North America Equity Research
06 October 2014
Portfolio Managers' Monthly
September 2014
Integrated Oils & Refining
Phil Gresh, CFA, Page 2
US Refining Sector
We are launching coverage of the US Refining sector with a positive view and a focus on
individual stock selection based on ~25% total return potential (including dividends) by
December 2015, with Overweight ratings on MPC and PSX (Neutral on HFC, TSO and VLO).
Autos & Auto Parts
Head of North America Equity
Research
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan Securities LLC
Ryan Brinkman, Page 4
US Automakers
We introduce our 2016 estimates and roll-forward valuation for GM and Ford, finding +50%
upside in the case of GM and +32% for F. Our established 2015 price targets increase on
newly considered 2016E earnings rather than 2015E in our valuation analysis and on capital
structure roll-forward as the firms generate sizable cash flow. Reiterate OW on GM and F.
Gaming
Joseph Greff, Page 7
Gaming
Macau fundamentals have experienced unprecedented negative operating momentum
over last five months. When and at what levels do these stocks represent good riskrewards to buy? We prefer MGM and WYNN over MPEL and LVS, in the near term.
We see most of the stocks as having an upside/downside of 2:1 (so favorable). We
lower price targets, which suggest mean upside of 20%+ on a year-end 2015 basis.
SMid Semiconductors,Semiconductor Cap Equipment & Tech Hardware Harlan Sur, Page 10
Semiconductors
We believe semiconductor industry has entered a more stable and less cyclical growth phase
characterized by mid- to high-single-digit annual revenue growth. We believe market will
continue to reward companies that are “category killers” in the markets they target and offer
op margin and FCF margin upside with increasing payout ratios. Our top picks in large-cap
semis are BRCM, INTC, TXN, XLNX and MRVL. Downgrading ADI and ONNN to N.
Chemicals: Specialty, Commodity and Agricultural
Jeffrey J. Zekauskas, Page 12
DuPont
Following publication of the Trian letter to DuPont’s board, DD’s mgmt is now in the
position of having to defend and fortify its vision of the company through financial
returns. Current mgmt is likely to work to justify DD’s organizational structure, or the
structure will be replaced by a new one. The DD shareholder has the luxury of testing
both visions. We have raised our rating on DD to OW and lifted our Dec 15 price target.
Food Manufacturing and Retail
Ken Goldman, Page 13
Packaged Food
We briefly refresh our outlook on the packaged food companies and migrate our price targets
to Dec 2015 from Dec 2014. Though they have outperformed their peers of late, we remain
OW HAIN and WWAV, which we think will continue to benefit over time from healthy
eating trends. We’re also constructive on MJN and MDLZ, also both rated OW.
Table of Contents
In Case You Missed It.................................. 17
JPM U.S. Equity Research Coverage ........ 29
JPM U.S. Equity Research Roster ............. 40
See page 45 for analyst certification and important disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the
firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in
making their investment decision.
www.jpmorganmarkets.com
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
US Refining Sector
Primer and Industry Outlook
Integrated Oils & Refining
Phil Gresh, CFA
AC
(1-212) 622-4861
phil.m.gresh@jpmorgan.com
Bloomberg JPMA GRESH <GO>
John M Royall, CFA
(1-212) 622-6406
john.m.royall@jpmorgan.com
Energy MLPs
Jeremy Tonet, CFA
(1-212) 622-4915
jeremy.b.tonet@jpmorgan.com
J.P. Morgan Securities LLC
We are launching coverage of the US Refining sector with a positive view and a
focus on individual stock selection based on ~25% total return potential (including
dividends) by December 2015, with Overweight ratings on MPC and PSX (Neutral
on HFC, TSO and VLO). While the global refining backdrop is challenged by tepid
demand and excess capacity, sustainable cost advantages should shelter US refining
margins, allowing for several more years of healthy FCF generation. Our base case
margins factor in favorable “normalized” crude differentials through 2016, but do not
assume any “blow out” scenarios like what happened in the Bakken (2012) or
Cushing (2013). This is based on our bottom-up US crude supply/demand model,
which suggests that enough outlets exist to soak up growing US crude production
into 2016, aided by import displacement, capacity increases, condensate exports and
crude exchanges/swaps. Given our view that US light crude will continue to find a
home, we do not assume that the crude export ban will need to be fully lifted in the
near term; however, we have run a downside case that shows ~25% EPS risk if it is.
Finally, we should note that our valuation approach uses a sum-of-the-parts valuation
methodology that does not contemplate multiple enhancement on refining-related
EBITDA (~4x), though we do see further MLP valuation creation levers (e.g., retail
and chemicals) for MPC, PSX and TSO that could lead to 30%+ return potential in
our upside case, supporting our positive view around non-macro value creation levers.
• Favorable (but not “blow out”) crude differentials through 2016 should
drive solid refining margins. The key driver of refining margins is crude
differentials, which are primarily a function of transportation cost and crude
quality differentials. Given our positive view on growing US crude production
(incremental 1.75mmbpd in 2015-16), we believe that refiners should continue to
benefit from an abundance of cheaper domestic crudes, particularly given the
existence of the crude export ban. However, our bottom-up supply/demand model
also still shows 1.75mmbpd+ of remaining outlet valves at YE14E between
higher utilization (including medium/sour displacement), capacity increases and
exports/exchanges/swaps. Therefore, while we see favorable crude differentials
and margins, we do not see “blow outs” like what happened in the Bakken (2012)
and Cushing (2013) as a likely scenario in 2015.
• Regional preferences: Mid-Continent and Texas Gulf Coast, watch for
Capline reversal in Louisiana. Based on our crude differentials outlook, we see
the highest margin potential in the Mid-Continent, followed by the Texas Gulf
Coast. Currently wide Texas Midland differentials could narrow in 2H15 with the
start-up of several new pipelines. In Louisiana, transport bottlenecks are currently
limiting crude access, leaving more crude on the Texas Gulf Coast. However, a
potential reversal of the Capline pipeline, aided by the recently announced
Diamond pipeline, could change the game. Eastern Canada is set to improve with
more cost advantaged crude access. PADD 5 is likely to remain challenged, but
could become slightly better if certain projects (e.g., Port of Vancouver) are
approved. PADD 1 should remain tough, but Bakken crude by rail access should
allow for a higher floor than the rest of the Atlantic Basin.
• Balance sheets look healthy with incremental MLP outlet valve, capital
deployment shareholder friendly. Even in our scenario in which crude
differentials do not blow out, US refiners should generate healthy FCF (~8%
average annual FCF yield in 2015-16E, excluding TSO and PSX’s CPChem
project capital). With our expectation for lower capital intensity and more FCF
2
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
going back to shareholders (~75% of redeployed capital from 2012-14E), capital
discipline looks to be less of a concern versus past cycles. Further, comfortable
parent company balance sheets (20-25% gross debt-to-capital, ex-MLP) that have
an additional MLP outlet valve should provide meaningful flexibility.
• Roughly 25% total return potential, with OWs on MPC and PSX. Based on
our sum-of-the-parts valuation methodology, we see ~25% total return potential
(including dividends) by year-end 2015. We initiate coverage on MPC and PSX
with Overweight ratings, while we are Neutral on HFC, TSO and VLO. Our OW
ratings are based on end-market exposures, company-specific controllable
EBITDA levers and balance sheet/capital deployment options, with a summary
for each company provided on pages 17 and 18 of this report.
• Conservative on refining multiples, but sum-of-the-parts approach
highlights portfolio value levers. While terms like “sustainable cost advantage”
might argue for a multiple re-rating, uncertainty around the crude export ban
makes it difficult for us to argue that investors should pay up for a theoretically
less volatile refining FCF (our SOTP models use ~4x for refining EBITDA). That
said, we see further opportunities for refiners to leverage the MLP structure with
logistics, retail and chemicals assets, which would effectively upgrade the
multiple on a more stable portion of the asset base. We ran upside cases for each
company around incremental MLP value creation potential, both with dropdowns
in existing MLP structures (logistics) as well as what we view as new MLP
opportunities (retail, chemicals, etc.). We see the highest upside at MPC (retail
$6/share), TSO (retail $10/share), and PSX (chemicals $3/share). To be clear,
however, we believe MLP at <20% of a portfolio cannot trump refining
fundamentals at >80% of a portfolio. Thus, the macro environment (refining
margins) and execution of company-specific levers are paramount, in our view.
• Risk #1 (key to watch): Crude export ban lifted. While predicting the outcome
of the crude export ban is difficult, we sensitized our models to one possible
downside scenario in the event that the ban is lifted, which factors in both
narrowing crude differentials and product yield contraction. This scenario shows
~25% EPS risk across the group, with 30%+ at VLO/MPC (highest Gulf Coast
exposure cuts both ways), 25-30% at HFC/TSO and ~10% at PSX (most
diversified). Using our base-case multiples would imply December 2015 group
average total return potential of only 7% (VLO worst at -2%, PSX best at +18%),
with 2016E EV/EBITDA multiples going to ~6x from ~5x.
• Risk #2 (moderate): Product export markets could get more competitive.
Higher US crude runs mean more products that need a home, which are
increasingly landing in export markets. Growing US and global demand provides
a favorable cushion for diesel; however, shrinking US gasoline demand, limited
import displacement potential and fewer export outlets (starting to see European
gas in Latin America, US stretching into Africa) could create margin pressure if
the US continues to run full to maximize crude advantages.
Click for link to full report dated September 23, 2014
3
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
US Automakers
See Attractively Deep Value in GM As We Roll Out 2016
Estimates for US Automakers; Like Ford; Cautious on TSLA
Autos & Auto Parts
Ryan Brinkman
AC
(1-212) 622-6581
ryan.j.brinkman@jpmorgan.com
Bloomberg JPMA BRINKMAN <GO>
Samik Chatterjee, CFA
(1-212) 622 0798
samik.x.chatterjee@jpmorgan.com
David Karnovsky
(1-212) 622-1206
david.karnovsky@jpmorgan.com
J.P. Morgan Securities LLC
We introduce our 2016 estimates and roll-forward valuation for GM and Ford,
finding +50% upside in the case of General Motors and +32% in the case of
Ford. Our established 2015 price targets increase on newly considered 2016E
earnings rather than 2015E in our valuation analysis and on capital structure rollforward as the firms generate sizable cash flow. 2016 earnings are expected to rise
relative to 2015, on industry tailwinds (continued trend toward more normal volumes
in Europe, cycling past a period of atypically strong macro headwinds in South
America, robust growth in China, and continued cyclical increase in North America
even if at a lesser rate) as well as various different self-help initiatives (e.g., as
restructurings in Europe, Australia, and elsewhere take further hold, and on cost
control efforts in North America). We reiterate our Overweight ratings on both GM
and Ford, seeing more value in automaker stocks than in supplier stocks generally,
on earnings that are growing almost as quickly as the average supplier over our
newly extended forecast window (and at least as structurally improved relative to
history) but valuation which is only in line with historical average (Ford) or even
significantly below (GM). We are more cautious on Tesla, however, with our Neutral
rating balancing incremental news flow likely to track positive with valuation that
appears stretched and execution and competitive risk that seems underappreciated.
• We prefer automakers to parts suppliers: they are growing earnings as
quickly and their profitability is as structurally improved, but, unlike
suppliers, they do not trade at a premium to history. While we remain bullish
on auto parts suppliers (see our concurrently published note, “See Most Upside to
Secular Growers HAR (+40%), TEN (+39%), THRM (+37%), DLPH (+36%),
and BWA (+35%) As We Look to 2016”), given our overall bullish industry view,
we prefer automakers on valuation. Since July 2012, GM is +73%, Ford is +79%,
and the average of the 16 parts suppliers we cover is +149% (vs. the S&P,
+48%). This has resulted in the suppliers as a group trading at 7.1x NTM
EBITDAP (vs. 5.3x historical long-run average), Ford trading at 4.7x, and GM at
just 2.6x (vs. our sense of GM’s and Ford’s historical average valuation of
roughly 3.75x to 4.75x). Over the long-run, we concede suppliers are likely to
grow earnings more quickly, on content per vehicle growth stories (e.g., along the
lines of “Safe, Green & Connected”), although our analysis shows automakers
hanging in there with suppliers medium term (on full-size truck refreshes, abating
of restructuring costs, and realization of restructuring savings), with GM growing
EBIT at a +13% CAGR and Ford +15% through 2016, relative to the average
auto parts supplier +13%.
• We prefer GM to Ford (and GM and Ford to Tesla), on lower valuation and
stronger near-term profit trend: Ford trades toward the high end of its range of
historical valuation (although not above it, like suppliers), while GM trades at a
discount. And yet we expect GM to experience strong truck-led profits for the
next several quarters as Ford does not, given lost production as it transitions to
produce a new aluminum version, even in the event of flawless execution. In fact,
we estimate that GM will report 3Q14-1Q15 global GM EBIT +55% y/y, or
+21% ex-recall, vs. Ford -2% y/y, or -14% ex-recall.
• GM 2016 estimates: We are positioned +8% above the Street on 2016. We
forecast 2016 EPS of $5.20, well above Bloomberg consensus of $4.82, on
volume gains across most regions and a focus on structural costs in North
America (we expect North America structural cost opportunity to be a focus of
4
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
the firm’s upcoming analyst day October 1). Our forecast presumes a 2016 North
America EBIT margin of 8.8%, +40 bps y/y vs. 8.4% in 2015, which is itself -60
bps vs. an ex-safety recall 9.0% in 2014 that benefits from strong product
cadence. Said differently, we are above consensus without giving much credence
to GM's 10% mid-decade North American EBIT margin goal, suggesting
potential additional upside to the extent GM can deliver in this area. Our newly
established December 2015 price target of $51 compares with our earlier $50
December 2014 price target. We have conservatively lowered our target multiple
to 4.0x from 4.5x, to necessitate less multiple expansion (when we moved to
4.5x, GM was trading closer to 4.0x). We recognize that even our lowered target
multiple represents substantial improvement vs. the 2.6x at which we estimate
GM is currently trading; however, we feel it is conservatively in keeping with the
automaker’s historical range of EBITDA despite structural improvement in
profitability and a substantially healthier balance sheet. In an upside scenario in
which GM can accomplish 10% GMNA EBIT margins or can convincingly
demonstrate that it is on a path toward such margins, we feel the stock could be
re-rated still higher, potentially even beyond 4.5x.
• Ford 2016 estimates: We are positioned +3% above the Street on 2016. We
forecast 2016 EPS of $2.23, modestly above Bloomberg consensus of $2.16, on
volume gains across most regions, a full year of F-150 production mostly offset
by softer pricing as the vehicle is no longer brand new, and strong growth in
China and India as new plants come on line and the product portfolio broadens.
We expect that Ford will accomplish its goal of deriving a material portion of its
global pretax profit from the Asia-Pacific region – in 2016, we forecast Asia
Pacific will account for roughly 15% of Ford’s global pretax profit, up from just
4% in 2013 and 0% in 2012. We rate Ford shares Overweight. While it does not
trade at the distressed level that GM does, we believe Ford is underappreciated
for what it is or rather what it will likely become once it fixes its international
operations (essentially, a “Blue Chip” company). Investors are understandably
focused nearer term, and closer to home – they are focused on the launch of
Ford’s all-new aluminum F-150 pickup truck in 4Q14, for which it is currently
taking downtime. IHS Automotive forecasts production of this truck -8% y/y in
3Q14 (vs. +18% y/y in 2Q14, when Ford reported impressively strong profits in
North America), -36% y/y in 4Q14, -36% y/y in 4Q14, and -10% y/y in 1Q15.
And this presumes a fairly straightforward rollout. Our base-case view
incorporates IHS’s – that there is a bit greater than typical downtime and
re-ramp but nothing too far out of the ordinary. Our newly established $22 price
target has a December 2015 end date (up from $21 for our previous December
2014 price target); the pressure on Ford earnings in our model nearer term (e.g.,
3Q14-1Q15 global Ford EBIT -2% y/y, or -14% ex-recall) makes Ford shares
more interesting to us toward the latter half of our investment time horizon (e.g.,
2Q15-4Q15 global EBIT +80% y/y).
• TSLA: Establish December 2015 price target at $190 and raise estimates
slightly on a kinder view toward deliveries (our most optimistic yet, but for
which we remain still below that implied by guidance). We establish a
December 2015 price target of $190 (vs. our December 2014 price target of
$170), with the price target primarily benefiting from the lesser discounting of
both our terminal cash flows analysis, which starts at our DCF end date of 2020
and our 2020-based multiples analysis (we already had 2016 estimates for TSLA;
our estimates rise slightly on a stronger trend to deliveries). We forecast 18,250
deliveries in 4Q15 (comprised of 11,750 Model S’s and 6,500 Model X’s),
annualizing to a run-rate of approximately 73,000, which is below TSLA’s
indicated potential 100,000 run-rate at 4Q15-end. Furthermore, our total volume
projection in 2020 is 303,500 (comprised of 60,000 Model S’s, 43,500 Model
5
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
X’s, and 200,000 Model 3’s), below the 500,000 guidance implied by Tesla’s
Gigafactory capacity plans. For our price target to rise to the stock’s current level
would require inputting of 650,000 Model X’s into our model in 2020, presuming
our other estimates regarding Model S and Model X volume and corresponding
gross margin rates, for a total volume in 2020 of 753,500 units.
Equity Ratings and Price Targets
Company
General Motors
Ford Motor
Tesla Motors
Ticker
GM US
F US
TSLA US
Mkt Cap
($ mn)
57,290.72
68,065.20
32,179.02
Source: Company data, Bloomberg, J.P. Morgan estimates. n/c = no change. All prices as of 19 Sep 14.
