United Technologies (UTX) Ratings, Price Targets

Updates on United Technologies (NYSE: UTX) ratings and price targets.

United Technologies (NYSE: UTX) was downgraded by FBR Capital (NASDAQ: FBCM) from a “Hold” rating to a “Market Perform” rating. They have a price target of $90.00 on the company.

Argus downgraded United Technologies from a “Buy” rating to a “Hold” rating.

Nomura (NMR) reiterated its “Buy” rating on United Technologies.

Jefferies Group (NYSE: JEF) reiterated its “Buy” rating on United Technologiesh. They have a price target of $90.00 on the company.

Sterne Agee reiterated a “Buy” rating on United Technologies. They have a price target of $87.00 on the company.

Infosys (INFY) (NYSE: HST) (HUBG) (IP) Price Targets Changed

Infosys Technologies Ltd (NASDAQ: INFY), Host Hotels & Resorts, Inc. (NYSE: HST), Hub Group, Inc. (NASDAQ: HUBG) and International Paper Company (NYSE: IP) had price targets on them adjusted by analysts.

Host Hotels & Resorts, Inc. (HST) had its price target lowered by FBR Capital from $18.00 to $13.00. They have a “Market Perform” rating on the company.

Hub Group, Inc. (HUBG) had its price target lowered by Sterne Agee to $44.00.

Infosys Technologies Ltd (INFY) had its price target raised by BMO Capital Markets to $55.00. They have a “Market Perform” rating on the company.

International Paper Company (IP) had its price target lowered by Longbow Research from $38.00 to $36.00. They have a “Buy” rating on the company.

Price Targets on (GT) (GWR) (HMSY) (ITT) Updated by Analysts

Goodyear (NYSE: GT), Genesee & Wyoming Inc. (NYSE: GWR), Hms Holdings Corporation (NASDAQ: HMSY) and ITT Industries (NYSE: ITT) get price targets updated today by analysts.

JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Goodyear (GT) from $17.00 to $21.00. They have an “overweight” rating on the company.

Deutsche Bank (NYSE:DB) analysts raised their price target on Goodyear from $21.00 to $24.00.

Deutsche Bank raised their price target on Genesee & Wyoming Inc. (GWR) from $62.00 to $70.00. They have a “buy” rating on the company.

Morgan Stanley (NYSE:MS) cut their price target on Hms Holdings Corporation (HMSY) from $78.00 to $75.00. They have a “market perform” rating on the company.

FBR Capital (NASDAQ:FBCM) cut their price target on ITT Industries (NYSE: ITT) from $61.00 to $57.00. They have a “market perform” rating on the company.

Excel (EXM) (GRM) (IVN) (NWBI) SHBI) Get Ratings Downgrades

Excel Maritime Carriers Ltd (NYSE: EXM), Graham Packaging Company Inc (NYSE: GRM), Ivanhoe Mines Ltd (NYSE: IVN), Northwest Bancshares, Inc. (NASDAQ: NWBI) and Shore Bancshares, Inc. (NASDAQ: SHBI) downgraded by analysts.

Jefferies (NYSE:JEF) downgraded Excel Maritime Carriers Ltd (EXM) from a “Hold” rating to an “Underperform” rating.

Goldman Sachs (NYSE:GS) downgraded Graham Packaging Company Inc (GRM) from a “Buy” rating to a “Neutral” rating. They set a price target of $24.00 on the stock.

BMO Capital Markets downgraded Ivanhoe Mines Ltd (IVN) from an “Outperform” rating to a “Market Perform” rating.

FBR Capital downgraded Northwest Bancshares, Inc. (NWBI) from an “Outperform” rating to a “Market Perform” rating. They placed a price target of $13 on the firm.

Sandler O’Neill downgraded Shore Bancshares, Inc. (SHBI) from a “Buy” rating to a “Hold” rating.

Intel (INTC) Drops on Earnings Cut

Shares of Intel (NASDAQ:INTC) dropped today after FBR Capital Markets slashed its earnings per share estimates on the in the first quarter from 51 cents a share to 48 cents a share.

Concerns over the impact of growing tablet sales on PCs and notebooks were the impetus behind the earnings being lowered, according to FBR.

Sales of Sandy Bridge also appear to be weaker than expected, putting pressure on Intel.

Intel was trading down at $20.01, falling $0.45, or 2.20 percent, as of 12:36 PM EDT. FBR also dropped its price target on Intel from $27 to $25 a share.

