Ecolab gains seen in energy sector
Ecolab reported its third-quarter results on Tuesday. Revenue for the quarter rose 6.1 percent from the third quarter last year and adjusted earnings per share of $1.21 were a penny more than analysts were expecting.
The company reported that it remains on track to achieve the synergy promised from its billion-dollar acquisitions of energy companies Nalco ($8 billion in Dec. 2011) and Champion Technologies ($2.3 billion in Feb. 2013).
But the recent drop in oil prices lead CEO Doug Baker to discuss the potential impact on Ecolab's business on the company's conference call.
Canaccord Genuity analyst John Quealy wrote in a research note Tuesday, "Clearly the focus for '15 is on energy and the prospects for sustained double-digit growth. Management addressed the issue head-on, detailing potential sensitivity under several scenarios."
Quealy believes Ecolab is well-positioned for the long run and kept his "buy" rating on Ecolab. It's one of 15 "buys" vs. seven "hold" recommendations and one "sell."
Analyst urges investors to wait on TCF Financial
J.P. Morgan analyst Steven Alexopoulos calls shares of Wayzata-based TCF Financial Corp. "cheap" but he's maintaining his neutral rating on the stock after reviewing the company third-quarter results. Alexopoulos feels the company's net interest margin is getting squeezed from both ends. "Despite shares trading at a discount to peers, given the downside risk to consensus estimates we encourage investors to wait on the sidelines for a potential better entry point ahead," Alexopoulos wrote.
According to Bloomberg 19 analysts cover: TCF nine have "holds"; seven have "buys" and three have a "sell" recommendation.
Patrick Kennedy