Price ($)
33.94
16.65
259.32
Cur
OW
OW
N
Rating
Prev
n/c
n/c
n/c
Price Target
Cur
Prev
51.00
50.00
22.00
21.00
190.00
170.00
Click for link to full report dated September 22, 2014
6
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
Gaming
Macau: Getting Closer to a Bottom (We Think): Identifying
Optimal Entry Points/Timing to Step In
Gaming
Joseph Greff
AC
(1-212) 622-0548
joseph.greff@jpmorgan.com
Bloomberg JPMA GREFF <GO>
Brian Mullan, CFA
(1-212) 622-8170
brian.mullan@jpmorgan.com
Jonathan Mohraz
(1-212) 622-1111
jonathan.mohraz@jpmorgan.com
J.P. Morgan Securities LLC
Macau fundamentals have experienced unprecedented negative operating momentum
over the last five months, driven by a number of factors that we have highlighted in
the past: Mainland China corruption crackdown impacting VIP and Premium Mass
revenues, less confidence in the junket system, tightened visa restrictions impacting
mass, and, perhaps, the impact of a slowing macro. In light of these factors, the
Macau stocks have meaningfully pulled back (perhaps an understatement) on lower
EBITDA expectations (consensus estimates have been going down), valuation
multiple contraction, and overall erosion of investor sentiment. In this note, we
provide our updated thoughts on the strategy and attempt to answer the most frequent
question we have been getting from investors: when and at what levels do these
stocks represent good risk-rewards to buy?
• In short, we look to October post Golden Week and after the beginning of the
smoking ban (starts 10/6 on base mass tables, our sense is the disruption from this
will be greater earlier on rather than later), where the risk-rewards could turn
more favorable, in our view. We also attempt to assess the downside on the four
US-listed Macau names (LVS, MGM, MPEL and WYNN) and where we think
these stocks would potentially be at “close your eyes” levels. We see most of the
stocks as having an upside/downside of 2:1 (so favorable). We prefer MGM and
WYNN over MPEL and LVS, in the near term, with the former possessing less
estimate risk than the two latter names (given recent divergence in mass
performance, even more remarkable for WYNN, given renovation disruptions
and not having all tables available, which reverts in October). Our price targets
are lowered and suggest mean upside of 20%+ on a year-end 2015 basis, based
on reasonable EBITDA multiple and free cash flow yield assumptions.
• Where is the share price downside? Looking out to our current 2015 below
Consensus EBITDA estimates and applying reasonable haircut scenarios, we see
another potential ~12% (on average) downside to current share prices for the
operators in our coverage universe, which would be anchored by ~7.5% free cash
flow yields and ~11x EBITDA multiples (on average, and not dissimilar to
2008/2009 levels where liquidity and balance sheet concerns were additional risk
factors that were priced into many of these stocks valuation levels). For LVS and
WYNN we use a downside target multiple of 11.5x, while for MPEL we use
10.5X and MGM we use 10.0x. We note that these downside target multiples are
at the lower end of where these stocks have ranged in recent history (the last five
to six years).
• LVS downside scenario assumptions and takeaways. Our LVS downside
scenario projects 2015 Macau Property Level EBITDA ~18% below our current
2015 estimate of $4.049 billion, and overall company-wide adjusted EBITDA
~11% below our 2015E. Using a target multiple of 11.5x on our 2015 downside
EBITDA and net debt estimates, we impute a downside equity value of ~$53,
which is ~16% below current levels and which implies a 2015E free cash flow
yield of ~7.5%. We note our downside scenario ascribes zero credit for the
Parisian Macau, which we believe is conservative. Please see the body of this
note for our downside scenario assumptions and detailed analysis.
• WYNN downside scenario assumptions and takeaways. Our WYNN
downside scenario projects 2015 Macau Property Level EBITDA ~7% below our
current 2015 estimate of $1.505 billion, and overall company-wide adjusted
7
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
EBITDA ~6% below our 2015E. Using a target multiple of 11.5x on our 2015
downside EBITDA and net debt estimates, we impute a downside equity value of
~$153, which is 16.5% below current levels and which implies a 2015E free cash
flow yield of ~6.7%. We believe this downside 2015E free cash flow yield of
6.7% would prove supportive of the shares, given the likely free cash flow
growth coming from the opening of WYNN Cotai in 2016. Please see the body
of this note for our downside scenario assumptions and detailed analysis.
• MGM downside scenario assumptions and takeaways. Our MGM downside
scenario projects 2015 Macau Property Level EBITDA ~9% below our current
2015 estimate of $916 million, and overall company-wide adjusted EBITDA
~2% below our 2015E. Using a target multiple of 10.0x on our 2015 downside
EBITDA and net debt estimates, we impute a downside equity value of ~$22,
which is ~4% below current levels and which implies a 2015E free cash flow
yield of 8.0%. We see the least downside to MGM shares from current levels,
which makes sense to us given its exposure to the steadily improving Las Vegas
Strip market. Please see the body of this note for our downside scenario
assumptions and detailed analysis.
• MPEL downside scenario assumptions and takeaways. Our MPEL downside
scenario projects 2015 Macau Property Level EBITDA ~12% below our current
2015 estimate of $1.435 billion, and overall company-wide adjusted EBITDA
~13% below our 2015E. Using a target multiple of 10.5x on our 2015 downside
EBITDA and net debt estimates, we impute a downside equity value of ~$24,
which is ~12% below current levels and which implies a 2015E free cash flow
yield of ~8%. We believe this downside 2015E free cash flow yield of ~8%
would prove supportive of the shares, given the likely free cash flow growth
coming from the ramp of Studio City throughout 2016. Please see the body of
this note for our downside scenario assumptions and detailed analysis.
• Our new forecast for the market. Looking ahead, we expect September to
come in with a 13% year-over-year decline, with mass growth of 12% and VIP
rolling chip volumes declining 25% year over year. For the 3Q14, we expect
market wide decline of 8%, with mass growing 14.6% and VIP down 19%. For
2014, we expect 2.0% growth, with mass up 23% (driven by 1H14 growth) and
VIP down 8.3%. In 2015, we forecast growth of 3.1%, with mass up 15% and
VIP down 4.3%. Forward visibility and ability to precisely forecast the market’s
growth is about as challenging as it has ever been in our time covering the sector.
• Lowering our price targets; estimates unchanged. With this note, we are
establishing year-end 2015 prices targets for LVS (to $69, from our prior yearend 2014 price target of $83), MGM (to $30, from our prior year-end 2014 price
target of $31), WYNN (to $210, from our prior year-end 2014 price target of
$239), and MPEL (to $31, from our prior year-end 2014 price target of $40), each
rated Overweight. We are now ascribing a 12x multiple to projected Macau
EBITDA streams (from 15x), which we believe is warranted given the
deceleration in the market’s growth.
• Price target methodologies. Our year-end 2015 price target of $69 for LVS is
based on a 2016E EV/EBITDA sum of the parts methodology (12x Macau, 12x
Singapore, 10x LV) with ~$3.80 NPV per share value related to its site 3 Cotai
development. Our year-end 2015 price target of $31 for MPEL is based on a
2016E EV/EBITDA sum of the parts methodology of 8x our Mocha Clubs
EBITDA estimate, 9x our Altira EBITDA, 10x City of Dreams EBITDA
estimate, and 10x our Studio City estimate (adjusted for its 60% share), less yearend 2016E corporate net debt as well as its proportionate share (60%) of Studio
City net debt. Our year-end 2015 price target of $30 for MGM is based on a
2016E EV/EBITDA sum of the parts methodology (12x Macau, 10x Las Vegas
8
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
Strip, 8x regional US) with value ascribed to its Cotai development (~$2.50 per
share). Our year-end 2015 price target of $210 for WYNN is based on a 2016E
EV/EBITDA sum of the parts methodology (12.0x Macau, 12x LV) with about
$38 of NPV value ascribed to its Cotai development.
• Read on. Our detailed easy to read charts, valuation work and models are
attached in the body of this note.
Equity Ratings and Price Targets
Company
Las Vegas Sands Corp.
Melco Crown Entertainment
MGM Resorts International
Wynn Resorts
Ticker
LVS US
MPEL US
MGM US
WYNN US
Mkt Cap
($ mn)
50,884.01
14,828.21
11,184.11
18,679.50
Source: Company data, Bloomberg, J.P. Morgan estimates. n/c = no change. All prices as of 17 Sep 14.
Price ($)
62.88
26.72
22.84
183.10
Cur
OW
OW
OW
OW
Rating
Prev
n/c
n/c
n/c
n/c
Price Target
Cur
Prev
69.00
83.00
31.00
40.00
30.00
31.00
210.00
239.00
Click for link to full report dated September 18, 2014
9
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
Semiconductors
Industry Settling into a Stable Growth Phase; Top Picks
BRCM, INTC, TXN, XLNX, MRVL; Downgrading ADI, ONNN
to Neutral
SMid
Semiconductors,Semiconductor
Cap Equipment & Tech Hardware
Harlan Sur
AC
(1-415) 315-6700
harlan.sur@jpmorgan.com
Bloomberg JPMA SUR <GO>
Saqib Jalil
(1-415) 315-6761
saqib.jalil@jpmorgan.com
J.P. Morgan Securities LLC
We believe the semiconductor industry has entered a more stable and less cyclical
growth phase characterized by mid- to high-single-digit annual revenue growth.
Given the relatively stable growth environment in the semiconductor industry, we
believe the market will continue to reward companies that are “category killers” in
the markets they target and offer operating margin and free cash flow margin upside
with increasing payout ratios. Our top picks in large-cap semis are BRCM, INTC,
TXN, XLNX, and MRVL as they offer stable revenue growth and superior operating
margin, FCF margin, payout ratio expansion, and they are market leaders in a
majority of the segments they target. We also are also positive on the semiconductor
capital equipment segment—AMAT, KLAC, and LRCX—driven by rising capital
intensity as semiconductor manufacturers must drive down the Moore’s Law curve
(i.e., make technology transitions and develop new materials to enhance performance
and lower costs) in order to remain competitive (see our semicap note published this
morning, Constructive 2015 Semicap Spending Environment; Reiterate OW on
AMAT, KLAC, and LRCX, Sur et al.). Conversely, we are downgrading ADI and
ONNN to Neutral as our prior Overweight thesis has not played out and ONNN is
within 5% of our price target.
• Entering a more stable growth phase in semis—focus on category killers
(market leaders) with margin/free cash flow expansion potential, and high
payout ratios. We believe the semiconductor industry has entered a more stable
and less cyclical growth phase characterized by mid- to high-single-digit annual
revenue growth. We attribute much of the slowing industry growth to the
commoditization of the PC and smartphone as the latter segments represent
roughly 60% of total semiconductor TAM. Given the relatively stable growth
environment in the semiconductor industry, we believe the market will reward
companies that have market leadership in their target markets, offer superior
operating margin and free cash flow margin leverage, with increasing payout
ratios such as OW-rated BRCM, INTC, TXN, XLNX and MRVL.
• Near-term supply/demand environment remains constructive. Despite
pockets of weakness from the Samsung supply chain and China Mobile, broader
semiconductor end-market trends are healthy with solid demand from the
automotive, industrial, PC, consumer, datacenter, and Apple supply chains. From
a supply standpoint, companies with broad-based exposure—TI, Freescale, NXP,
SanDisk and Linear—have indicated that inventory in the channel is lean and
lead times remain disciplined. Aggregate inventory at semiconductor companies
increased 5 days QoQ to 84 days in 2Q14, above the five-year average of 79 days
but at the same level as a year ago. We believe semiconductor companies
increased inventory slightly in 2Q14 in response to higher order backlog and
improving visibility into 2H14.
• Semi margins should get a 2H14 boost—still expecting 8% industry growth
this year and 3-5% growth next year. Macro conditions have steadily improved
over the past 18 months, driving semiconductor margins higher but still below the
peak. Aggregate industry gross and operating margins of 56.4% and 23.6% in
2Q14 were below recent peak levels of 58.6% and 28.5%, respectively. In
addition, 2Q14 utilization rates of 87.5% were roughly 300 basis points above the
historical midpoint of 84.5% but below the 2010 peak of 95.9%. We continue to
10
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
expect steady margin expansion in 2H14 driven by improving demand, inventory
replenishment, and cost reductions.
• Payout ratios continue to rise. Payout ratios for large-cap semiconductor stocks
have rapidly increased from an average of just 75% of free cash flow in 2009-11
to an estimated 95% in 2014 driven by aggressive share buyback programs
coupled with a high dividend payout. Intel, TI and Altera, for example, should
have payout ratios in excess of 125% in 2014, while Maxim and Analog Devices
have payout ratio targets of 80%. We believe secularly increasing payout ratios
should continue to help semiconductor stocks outperform the broader market, just
like last year.
• Embedded systems/IOT—a key growth area in semis. As more intelligence
and connectivity find their way into everyday applications (i.e., internet of
things), semiconductor content growth and market expansion opportunity should
drive growth for those companies that are driving leadership in microcontrollers,
connectivity, sensor, and datacenter silicon and platform development. We
estimate the embedded/IoT market to be a $35B market this year growing at an
11% CAGR over the next three years. We believe OW-rated BRCM (exposure to
datacenter, comm. networking, and connectivity), INTC (~98% share in
datacenter MPU), and TXN (~20% exposure to embedded) should benefit from
the rapid growth in embedded/IOT.
• Our top picks in semis—BRCM, INTC, TXN, XLNX and MRVL. Our top
picks in large-cap semis are BRCM, INTC, TXN, XLNX and MRVL as they
offer stable revenue growth and superior operating margin, FCF margin, payout
ratio expansion, and are market leaders in the segments they target. This note
contains a detailed investment thesis for each of our top picks.
• Also positive on semi capital equipment—AMAT, KLAC, and LRCX. The
current Moore’s Law–driven capex cycle should drive a favorable equipment
spending cycle for at least the next 24 months and be a tailwind for the semicap
equipment suppliers like KLAC, LRCX, and AMAT. This tailwind should afford
the semicap companies to focus on driving incremental investments in nextgeneration tool development, 450nm and EUV transitions, and still drive solid
gross, operating margin, and EPS growth over the next 18-24 months. See our
note Constructive 2015 Semicap Spending Environment; Reiterate OW on AMAT,
KLAC, and LRCX, Sur et al., September 23, 2014.
• Downgrading ADI and ONNN to Neutral. We are downgrading Analog
Devices and ON Semi from Overweight to Neutral as our OW-rated thesis
has not played out and ONNN is within 5% of our price target. ADI has
underperformed in 2013 and thus far in 2014, and our expectation for
increasing leverage has not materialized.
Equity Ratings and Price Targets
Company
Analog Devices
ON Semiconductor Corporation
Ticker
ADI US
ONNN US
Mkt Cap
($ mn)
15,918.29
4,267.20
Source: Company data, Bloomberg, J.P. Morgan estimates. n/c = no change. All prices as of 22 Sep 14.
Price ($)
49.92
9.60
Cur
N
N
Rating
Prev
OW
OW
Price Target
Cur
Prev
60.00
n/c
10.00
n/c
Click for link to full report dated September 23, 2014
11
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
DuPont
We Upgrade to Overweight
Chemicals: Specialty, Commodity
and Agricultural
Jeffrey J. Zekauskas
AC
(1-212) 622-6644
jeffrey.zekauskas@jpmorgan.com
Bloomberg JPMA ZEKAUSKAS <GO>
Silke Kueck
(1-212) 622-6503
silke.x.kueck@jpmorgan.com
Ben Richardson
(1-212) 622-6455
ben.richardson@jpmorgan.com
Youyou Yan
(1-212) 622-4951
youyou.yan@jpmorgan.com
J.P. Morgan Securities LLC
The history of the chemical industry in North America is a history of higher growth,
financial return and increasing specialization. Sherwin-Williams, PPG, Monsanto,
and Praxair were all conglomerates or parts of conglomerates that focused their
business portfolios to more intently focus in specific market areas, whether the areas
be paints and coatings, industrial gases, agricultural seed technology, or industrial
gases. The intellectual challenges facing CEOs are now substantially larger because
of the globalization of industry, higher regulatory demands, technological innovation
and the designs and management of appropriate incentive structures. These strenuous
demands and increasing business complexity make it more difficult for
conglomerates to be effectively managed. Accordingly, the Trian suggestion that
DuPont and its shareholders would gain from increased specialization and the
division of DuPont into a Life Sciences and Agricultural entity and a basic industries
company is a natural one, in our view. The vision of DuPont’s management is
different. DuPont believes that synergies in research, revenue, costs, and taxes stem
from DuPont’s conglomerate structure. Following the publication of the Trian letter
to DuPont’s board, DuPont’s management is now in the position of having to defend
and fortify its vision of the company through its financial returns. Current
management is likely to work to justify DuPont’s organizational structure, or the
structure will be replaced by a new one. The DuPont shareholder has the luxury of
testing both visions.
• We have raised our rating on DuPont to Overweight (from Neutral).
DuPont’s businesses are good free cash flow generating entities as the
company is configured currently. There are earnings risks near term due to
the weakness in the Euro, some slowing of offshore economic growth in Asia
and in Europe, and from the decrease in North and South American farmer
income due to lower grain prices. A weaker shorter-term business
performance may place pressure on the DuPont share price. However, we
think that these risks are probably more than offset by the benefits of the
progressive rationalization of DuPont’s business model to increasing return
and free cash flow generation as the company decides how it will make its
way as a corporate entity: whether as a conglomerate or as a number of
smaller and more focused entities. We lifted our December 2015 price target
for DuPont from $67 to $75. DuPont’s current free cash flow yield for 2016
is 6.7%. Our price target of $75 assumes a 6.2% free cash flow yield.
