

Standpoint says, "GPS has dropped $2.80 (12.4%) since our downgrade and will probably start to head back up on same store sales and raised guidance news from pre-market this morning. Our target for next year is $24 (or 12X $2.00 in earnings potential). GPS was one of the worst performing names in the S&P during January and was oversold along with many others in its industry."

Standpoint upgraded Gap from "Hold" to "Buy." Gap was trading at $19.75, gaining $0.72, or 3.78 percent, as of 12:18 M EST. Standpoint has a price target of $24 on Gap.

Microsoft (NASDAQ:MSFT) Trading at Top End of Valuation

Standpoint Research said after successfully picking the bottom for Microsoft (NASDAQ:MSFT) in September, the company made a nice run since then, moving up by 19 percent. They now feel they're fully priced and can no longer recommend them.

Standpoint said, "We tried to pick a bottom on MSFT in September and were successful; ... The shares have bounced 19% in the (less than) four months since our recommendation, hit our price target and beat the S&P by more than 500 bps; not bad for a low-beta name in a rising market. We can no longer leave our highest recommendation attached to this name, now showing a market cap near $250 bln."

Standpoint Research downgraded Microsoft from "Buy" to "Hold." Microsoft closed Friday at $28.60, down $0.22, or 0.76 percent.

Gap (NYSE:GPS) Approaching Historical High, Downgraded

Gap (NYSE:GPS) is moving toward its historical high, and in response Standpoint Research has downgraded the stock after a strong runup over the last several months.

Standpoint said, "We picked The Gap GPS off its bottom when it broke below $18 on August 19. The shares have jumped > 25% since the recommendation and beat our benchmark S&P-500 by > 1000 basis points. Our target was $24 for 2011-2012. We got 75% of the $6 (33%) gain we were looking for in less than five months and have decided to lock this in. GPS is now trading at 1X sales and that is pressing up towards the top of its historical trading range – Side Note: Our Dec-14 recommendation Best Buy BBY is at < 0.3X. GPS is now trading at 12.4X trailing twelve months (record) earnings of $1.80 and 11.6X ($1.93) estimates for 2011-2012."

Gap, Inc., which was downgraded to "Hold," closed Friday at $22.14, dropping $0.32, or 1.42 percent.

City Holding (NASDAQ:CHCO) Downgraded on Fair Value

Citing the regional bank being fairly value and reaching their price target, Standpoint Research downgraded City Holding (NASDAQ:CHCO) from "Buy" to "Hold."

Standpoint says, "West Virginia/Kentucky/Ohio regional bank CHCO has jumped 27% since our February 9, 2010 recommendation. The shares have out-performed the S&P-500 (and the XLF) by 1000 bps for us and are now fairly valued at a two-year high, 1.8X book value and 15X estimates for next year. We expect the shares to track the market going forward. It should be noted that good news from this company could trigger a short squeeze in this very illiquid name that would send the stock price towards the all-time high of $47 from Q3, 2008. CHCO has hit our price target ($38); we can no longer leave our highest recommendation attached to this name."

City Holding closed Monday at $37.50, gaining $0.03, or 0.08 percent.

Fresh Del Monte Produce (NYSE:FDP) Has Few Short-term Catalysts - Time to Get Out?

In the near term there are few - if any - catalysts that could give Fresh Del Monte Produce (NYSE:FDP) a boost, and Standpoint Research sees it as an opportunity to get out of the company after a significant increase in the share price over the last year.

Standpoint Research said, "FDP is dealing with a host of issues including but not limited to competition, pricing pressure, rising costs, divestitures, inability to grow revenues and weather-related issues. The company is dealing with weakness in many markets with little near-term expectation for significant improvement. Market conditions in Europe are complicated and there are foreign exchange risks as well - mainly versus Central America. We see the recent strength and 50% gain in the share price since Q3, 2009 as an opportunity to get out of this volatile name. We maintain our Buy rating and $18 target on Chiquita NYSE:CQB). We arrive at this price target by attaching a conservative 9X multiple to $2.00 in earnings potential looking out to 2011-2012. Recent supply declines in the industry will lead to higher prices, margins and profits in the near-term. CQB makes the bulk of its earnings in the June quarter."

Fresh Del Monte Produce was downgraded by Standpoint, and closed Monday at $24.48, down $0.48, or 1.05 percent.