NEW YORK (TheStreet) -- Shares of these companies were upgraded to buy at TheStreet Ratings on Wednesday: Charles River Laboratories, Cameco, Silvercorp Metals, Aecom Technology, Tempur-Pedic and FLIR Systems.
Charles River Laboratories
The research company reported on Monday fourth-quarter earnings of $27.1 million, or 55 cents a share, a swing from a year-earlier loss of $342.4 million, or $5.94 a share. "Our checks indicate more closures of pharma GLP Tox facilities are on the horizon. These should signal higher demand for outsourced services," Jefferies analysts wrote in a report Tuesday. "However, that has been the story for 3 years now. Low pricing still signals excess. Perhaps pharma is finally shuttering these labs after prolonged and unsuccessful attempts to sell them to CROs."
Shares of Charles River Laboratories were upgraded to buy from hold by TheStreet Ratings.
"The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and expanding profit margins," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Charles River Laboratories has an estimated price-to-earnings ratio for next year of 11.93; the average for biotechnology companies is 28.35. For comparison, United Therapeutics has a lower forward P/E of 6.31 and Techne's forward P/E is 20.16.
Of the 18 analysts who cover Charles River Laboratories, 14 rated the company a hold. Three analysts gave it a buy rating and one gave it a sell.
TheStreet Ratings gives Charles River Laboratories a B grade with a $39.15 price target. The stock closed Tuesday at $35.23 and has risen 28.91% year to date.
The uranium-producing company reported last week fourth-quarter earnings of $249 million, or 63 cents a share, an increase from year-earlier earnings of $190 million, or 48 cents.
"We believe there has been a material disconnect between uranium equities and uranium fundamentals year-to-date (YTD)," Bank of America Merrill Lynch analysts wrote in a Feb. 10 report. "Uranium equities have outperformed the S&P 500 (+7%) and S&P Global Mining Index (+4%) YTD, with CCO up 25% on no significant industry or company news and flat uranium spot prices. Given a lack of near-term positive fundamental catalysts, we believe uranium equities are due for a breather."
Shares of Cameco were upgraded to buy from hold at TheStreet Ratings.
Cameco has a forward P/E of 13.74; the average for nonferrous metals companies is 11.03. For comparison, First Quantum and Inmet Mining both have lower forward P/Es of 11.98 and 9.51, respectively.
Ten of the 14 analysts who cover Cameco rated it a buy. Three analysts gave it a hold rating and one considered it a sell.
Cameco gets a B grade from TheStreet Ratings with a $26.35 price target. The stock closed Tuesday at $22.38 and has increased 23.99% year to date.
The silver mineral properties company reported last week third-quarter earnings of $20 million, or 12 cents a share, a decline from year-ago earnings of $29.1 million, or 17 cents.
"Higher labour costs, withholding tax assumptions on repatriated funds and minority interest payments are responsible for the balance of the remaining US$0.13 decline in F2013 EPS," BMO Capital Markets analysts wrote in a Feb. 12 report. "These factors are also responsible for the decline in EPS forecasts in F2014 and beyond, and near and long-term CFPS forecasts."
Shares of Silvercorp Metals were upgraded to buy from hold at TheStreet Ratings.
Silvercorp Metals has a forward P/E of 12.37; the average for platinum and precious metals companies is 16.33. For comparison, First Majestic Silver and Endeavour Silver have forward P/Es of 12.09 and 12.44, respectively.
Of the seven analysts who cover Silvercorp Metals, four gave it a hold rating and three rated it a buy.
TheStreet Ratings gives Silvercorp Metals a B- grade with a $8.15 price target. The stock closed Tuesday at $7 and has risen 9.37% year to date.
The management and technical support company reported earlier this month first-quarter earnings of $47.9 million, or 42 cents a share, which fell from year-ago earnings of $56.9 million, or 48 cents.
"We continue to view ACM's valuation as notably depressed vs. its peers and expect this valuation gap to correct as visibility on ACM's ability to deliver a back-end loaded FY12 improves," KeyBanc Capital Markets analysts wrote in a Feb. 6 report.
Shares of Aecom Technology were upgraded to buy from hold at TheStreet Ratings.
"The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Aecom Technology has a forward P/E of 8.07; the average for heavy construction companies is 13.81. For comparison, KBR and Granite Construction both have higher forward P/Es of 12.57 and 19.78, respectively.
Eleven of the 15 analysts who cover Aecom Technology rated it a buy and four gave it a hold rating.
Aecom Technology gets a B grade from TheStreet Ratings with a $26.85 price target. The stock closed Tuesday at $23.25 and has increased 13.03% year to date.
The bedding products company reported last month first-quarter earnings of $56.3 million, or 84 cents a share, an increase from year-ago earnings of $46.3 million, or 66 cents.
Of the company's new Simplicity Collection, William Blair analysts wrote in a Jan. 31 report that, "We believe the new mattress line will help enhance Tempur's leadership position in the premium specialty segment--by effectively doubling the company's addressable market in the United States--and be highly incremental to sales. In addition to the new collection, the company is implementing an enhanced set of go‐to‐market programs designed to drive profitable category growth, benefiting both Tempur and its retailers, through increased advertising investment and enhanced dealer programs. We believe these new programs, coupled with Tempur's existing leadership position in the advantaged premium specialty bedding segment, position the company for another year of strong growth in 2012."
Shares of Tempur-Pedic International were upgraded to buy from hold by TheStreet Ratings.
"The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income,"TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated."
Tempur-Pedic has a forward P/E of 16.27; the average for furnishing companies is 26.25. For comparison, Leggett & Platt has a lower forward P/E of 13.39 and Select Comfort's forward P/E is 16.76.
Eleven of the 15 analysts who cover Tempur-Pedic rated it a buy and four gave it a hold rating.
TheStreet Ratings gives Tempur-Pedic a B grade and $97.22 price target. The stock closed Tuesday at $74.08 and has risen 41.02% year to date.
The thermal imaging systems company reported last week fourth-quarter earnings of $76.1 million, or 48 cents a share, up from year-ago earnings of $69.8 million, or 43 cents.
"While we would like to get constructive on weakness in the FLIR stock given its leading position for sustained robust growth within its commercial markets, the short-term pressures within defense markets remain and warrant continued caution," Sterne Agee analysts wrote in a Feb. 12 report. "Therefore, we reiterate our Neutral rating."
Shares of FLIR Systems were upgraded to buy from hold at TheStreet Ratings.
FLIR Systems has a forward P/E of 13.28; the average for defense companies is 12.75. For comparison, Alliant Techsystems and L-3 Communications both have lower forward P/Es of 8.36 and 8.26, respectively.
FLIR Systems gets a B grade from TheStreet Ratings with a $28.37 price target. The stock closed Tuesday at $24.74 and has ticked down 1.32% year to date.
-- Written by Alexandra Zendrian
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