Under Armour (NYSE:UA) 4Q Sales Momentum Impressive

Under Armour, Inc. (NYSE:UA) had strong sales momentum acceleration in the fourth quarter, led by apparel across all categories. Long term, their new category "Charged Cotton" looks like a winner.

FBR says, "Sales momentum accelerated in 4Q with impressive gains in apparel across categories, aided by strong growth in direct to consumer (+56%), which, coupled with a $0.04 tax benefit, drove upside to our estimate...We expect that "Charged Cotton" - a new category for UA, whereby the company brings its focus on performance to cotton - will be a relatively modest contributor to FY11 top-line growth but has the potential to fuel significant growth longer term, with the prospect of appealing to a broad swath of consumers.

"We are adjusting our FY11 EPS estimate to $1.66 (up from $1.55) on sales of $1.35 billion (+27% year over year) and operating margin of 10.9% (+30 bps year over year)...Our 1Q EPS estimate is $0.21, which assumes sales growth of 28% and operating margin of 6.4%. We are introducing our FY12 EPS estimate of $2.07 (+25% year over year)."

FBR Capital reiterates a 'Market Perform' rating on Under Armour, Inc. (UA), which closed Friday at $59.75, dropping $0.04, or 0.07 percent. FBR raised their PT on Under Armor from $50 to $60.

Microsoft's (NASDAQ:MSFT) Kinect Connects, Windows Doesn't

For the first time in its history, Microsoft (NASDAQ:MSFT) has a serious contender to its core desktop business, and it appears it's not going to go away anytime soon. We're talking about tablets of course, which should be a major disruptor in Microsoft's universe.

FBR says, "We maintain our MP rating as we (1) remain skeptical about a strong enterprise PC refresh cycle, 2) believe the emergence of tablets will adversely affect the company's core desktop franchise, and (3) evaluate the company's last legitimate effort to becoming a meaningful player in the vital mobile market.

"We are raising our F3Q11 (Mar) revenue and EPS estimates to $16.5 billion and $0.59 from $16.1 billion and $0.54. We are raising our FY11 revenue and EPS estimates to $70.1 billion and $2.62 from $68.5 billion and $2.43. We are raising our FY12 revenue and EPS estimates to $73.9 billion and $2.84 from $73.1 billion and $2.67."

FBR reiterated their "Market Perform" on Microsoft (MSFT), which closed Friday at $27.75, down $1.12, or 3.88 percent. FBR increased their price target on the software giant from $28 to $30.

Riverbed Technology (NASDAQ:RVBD) Performance Across All Verticals Impressive

The performance of Riverbed Technology (NASDAQ:RVBD) in their latest quarter was extraordinary; in its geographic scope, as well as in all its verticals.

FBR says, "Last night (Thursday), Riverbed delivered a very good December quarter. While we and most of the Street were expecting a very good quarter, the magnitude of Riverbed's strength across all geographies and verticals was an eye-popping performance on the all-important product revenue front (52% year-over-year growth), a positive dynamic that reinforces our confidence around the company’s impressive growth potential/greenfield opportunity.

"For 1Q11 (March) we are raising our total revenue and pro forma EPS estimates to $160.4 million and $0.18, versus our prior estimates of $152.9 million and $0.15. For FY11, we are increasing our revenue and pro forma EPS estimates to $714.9 million and $0.84, versus our prior estimates of $678.0 million and $0.72. For FY12, we are increasing our revenue and pro forma EPS estimates to $878.2 million and $1.12, versus our prior estimates of $801.7 million and $0.89."

FBR maintains an "Outperform" on Riverbed Technology (RVBD), which closed Friday at $35.53, up $0.62, or 1.78 percent. FBR raised their price target on Riverbed from $41 to $42.

Tyco International (NYSE:TYC) Trending in Right Direction

Liking the general overall performance of Tyco International (NYSE:TYC) in the fourth quarter, FBR sees trends working in their favor.

FBR says, "Tyco delivered a solid all-around performance on key metrics of organic growth (4% versus 2% in the September quarter), a 130-bp increase in margins, and continued operating improvements at Security Solutions (ADT) where margins hit an all-time high of 16.7%...We continue to remain bullish on Tyco and are enthused to see meaningful improvement in orders in the company’s mid- to late-cycle businesses in Flow and Fire (total 49% of revenues). As revenues in these businesses recover, the company’s now-much-leaner cost structure should result in high operating leverage and improvement in earnings. We also see upside from aggressive share repurchases and acquisitions, where the company’s strong FCF (about $1.4 billion in FY 2010) and underlevered balance sheet (11% net debt to cap) provide for ample flexibility. We are raising our 2011/2012 estimates from $2.95/$3.50 to $3.05/$3.60 to reflect improvement in underlying trends."