DuPont (DD;DD US)
FYE Dec
EPS – Recurring ($)
Q1 (Mar)
Q2 (Jun)
Q3 (Sep)
Q4 (Dec)
FY
Bloomberg EPS FY ($)
2013A
2014E
2015E
2015E
2016E
2016E
1.56
1.28
0.45
0.59
3.88
3.84
1.58A
1.17A
0.54
0.71
4.00
4.01
4.60
-
4.55
4.65
5.20
-
5.15
5.20
Source: Company data, Bloomberg, J.P. Morgan estimates.
(Prev)
(Curr)
(Prev)
(Curr)
Company Data
Price ($)
Date Of Price
52-week Range ($)
Market Cap ($ mn)
Fiscal Year End
Shares O/S (mn)
Price Target ($)
Price Target End Date
69.25
17 Sep 14
69.75-56.46
63,047.66
Dec
910
75.00
31-Dec-15
Click for link to full report dated September 18, 2014
12
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
Packaged Food
Updated Thoughts on Each Stock; Migrating Price Targets
to December 2015 – Supportive MDLZ, HAIN, MJN, HSY
Food Manufacturing and Retail
Ken Goldman
AC
(1-212) 622-0359
ken.goldman@jpmorgan.com
Bloomberg JPMA GOLDMAN <GO>
Joshua A Levine
(1-212) 622 6217
joshua.a.levine@jpmorgan.com
J.P. Morgan Securities LLC
In this note, we briefly refresh our outlook on each packaged food company we cover
(ex-CPB, which reports today) and migrate our price targets to December 2015 from
December 2014. Though they have outperformed their peers of late, we remain
Overweight HAIN and WWAV, which we think will continue to benefit over time
from healthy eating trends. We also remain constructive on MJN, for which we think
2015 estimates need to rise, and MDLZ for the long term on the margin story. We
remain less sanguine on some of the slower-growth names.
• ConAgra (CAG – Neutral) – Establishing December 2015 price target of $35
(implies ~12% TSR upside). Our main concern with CAG – besides that it’s a
bit of a show-me story – is that a new CEO will be replacing Gary Rodkin at the
end of the fiscal year (May 2015). The CEO has yet to be selected. It is our
experience that, often, new CEOs in the packaged food space like to start their
tenures by re-basing earnings lower, partially in an effort to enable growth. This
said, we think the worst is likely over for ConAgra, which has experienced a
number of unique challenges over the last two years. Indeed, based on our
increased comfort that Consumer Foods will stabilize, Commercial Foods will
improve with lower potato costs, and Private Brands will see a slight
improvement, we are raising our estimates. It seems to us that CAG’s efforts to
discontinue slower-turning Healthy Choice SKUs are starting to pay off with
“less bad” velocities and an improved overall mix. We are boosting our estimates
as follows: FY15 to $2.31 from $2.22 (consensus $2.25), and FY16 to $2.47 from
$2.36 (consensus $2.39). We also introduce FY17E at $2.56 (consensus $2.59).
• General Mills (GIS – Neutral) – Establishing December 2015 price target of
$54 (implies ~4% TSR upside). At Mills’ investor day in July, we were
fortunate to be seated at a lunch table with Jeff Harmening, the new head of US
Retail, and we came away impressed. When asked how he would describe his
style, he said, “I am a simplifier,” and emphasized his desire to bring Mills back
to basics (evidence of this perhaps can be found in cereal, where Mills is
spending more on core varieties of Cheerios, Cinnamon Toast Crunch and Trix).
We long have hoped food companies would take this approach, and thus we are
glad to see Mills push harder on its biggest, often higher-margin products such as
yellow-box Cheerios. As for the present, we are less optimistic, with Nielsen Co.
data pointing to softer velocities in cereal and yogurt, along with some potential
mix deterioration. We maintain our FY15 ($3.04 vs. consensus $3.02) and FY16
($3.22, in line with the Street) estimates and introduce FY17E at $3.44
(consensus $3.44).
• Hain Celestial (HAIN – Overweight) – Establishing December 2015 price
target of $113 (implies ~15% TSR upside). We do not think growth of betterfor-you food is running out of steam. In fact, we think grocers such as Kroger
(KR – Overweight) will continue to add natural and organic products to its
shelves at quick rates over the next few years. This distribution expansion should
keep benefitting companies like HAIN for the foreseeable future. To be
conservative, we assume that HAIN’s organic growth rate decelerates from the
high-single digits last year to 7% in 2016 and 6% in 2017. But for 2015 we are
confident that growth will remain in the high-single digits (we model +8.6%) and
that the company is ideally positioned to grow with demand. Some margin
improvement from bringing production in house, etc., should not hurt, either. We
appreciate that the HAIN shares are relatively expensive, at nearly 26x NTM
13
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
EBITDA. We do not think this multiple is necessarily sustainable, and thus we
apply a discount when we value the stock (we use 24x P/E and 14x
EV/EBITDA). Given HAIN’s extraordinary growth – EPS are up 200%+ since
FY10 – we do not have a problem putting a substantial premium on the shares
versus packaged food as a group. With much slower-growth companies (e.g.,
CAG, CPB) sporting EV/EBITDA multiples at 10x or above, 14x does not seem
unreasonable for HAIN, in our view.
• Hershey (HSY – Overweight) – Establishing December 2015 price target of
$104 (implies ~18% TSR upside). Last week, CFO Dave Tacka surprisingly
announced his plan to retire at the end of 2014. Though we appreciate that Mr.
Tacka is in his 60s and seems to be leaving on relatively amicable terms (he is not
leaving until the end of the year), our experience tells us that sudden and
unexpected departures like this seldom indicate positive news on the horizon. Mr.
Tacka has been CFO for little more than a year, which perhaps makes his
departure even more surprising. That said, if the company brings in a new CFO
willing to potentially utilize the balance sheet a bit more aggressively, over the
long term a change may be a positive for the stock. As for fundamentals, we
appreciate that the days of high-single-digit organic sales growth are probably in
the past. And we recognize that management’s decisions to slow ad spending and
bring back limited editions (thus dredging up memories of poorly executed
“innovation” of yesteryear) did not resonate well with investors, understandably.
That said, we want to keep some of the negativity in perspective. Advertising
spending remains very high on an absolute basis, there is literally only one
limited edition being produced, and the timing of the year puts innovation-driven
sales growth into the back half, in contrast to most years when new products are
front-half loaded. With the EBITDA multiple now at an attractive 12.2x, we think
the risk/reward is favorable. We maintain our FY14E EPS of $4.05 (consensus
$4.06). We raise FY15E to $4.48 from $4.43 to reflect the potential for lower
milk (consensus $4.48). We introduce FY16E at $4.87 (consensus $4.93).
• J.M. Smucker Co. (SJM – Neutral) – Establishing December 2015 price
target of $110 (implies ~10% TSR upside). Keurig 2.0 is finally out – it feels as
though we’d been hearing about it for years – and the reviews we have seen are
mixed. PCMag: “If it can recognize what cup I’m brewing, then why do I have to
press a button that tells it Hot Cocoa/Other?... If you’re already satisfied with
your current machine, and don’t need the ability to brew a carafe, there’s little
reason to upgrade to the K500. But if you enjoy the controlled simplicity of
single-serve brewing, and want the ability to brew a pot of coffee just as easily,
the Keurig 2.0 K500 will likely make you happy.” CNET: “An upgrade that
might leave you bitter… With fewer brands to choose from, Keurig 2.0 is more
restrictive than the last generation, and the K500 doesn’t do much to make up for
it. As upgrades go, this one doesn’t make sense.” Perhaps more importantly,
many reader comments seem particularly negative about the incompatibility
between 2.0 and legacy K-Cups. If 2.0 disappoints – and it is far too early to say
it will; we are just pointing out some early hurdles – it likely would not be a
positive for SJM, in our view. We reduce 2Q15E to $1.62 from $1.64 (consensus
$1.66) to reflect our hesitation about coffee volumes in a higher price environment.
We lower FY15E to $5.94 from $5.97 (consensus $6.02) for the same reason.
• Kellogg (K – Neutral) – Establishing December 2015 price target of $65
(implies ~4% TSR upside). Though we appreciate Kellogg’s cost-savings effort
and think it may bear some fruit, we cannot help but observe that the
company’s distribution points have started to slip in measured channels, perhaps
the result of too many years of eroding velocity. Also the company’s innovation
efforts do not seem to be helping as much as they used to. We hope that as 2015
approaches, a (potentially) more rational pricing environment in food helps
14
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
companies like Kellogg benefit from some lower costs for corn, etc. We reduce
3Q14E to $0.91 from $0.93 (consensus $0.92) to reflect continued softness in
measured retail-level data. 2014E goes to $3.92 from $3.96 (consensus 3.92) and
2015E to $4.13 from $4.20 (consensus $4.13). We introduce 2016E at $4.38
(consensus $4.40).
• Kraft (KRFT – Neutral) – Establishing December 2015 price target of $62
(implies ~11% TSR upside). Though we believe the top line will continue to
face its challenges, and we are not comfortable with the current multiples (e.g.,
11.3x NTM EBITDA), we appreciate why the KRFT shares have done well lately
(+9.8% vs. SPX +4.0% since 7/31/14). With the 10-year Treasury now at 2.46%,
yield is an increasingly scarce commodity. KRFT’s 3.6% yield is one of the best
in the group. Unless fundamentals weaken materially or the entire packaged food
sector goes out of favor, we think KRFT’s multiples can remain elevated until
interest rates increase. We raise 2014E by a penny to $3.13 (Bloomberg
consensus $3.16) and 2015E by $0.03 to $3.43 (consensus $3.42) in part to
reflect much cheaper pork belly prices of late, as well as slightly improved data
in Nielsen Co.-measured channels. We introduce 2016E at $3.65, $0.01 above
consensus.
• McCormick (MKC – Neutral) – Establishing December 2015 price target of
$68 (implies ~1% TSR upside). The Street expects EPS growth to accelerate
from 3.1% and 4.9% in FY13 and FY14, respectively, to 8.2% and 8.3% in FY15
and FY16. These growth rates seem aggressive to us, especially since FY14
benefits from M&A while future years do not (pending further M&A). While we
remain impressed with the company’s efforts overseas, the slowdown in domestic
consumption of MKC-branded spices concerns us. We recently visited a number
of “alternative” retailers in the Southeast US (WFM, TFM, SFM) and the absence
of MKC-branded spices seemed notable to us.
• Mead Johnson (MJN – Overweight) – Establishing December 2015 price
target of $107 (implies ~12% TSR upside). We think management is being
overly conservative about the dairy cost headwind. The company last week
played down the potential for dairy to be a tailwind in 2015, saying, “Current
milk prices in other regions have not dropped by the same extent as we’ve seen in
New Zealand. In fact, our experience is that such dramatic peaks and valleys
often overshoot and quickly revert to their longer-term mean.” Let us examine
both of these statements. First, though it technically is true that European powder
is not down as much as Oceana powder, the difference in Y/Y trends is not
particularly meaningful – all non-US powder is down by a significant degree. We
think US non-fat dry milk soon will follow, too. Second, the Y/Y change in
Oceana whole milk powder is steep but well within a standard deviation of the
typical Y/Y change over the last nearly 20 years. So we do not think the current
decline is abnormal or has overshot in any tangible way yet.
• Mondelēz (MDLZ – Overweight) – Establishing December 2015 price target
of $43 (implies ~23% TSR upside). Lost in the recent top-line disappointment
has been a very good margin progression; the EBIT margin improved by 130 bps
Y/Y in 1Q14 and 120 bps Y/Y in 2Q14. This performance increases our
confidence in further margin upside. Will it get to 15-16% in 2016 without much
revenue growth? Probably not, but with the stock at 12.7x EV/EBITDA – not a
great deal above companies like GIS (11.3x) and KRFT (11.3x) that we think
have less “juice” in their growth trajectories – we think the longer-term
risk/reward remains favorable. That said, though we maintain 2014E at $1.67
(consensus $1.69), we reduce 2015E and 2016E a bit to account for additional
FX pressure and continued category struggles.
15
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
• TreeHouse (THS – Neutral) – Establishing December 2015 price target of
$87 (implies ~7% TSR upside). As we have discussed previously, we do not
think calendar 3Q or 4Q14 will see much relief from what has been a somewhat
irrational level of promo spending across packaged food. But we do expect that
early in 2015 the tide may turn and some manufacturers will become more
rational on pricing. This would make sense given how ineffective the current
environment has been. In a more rational promo environment, we think private
label would benefit, not only because price gaps may widen, but also because
consumers may not be visually bombarded as often by displays offering branded
products for sale. Private label’s share of total food has declined at the same time
that branded food offers more discounts. Note that our estimates had not been
updated since the company reported earnings last month. We raise 2014E to
$3.69 from $3.67 (consensus $3.72) and decrease 2015E to $4.27 from $4.29
(consensus $4.31). We introduce 2016E at $4.60 (consensus $4.76).
• WhiteWave (WWAV – Overweight) – Establishing December 2015 price
target of $39 (implies ~11% TSR upside). Last week, WWAV filed an 8-K that
perhaps flew a bit under the radar. The company’s revolver now can increase to
5.0x net debt-to-EBITDA (previously 4.5x) in the event of an acquisition. This
should leave WWAV with ~$1B capacity at the end of this year, in our view, and
it gives us hope that further M&A may be afoot. As for fundamentals, though
overall numbers look good, we are getting a bit cautious on near-term trends for
the Silk brand. Nielsen-measured volumes have decelerated meaningfully from
the high-single-digit range to +1.7% in the 12 weeks ended 8/2/14. We think
slowing velocities for Silk’s almond milk varieties are to blame. We maintain our
estimates of $0.99 (consensus $1.00) and $1.21 (consensus $1.18) for 2014 and
2015, respectively. We also introduce 2016E of $1.41 (consensus $1.38).
Equity Ratings and Price Targets
Company
ConAgra Foods
General Mills
Hain Celestial Group
Hershey
J.M. Smucker Co.
Kellogg
Kraft Foods Group
McCormick & Co., Inc.
Mead Johnson Nutrition
Mondelēz International, Inc.
TreeHouse Foods Inc.
WhiteWave Foods
Ticker
CAG US
GIS US
HAIN US
HSY US
SJM US
K US
KRFT US
MKC US
MJN US
MDLZ US
THS US
WWAV US
Mkt Cap
($ mn)
13,907.78
34,025.00
5,013.14
20,380.33
10,453.51
23,602.40
35,292.00
9,123.65
19,805.82
61,101.28
3,054.79
6,228.05
Source: Company data, Bloomberg, J.P. Morgan estimates. n/c = no change. All prices as of 05 Sep 14.
