U.S. EQUITY PRODUCT MANAGEMENT GROUP
Friday,July10,2009
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BEFORE THE BELL
U.S. EQUITY PRODUCTMANAGEMENT GROUP
08:30 Trade Balance BCS -29.508:30 Import Prices BCS 2.510:00 Consumer Sentiment BCS 70
PGR $0.38 BMO
Non-Deal Roadshows
A (NY)EXC (NY)Electronic Payments Lunch (NY)
Conference Calls
LINKS TO PRIOR DAY’S MARKET SUMMARIES
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Highlights of Today’s Most Relevant Research
For a complete list of today’s research notes, including a table of all price targets andestimate revisions, please see the
. Beforethe Bell is compiled from
published by Barclays Capital.
Industrials / Energy
DAN
(1-OW/Neu, $1.25, PT $3.50, $117m) B Johnson -
–Confident in ability to clear covenants; solid liquidity; don’t est meaningful vol recovery,2Q eps rebound on cost cuts & F (3-UW, $5.63) production upside; raise eps '09 -$1.68to -$1.35 (v -$1.68 cons), cut '10 $0.45to $0.40 (v $0.45 cons), raise tgt $2 to $3.50.
Mining / HY Credit
– L Jollon –
– Despite weaker steam & met coal outlook,est coal co’s to generate solid results ’09 & ’10; pricing well hedged, favorable maturityprofiles, solid FCF; Overweight ACI & MEE.
Consumer / Retail
Restaurants
(Neu) J Bernstein -
- Cons ests achievable; casual diners benefitfrom cost controls priced in; est stabilization, but not sequential comp improvement;QSR upside modest, comp softening, cost controls ltd, easing fx will help; favor 1-OW
MCD
($56.77),
EAT
($16.31) &
DRI
($32.46) vs 2-EW
CAKE
($16.40) &
PFCB
($31.61).
Food
(Neu) A Lazar -
- Lower input costs driving mgn expansion; current view30bps less favorable than last update, still est 10.% deflation ‘09, pricing to hold into'10;
KFT
(1-OW, $25.80) most levered play;
GIS
(1-OW, $58.68) &
K
(1-OW, $47.33)also to benefit, but
CPB
(1-OW, $29.19) &
HNZ
(2-EW, $35.55) less so.
Financials
Consumer Finance
(Neu) B Harting -
- Spending still weak, though upmodestly as vol decline stabilizes; currency & gas moves help reduce eps drag fromweak cross border;
V
(2-EW, $60.44) reports 7/29; est mid-single digit growth onVisaNet & cost cuts;
MA
(1-OW, $162.80) reports 7/30; est revs flat, more leveraged torecovery in discretionary spend.
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