FBR Capital maintains an "Outperform" rating on Tyco International (TYC), which was trading at $44.69, down $0.05, or 0.11 percent, as of 2:04 PM EST. FBR raised their price target on Tyco from $47 to $51.

AT&T (NYSE:T) Has Some Swagger Left Says FBR

The share price of AT&T (NYSE:T) has been priced at a worst-case scenario, according to FBR, who believes the company still has the ability to exceed moderate expectations going forward.

FBR says, "Overall, AT&T demonstrated its ability to outperform modest expectations in FY10, and we believe that this trend should continue in FY11. At this point, we believe that shares are pricing in a worst-case scenario regarding the Verizon iPhone, and "only" moderate net postpaid weakness in FY11 will improve investor sentiment. The next potential catalysts are (1) fewer-than-expected net postpaid losses from the Verizon iPhone launch in February; (2) the potential for a period of iPhone 5 (Nasdaq:AAPL) exclusivity this summer and/or higher HSPA+ network speeds; (3) benefits of progressive wireless data network improvements and substantially higher spending on voice capacity; (4) revenue momentum from the combination of a higher smartphone mix and higher price tiers; (5) sustained cost-structure improvements; (6) potential voice capacity challenges on the Verizon network as voice carriers are replaced with data carriers; and (7) a stronger dividend outlook relative to Verizon, which is likely to continue to invest heavily in its cloud-based initiative-$17B over 5-10 years. These factors underpin our Outperform thesis for T relative to Verizon (NYSE:VZ)(Market Perform), and we believe that shares of Verizon are pricing in perfect execution in FY11, while shares of T have discounted the potentially significant challenges in FY11." (FBR lowers FY11 EPS estimate of AT&T from $2.77 to $2.35).

FBR Capital maintains an "Outperform/Top Pick" rating on AT&T (T), which was trading at $27.57, down $0.56, or 1.99 percent, as of 1:47 PM EST. FBR has a price target of $34 on AT&T.

Omnicell (NASDAQ:OMCL) Losing Momentum in Top End Backlog

While Omnicell (NASDAQ:OMCL) did a good job of squeezing out profits in 2010, their top end backlog appears to be slowing down, as they lose momentum going forward.

FBR says, "Omnicell has shown a solid ability to hunker down in 2010 and generate improved profits even as revenue grew only a modest 4% YOY. As we close the books on 2010 and start to look at 2011, we see Omnicell as a company that is continuing to weather the challenges of the lack of activity in the small end of the market. The company’s performance in the larger end of the market has been commendable. However, the top end of its backlog guidance shows only a small level of acceleration versus the backlog posted at the end of 2010."

FBR Capital maintains an 'Underperform' rating on Omnicell (OMCL), which was trading at $13.13, down $0.75, or 5.40 percent, as of 1:12 PM EST. FBR raised their price target on Omnicell from $11 to $12.

Microsoft (NASDAQ:MSFT) Desktop Franchise Under Real Pressure

There have numerous reports through the years concerning a competitor pressing Microsoft (NASDAQ:MSFT) and its desktop franchise, but that is now becoming a reality for the first time as tablets become a real disruptor for the giant software company.

Also of concern is Microsoft and whether or not there will be a strong enterprise PC refresh cycle.

FBR noted, "We maintain our MP rating as we (1) remain skeptical about a strong enterprise PC refresh cycle, 2) believe the emergence of tablets will adversely affect the company's core desktop franchise, and (3) evaluate the company's last legitimate effort to becoming a meaningful player in the vital mobile market.

"We are raising our F3Q11 (Mar) revenue and EPS estimates to $16.5 billion and $0.59 from $16.1 billion and $0.54. We are raising our FY11 revenue and EPS estimates to $70.1 billion and $2.62 from $68.5 billion and $2.43. We are raising our FY12 revenue and EPS estimates to $73.9 billion and $2.84 from $73.1 billion and $2.67."

FBR reiterates their "Market Perform" rating on Microsoft, which was trading at $27.75, down $1.12, or 3.88 percent, as of 12:26 PM EST. FBR raised their price target on Microsoft from $28 to $30.