Price ($)
32.51
53.82
98.02
90.58
102.71
65.20
58.82
69.54
97.71
35.69
81.32
35.07
Cur
N
N
OW
OW
N
N
N
N
OW
OW
N
OW
Rating
Prev
n/c
n/c
n/c
n/c
n/c
n/c
n/c
n/c
n/c
n/c
n/c
n/c
Price Target
Cur
Prev
35.00
28.00
54.00
52.00
113.00
102.00
104.00
97.00
110.00
n/c
65.00
62.00
62.00
57.00
68.00
n/c
107.00
99.00
43.00
38.00
87.00
76.00
39.00
35.00
Click for link to full report dated September 8, 2014
16
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
In Case You Missed It: Upgrades & Downgrades
Reports & Notes Published in September
Click the title to access the report
DATE
UPGRADE
9/9/14
TITLE
TICKERS
ACTION
AUTHORS
Homebuilding: Sector Update: Rally Likely Through Year-End; We Lower Our 15E-16E But
Remain Above Street; Ratings Refreshed
Virtusa Corp.: Upgrade to OW on Lower Customer Risk
KHI, LEN, PHM
Upgrade
Michael Rehaut
VRTU
Upgrade
Puneet Jain
WCC
Upgrade
C. Stephen Tusa, Jr
9/11/14
EE/MI: 2015 Preliminary Outlook: "Touch of Grey" - Aging Cycle Puts Premium on End Market
Selectivity and Balance Sheet
Jones Lang LaSalle Inc: Moving to OW and Raising Estimates
JLL, CBG
Upgrade
Michael W. Mueller
9/11/14
Wesco International: Revision Cycle Close to an End - Upgrading to OW
WCC
Upgrade
C. Stephen Tusa, Jr
9/15/14
DigitalGlobe, Inc.: Taking a Longer View: Upgrading to Overweight
DGI
Upgrade
Paul Coster
9/16/14
B/E Aerospace: Selloff Has Created a Better Entry Point; Upgrade to OW
BEAV
Upgrade
Joseph B. Nadol III
9/18/14
DuPont: We Upgrade to Overweight
DD
Upgrade
Jeffrey J. Zekauskas
9/9/14
9/11/14
DOWNGRADE
9/2/14
AutoZone, Inc.: Downgrading to Neutral
AZO
Downgrade
Christopher Horvers
9/4/14
GoPro, Inc.: Out of Battery: Downgrading to Neutral on Valuation
GPRO
Downgrade
Paul Coster
9/9/14
Homebuilding: Sector Update: Rally Likely Through Year-End; We Lower Our 15E-16E But
Remain Above Street; Ratings Refreshed
Rackspace Hosting: Downgrade to Neutral Given Balanced Risk-Reward - Skeptical on a
Potential CenturyLink Deal; Large Buyback Unlikely
TRW Automotive: Historically Full Purchase Price; Now Rate Neutral With $105.50 PT Given
High Probability of Closure on Proposed Terms
Semiconductors: Industry Settling into a Stable Growth Phase; Top Picks BRCM, INTC, TXN,
XLNX, MRVL; Downgrading ADI, ONNN to Neutral
Avery Dennison: We Lower Our Rating to Neutral
SPF, MDC,
MTH, MHO
RAX
Downgrade
Michael Rehaut
Downgrade
Philip Cusick
TRW
Downgrade
Ryan Brinkman
ADI, ONNN
Downgrade
Harlan Sur
AVY
Downgrade
Jeffrey J. Zekauskas
9/15/14
9/16/14
9/23/14
9/29/14
17
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
In Case You Missed It: Initiations & Focus List Reports &
Notes Published in September
Click the title to access the report
DATE
FOCUS LIST
9/9/14
TITLE
TICKERS
ACTION
AUTHORS
American Airlines: AAL Affirms Lower End Of Q3 Margin Guidance On Weaker RASM; Trimming
2H:14 and 2015 Estimates
B2Gold: The Darkest Hour Is Just Before Dawn. We add BTG to the JPM Analyst Focus List
AAL
Focus List
Jamie Baker
BTG
Focus List
John Bridges
Verizon Communications: Takeaways from Verizon Management Meetings; Raising 3Q Adds but
Better Growth and Lower EIP Mix Reduce EPS
NCR Corporation: Adjusting Model
VZ
Focus List
Philip Cusick
NCR
Focus List
Paul Coster
GNBC
Initiation
Preeti S Dixit
PCL
Initiation
Tyler J. Langton
WY
Initiation
Tyler J. Langton
9/8/14
Green Bancorp, Inc.: Initiating Coverage with a Neutral Rating; Valuation Reflects Strong Growth
Profile in Attractive Markets
Plum Creek Timber: Initiating at OW & $46 PT; Discount to Transaction Comps & Dividend Yield
Create Attractive Opportunity
Weyerhaeuser: Initiating at N & $35 PT; Solid Earnings Growth from Cost Reductions & Higher
Starts Mostly Priced In
Altisource Residential: Initiating with a Neutral Rating
RESI
Initiation
Anthony Paolone
9/8/14
Otonomy: Ears Are the New Eyes...Initiating at Overweight
OTIC
Initiation
Cory Kasimov
9/9/14
AMRI
Initiation
Tycho W. Peterson
9/9/14
Albany Molecular Research: Building the Next Powerhouse in Contract Manufacturing; Initiate with
Overweight and $25 PT
Catalent: Leading the Market for Drug Delivery Technologies; Initiate With Overweight And $28 PT
CTLT
Initiation
Tycho W. Peterson
9/9/14
Synchrony Financial: Attractive Model with Room for Improvement; Initiating At Overweight
SYF
Initiation
Richard Shane
9/15/14
ARCP
Initiation
Anthony Paolone
MDSO
Initiation
Sterling Auty
RYI
Initiation
Michael F. Gambardella
LVLT, CCOI
Initiation
Philip Cusick
9/23/14
American Realty Capital Properties: Initiating with Overweight; Management, B/S, & Entity
Improvements Should Narrow Valuation Gap
Medidata Solutions: Software to Make Drug Development Faster, More Efficient, and More
Effective; Initiating at OW
Ryerson: Unique Growth at an Attractive Price with Path to Lower Leverage, Higher Multiple. OW,
$15 Dec 15 PT
Enterprise Telecom Services: Initiating on Level 3 Communications and Cogent Communications
with Overweight Ratings
Cenovus Energy: Growth, FCF and Portfolio Value Potential; Initiate at Overweight
CVE.TO
Initiation
Phil Gresh
9/23/14
Chevron Corp: Waiting on the FCF Turn; Initiate at Neutral
CVX
Initiation
Phil Gresh
9/23/14
Exxon Mobil Corp: Defensive Macro-Oriented Story; Initiate at Neutral
XOM
Initiation
Phil Gresh
9/23/14
HollyFrontier: Advantaged Crude Pure Play, But Fewer Levers to Pull; Initiate at Neutral
HFC
Initiation
Phil Gresh
9/23/14
Marathon Petroleum: Many Value Levers to Pull, Initiate at Overweight
MPC
Initiation
Phil Gresh
9/23/14
Phillips 66: Favorable Portfolio Mix, Value Levers and Downside Protection; Initiate at Overweight
PSX
Initiation
Phil Gresh
9/23/14
Tesoro Corporation: West Coast Self-Help Story Getting Some Recognition; Initiate Coverage at
Neutral
Valero Energy: Attractive Gulf Coast Leverage, Above-Average Risk; Initiate at Neutral
TSO
Initiation
Phil Gresh
VLO
Initiation
Phil Gresh
9/12/14
9/17/14
9/18/14
INITIATIONS
9/2/14
9/5/14
9/5/14
9/17/14
9/17/14
9/18/14
9/23/14
18
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
In Case You Missed It: Reports & Notes Published in September
Access these reports and more at www.jpmorganmarkets .c om
DATE
COMPANY UPDATES
TITLE
TICKERS
AUTHORS
9/15/14
AMC Networks: Lowering Estimates on Q3 Comps and Ad Market Headwinds
AMCX
Alexia S. Quadrani
9/19/14
IHS Inc.: Lackluster 3QF14 (Aug); Outlook Remains Steady but Growth Acceleration Nudged Out
IHS
Andrew C. Steinerman
9/3/14
Navistar Int'l: FQ3'14 Conference Call Takeaways
NAV
Ann Duignan
9/4/14
Joy Global: FQ3'14 Conference Call Takeaways
JOY
Ann Duignan
9/15/14
Terex Corp: Pre-Announces and Lowers Expectations for Q3'14 and FY2014
TEX
Ann Duignan
9/19/14
Caterpillar Inc.: Growth Rates More Negative for Machines on Slightly Easier Comps
CAT
Ann Duignan
9/23/14
Allison Transmission Holdings: Underperformance a Buying Opportunity
ALSN
Ann Duignan
9/26/14
Deere & Co.: Brazil Analyst Meeting Takeaways
DE
Ann Duignan
9/9/14
CBRE Group, Inc: Small Estimate Reduction but No Change to Thesis or Price Target
CBG
Anthony Paolone
9/18/14
American Realty Capital Properties: Notes From Investor Day
ARCP
Anthony Paolone
9/26/14
Duke Realty: Small Increase to Our 2014/2015 FFO Estimates and NAV After Updating Model
DRE
Anthony Paolone
9/2/14
ANF
Brian J. Tunick
SIG
Brian J. Tunick
TIF
Brian J. Tunick
LULU
Brian J. Tunick
BURL
Brian J. Tunick
LULU
Brian J. Tunick
ULTA
Brian J. Tunick
CHS
Brian J. Tunick
9/16/14
Abercrombie & Fitch: Top Line Volatility Keeps the $2.75+ 2014 EPS Dream at Bay despite Margin
Cushion; Reiterate Neutral.
Signet Jewelers: Impressive Q2 Results; Core Businesses Maintain Momentum As Zale Also Improves.
Reiterate OW Rating & Raise TP to $130
Tiffany & Co: Americas Sales Momentum and Gross Margin Expansion Continue to Drive Upside.
Raising PT to $106
lululemon athletica inc.: Tough 2Q14 Understood, but 2H14 Guidance Poses Near-Term Risk for the
Biggest Show Me Story in Our Universe.
Burlington Stores: Solid Progress in Improving Execution as Capital Structure Accelerates Earnings
Growth; Reiterate OW & Raise PT to $40
lululemon athletica inc.: Sigh of Relief Thanks to 2Q14 Beat and In-line 3Q14 Outlook, but Not off the
Mat Just Yet. Reiterate Neutral.
Ulta Salon, Cosmetics & Fragrance, Inc.: Nice Q2 Beat and a Robust Long Term Growth Plan;
Reiterate Overweight
Chico's FAS, Inc.: Inventory Actions and New CFO Optimism Creating Favorable Setup into FY15;
Reiterate Overweight.
Danaher: Our Take on Nobel Biocare Acquisition
DHR
C. Stephen Tusa
9/17/14
Dover: Takeaways from Field Trip to OPW Fueling Components
DOV
C. Stephen Tusa
9/18/14
Roper Industries: Takeaways from Meetings at JPM US All Stars Conference
ROP
C. Stephen Tusa
9/22/14
General Electric Co.: Our Take on DRC Situation
GE
C. Stephen Tusa
9/24/14
Dover: Our Take on 3Q Miss
DOV
C. Stephen Tusa
9/24/14
EE/MI: BRICs Hitting the Wall, Risk to Growth; Cutting Target Multiple and Estimates
C. Stephen Tusa
9/24/14
Honeywell: CFO Visit Reaffirms Double Digit EPS Growth Framework Intact For '15 While Balance
Sheet Firepower Could Be Used Soon
Danaher: A Closer Look at Nobel Biocare
MMM, DHR, DOV, EMR, GE,
HDS, HON, HUBB, IR, LII,
PNR, ROP, ROK, SPW, TYC,
WBC, WSO, WCC
HON
9/2/14
9/2/14
9/8/14
9/9/14
9/11/14
9/11/14
9/19/14
9/25/14
C. Stephen Tusa
DHR
C. Stephen Tusa
GE
C. Stephen Tusa, Jr
9/9/14
General Electric Co.: Oil & Gas Meeting Preview: Expected Positives Are Micro and Margins With
Macro The Key Question
SPX Corp.: Takeaways from Investor Meeting
SPW
C. Stephen Tusa, Jr
9/10/14
General Electric Co.: Takeaways from GE Oil & Gas Presentation
GE
C. Stephen Tusa, Jr
9/10/14
HD Supply: 2Q Beat
HDS
C. Stephen Tusa, Jr
9/29/14
3M: Adjusting Estimates
MMM
C. Stephen Tusa, Jr
9/12/14
Bristol-Myers Squibb Company: Thoughts on Upcoming Immuno-Oncology Newsflow
BMY
Chris Schott
9/15/14
Pfizer Inc.: Assessing Pfizer’s M&A Options; A Large Deal Could Represent An Upside Driver For
Shares
Endo International PLC: Thoughts On A Potential Auxilium Acquisition
PFE
Chris Schott
ENDP
Chris Schott
Actavis plc: Takeaways From Recent Mgmt Meetings; Well Positioned For Organic and Inorganic
Upside
ACT
Chris Schott
9/8/14
9/17/14
9/22/14
19
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
COMPANY UPDATES
TITLE
TICKERS
AUTHORS
9/22/14
Perrigo Company: Takeaways From Mgmt Meetings; Remains Well Positioned For LT Growth
PRGO
Chris Schott
9/25/14
Valeant Pharmaceuticals: More Positive News Flow
VRX
Chris Schott
9/26/14
Mallinckrodt: Raising Estimates Post Model Review; Maintain Neutral but Attractive NT Setup
MNK
Chris Schott
9/4/14
COST
Christopher Horvers
9/19/14
Costco Wholesale Corporation: Impressive Comp Beat Amidst Broad Traffic Lift in Retail; Adjusting
Estimates
AutoZone, Inc.: Reading the Print: DIY Trends, DIFM Sales Per Store, Investment Pressures
AZO
Christopher Horvers
9/22/14
Bed Bath & Beyond: Reading the Print: Comp and Gross Margin Remain Tantamount
BBBY
Christopher Horvers
9/23/14
AutoZone, Inc.: Comp Growth Moderates; Lowering Estimates and Price Target
AZO
Christopher Horvers
9/23/14
BBBY
Christopher Horvers
COO
Christopher Pasquale
COO
Christopher Pasquale
WMGI
Christopher Pasquale
9/23/14
Bed Bath & Beyond: Model Remains Under Pressure; ASR Mitigating EPS Downside; Lowering
Estimates; $65 PT
The Cooper Companies, Inc.: Disappointing F3Q14 Performance, But Strong Growth Potential Still
Warrants Bullish Outlook; Reiterate OW
The Cooper Companies, Inc.: Clariti of Purpose; Analyst Meeting Highlights Growth Potential and
Benefits of Sauflon Transaction
Wright Medical Group: One to Own into Year End; Upcoming Catalysts and Augment Optionality
Should Drive Outperformance
Cardiovascular Devices: Latest Thoughts on the VAD Market Following THOR Management Change
HTWR, THOR
Christopher Pasquale
9/3/14
PG&E Corp.: CPUC Fine Decision a Step Closer
PCG
Christopher Turnure
9/8/14
Piedmont Natural Gas Co.: Atlantic Pipeline, Related Investment Adds to Long-Term Growth Outlook
PNY
Christopher Turnure
9/8/14
Sempra Energy: Multiple Growth Paths Confirm Mexico Upside Potential
SRE
Christopher Turnure
9/11/14
ITC Holdings: Model Update
ITC
Christopher Turnure
9/24/14
DUK
Christopher Turnure
9/2/14
Duke Energy Corp.: Long-term Financing Needs to Dictate Int’l Review Decision: Ongoing Repatriation
Most Valuable Strategy
Exelixis, Inc: Cabo's COMETs Fizzle Out; Significant Restructuring on Tap
EXEL
Cory Kasimov
9/2/14
Keryx Biopharmaceuticals: Thoughts Ahead of Zerenex's Sept. 7th PDUFA
KERX
Cory Kasimov
9/8/14
Keryx Biopharmaceuticals: The Drug Formerly Formerly Known as Zerenex Is Approved; Label Is Less
than Ideal
Sangamo BioSciences: HIV Update Highlights Durability of Response to SB-728-T
KERX
Cory Kasimov
SGMO
Cory Kasimov
MDCO
Cory Kasimov
9/19/14
The Medicines Company: Orbactiv Pricing and Commercial Prep Shows No Real Surprises; Updating
Our Model
ZS Pharma: ZS-9 Phase 3 Data Preview
ZSPH
Cory Kasimov
9/22/14
ACADIA Pharmaceuticals: Notes from the Road
ACAD
Cory Kasimov
9/24/14
The Medicines Company: Takeaways from MDCO's Infectious Disease Investor & Analyst Day
MDCO
Cory Kasimov
9/25/14
ZS Pharma: Notes from the Road
ZSPH
Cory Kasimov
9/29/14
Seattle Genetics: AETHERA Hits As Expected; Full Data Coming at ASH
SGEN
Cory Kasimov
9/15/14
FB
Doug Anmuth
9/15/14
Facebook: Share of Mobile Time Remains Strong at 20% in Aug; Pickup in Brand Ads and Organic
Video in 3Q; Reiterate OW and $90 PT
Pandora Media Inc: Reiterate Overweight on Accelerating Growth and Improving Ad Trends; $42 PT
P
Doug Anmuth
9/4/14
Healthcare Technology: Summer Summary: MDRX Top Pick into End of Year
Gavin Weiss
9/26/14
athenahealth: Management Meeting Takeaways
MDRX, ATHN, CERN, HQY,
IMPR, QSII, VCRA
ATHN
9/10/14
INTC
Harlan Sur
MTSI
Harlan Sur
STX
Harlan Sur
CAVM
Harlan Sur
BRCM
Harlan Sur
MU
Harlan Sur
9/3/14
Intel: IDF Day 1 Recap: Impressive Show as Intel Looks Ahead to the Post-PC Era; Reiterate
Overweight
M/A-COM: Management Meetings: Positioned to Grow 2x Faster Than the Market Through Technology
Leadership & Acquisitions
Seagate Technology: Analyst Day: Strong Business Fundamentals in 2H Across All segments; MultiBillion Dollar Opportunity in Cloud/Storage
Cavium Inc: SDN Forum: Xpliant, ThunderX, Liquid IO Addressing Significant Inflections in the
Datacenter; Reiterate OW
Broadcom Corporation: Next Gen Networking Switch Chipset Solidifies Leadership in $3B Datacenter
Silicon Market; Reiterate Overweight
Micron Technology: Slightly Better F4Q Results; Nov-Q Revenue Outlook Benefitting from an Extra
Week Amidst Increasing Operating Expenses
Delta Air Lines, Inc.: Delta Affirms Low-End of Guidance; 3Q Estimates Trimmed
DAL
Jamie Baker
9/5/14
Minerals Technologies: Moving to an Overweight Rating and a $74 Price Target from Not Rated
MTX
Jeffrey J. Zekauskas
9/12/14
Eastman Chemical Company: Eastman to Acquire Taminco
EMN
Jeffrey J. Zekauskas
9/26/14
H.B. Fuller: Unglued
FUL
Jeffrey J. Zekauskas
9/5/14
9/12/14
9/12/14
9/8/14
9/16/14
9/10/14
9/15/14
9/19/14
9/25/14
9/26/14
20
Gavin Weiss
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
COMPANY UPDATES
TITLE
TICKERS
AUTHORS
9/26/14
LyondellBasell Industries: We Raise Estimates
LYB
Jeffrey J. Zekauskas
9/4/14
Master Limited Partnerships: Liquids Transportation and Storage (T&S) Model Updates
Jeremy Tonet
9/15/14
Buckeye Partners L.P.: Model Update: Factoring in Trafigura Acquisition and Recent Results
MMP, MPLX, NS, OILT, PSXP,
TLLP, VLP
BPL
9/21/14
Enable Midstream Partners, LP: Model Update
ENBL
Jeremy Tonet
9/16/14
AFLAC, Inc.: Japan Post a L-T Opportunity; Competition a Concern
AFL
Jimmy S. Bhullar
9/3/14
A Cloudburst at Cloud Peak Soaks Investors: PRB Coal Update
BTU, ACI, ANR, CLD
John Bridges
Jeremy Tonet
9/4/14
Newmont Mining: De-mystifing Nevada; We Lift Our Price Target to $29
NEM
John Bridges
9/29/14
Coal: Deep Value & Challenges: We Update Our Coal Earnings and TP for New Prices
John Bridges
9/3/14
Coca-Cola Enterprises: CCE Tweaks FY14 Guidance Lower
ANR, ACI, BTU, CLD, ARLP,
FELP
CCE
9/3/14
Newell Rubbermaid Inc.: Newell Management Upbeat About Business and Future Opportunities
NWL
John Faucher
9/4/14
Jarden Corp.: Raising Numbers on Vacuum Acquisition
JAH
John Faucher
9/22/14
Clorox: NY Post Article Discusses Clorox and M&A; CLX Exits Venezuela
CLX
John Faucher
9/22/14
Coty Inc.: Nail Category Looking More Buff; Reshuffling Quarterly Estimates
COTY
John Faucher
9/25/14
Newell Rubbermaid Inc.: Takeaways From NWL's Analyst Meeting
NWL
John Faucher
9/26/14
Coca-Cola Co.: Adjusting Numbers for Weaker Q3 Volumes and Fx
KO
John Faucher
9/2/14
Sysco Corporation: Encouraging Quarter, but Believe Stock Fairly Pricing Improving Fundamentals and
Accretion from Pending Merger
McDonald's: MCD Going Wrong; No Fundamental Turn, but Implicit Value Remains
SYY
John Ivankoe
MCD
John Ivankoe
Yum Brands: Believe Fundamentals, Even Corporate Action (Additional Debt, SOTP) Limits Upside.
