Stock Insights: MEMC, Molina Healthcare, SodaStream, Manpower, SandRidge June 8th
MEMC Electronic Materials Inc. (NYSE:WFR): Deutsche Bank believes Moody’s downgrade of MEMC Electronic’s debt is not a surprise and not material since it will only result in $15M-$20M of additional cash burn in Q2. The firm finds the risk/reward on shares attractive and keeps a Buy rating on the name with a $9 price target.
Molina Healthcare Inc. (NYSE:MOH): Jefferies expects shares of both Molina Healthcare (NYSE:MOH) and Centene (NYSE:CNC) to gap higher after Ohio reversed earlier decisions and recommended the companies for Medicaid contracts. The firm notes both stocks traded down significantly in early April when Ohio announced its original contract winners. Jefferies believes the Aetna’s (NYSE:AET) loss of the Ohio contract is surprising as the company scored highest of the initial winners. The firm thinks Ohio likely found a problem with Aetna’s submission, but feels the sell-off in the stock will be muted since the Ohio award likely only added 1% to the company’s earnings.
SodaStream International Ltd. (NASDAQ:SODA): After meeting with management, William Blair believes SodaStream’s new product pipeline is robust and that the company is well positioned to capitalize on growth in home beverage carbonation. The firm finds the stock attractively valued and keeps an Outperform rating on the name.
Manpower Inc. (NYSE:MAN): Deutsche Bank lowered its earnings estimates and price target for Manpower to reflect the slowdown in Europe, but believes this is priced into shares at current levels. The firm finds the stock attractive and keeps a Buy rating on the name.
SandRidge Energy, Inc. (NYSE:SD): Correction: SandRidge Energy not initiated today at RBC Capital
Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.