Stocks to Watch: AAPL, UPS, DNB & More
Senior Producer, CNBC
Take a look at some of Monday morning’s early movers:
Apple - Apple has announced a $2.65 a share share quarterly dividend, to commence in the fourth quarter of fiscal 2012. It will also buy back $10 billion in stock over a three-year period, beginning in fiscal 2013. The company said it will be able to maintain a sufficient war chest for strategic opportunities even with these payouts.
Sprint Nextel - Bernstein has downgraded the stock to “underperform” from “market perform,” saying the risks of bankruptcy for Sprint are rising, although the firm is not predicting that this will occur.
United Parcel Service - Dutch rival TNT Express has accepted a sweetened $6.85 billion takeover bid that makes UPS the biggest package-delivery service in Europe. This could also move shares of UPS rival FedEx.
Dun & Bradstreet - The provider of business information services has suspended operations in one of its Chinese units, amid allegations that some of its employees there may have violated Chinese bribery laws.
LDK Solar - The Chinese provider of solar-power equipment has lowered the top end of its fiscal fourth-quarter revenue guidance. LDK said its gross margins have been hurt by inventory writedowns, among other factors. That could affect shares of rivals, including First Solar, Suntech Power, Trina Solar, and JA Solar Holdings.
UnitedHealth - The company has won a contract to provide managed-care services to the military. The pact could be worth up to $20.6 billion over the next six years.
Starbucks - Starbucks is set to open its first Evolution Fresh juice bar store today in Bellevue, Wash., in its biggest move outside its flagship coffee business.
Bank of America - Bank of America is just a few cents from doubling off its Dec. 19 low, and positive comments from Morgan Stanley may push it over the top. Morgan Stanley has raised earnings estimates and price targets for bank of America, as well as Citigroup, Goldman Sachs, and JPMorgan Chase, citing stronger consumer credit among the reasons.
Capital One Financial - Jefferies has upgraded Capital One’s stock to “buy” from “hold,” making positive comments about its acquisitions of ING Direct and HSBC’s U.S. credit-card business.
eBay - Citigroup has downgraded eBay’s shares to “neutral” from “buy” on a valuation basis, noting that the shares are now close to its $39 a share price target.
Devon Energy - Goldman Sachs has upgraded Devon to “buy” from “hold” and raised its price target to $91 a share from $81 a share. Goldman feels Devon could be ready to break out after several years of underperforming its peers.
Arch Coal - Goldman Sachs has downgraded Arch Coal to “sell” from “neutral” and cut its price target to $10 a share from $14 a share. Goldman says some of Arch’s key coal holdings remain unpriced in a market where demand is falling, and that it also compares unfavorably to its rivals on its earnings growth relative to is valuation.
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