Remain Neutral.
Darden Restaurants: Continue to Prefer DIN, EAT for FCF-Oriented Investors and BLMN If Industry
Continues Improvement
Dunkin' Brands: Analyst Day Highlights Long-Term Fundamentals, Global Growth But Suggests Limited
Catalysts For Further Upside Near-Term
McDonald's: Believe Stock Dead Money Based on Fundamentals, But More Potential Upside Exists
From Strategic Change
Bloomin' Brands: Believe BLMN the One to Own for "Risk-On" Casual Dining Trade
YUM
John Ivankoe
DRI
John Ivankoe
DNKN
John Ivankoe
MCD
John Ivankoe
BLMN
John Ivankoe
Chesapeake Energy: Model Update; Lots of Positives at CHK; Monitoring Operations and Relative
Leverage to Key Plays
SM Energy: New Completion Designs Improve Ops; Maintaining Neutral Rating
CHK
Joseph Allman
SM
Joseph Allman
CLR
Joseph Allman
9/18/14
Continental Resources, Inc.: Analyst Day Expectations: Enhanced Completion Results, 10-Yr Plan;
Model Update
Approach Resources: Model Update; In Line on NAV, Discount on EBITDA; Monitoring Performance
AREX
Joseph Allman
9/10/14
Leidos: Commercial Health and Engineering Challenges Come to a Head
LDOS
Joseph B. Nadol III
9/10/14
SAIC
Joseph B. Nadol III
9/4/14
SAIC: Solid Performance in a Challenging Environment; Maintain OW Although Upside Now More
Limited
Marriott International: Analyst Day Preview; Establishing $84 Year-End 2015 Price Target
MAR
Joseph Greff
9/9/14
Marriott International: Positive Analyst Day Thesis Reinforcing; Reaffirming OW and $84 PT
MAR
Joseph Greff
9/15/14
H
Joseph Greff
LVS, MPEL, MGM, WYNN
Joseph Greff
9/10/14
Hyatt Hotels Corporation: Takeaways from Investor Meeting; Reiterate Overweight and Establishing a
$71 Dec-2015 PT
Gaming: Macau: Getting Closer to a Bottom (We Think): Identifying Optimal Entry Points/Timing to Step
In
Humana: Med Adv Geographic Footprint Expanding in 2015
HUM
Justin Lake
9/15/14
Universal Health Services Inc.: Deal Reported for UK Behavioral Facilities
UHS
Justin Lake
9/16/14
Humana: New Share Repurchase Authorization Announced Ahead of Updated Capital Deployment
Strategy
UnitedHealth: Thoughts on UNH NY Small Group Market Pressures
HUM
Justin Lake
UNH
Justin Lake
HUM
Justin Lake
9/19/14
Humana: HUM Lays Out Timing for Share Repo - Estimating Accretion and Remaining Balance Sheet
Dry Powder
Humana: Laying Out Bridge to 2015 EPS 10%+ Above Consensus - Raise JPMe to $9.71
HUM
Justin Lake
9/19/14
Molina: Investor Day Takeaways
MOH
Justin Lake
9/22/14
Managed Care: Updated Thoughts on UNH Zero Premium Pricing in Med Adv & State of GA Retiree
Win
Mead Johnson Nutrition: Lowering 3Q14E but Raising 2015E as Milk Costs Continue to Drop
UNH, WLP
Justin Lake
MJN
Ken Goldman
9/11/14
9/11/14
9/16/14
9/18/14
9/23/14
9/25/14
9/4/14
9/11/14
9/17/14
9/18/14
9/16/14
9/17/14
9/3/14
John Faucher
21
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
DATE
COMPANY UPDATES
North America Equity Research
06 October 2014
TITLE
TICKERS
AUTHORS
9/8/14
Annie's, Inc.: Suspending Rating and Price Target
BNNY
Ken Goldman
9/8/14
Packaged Food: Updated Thoughts on Each Stock; Migrating Price Targets to December 2015 -Supportive MDLZ, HAIN, MJN, HSY
Ken Goldman
9/9/14
9/12/14
Campbell Soup Company: Lowering Estimates, Establishing Dec-15 Price Target of $41, Representing
-1% TSR
Kroger: Our Top Pick Across All Our Stocks; We See 21% TSR Over Next 15+ Months
BNNY, CAG, GIS, HAIN, HSY,
SJM, K, KRFT, MKC, MJN,
MDLZ, THS, WWAV
CPB
KR
Ken Goldman
9/17/14
General Mills: Lowering Estimates as Traditional Packaged Food Industry Struggles Continue
GIS
Ken Goldman
9/18/14
WhiteWave Foods: It's a Nice Day for a White Wedding -- WWAV Marries "So Delicious" Brand to Form
Tasty Dairy-Free Union
ConAgra Foods: Staying Neutral as Risks Remain High, but Increasingly an Interesting Value Story
WWAV
Ken Goldman
CAG
Ken Goldman
IVZ
Kenneth B. Worthington
ICE
Kenneth B. Worthington
9/29/14
Invesco Ltd.: Performance Fees Set for a Comeback in 2015, with Products Generating $150mn$200mn of Annual Fees
The Intercontinental Exchange: Incremental EPS as Catalysts, Successful Trends More Than Offset the
Limited-Hope Products
Janus Capital Group: Janus Hired Gross -- Another Strong Move by CEO Weil
JNS
Kenneth B. Worthington
9/2/14
Norwegian Cruise Line: Suspending Rating and Price Target
NCLH
Kevin Milota
9/23/14
Carnival Corporation: 3Q14 Earnings Takeaways; Updating Estimates; YE15 PT $44
CCL
Kevin Milota
9/29/14
Cruise Lines: Takeaways from Miami Cruise Headquarter Tour
CCL, RCL, NCLH
Kevin Milota
9/4/14
Cerner: Moving to an Overweight Rating and Price Target of $67 from Not Rated
CERN
Lisa C. Gill
9/9/14
HealthEquity: F2Q15 Results: Solid Results; Guidance Looks Good; Well Positioned for Future Growth
HQY
Lisa C. Gill
9/10/14
WAG
Lisa C. Gill
9/16/14
Walgreen Company: Incremental Leverage Could Drive EPS Accretion While Maintaining Investment
Grade Credit Rating
Rite Aid: Fiscal 2Q15 Earnings Preview
RAD
Lisa C. Gill
9/17/14
Walgreen Company: Takeaways from S-4 Filing Regarding Step 2 of AB Transaction
WAG
Lisa C. Gill
9/19/14
Rite Aid: Lowering Est. and Price Target on Disappointing FY15 Guidance; Maintain OW, Valuation
Provides Support
HealthEquity: Management Meetings Reinforce Our Positive View
RAD
Lisa C. Gill
HQY
Lisa C. Gill
OCR
Lisa C. Gill
9/26/14
Omnicare Inc.: NT Catalysts Should Drive Outperformance into YE; Expect Improving Y/y Growth in
FY15; Reiterate OW
Walgreen Company: Fiscal 4Q14 Earnings Preview
WAG
Lisa C. Gill
9/4/14
PVH Corp.: Signs of Stability w/ Cautious 2H "Optimism"; Apparel Rally Legs Remain; Dec '15 $135 PT
PVH
Matthew R. Boss
9/4/14
Vince Holding Corp: 2Q Beat w/ the Devil in the Details; Compelling Profile, but Priced In; Neutral
VNCE
Matthew R. Boss
9/9/14
CST Brands: Mgmt Lunch Points to MLP Value + Potential M&A Roadmap; Proprietary SOP Analysis =
PT to $40
Broadlines, Apparel & Footwear: Model Update: Adjusting Estimates Post EPS Reports
CST
Matthew R. Boss
BIG, FL, RL
Matthew R. Boss
VFC
Matthew R. Boss
RL
Matthew R. Boss
9/26/14
V.F. Corporation: Transition Moves to Traction -Timberland Analyst Day Highlights Multi-Year Growth
Plan; Overweight
Ralph Lauren Corporation: Margins at Multi-Year Trough w/ NT Hurdles & Inflection Uncertain; HQ
Meeting Takes & Polo Pics
NIKE, Inc.: Regional Trio Drives Model Inflection; Tipping Our Caps – $100 Dec ’15 PT
NKE
Matthew R. Boss
9/26/14
Retail: Coverage Update
Matthew R. Boss
9/18/14
U.S. Steel Corp: Strategic Shift in Canada Lightens Balance Sheet Burden, Earnings Growth Continues
into 3Q14
GrafTech International: 2014 Outlook Cut 23%, Engineered Solutions Guided to Breakeven. Lowering
Estimates, Target to $5
Toll Brothers: Post-Call Notes: Orders Disappoint, But Incentives Stable; We Lower Our FY15E, FY16E
EPS; Underweight
Hovnanian Enterprises: Post-Call Notes: August Orders Up But Helped by a 5th Weekend; Incentives
Steady; Lowering EPS Ests; Neutral
Owens Corning: Notes from the Road: Near Term Visibility for Roofing Margins Remains Limited;
Composites' Momentum Expected to Continue
Caesarstone: Analyst Day Takeaways: Story Remains On Track
ANF, AEO, ANN, ASNA, BURL,
CHS, COH, LB, LULU, KORS,
ROST, SIG, PLCE, GPS, TIF,
TJX, TUMI, ULTA, URBN,
FRAN, ARO, BKE, MW, EXPR
X
GTI
Michael F. Gambardella
TOL
Michael Rehaut
HOV
Michael Rehaut
OC
Michael Rehaut
CSTE
Michael Rehaut
LEN
Michael Rehaut
9/26/14
9/5/14
9/18/14
9/25/14
9/25/14
9/12/14
9/17/14
9/24/14
9/24/14
9/3/14
9/4/14
9/5/14
9/10/14
9/18/14
22
Lennar: Post-Call Notes: Solid Quarter; Order Trends Consistent Throughout 3Q; Reiterate Overweight
Rating
Ken Goldman
Michael F. Gambardella
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
COMPANY UPDATES
TICKERS
AUTHORS
KBH
Michael Rehaut
9/2/14
KB Home: Post-Call Notes: Delays Impact 3Q Results, But Gross Margin Expansion Story On Track;
Overweight
Taubman Centers: Model Update
TCO
Michael W. Mueller
9/3/14
Rexford Industrial Realty: Model Update
REXR
Michael W. Mueller
9/5/14
Health Care REIT: Model Update
HCN
Michael W. Mueller
9/8/14
Federal Realty Investment Trust: Model Update
FRT
Michael W. Mueller
9/8/14
HCP, Inc.: Model Update
HCP
Michael W. Mueller
9/18/14
Prologis: Investor Day was largely focused on building the case for development
PLD
Michael W. Mueller
9/25/14
Health Care REIT: Model Update
HCN
Michael W. Mueller
9/26/14
Equity One Inc.: Model Update
EQY
Michael W. Mueller
9/26/14
Healthcare Trust of America: Model Update
HTA
Michael W. Mueller
9/4/14
Intersect ENT: Robust 2Q as Propel Adoption Gains Momentum; Reiterate OW
XENT
Michael Weinstein
9/8/14
Tornier: Raising Forecasts and Price Target Following Management Meetings
TRNX
Michael Weinstein
9/17/14
Baxter Intl: What the Docs Are Saying: Early Read on the Eloctate Launch; Lowering Ests on BAX
BAX
Michael Weinstein
9/18/14
Stryker Corp: Updates from the Analyst Meeting
SYK
Michael Weinstein
9/18/14
TriVascular Technologies: Recall a Speed Bump; No Change to Long-Term Outlook
TRIV
Michael Weinstein
9/19/14
Becton, Dickinson & Co: Lowering Estimates for Recent FX Moves and Slower BD Simplist Ramp
BDX
Michael Weinstein
9/23/14
Medtronic: Treasury Takes Aim: What it Means for MDT-COV
MDT
Michael Weinstein
9/26/14
Edwards Lifesciences: Model Update
EW
Michael Weinstein
9/26/14
Insulet Corp: Model Update
PODD
Michael Weinstein
9/26/14
St Jude Medical: Model Update
STJ
Michael Weinstein
9/2/14
Alt Energy | Applied & Emerging Tech Monthly Top 3: NCR, SYNA, & ACTG
ACTG, NCR, SYNA
Paul Coster
9/2/14
TERP
Paul Coster
9/3/14
TerraForm Power, Inc.: 2Q14 Preview: We Expect Constructive Commentary Regarding Formative
Process
TASER International Inc.: Increasing Price Target to $19.00
TASR
Paul Coster
9/3/14
TerraForm Power, Inc.: 2Q Results: Groundwork for Future Growth
TERP
Paul Coster
9/3/14
Verint Systems, Inc.: F2Q Preview: Introducing CY16 Ests and Establishing YE15 Price Target of $57
VRNT
Paul Coster
9/5/14
VRNT
Paul Coster
9/9/14
Verint Systems, Inc.: Customer Engagement and Advanced Threat Detection Solutions Drive Strong
F2Q and Guidance
Verint Systems, Inc.: Raising Price Target to $62.00 to Reflect the Value of Cyber Initiatives
VRNT
Paul Coster
9/22/14
TTM Technologies: Suspending Rating and Price Target
TTMI
Paul Coster
9/25/14
TiVo Inc.: Adjusting Model for Convertible Debt Raise
TIVO
Paul Coster
9/26/14
GoPro, Inc.: Adjusting Estimates and Price Target Goes to $54.00
GPRO
Paul Coster
9/26/14
Stratasys, Ltd.: Adjusting 4Q Ests for GrabCAD Acquisition
SSYS
Paul Coster
9/10/14
T-Mobile US Inc.: Strong August Subscriber Metrics and Embraces WiFi Calling. Raising 3Q Postpaid
Adds to 1.1m. Positive for GOGO
Sprint Corp: Raising Estimates: iPhone Leasing to Boost EBITDA & Capex Substantially as Sprint
Moves to Regain Share
Comcast: 3Q Estimates Update - Double Plays Drive Back-to-School Connects; Strong Broadcast
Offset Soft Cable Net
Green Bancorp, Inc.: Earnings Expectations Relatively Unchanged Post 2Q Results; M&A Pricing
Discipline Remains Key; Neutral
BCE Inc: Takeaways from BCE Mgmt Meetings: Bell Aliant Adds HSI Scale, Wireline EBITDA Growth in
2015, But Media Margin Pressure
Apple Inc.: iWallet FAQs: Thoughts on a Possible Apple Payments Announcement. Reiterate
Overweight.
Ciena Corp.: FQ3'14 Wrap: Weak Guidance Driven by Multiple Wins Including AT&T Domain 2.0.
Reiterate OW
Apple Inc.: iPhone Bull and Bear Cases as We Roll Out a New Proprietary User Base Model. Reiterate
Overweight.
JDS Uniphase: 2014 Analyst Day Wrap: Management Lays Out a Roadmap for Separation. Reiterate
Neutral.
Brocade: 2014 Analyst Day: NFV/SDN optimism as SAN continues to defy pessimistic views. Reit.
Overweight.
Motorola Solutions: Updating model for pension plan liability reduction and debt issuance
TMUS
Philip Cusick
S
Philip Cusick
CMCSA
Philip Cusick
GNBC
Preeti S Dixit
BCE.TO
Richard Choe
AAPL
Rod Hall
CIEN
Rod Hall
AAPL
Rod Hall
JDSU
Rod Hall
BRCD
Rod Hall
MSI
Rod Hall
9/24/14
9/12/14
9/15/14
9/12/14
9/25/14
9/5/14
9/5/14
9/8/14
9/12/14
9/24/14
9/26/14
TITLE
23
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
COMPANY UPDATES
TITLE
TICKERS
AUTHORS
9/28/14
BlackBerry: FQ2'15 Wrap: Beat on Margins but Weak ASPs and Services Revenue. Reiterate Neutral.