Legg Mason (NYSE:LM) Remains Weak Against Peers Says FBR

Legg Mason (NYSE:LM) continues to receive a negative outlook from FBR, citing their underperformance against their peers.

FBR says, "We continue to have a negative outlook on LM shares, as we believe the company is in a relatively weaker position than peers, given its persistent net outflows, weaker equity product offerings, and inconsistent performance. In the current environment in which macro improvement and equity market appreciation continue at a steady pace, we expect an overall slowdown in flows into bond funds industrywide as clients re-risk their portfolios. Furthermore, considering that only 27% of LM's assets are invested in equity products, and given the company's revenue-sharing agreements with affiliates, we expect LM investors would not fully participate in a complete market recovery. Although we expect further cost cutting and market appreciation to overcome further outflows and drive higher overall operating margins, we believe the market is mostly pricing in such an improvement, leaving limited upside potential from current levels."

FBR Capital maintains an "Underperform" rating on Legg Mason (LM), which closed Thursay at $34.01, up $0.26, or 0.77 percent. FBR also lowered their price target on Legg Mason from $35 to $34.

Flagstar Bancorp (NYSE:FBC) Still Has Long Way to Go

Considering the steps they had to take in the latest quarter, Flagstar Bancorp (NYSE:FBC) didn't perform too badly, according to FBR, but they still have a long way to go and a lot to prove before confidence in them can be fully restored.

FBR says, "Overall, we thought this was a good quarter for Flagstar, considering the drastic strategic actions the company had to take. The company was able to increase its mortgage originations, while NIM increased over 53 bps to 2.08% from 1.55% as deposit costs dropped more than expected. On the credit side, NPAs declined from $1,141M to $498M due to the sale of the nonperforming residential mortgages. We believe that after shedding problem assets and recapitalizing its balance sheet, Flagstar is better positioned to return to profitability in 2Q11 or 3Q11 and to eventually pay back TARP. However, the company still needs to execute its goals of increasing NIM closer to 2.30% and replacing its brokered deposits with more traditional and stable funding sources, while keeping operating costs at reasonable levels. If Flagstar can demonstrate that it is progressing toward these goals, we would become more constructive on shares."

FBR Capital reiterates a 'Market Perform' on Flagstar Bancorp (FBC), which closed Thursday at $1.65, gaining $0.02, or 1.23 percent. FBR has a price target of $1.75 on Flagstar.

Colonial Properties Trust (NYSE:CLP) Up On Stronger Multifamily Same Property NOI

Colonial Properties Trust (NYSE:CLP) was able to beat estimate in the fourth quarter, getting the win on stronger multifamily same property NOI.

FBR says, "CLP’s reported 4Q10 results beat both ours and consensus estimates for the quarter. Excluding a $0.01 per share charge related to the repurchase of $50 million 7.25% redeemable preferred units, the beat was driven by stronger multifamily same property NOI. The delta to our estimate appears to be driven by higher than expected commercial property revenue and lower G&A expense. The company’s 2011 guidance at the mid-point is in-line with the current FBR estimate. The key take-away is the positive multifamily same store NOI growth for 4Q10, which reflects continued portfolio progress. The results do not change our thesis on the stock. Looking ahead, we expect CLP to make additional progress towards streamlining its portfolio and improving its capital structure. Recovery will likely be slow, however."

FBR Capital reiterates a "Market Perform" rating on Colonial Properties Trust (CLP), which closed at $19.38, up $0.27, or 1.41 percent.

Sterling Financial's (NASDAQ:STSA) Credit in Major Improvement for Latest Quarter

Sterling Financial (NASDAQ:STSA) vastly improved its credit health in the latest quarter in a number of areas.

FBR says, "Sterling's credit, a key concern for the company, showed significant improvement as NCOs dropped 59% and NPAs fell 14%. Further, the balance of classified assets declined 16%, as management continues to proactively work through problem credits. The better-than-expected credit results drove a $1.5M reserve release as the company only provisioned $30M this quarter...Overall, we believe that this quarter has set STSA down the road to profitability, and we expect credit trends to continue to improve into 2011 and 2012. We are adjusting our FY11E GAAP EPS estimate to $0.42 from $0.32 and our FY12E EPS estimate to $1.88 from $1.31."

FBR Capital maintains a 'Market Perform' on Sterling Financial (STSA), which closed at $18.20, down $1.49, or 7.57 percent. FBR has a price target of $19 on Sterling.

