Analysts at Barrington Research on Monday initiated coverage of The Providence Service Corporation PRSC 0.05% by issuing an Outperform rating on the stock and setting a price target of $49. Providence provides home and community-based social service transportation for children.
Barrington analyst Michael Petusky expects that the human services segment will see margin improvements in upcoming years, and Barrington is projecting strong top-line growth for Providence. Petusky explains in detail where the $49 target came from. Continue reading
According to a recent report, Morgan Stanley analysts believe 2015 and 2016 could be big years for U.S. rail companies Union Pacific Corp UNP 3.44%, CSX Corp CSX 0.81%, and Norfolk Southern Corp NSC 3.54%.
Analysts see tight capacity, increasing truck pricing, and inflation as driving forces behind a projected doubling of rail core price growth in 2015. Continue reading
A recent report by Morgan Stanley looked at the future of eCommerce and what to expect from a growth perspective in the years to come.
Analysts predict robust 19 percent growth in the eCommerce space over the next five years due to a litany of positive factors. Continue reading
A recent Morgan Stanley report offered some insight into what analysts believe Citigroup Inc C 3.15%‘s capital return plan will be in 2015.
After an embarrassing rejection of its plan by the Federal Reserve in 2014, the analysis indicates Citigroup could be well-positioned to institute aggressive share buyback and dividend programs next year. Continue reading
A recent report by Morgan Stanley includes a dreary forecast for farming equipment manufacturers. Analyst Nicole DeBlase predicts below-consensus earnings for industry leaders in 2015 and further declines in 2016.
The report identifies five factors putting pressure on agriculture equipment manufacturing in the next two years. Continue reading
The world of advertising is in the process of a major overhaul. A recent Morgan Stanley report lays out what analysts believe to be the future landscape of the advertising industry.
Mobile Is Taking Over
Morgan Stanley believes that mobile advertising will account for 60 percent of total online advertising by 2020. Analyst Benjamin Swinburne explains that increased smartphone penetration coupled with location-based targeting should be driving forces in the world of mobile advertising. Continue reading
A recent Morgan Stanley report presented analysts’ case for why they believe that generic drug prices will be on the rise in the near future.
Reasons for generic drug price inflation include increased FDA regulatory obstacles, consolidation of generic drug producers, and increasing complexity of generic drug production. Continue reading
Bank of America Corp BAC 3.23% stock has done well in the past six months, surging about 13.5 percent. However, unlike most big names in the financial sector, Bank of America hasn’t made any new 52-week highs since March.
A Good Start To The Year
Everything was looking rosy for Bank of America in the early months of 2014. The bank (conditionally) passed the CCAR capital plan stress test, and as a result boosted its quarterly dividend from $0.01 to $0.05. In addition, the company announced a $5 billion share buyback program. Continue reading
A recent report by Morgan Stanley predicts a greater than 40 percent growth in the Hepatitis C (HCV) market in 2015. Projections indicate that the HCV market could be worth $15 billion in upcoming years, with two-thirds of treatment occurring in the United States.
HCV Forerunners Gilead And AbbVie
Morgan Stanley projects that Gilead Sciences, Inc.’s GILD 1.93% Harvoni and Sovaldi and AbbVie Inc’s ABBV 2.02% soon-to-be-approved drug cocktail will account for a large part of the market share for HCV treatment in upcoming years. Analysts project $11 billion in sales for Gilead’s HCV business in 2015 and $10.5 billion in 2016. Projections for AbbVie’s HCV business the next two years total $3.6 billion and $4.0 billion respectively. Continue reading
Bill Ackman’s Pershing Square Capital on Thursday unleashed its latest attack on Herbalife Ltd HLF 1.02%. This time, Ackman’s accusations come in the form of a press release and accompanying video that was posted on Pershing’s anti-Herbalife website.
In the video, Pershing Square argues that Herbalife distributors have been making false and unverified claims about the health benefits of Herbalife products for more than 30 years. Pershing claims that these incidents are far from isolated, as they believe that even Herbalife CEO Michael Johnson is guilty of making statements about Herbalife products that violate FDA regulations. Continue reading