BBRY
Rod Hall
9/11/14
Visteon Corporation: Reiterate Overweight Rating on Sum-of-Parts Thesis; Raise PT; Thoughts on
M&A More Broadly
US Auto Parts: See Most Upside to Secular Growers HAR (+40%), TEN (+39%), THRM (+37%), DLPH
(+36%), and BWA (+35%) As We Look to 2016
VC
Ryan Brinkman
ALV, AXL, BWA, DAN, DLPH,
GNTX, THRM, HAR, JCI, LEA,
MGA, MTOR, TEN, TOWR,
TRW, VC, F, GM
GM, F, TSLA
Ryan Brinkman
CPRT
Ryan Brinkman
THRM
Samik Chatterjee
9/22/14
9/22/14
9/3/14
US Automakers: See Attractively Deep Value in GM As We Roll Out 2016 Estimates for US
Automakers; Like Ford; Cautious on TSLA
Copart, Inc.: Trim Estimates and Price Target After Softer F4Q Featuring Higher Expenses; Growth
Story Still Intact, However
Gentherm: Management Meeting Takeaways: Reiterate OW on Current & Future Product Growth
Potential Following CEO Road Show
Guidewire Software: 4Q14: Here We Go Again
GWRE
Sterling Auty
9/5/14
Synchronoss Technologies: Adjusting Model for Convertible Debt
SNCR
Sterling Auty
9/12/14
Dealertrack Technologies: 2014 Analyst Day: Impressive Revenue Outlook in All Three Segments
TRAK
Sterling Auty
9/15/14
Blackbaud Inc: Analyst Day 2014: A Look at the New Blackbaud
BLKB
Sterling Auty
9/18/14
Veeva Systems: 2014 Analyst Day: Deep Dive on the Company's Large Opportunity
VEEV
Sterling Auty
9/19/14
Guidewire Software: 2014 Analyst Day: Continuing to Execute on Growth Opportunity
GWRE
Sterling Auty
9/26/14
Medidata Solutions: Company Falls for $4.8M Fraudulent Wire Transfer
MDSO
Sterling Auty
9/8/14
SIVB
Steven Alexopoulos
SBNY
Steven Alexopoulos
UMPQ
Steven Alexopoulos
9/10/14
SVB Financial Group: Mgmt Meetings: Competition Heating Up as We Wait for Higher Rates;
Warrant/Securities Gain Primer; OW
Signature Bank: Mgmt Meeting: Growth Prospects Remain Strong but Timing Could Impact 3Q;
Expense Build Gradual; OW
Umpqua Holdings Corporation: Mgmt Meetings: Merger Integration on Track, as is Organic Loan
Growth but Still Headwinds; Neutral
IT and BPO Services: Prefer SMid Cap IT Over Large Cap; Establishing 2015 Price Targets
Tien-tsin Huang
9/15/14
Cognizant: Suspending Rating and Price Target
ACN, CDW, CTSH, CSC,
EXLS, G, GLOB, IBM, SYNT,
VRTU, WNS, XRX
CTSH
9/19/14
MasterCard: Investment Community Meeting Takeaways
MA
Tien-tsin Huang
9/22/14
ACN
Tien-tsin Huang
9/24/14
Accenture plc: F4Q Preview: We Expect F4Q Revenue & FY15 Margin Upside, but FX Headwinds to
EPS Growth
Paychex Inc: F1Q Postview: Tweaking Estimates Up for Float Income Upside and HRS Strength
PAYX
Tien-tsin Huang
9/25/14
Accenture plc: F4Q Recap - Not Perfect, but Pretty Solid Given Many Moving Pieces
CAN
Tien-tsin Huang
9/8/14
NanoString: Thoughts from Recent Meetings with Management
NSTG
Tycho W. Peterson
9/8/14
Quintiles Transnational: Analyst Day Recap: Familiar Themes on Market Leadership, Diversified
Offering, and Significant TAM; Reiterate Overweight
Agilent Technologies: Introducing Stand-Alone Model for New Agilent; Risk/Reward Remains Favorable
Ahead of Spin
Foundation Medicine: Takeaways from Meetings with Management
Q
Tycho W. Peterson
A
Tycho W. Peterson
FMI
Tycho W. Peterson
MYGN
Tycho W. Peterson
ZLTQ
Tycho W. Peterson
SIAL
Tycho W. Peterson
ISRG
Tycho W. Peterson
9/18/14
Myriad Genetics Inc.: Digging into myRisk: Physician Survey Reveals Strong Interest, but
Reimbursement Uncertainties Remain
Zeltiq Aesthetics: Analyst Day Recap: $4B TAM Outlined, but Competitive (and Other) Uncertainties
Remain
Sigma Aldrich: Merck KGaA to Acquire SIAL for $140 Per Share ($17B) in Cash; Suspending Rating
and Price Target
Intuitive Surgical, Inc.: Latest Thoughts on Xi (Physician Survey), Buy-Side Expectations and the
Recent Stapler Issue
Owens-Illinois: Lowering EPS and Price Target on Weaker than Expected Guidance
OI
Tyler J. Langton
9/4/14
Large Cap Banks: Weaker Than Expected Loan Growth, Mortgage Originations; Cutting Estimates
Vivek Juneja
9/9/14
BB&T Corporation: Second Small Acquisition in A Week, First Whole Bank Deal - Cracking Open M&A
Door?
BB&T Corporation: Investor Day: Share Buybacks, LCR Positive, But Efficiency Ratio Likely Delayed;
Increasing M&A
Bank of New York Mellon Corp.: Mgmt Meeting: Lower Expenses, Higher Operating Margin Likely; Sale
of Investment Mgmt Unlikely
BAC, BBT, C, FITB, PNC, RF,
STI, USB, WFC
BBT
BBT
Vivek Juneja
BK
Vivek Juneja
9/26/14
9/16/14
9/11/14
9/11/14
9/9/14
9/12/14
9/15/14
9/18/14
9/22/14
9/24/14
9/12/14
9/23/14
24
Ryan Brinkman
Tien-tsin Huang
Vivek Juneja
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
INDUSTRY OVERVIEW
TITLE
AUTHORS
9/16/14
Media & Internet: Takeaways from Media Buyer Call
Alexia S. Quadrani
9/4/14
Business Services: J.P. Morgan 2Q14 Global Flexible Staffing Database: Global Temp Help Recovery Continues but Uneven
Andrew C. Steinerman
9/5/14
Business Services: US Temp Help Continues Progress Amid Slower Summer Labor Headline
Andrew C. Steinerman
9/2/14
US Machinery: Rouse Rental Report Takeaways
Ann Duignan
9/3/14
Preliminary August Truck Orders: August Class 8 Orders 25,400 Units, Up 30% YoY
Ann Duignan
9/4/14
Brazilian Ag Equipment Data: August Tractor Sales Down 14% YoY; Combine Sales Down 19% YoY
Ann Duignan
9/10/14
Association of Equipment Manufacturers (AEM): August >100HP Tractor Sales Down 9% YoY; Combines Down 24% YoY
Ann Duignan
9/11/14
USDA World Ag Supply & Demand Estimates (WASDE): 2014/15 Cash Receipts Forecast Down 17% YoY
Ann Duignan
9/15/14
Agricultural Equipment: Used Equipment Index Down 3.3% YoY; Combines Down 3.7% and 100HP+ Tractors Down 3.3%
Ann Duignan
9/17/14
US Agriculture Machinery: Brazil Agriculture Fundamentals
Ann Duignan
9/18/14
August Truck Data: Class 8 Sales Up 18% YoY; Down 2% MoM
Ann Duignan
9/18/14
US Machinery: US Construction Expanding; Europe Overall Is Lagging
Ann Duignan
9/24/14
Architecture Billings Index: ABI Declines, But Remains Above 50 in August
Ann Duignan
9/26/14
European Truck Registrations: August Registrations Down in Both WE and EE
Ann Duignan
9/25/14
Real Estate Services: August CRE sales volume up 6% y/y, bringing QTD to about 12% y/y growth
Anthony Paolone
9/3/14
Specialty Retail: Sizing Up Labor Day Promotions to Gauge Who Can Make the 2H-Hockey Stick; Encouraged by AEO.
Brian J. Tunick
9/4/14
Pharma FAQs: Our Thoughts on Key Incoming Questions
Chris Schott
9/24/14
BMY/MRK: ESMO Preview - Several PD-1 Datapoints To Watch
Chris Schott
9/5/14
Hardlines Retail: Social Media Issue #3: Core WS Leaps; VSI Runs Past GNC; BBY/BBBY/HD/LOW Remain Laggards
Christopher Horvers
9/12/14
Horvers' Housing Monitor: Housing Market Gaining Momentum
Christopher Horvers
9/2/14
D, DUK and PNY to Build Southeast Pipeline: $4.5-5.0Bn Pipeline bigger than expected, DUK/PNY Gain Meaningful Equity Stakes
Christopher Turnure
9/26/14
Utilities Monthly Macro Monitor: Market and Industry Data for U.S. Electric Utilities
Christopher Turnure
9/23/14
Semiconductor Equipment: Constructive 2015 Semicap Spending Environment; Reiterate Overweight on AMAT, KLAC and LRCX
Harlan Sur
9/11/14
Fertilizer Industry Update: USDA September WASDE Report
Jeffrey J. Zekauskas
9/4/14
Energy Infrastructure/MLPs: Weekly Comp Tables
Jeremy Tonet
9/18/14
Energy Infrastructure/MLPs: Weekly Comp Tables
Jeremy Tonet
9/26/14
Energy Infrastructure/MLPs: Weekly Comp Tables
Jeremy Tonet
9/8/14
Coal; last two weeks: We offer this news round up note for investors who were able to "un-plug" over the last two weeks
John Bridges
9/8/14
Precious metals; last two weeks: We offer this news round up note for investors who were able to "un-plug" over the last two weeks
John Bridges
9/18/14
Denver Gold Forum: Kicking the Tires, Looking for Bargains
John Bridges
9/28/14
Global Coal Update: Coal's Recovery Turns into a Marathon on Persistent Supply & Weak Demand; We Mark Our Prices Lower
John Bridges
9/2/14
U.S. & European HPC: The Slowdown Is Real, but for How Long?
John Faucher
9/9/14
US Beverages: Nielsen Results Through August 30th
John Faucher
9/9/14
US Household Products: Nielsen Results Through August 30th
John Faucher
9/19/14
US Beverages & HPC: Who's Really Beating Numbers?
John Faucher
9/12/14
Rough Oil Patch for E&Ps: Recommend Companies with Operational Momentum
Joseph Allman
9/25/14
Rough Oil Patch for E&Ps II: Still Uncertainty for E&Ps; Ops Momentum, Market Cap, Balance Sheet Key
Joseph Allman
9/22/14
Aerospace and Defense: The Intelligence Briefing - September 2014
Joseph B. Nadol III
9/2/14
Gaming: Macau August 2014 GGR in Review; Metrics Disappointing with Monthly Mass Up 14% YOY and VIP Down 17%
Joseph Greff
9/8/14
Gaming: Illinois Gaming Revenues Decreased 5.5% Year over Year in August
Joseph Greff
9/8/14
Gaming: Iowa Gaming Revenues +3.8% Year Over Year in August; PNK +7.3%
Joseph Greff
9/8/14
Gaming: Ohio GGR Is $128.1m in August; PENN +3.8% Year-over-Year (Excluding Dayton)
Joseph Greff
9/9/14
Gaming: Indiana Gaming Revenues Decreased 4.4% Year over Year in August
Joseph Greff
9/10/14
Gaming: Missouri Gaming Revenues Flat Year Over Year in August; PNK +3.0%
Joseph Greff
9/12/14
Gaming: Atlantic City Gaming Revenues -1.2% Year over Year in August; Borgata +5.2%
Joseph Greff
9/18/14
Gaming: Louisiana Gaming Revenues Increased 1.2% Year Over Year in August; PNK -3.4%; BYD +3.3%
Joseph Greff
9/22/14
Gaming: LV Strip Room Rate Survey – Rates +11% (October 12 - October 18); +16% (4Q14TD); +7% (4Q14E)
Joseph Greff
9/22/14
International Lodging Monthly Trends: RevPAR in USD +8.7% Europe, +6.3% Middle East & Africa, +1.4% Asia Pacific, and +9.0%
Americas for August
Joseph Greff
25
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
INDUSTRY OVERVIEW
TITLE
AUTHORS
9/5/14
Managed Care: NFP Checks Indicate Cost Trends Remain Benign Through the Summer
Justin Lake
9/15/14
Medicare Advantage: MedPAC Analysis Provides Color on Med Adv Penetration by Age Cohort
Justin Lake
9/16/14
Medicare Advantage: NY Not-for-Profit Drops Some MA Plans Due to Reimbursement Pressure
Justin Lake
9/18/14
Med Utilization Tracker: Doc Office Visits +0.2% in August
Justin Lake
9/19/14
Medicare Advantage: Early Takeaways from CMS Data Release for 2015 Medicare Advantage Plans
Justin Lake
9/8/14
Protein Databook: Weekly Update
Ken Goldman
9/15/14
Protein Databook: Weekly Update
Ken Goldman
9/23/14
Protein Databook: Weekly Update
Ken Goldman
9/15/14
U.S. Asset Managers: Aug 2014 Monthly Performance/Sales: Solid Sales in August with Inflows Across Equities and MM
Kenneth B. Worthington
9/18/14
Brazilian Utilities: Changing the Light Bulbs: Take a Look at Alupar (OW)
Marcos M Severine
9/9/14
Homebuilding: Sector Update Addendum: Organizing Our Overweights
Michael Rehaut
9/17/14
Homebuilding: Sept. NAHB Survey Rises 4 Points to 59, Above Street's 56
Michael Rehaut
9/18/14
Homebuilding: August Starts and Permits Fall 14% and 6%, Resp., Below Street, Driven Nearly Entirely by Multi-Family
Michael Rehaut
9/22/14
Homebuilding: August Existing Home Sales Decline 2%, Below Street's Outlook for +1%
Michael Rehaut
9/24/14
Homebuilding: August New Home Sales Rise 18% to 504K, Strongly Above Street
Michael Rehaut
9/29/14
Homebuilding: August Pending Home Sales Fall 1%, Nearly In-Line With Street's -0.5%
Michael Rehaut
9/2/14
Cardiovascular Devices: Key Takeaways from the Weekend at ESC
Michael Weinstein
9/3/14
Cardiovascular Devices: TCT Preview: What to Expect at This Year's Meeting
Michael Weinstein
9/3/14
TCT Conference Planner:
Michael Weinstein
9/10/14
TCT Conference Planner:
Michael Weinstein
9/10/14
TCT Conference Planner:
Michael Weinstein
9/15/14
Cardiovascular Devices: Key Takeaways from the Weekend at TCT
Michael Weinstein
9/16/14
Cardiovascular Devices: Day 3 at TCT: Watchman and Admiral Take Center Stage
Michael Weinstein
9/17/14
Cardiovascular Devices: TCT Day 4: EXCITE Takes the Stage, Some Good News for RDN, and PFO Closure Gets New Life
Michael Weinstein
9/18/14
Medical Utilization Tracker: Physician Office Visits Up 0.2% in August
Michael Weinstein
9/4/14
Clean Tech Monitor: PV Solar 2Q Wrap - Stay Long Solar, Second Half Should Be Strong
Paul Coster
9/12/14
US Tech Trade Ideas Update: Closing 16 "Momentum" Stocks; Keeping Open 19 "TMT Conference" Stocks
Paul Coster
9/15/14
CleanTech: Solar: China is Hot Center of the Solar World
Paul Coster
9/23/14
US Refining Sector: Primer and Industry Outlook
Phil Gresh
9/26/14
Refining Weekly Monitor: Week Ending 09/26/14
Phil Gresh
9/29/14
Philip Cusick
9/3/14
Telecom Services, Cable & Satellite: VZ Could Sell Its Towers for ~$6B with Minimal VZ EPS Impact; Our Analysis of Potential Impacts
to AMT, CCI and SBAC
J.P. Morgan CommEquipment: Valuations and Calendar
9/9/14
J.P. Morgan CommEquipment: Valuations and Calendar
Rod Hall
9/12/14
Communications Equipment & Data Networking: Hall Monitor: September 2014
Rod Hall
9/15/14
J.P. Morgan CommEquipment: Valuations and Calendar
Rod Hall
9/23/14
J.P. Morgan CommEquipment: Valuations and Calendar
Rod Hall
9/29/14
J.P. Morgan CommEquipment: Valuations and Calendar
Rod Hall
9/4/14
Ryan Brinkman
9/9/14
August US Auto Sales: Strongest Auto SAAR In Eight Years Confirms Bullish View; GM Incentives Highly Disciplined (+1.0% vs.