PHH Corp.'s (NYSE:PHH) Mortgage Originations Reach Record $49 Billion

Assuming rates remain stable in the first quarter, says FBR, PHH Corporation (NYSE:PHH) has set itself up for a strong first quarter after a record $49 billion in mortgage originations in the fourth quarter.

FBR says, "On a core basis, PHH missed our estimate because of lower gain-on-sale margins. On a positive note, mortgage originations were a record $49B for the year, implying about $18.5B of originations for 4Q10. At this level, PHH would have taken about 3.2% of the mortgage origination market share in 2010. This should set PHH up for a good quarter in 1Q11 if rates remain stable; this highlights PHH's ability to successfully maintain strong volumes in what is expected to be a tough mortgage market in 2011. We are adjusting our 4Q10 EPS estimate to $3.26 on a GAAP basis and $0.31 following the announcement, but will wait until we get a full release to reassess our FY11 numbers."

FBR Capital maintains an 'Outperform' on PHH Corporation (PHH), which closed Thursday at $24.40, gaining $0.08, or 0.33 percent. FBR has a price target of $28 on PHH.

Cullen/Frost Bankers (NYSE:CFR) Guides Lower on Dubin, NIM

Saying Cullen/Frost Bankers (NYSE:CFR) faces pressures many regional banks are facing, FBR also noted the lower guidance from the company on NIM and Dubin.

FBR says, "We reduce our FY11 EPS estimate to $3.55, from $3.70, and FY12's EPS estimate to $4.15, from $4.40. Quarterly results reflected challenges faced by most regional banks. While management is cautiously optimistic regarding loan growth prospects and the relative strength of both its franchise and the Texas economy, fee income headwinds (i.e., Reg. E, Dubin Interchange) and NIM pressures caused management to guide FY11 consensus estimates lower. With several Texas banks having reported earnings, the common theme we find is varying degrees of cautious optimism, with which we are inclined to agree. However, we note that CFR's valuation leaves the shares fairly valued."

FBR Capital maintains a "Market Perform" on Cullen/Frost Bankers (CFR), which closed Thursday at $58.58, down $0.34, or 0.58 percent. FBR has a price target of $59 on Cullen/Frost.

New York Community Bancorp (NYSE:NYB) Will Continue to Outperform

Citing healthy quality of credit, solid profitability, growing net interest income and an attractive dividend, FBR says they see New York Community Bancorp (NYSE:NYB) continuing to outperform.

FBR says, "In 4Q10, investors continued to wait for loan growth, although profitability remains strong. Runoff of covered loans more than offset a $103 million increase (+40 bps) in loans held for investment, but management emphasized improving growth prospects. Substantially more of its $1.1 billion loans held for investment pipeline is new business, rather than refinance transactions. A whopping 25 bps increase in net interest margin drove stronger-than-expected net interest income, which largely offset a drop in mortgage banking income. We view this trade-off favorably, as we consider net interest income a higher quality source of earnings than mortgage banking. There was some doubt from investors about whether the wider NIM is sustainable; we believe it is. We reiterate our 2011 and 2012 operating EPS estimates of $1.40 and $1.60. NYB's strong credit quality, growing net interest income, strong profitability, and attractive dividend support our rating."

FBR Capital reiterates an "Outperform" rating on New York Community Bancorp (NYB), which closed Thursday at $18.51, up $0.36, or 1.98 percent. FBR has a price target of $20 on NYB.

Astoria Financial's (NYSE:AF) Balance Sheet Needs to Grow for More Earnings Visibility

Astoria Financial (NYSE:AF) continued to improve in the fourth quarter of 2010, according to FBR, but until they start to grow their balance sheet again, earnings will be difficult to project.

FBR says, "Credit progress continued in 4Q10, causing EPS to exceed our expectation; however, falling revenues reflected an acceleration in loan run-off. Given the recent uptick in mortgage rates, management expects less portfolio shrinkage in 2011 and a stable margin. Falling provision expense should enable Astoria to continue to earn $0.20 to $0.25 per quarter, but it is tough to see much upside to earnings until it begins to grow its balance sheet again. We reiterate our respective 2011 and 2012 operating EPS estimates of $0.90 and $0.95. GSE reform may be a long-term catalyst for Astoria, but in the near term it will be difficult for Astoria to boost its pre-provision earnings power."

FBR Capital maintains a "Market Perform" on Astoria Financial (AF), which closed Thursday at $14.81, up $0.91, or 6.47 percent. FBR has a price target of $15 on Astoria.