Industry +18.5%)
IHS Monthly Forecast Update: September 2014: 3Q Global Production Trimmed Across All Regions, Particularly South America and
Europe, Reversing Earlier Gains
U.S. Mid- and Small-Cap Banks Long-Term Industry Chart Book: Loan Growth Back to "Normal" While New Lows for Credit Costs and
New Highs for Capital Levels
IT and BPO Services: 2Q14 Metrics (Madness) Reloaded
9/10/14
Payment Services: Apple Pay - More Comprehensive Than Expected, More Collaborative Than Disruptive
Tien-tsin Huang
9/17/14
ASTRO 2014: Final Thoughts: The Rumble Before the Bundle
Tycho W. Peterson
9/5/14
Timber & Wood Products: Industry Outlook and Primer
Tyler J. Langton
9/2/14
Large Cap Banks: Liquidity Coverage Ratio - Likely Setback on Muni Bond Treatment
Vivek Juneja
9/17/14
9/19/14
26
Rod Hall
Ryan Brinkman
Steven Alexopoulos
Tien-tsin Huang
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
DATE
MARKET STRATEGY
TITLE
AUTHORS
9/5/14
Global Energy Research Highlights: Week ending Sept 5, 2014
Andrew Skala
9/5/14
Global Banks Research Highlights: Week ending September 5, 2014
Andrew Skala
9/8/14
SMid Portfolio Managers' Monthly: August 2014
Andrew Skala
9/8/14
SMid Portfolio Managers' Monthly: August 2014
Andrew Skala
9/12/14
Global Banks Research Highlights: Week ending Sep 12, 2014
Andrew Skala
9/12/14
Global Energy Research Highlights: Week ending Sept 12, 2014
Andrew Skala
9/19/14
Global Energy Research Highlights: Week Ending Sept 19, 2014
Andrew Skala
9/19/14
Global Banks Research Highlights: Week Ending Sep 19, 2014
Andrew Skala
9/26/14
Global Banks Research Highlights: Week ending Sep 26, 2014
Andrew Skala
9/26/14
Global Energy Research Highlights: Week ending Sept 26, 2014
Andrew Skala
9/8/14
US Equity Futures Rollover Outlook: September - December 2014
Bram Kaplan
9/2/14
Investment Strategies No. 106: Sector Selection
Dubravko Lakos-Bujas
9/11/14
JPM Country Selection Dashboard - September Views:
Dubravko Lakos-Bujas
9/18/14
JPMQ : Pairs Model: Pair Trade Alert : Long BDX US / Short ZMH US
Dubravko Lakos-Bujas
9/19/14
Summary of Recent Research: JP Morgan Quantitative & Derivatives Strategy (QDS)
Dubravko Lakos-Bujas
9/4/14
Equity Risk Premia Strategies: Risk Factor Approach to Portfolio Management
Marko Kolanovic
9/17/14
Market and Volatility Commentary: Impact of Rates Curve on Equities, Fed Move and Option Expiration
Marko Kolanovic
9/26/14
Volatility Review: Americas Equity Derivatives Updates and Trade Ideas
Marko Kolanovic
9/4/14
FTSE All World Index Review: September 2014
Min Moon
9/4/14
FTSE EPRA/NAREIT Developed Market Review: September 2014
Min Moon
9/5/14
S&P Annual IWF and Quarterly Share Rebalance: 2014 Q3
Min Moon
9/10/14
FTSE All World Index Review: September 2014 - update
Min Moon
9/11/14
S&P Annual IWF and Quarterly Share Rebalance: 2014 Q3 Update
Min Moon
9/15/14
S&P & NASDAQ Quarterly Rebalance: 2014 Q3
Min Moon
9/15/14
NYSE ARCA Gold Miners Index Rebalance: September 2014
Min Moon
9/16/14
Russell Quarterly IPO Additions: 2014 Q3
Min Moon
9/18/14
S&P & NASDAQ Quarterly Rebalance: 2014Q3 Screening Tool
Min Moon
9/26/14
Russell Monthly Share Rebalance: September 2014
Min Moon
9/8/14
Canadian Portfolio Managers' Monthly: August 2014
Nicholas Rosato Jr.
9/8/14
Portfolio Managers’ Monthly: August 2014
Nicholas Rosato Jr.
27
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
In Case You Missed It: Periodicals Published in September
Access these reports and more at www.jpmorganmarkets .c om
LATEST
PERIODICALS
TITLE
FREQUENCY
AUTHORS
9/8/14
Aerospace and Defense: Balance of Power
Monthly
Joseph B. Nadol III
9/18/14
Aerospace and Defense: Business Jet Monthly
Monthly
Joseph B. Nadol III
9/29/14
Aerospace and Defense: Weekly Surveillance
Weekly
Joseph B. Nadol III
9/29/14
Agricultural and Chemical Menu: The Week in Chemicals
Weekly
Jeffrey J. Zekauskas
9/16/14
Applied and Emerging Technologies: Weekly Tear Sheet
Weekly
Paul Coster
9/17/14
Auto Parts Value Tracker
Weekly
Ryan Brinkman
9/29/14
Autos Valuation Comp Sheet
Weekly
Ryan Brinkman
9/26/14
Canadian Research Monitor
Weekly
Noelle V. Grainger
9/29/14
Chemicals: Comparative Valuation
Weekly
Jeffrey J. Zekauskas
9/29/14
Daily Download
Daily
Rod Hall
9/26/14
EE/MI: EE/MI Sunday Workaholics Weekly
Weekly
C. Stephen Tusa, Jr
9/26/14
Exchange Volumes Update
Weekly
Kenneth B. Worthington
9/23/14
Gaming, Lodging & Leisure: Weekly Data Packet
Weekly
Joseph Greff
9/29/14
Gaming: LV Strip Room Rate Survey
Weekly
Joseph Greff
9/26/14
Global Metals & Mining: Weekly Wrap-Up
Weekly
Michael F. Gambardella
9/29/14
Hardlines Retail: Horvers' Retail Valuation Master
Weekly
Christopher Horvers
9/22/14
Healthcare Technology & Distribution: Gill's Bi-Weekly Channel Check
Bi-weekly
Lisa C. Gill
9/24/14
Homebuilding: Bi-Weekly Inventory Watch
Weekly
Michael Rehaut
9/26/14
House Call: The Week Ahead
Weekly
Michael Rehaut
9/5/14
Insider Sales Monthly
Monthly
Michael Rehaut
9/29/14
J.P. Morgan Global Real Estate: Daily News and Research Summary
Daily
Anthony Paolone
9/29/14
J.P. Morgan Software Tech. Comps: Table
Weekly
Sterling Auty
9/25/14
J.P. Morgan's Media Monitor: Update on Advertising, Ratings, and Box Office
Weekly
Alexia S. Quadrani
9/11/14
JPM Trust Tracker Preview
Monthly
Richard Shane
9/16/14
JPM Trust Tracker Reviewing Results
Monthly
Richard Shane
9/26/14
Large Cap Banks: Fed Weekly
Weekly
Vivek Juneja
9/12/14
Let's Get Down to New Business!
Monthly
Alexia S. Quadrani
9/24/14
Lodging Weekly Trends
Weekly
Joseph Greff
9/24/14
Monthly Auto Review
Monthly
Ryan Brinkman
9/10/14
Monthly Tire Review
Monthly
Ryan Brinkman
9/26/14
Oil & Gas Exploration and Production: Weekly Comp Tables
Weekly
Joseph Allman
9/12/14
Raw Materials Monthly
Monthly
Michael Rehaut
9/29/14
Real Estate Services: Comp Sheet
Weekly
Anthony Paolone
9/23/14
REITs and Real Estate Services: Technical Tuesday - The Correlation Finder
Weekly
Anthony Paolone
9/25/14
REITs: Short Interest/Float
Weekly
Anthony Paolone
9/29/14
REITs: Weekly U.S. Real Estate Stock Tools
Weekly
Michael W. Mueller
9/2/14
Telecom Services: Spectrum of opportunity
Monthly
Philip Cusick
9/11/14
The Housing Short Report
Monthly
Michael Rehaut
9/25/14
U.S. Asset Managers: Weekly Fund Flows
Weekly
Kenneth B. Worthington
9/26/14
U.S. Machinery Comp Sheet
Weekly
Ann Duignan
9/29/14
U.S. Mid- and Small-Cap Banks Mergers & Acquisitions Weekly
Weekly
Steven Alexopoulos
9/23/14
U.S. Mid- and Small-Cap Banks Weekly: Valuation and Vital Signs
Weekly
Steven Alexopoulos
9/29/14
US Pharmaceuticals: IMS Weekly Highlights
Weekly
Chris Schott
28
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Capital Goods / Industrials
Aerospace & Defense
Joseph B. Nadol III +1 212 622 6548 joseph.nadol@jpmorgan.com
Company Name
Alliant Techsystems Inc.
B/E Aerospace
Boeing Company
Bombardier
Booz Allen Hamilton
CACI International Inc
Comtech Telecommunications
Embraer SA
Exelis Inc.
General Dynamics Corp.
Harris Corporation
Huntington Ingalls Industries
L-3 Communications
Leidos
Lockheed Martin
Northrop Grumman
Precision Castparts
Raytheon
Rockwell Collins
SAIC
Spirit AeroSystems
Textron
TransDigm Group Inc
Triumph Group
United Technologies
Wesco Aircraft Holdings, Inc.
Ticker
ATK
BEAV
BA
BBDb.TO
BAH
CACI
CMTL
ERJ
XLS
GD
HRS
HII
LLL
LDOS
LMT
NOC
PCP
RTN
COL
SAIC
SPR
TXT
TDG
TGI
UTX
WAIR
Rating
OW
OW
OW
UW
OW
OW
OW
N
N
OW
UW
N
OW
N
N
N
OW
N
OW
OW
N
OW
N
OW
OW
N
Cur
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
158.00
97.00
168.00
-26.00
83.00
42.00
40.00
19.00
130.00
64.00
102.00
140.00
34.00
155.00
119.00
280.00
88.00
95.00
50.00
41.00
49.00
180.00
85.00
120.00
19.00
EndDate
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Electrical Equipment & Multi-Industry
C. Stephen Tusa, Jr., CFA +1 212 622 6623 stephen.tusa@jpmorgan.com
Company Name
3M
Danaher
Dover
Emerson Electric Co.
General Electric Co.
HD Supply
Honeywell
Hubbell Inc.
Ingersoll Rand
ITT Corp.
Lennox International
Pentair
Rockwell Automation
Roper Industries
SPX Corp.
Tyco International
WABCO
Watsco
Wesco International
Ticker
MMM
DHR
DOV
EMR
GE
HDS
HON
HUBB
IR
ITT
LII
PNR
ROK
ROP
SPW
TYC
WBC
WSO
WCC
Rating
N
OW
N
N
N
N
OW
OW
OW
NR
OW
OW
UW
OW
N
N
N
UW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
147.00
85.00
87.00
68.00
27.00
30.00
104.00
124.00
73.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
USD
USD
USD
USD
USD
USD
USD
USD
USD
102.00
84.00
118.00
155.00
114.00
46.00
115.00
93.00
97.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Machinery
Ann Duignan +1 212 622 0381 ann.duignan@jpmorgan.com
Company Name
Actuant Corp
AGCO Corp.
Allison Transmission Holdings
Archer-Daniels-Midland
Bunge Limited
Caterpillar Inc.
CNH Industrial
Cummins Inc
Ticker
ATU
AGCO
ALSN
ADM
BG
CAT
CNHI
CMI
Rating
N
N
OW
N
OW
N
UW
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
PT
36.00
51.00
38.00
48.00
87.00
106.00
9.00
146.00
EndDate
Dec-14
Dec-15
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Deere & Co.
Eaton Corp.
Illinois Tool Works
Joy Global
Kennametal Inc.
Manitowoc Co.
Navistar Int'l
Oshkosh Corp.
PACCAR Inc.
Parker Hannifin
Terex Corp
Westport Innovations Inc.
DE
ETN
ITW
JOY
KMT
MTW
NAV
OSK
PCAR
PH
TEX
WPRT
UW
N
N
N
N
N
OW
N
N
N
N
N
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
83.00
75.00
86.00
62.00
46.00
27.00
44.00
48.00
63.00
110.00
35.00
8.50
Dec-15
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
22.00
24.00
28.50
5.10
11.75
19.25
19.00
37.00
3.85
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Cur
PT
EndDate
EUR
USD
USD
USD
USD
USD
GBp
USD
EUR
USD
EUR
EUR
USD
USD
7.00
41.50
20.50
53.50
55.50
54.50
1,909
17.00
5.35
13.50
15.00
8.15
29.50
60.50
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
PT
22.00
114.00
78.00
37.00
35.00
26.00
89.00
20.00
51.00
36.00
38.00
151.00
57.00
36.00
-132.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
-Dec-15
Marine Transportation
Nishant Mani (1-212) 622-5707 nishant.mani@jpmorgan.com
Company Name
Costamare
Dorian LPG
GasLog
Navios Maritime Acquisition
Navios Maritime Holdings
Navios Maritime Partners
Nordic American Offshore
Teekay Offshore Partners
Teekay Tankers
Ticker
CMRE
LPG
GLOG
NNA
NM
NMM
NAO
TOO
TNK
Rating
OW
OW
OW
OW
OW
N
N
OW
UW
Consumer
Airlines
Jamie Baker +1 212 622 6713 jamie.baker@jpmorgan.com
Company Name
AerCap Holdings N.V.
Air France-KLM
Air Lease Corp.
Aircastle Limited
Alaska Air Group, Inc.
American Airlines
Delta Air Lines, Inc.
easyJet
FLY Leasing Ltd.
IAG
JetBlue Airways Corp.
Lufthansa
Ryanair
Southwest Airlines Co.
United Continental Holdings, Inc.
Ticker
AER
AIRF.PA
AL
AYR
ALK
AAL
DAL
EZJ.L
FLY
IAG.MC
JBLU
LHAG.DE
RYA.I
LUV
UAL
Rating
NR
UW
OW
N
N
OW
OW
OW
N
OW
OW
N
OW
UW
OW
Autos & Auto Parts
Ryan Brinkman +1 212 622 6581 ryan.j.brinkman@jpmorgan.com
Company Name
American Axle
Autoliv Inc.
BorgWarner Inc.
Cooper Tire
Copart, Inc.
Dana Holding Corporation
Delphi Automotive
Ford Motor
General Motors
Gentex Corporation
Goodyear
Harman International
Johnson Controls Inc.
KAR Auction Services, Inc.
Lear Corporation
Magna International Inc.
Ticker
AXL
ALV
BWA
CTB
CPRT
DAN
DLPH
F
GM
GNTX
GT
HAR
JCI
KAR
LEA
MGA
Rating
N
N
OW
N
N
N
OW
OW
OW
N
OW
OW
N
OW
NR
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
29
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Meritor Inc.
Tenneco Inc.
Tesla Motors
Tower International
TRW Automotive
Visteon Corporation
MTOR
TEN
TSLA
TOWR
TRW
VC
N
OW
N
N
N
OW
USD
USD
USD
USD
USD
USD
15.50
79.00
190.00
38.00
105.50
139.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Samik Chatterjee +1 212 622 0798 samik.x.chatterjee@jpmorgan.com
Company Name
Gentherm
Ticker
THRM
Rating
OW
Cur
USD
PT
66.00
EndDate
Dec-15
Food Manufacturing and Retail
Kenneth Goldman +1 212 622 0359 kenneth.goldman@jpmorgan.com
Company Name
Annie's, Inc.
Campbell Soup Company
ConAgra Foods
Dean Foods
General Mills
Hain Celestial Group
Hershey
J.M. Smucker Co.
Kellogg
Kraft Foods Group
Kroger
McCormick & Co., Inc.
Mead Johnson Nutrition
Mondelēz International, Inc.
Roundy's
Safeway
Sanderson Farms, Inc.
The Fresh Market
TreeHouse Foods Inc.
Tyson Foods
WhiteWave Foods
Whole Foods Market
Ticker
BNNY
CPB
CAG
DF
GIS
HAIN
HSY
SJM
K
KRFT
KR
MKC
MJN
MDLZ
RNDY
SWY
SAFM
TFM
THS
TSN
WWAV
WFM
Rating
NR
UW
N
NR
N
OW
OW
N
N
N
OW
N
OW
OW
N
N
N
N
N
OW
OW
N
Cur
-USD
USD
PT
-41.00
37.00
EndDate
-Dec-15
Dec-15
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
54.00
113.00
104.00
110.00
65.00
62.00
62.00
68.00
107.00
43.00
-36.00
89.00
37.00
87.00
49.00
41.00
38.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-14
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Gaming & Lodging
Joseph Greff +1 212 622 0548 joseph.greff@jpmorgan.com
Company Name
Bally Technologies, Inc.
Belmond Ltd
Boyd Gaming Group
Chesapeake Lodging Trust
Choice Hotels International
Diamond Resorts International
Extended Stay America
FelCor Lodging Trust
Gaming and Leisure Properties, Inc.
Hilton Worldwide
Host Hotels & Resorts Inc.
Hyatt Hotels Corporation
International Game Technology
La Quinta Holdings
Las Vegas Sands Corp.
LaSalle Hotel Properties
Marriott International
Melco Crown Entertainment
MGM Resorts International
Penn National
Pinnacle Entertainment
Starwood Hotels & Resorts
Worldwide
Sunstone Hotel Investors Inc.
Wyndham Worldwide
Wynn Resorts
30
Ticker
BYI
BEL
BYD
CHSP
CHH
DRII
STAY
FCH
GLPI
HLT
HST
H
IGT
LQ
LVS
LHO
MAR
MPEL
MGM
PENN
PNK
Rating
NR
N
N
N
UW
OW
OW
N
N
OW
OW
OW
N
N
OW
N
OW
OW
OW
N
OW
Cur
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
-13.50
9.00
30.00
39.00
27.00
27.00
10.50
34.00
29.00
24.00
71.00
18.25
19.00
69.00
36.00
84.00
31.00
30.00
12.00
27.00
EndDate
-Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
HOT
SHO
WYN
WYNN
OW
N
OW
OW
USD
USD
USD
USD
87.00
15.00
86.00
210.00
Dec-14
Dec-14
Dec-14
Dec-15
Brian Mullan, CFA +1 212 622 8170 brian.mullan@jpmorgan.com
Company Name
Scientific Games Corporation
Ticker
SGMS
Rating
NR
Cur
--
PT
--
EndDate
--
PT
13.00
EndDate
Dec-14
Jonathan Mohraz +1 212 622 1111 jonathan.mohraz@jpmorgan.com
Company Name
Strategic Hotels & Resorts
Ticker
BEE
Rating
N
Cur
USD
Homebuilders & Building Products
Michael Rehaut, CFA +1 212 622 6696 michael.rehaut@jpmorgan.com
Company Name
Armstrong World Industries
Beacon Roofing Supply
Beazer Homes
Caesarstone
Century Communities
D.R. Horton
Fortune Brands Home & Security
Hovnanian Enterprises
KB Home
Lennar
LGI Homes
M/I Homes
Masco Corp.
MDC Holdings
Meritage Homes
Mohawk Industries
NVR, Inc.
Owens Corning
Ply Gem
PulteGroup Inc.
Standard Pacific
Stanley Black & Decker
Taylor Morrison Home Corp.
The New Home Company
The Ryland Group
Toll Brothers
USG Corporation
WCI Communities
Whirlpool
William Lyon Homes
Ticker
AWI
BECN
BZH
CSTE
CCS
DHI
FBHS
HOV
KBH
LEN
LGIH
MHO
MAS
MDC
MTH
MHK
NVR
OC
PGEM
PHM
SPF
SWK
TMHC
NWHM
RYL
TOL
USG
WCIC
WHR
WLH
Rating
N
N
OW
OW
OW
OW
N
N
OW
OW
OW
N
OW
UW
N
OW
N
OW
N
N
UW
N
OW
OW
OW
UW
N
N
N
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
56.50
33.50
23.50
63.00
27.50
26.00
47.00
5.00
22.00
49.00
24.00
24.50
28.50
29.50
46.50
170.00
1,335.00
44.00
11.50
22.00
9.00
88.00
27.00
19.00
47.00
34.00
32.50
21.50
160.00
34.00
EndDate
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-14
Dec-15
PT
102.00
71.00
90.00
46.00
53.00
68.00
95.00
8.50
20.00
65.00
130.00
78.00
72.00
121.00
76.00
80.00
36.00
50.00
95.00
97.00
40.00
20.00
EndDate
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Household & Personal Care Products / Beverages
John Faucher +1 212 622 6443 john.faucher@jpmorgan.com
Company Name
Brown-Forman Corp
Church & Dwight
Clorox
Coca-Cola Co.
Coca-Cola Enterprises
Colgate-Palmolive
Constellation Brands
Cott Corp
Coty Inc.
Dr Pepper Snapple Group
Energizer Holdings
Estee Lauder
Jarden Corp.
Kimberly-Clark
Molson Coors Brewing Company
Monster Beverage Corp.
Newell Rubbermaid Inc.
Nu Skin Enterprises
PepsiCo
Procter & Gamble
SodaStream International
Weight Watchers International
Ticker
BFb
CHD
CLX
KO
CCE
CL
STZ
COT
COTY
DPS
ENR
EL
JAH
KMB
TAP
MNST
NWL
NUS
PEP
PG
SODA
WTW
Rating
N
N
UW
N
N
N
N
N
OW
N
OW
N
OW
N
N
OW
OW
N
OW
OW
N
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Sofya Tsinis +1 212 622 6391 sofya.s.tsinis@jpmorgan.com
Company Name
Tupperware Brands
Ticker
TUP
Rating
OW
Cur
USD
PT
81.00
EndDate
Dec-14
Cur
USD
USD
USD
USD
-USD
USD
PT
69.00
44.00
71.00
25.00
-66.00
49.00
EndDate
Dec-15
Dec-15
Dec-14
Dec-14
-Dec-14
Dec-14
PT
9.00
22.00
52.00
670.00
47.00
94.00
79.00
50.00
102.00
85.00
40.00
26.00
47.00
9.00
-71.00
EndDate
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
-Dec-14
Leisure
Kevin Milota +1 212 622 0987 kevin.milota@jpmorgan.com
Company Name
Avis Budget Group, Inc.
Carnival Corporation
Harley-Davidson
Hertz Global Holdings, Inc.
Norwegian Cruise Line
Royal Caribbean Cruises
Ryman Hospitality Properties
Ticker
CAR
CCL
HOG
HTZ
NCLH
RCL
RHP
Rating
OW
N
OW
N
NR
N
N
Restaurants
John Ivankoe +1 212 622 6487 john.ivankoe@jpmorgan.com
Company Name
Arcos Dorados Holdings, Inc.
Bloomin' Brands
Brinker International
Chipotle Mexican Grill, Inc.
Darden Restaurants
DineEquity Inc.
Domino's Pizza Inc
Dunkin' Brands
McDonald's
Starbucks
Sysco Corporation
Texas Roadhouse Inc.
The Cheesecake Factory, Inc.
The Wendy's Company
Tim Hortons Inc.
Yum Brands
Ticker
ARCO
BLMN
EAT
CMG
DRI
DIN
DPZ
DNKN
MCD
SBUX
SYY
TXRH
CAKE
WEN
THI.TO
YUM
Rating
N
OW
OW
OW
N
OW
N
N
OW
OW
N
N
N
N
NR
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
Retailing — Broadlines/Apparel & Footwear
Ticker
ANF
AEO
ANN
ASNA
BIG
BURL
CHS
COH
CST
DDS
DG
DLTR
FDO
FINL
FL
JCP
KSS
LB
LULU
M
KORS
MUSA
NKE
JWN
PVH
RL
ROST
SIG
PLCE
GPS
TIF
Rating
N
N
N
N
OW
OW
OW
OW
N
N
NR
NR
NR
N
OW
N
N
OW
N
OW
OW
N
OW
N
N
N
N
OW
N
N
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
---USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
TJX
TUMI
UA
URBN
VFC
VNCE
N
N
N
OW
OW
N
USD
USD
USD
USD
USD
USD
63.00
23.00
63.00
38.00
70.00
35.00
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-15
Retailing — Hardlines
Christopher Horvers, CFA +1 212 622 1316 christopher.horvers@jpmorgan.com
Company Name
Advance Auto Parts, Inc.
AutoZone, Inc.
Bed Bath & Beyond
Best Buy
Costco Wholesale Corporation
Dick's Sporting Goods
Genuine Parts Company
GNC Holdings
hhgregg
Lowe's Companies, Inc.
Michaels
O'Reilly Automotive
Office Depot
PetSmart, Inc.
Staples
Target Corporation
The Container Store
The Home Depot
Tractor Supply
Ulta Salon, Cosmetics &
Fragrance, Inc.
Vitamin Shoppe, Inc
Wal-Mart Stores, Inc.
Williams-Sonoma, Inc.
Ticker
AAP
AZO
BBBY
BBY
COST
DKS
GPC
GNC
HGG
LOW
MIK
ORLY
ODP
PETM
SPLS
TGT
TCS
HD
TSCO
Rating
OW
N
N
OW
OW
N
N
N
N
OW
OW
N
N
NR
N
N
OW
OW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
--USD
USD
USD
USD
USD
PT
145.00
562.00
65.00
37.00
124.00
48.00
98.00
38.00
7.00
57.00
25.00
160.00
--11.00
60.00
28.00
99.00
72.00
EndDate
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
--Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
ULTA
VSI
WMT
WSM
OW
OW
N
N
USD
USD
USD
USD
116.00
49.00
78.00
68.00
Dec-14
Dec-14
Dec-14
Dec-14
Energy
Electric Utilities
Matthew Boss +1 212 622 2630 matthew.boss@jpmorgan.com
Company Name
Abercrombie & Fitch
American Eagle Outfitters
ANN Inc
Ascena Retail Group Inc
Big Lots, Inc.
Burlington Stores
Chico's FAS, Inc.
Coach, Inc
CST Brands
Dillard's, Inc.
Dollar General Corp.
Dollar Tree, Inc.
Family Dollar Stores, Inc.
Finish Line
Foot Locker
J.C. Penney Co., Inc.
Kohl's Corp.
Limited Brands, Inc.
lululemon athletica inc.
Macy's, Inc.
Michael Kors
Murphy USA
NIKE, Inc.
Nordstrom, Inc.
PVH Corp.
Ralph Lauren Corporation
Ross Stores
Signet Jewelers
The Children's Place
The Gap, Inc.
Tiffany & Co
TJX Companies
Tumi Holdings Inc
Under Armour, Inc.
Urban Outfitters
V.F. Corporation
Vince Holding Corp
PT
45.00
13.00
37.00
19.00
53.00
40.00
18.00
39.00
40.00
105.00
---30.00
60.00
11.00
62.00
64.00
46.00
67.00
95.00
50.00
100.00
67.00
135.00
164.00
78.00
130.00
52.00
44.00
106.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-15
Dec-15
---Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Christopher Turnure +1 212 622 5696 christopher.turnure@jpmorgan.com
Company Name
AES Corp.
Allete Inc.
American Electric Power
Atmos Energy
Black Hills Corp.
Dominion Resources
Duke Energy Corp.
Entergy Corp.
Exelon Corp.
Great Plains Energy
Hawaiian Electric Industries Inc.
ITC Holdings
NextEra Energy Inc.
Pepco Holdings
PG&E Corp.
Piedmont Natural Gas Co.
Portland General Electric Co.
Sempra Energy
The Laclede Group, Inc.
UIL Holdings Corporation
Westar Energy Inc
Xcel Energy
Ticker
AES
ALE
AEP
ATO
BKH
D
DUK
ETR
EXC
GXP
HE
ITC
NEE
POM
PCG
PNY
POR
SRE
LG
UIL
WR
XEL
Rating
N
N
N
N
N
OW
OW
N
N
N
N
N
OW
N
N
N
OW
OW
NR
NR
N
UW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
16.00
48.00
56.00
52.00
55.00
77.00
80.00
74.00
35.00
26.00
23.00
39.00
106.00
27.00
47.00
37.00
37.00
116.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-USD
USD
-37.00
30.00
-Dec-15
Dec-15
PT
49.00
40.00
--
EndDate
Dec-15
Dec-15
--
Energy MLPs
Jeremy Tonet +1 212 622 4915 jeremy.b.tonet@jpmorgan.com
Company Name
AmeriGas Partners, L.P.
Atlas Pipeline Partners, L.P.
Atlas Resource Partners, L.P.
Ticker
APU
APL
ARP
Rating
N
OW
NR
Cur
USD
USD
--
31
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Boardwalk Pipeline Partners, LP
Breitburn Energy Partners L.P.
Buckeye Partners, L.P.
Calumet Specialty Products
Partners, L.P.
CenterPoint Energy, Inc.
Compressco Partners, L.P.
Crestwood Equity Partners LP
Crestwood Midstream Partners LP
CVR Refining, LP
DCP Midstream Partners, LP
El Paso Pipeline Partners, L.P.
Enable Midstream Partners, LP
Enbridge Energy Partners, L.P.
Energy Transfer Partners, L.P.
Enterprise Products Partners L.P.
EQT Midstream Partners, LP
EV Energy Partners, L.P.
Exterran Partners, L.P.
Ferrellgas Partners, L.P.
Gibson Energy Inc.
Global Partners LP
Kinder Morgan Energy Partners,
L.P.
Kinder Morgan, Inc.
Legacy Reserves LP
Linn Energy, LLC
LinnCo, LLC
Magellan Midstream Partners, L.P.
MarkWest Energy Partners, L.P.
Memorial Production Partners LP
Midcoast Energy Partners, L.P.
MPLX LP
Northern Tier Energy LP
Nustar Energy L.P.
Oiltanking Partners, L.P.
ONEOK Partners, L.P.
Oneok, Inc.
Pacific Coast Oil Trust
Phillips 66 Partners LP
Plains All American Pipeline, L.P.
Plains GP Holdings, L.P.
QEP Midstream Partners, LP
QR Energy, LP
Regency Energy Partners LP
Southcross Energy Partners, L.P.
Spectra Energy Partners, LP
Sprague Resources LP
Suburban Propane Partners, L.P.
Targa Resources Corp.
Targa Resources Partners LP
TC Pipelines, LP
Tesoro Logistics LP
The Williams Companies, Inc.
USA Compression Partners, LP
Valero Energy Partners, LP
Vanguard Natural Resources, LLC
VTTI Energy Partners LP
Williams Partners L.P.
BWP
BBEP
BPL
OW
NR
N
USD
-USD
24.00
-83.00
Dec-15
-Dec-15
CLMT
CNP
GSJK
CEQP
CMLP
CVRR
DPM
EPB
ENBL
EEP
ETP
EPD
EQM
EVEP
EXLP
FGP
GEI.TO
GLP
N
OW
OW
OW
OW
N
N
N
N
N
OW
OW
OW
NR
N
UW
N
N
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
CAD
USD
32.00
27.00
30.00
16.00
27.00
26.00
59.00
43.00
28.00
36.00
64.00
41.50
109.00
-33.00
21.00
36.00
41.00
Dec-14
Dec-13
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
KMP
KMI
LGCY
LINE
LNCO
MMP
MWE
MEMP
MEP
MPLX
NTI
NS
OILT
OKS
OKE
ROYT
PSXP
PAA
PAGP
QEPM
QRE
RGP
SXE
SEP
SRLP
SPH
TRGP
NGLS
TCP
TLLP
WMB
USAC
VLP
VNR
VTTI
WPZ
N
OW
NR
NR
NR
N
N
NR
OW
OW
N
OW
N
N
N
NR
OW
OW
OW
N
NR
OW
N
N
N
N
OW
N
UW
OW
OW
OW
OW
NR
OW
OW
USD
USD
---USD
USD
-USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
99.00
45.00
---89.00
72.00
-25.00
68.00
27.00
74.00
50.00
59.00
70.00
-81.00
66.00
35.00
27.00
-35.00
24.00
54.00
25.00
49.00
151.00
73.00
49.00
80.00
70.00
32.00
57.00
-29.00
60.00
Dec-15
Dec-15
---Dec-15
Dec-15
-Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Cur
CAD
USD
USD
USD
USD
USD
USD
USD
PT
36.00
133.00
104.00
53.00
107.00
101.00
70.00
59.00
EndDate
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Integrated Oils & Refining
32
Ticker
CVE.TO
CVX
XOM
HFC
MPC
PSX
TSO
VLO
Rating
OW
N
N
N
OW
OW
N
N
Joseph Allman, CFA +1 212 622 4864 joseph.d.allman@jpmorgan.com
Company Name
Anadarko Petroleum
Antero Resources Corporation
Apache Corporation
Approach Resources
Cabot Oil & Gas
Chesapeake Energy
Cimarex Energy Co.
Cobalt International Energy
Concho Resources, Inc.
Continental Resources, Inc.
Denbury Resources Inc.
Devon Energy
EOG Resources, Inc.
EP Energy Corporation
EQT Corporation
EXCO Resources, Inc.
Goodrich Petroleum
Halcón Resources Corporation
Jones Energy
Laredo Petroleum
Newfield Exploration Company
Noble Energy
Parsley Energy
PDC Energy
PetroQuest Energy, Inc.
Pioneer Natural Resources
QEP Resources
Range Resources Corp
RSP Permian Inc.
SandRidge Energy Inc.
SM Energy
Southwestern Energy Company
Swift Energy Company
Ultra Petroleum Corp
Whiting Petroleum Corporation
WPX Energy
Ticker
APC
AR
APA
AREX
COG
CHK
XEC
CIE
CXO
CLR
DNR
DVN
EOG
EPE
EQT
XCO
GDP
HK
JONE
LPI
NFX
NBL
PE
PDCE
PQ
PXD
QEP
RRC
RSPP
SD
SM
SWN
SFY
UPL
WLL
WPX
Rating
OW
OW
N
UW
OW
N
OW
OW
N
OW
OW
N
OW
OW
OW
N
OW
N
N
OW
NR
OW
N
OW
N
OW
N
OW
NR
UW
N
OW
NR
N
NR
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
136.00
71.00
109.00
18.00
45.00
31.00
156.00
23.00
160.00
81.00
21.00
87.00
128.00
29.00
128.00
6.50
27.00
5.00
17.00
38.00
EndDate
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Dec-13
Dec-13
Dec-13
Dec-15
Dec-14
USD
USD
USD
USD
USD
USD
USD
92.00
24.00
81.00
6.00
248.00
33.00
113.00
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
-USD
USD
-99.00
51.00
-Dec-15
Dec-15
USD
-USD
25.00
-20.00
Dec-15
-Dec-14
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
17.50
36.00
41.50
54.00
22.00
67.00
95.00
10.00
70.50
43.50
44.50
52.00
EndDate
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Financials
Banks — Large Cap
Vivek Juneja +1 212 622 6465 vivek.juneja@jpmorgan.com
Company Name
Bank of America
Bank of New York Mellon Corp.
BB&T Corporation
Citigroup Inc.
Fifth Third Bancorp
Northern Trust
PNC Financial
Regions Financial
State Street
SunTrust Banks, Inc.
U.S. Bancorp
Wells Fargo
Ticker
BAC
BK
BBT
C
FITB
NTRS
PNC
RF
STT
STI
USB
WFC
Rating
OW
N
OW
N
N
N
OW
N
N
OW
N
N
Banks — Small and Mid Cap
Phil Gresh +1 212 622 4861 phil.m.gresh@jpmorgan.com
Company Name
Cenovus Energy
Chevron Corp
Exxon Mobil Corp
HollyFrontier
Marathon Petroleum
Phillips 66
Tesoro Corporation
Valero Energy
Oil & Gas Exploration & Production / Natural Gas
Steven Alexopoulos, CFA +1 212 622 6041 steven.a.alexopoulos@jpmorgan.com
Company Name
Astoria Financial
BancorpSouth
BankUnited
City National Corp
Comerica Incorporated
Cullen/Frost Bankers Inc.
First Horizon National
Ticker
AF
BXS
BKU
CYN
CMA
CFR
FHN
Rating
UW
UW
N
N
OW
UW
N
Cur
USD
USD
USD
USD
USD
USD
USD
PT
13.00
22.00
35.00
85.00
61.00
77.00
13.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
First Republic
FirstMerit Corporation
Florida Community Bank
Huntington Bancshares
KeyCorp
M&T Bank
MB Financial
New York Community Bank
Opus Bank
People's United Financial
PrivateBancorp, Inc.
Signature Bank
SVB Financial Group
Synovus Financial Corp.
Talmer Bancorp
TCF Financial Corporation
Trustmark Corporation
Umpqua Holdings Corporation
Valley National Bancorp
Webster Financial Corporation
Zions Bancorporation
FRC
FMER
FCB
HBAN
KEY
MTB
MBFI
NYCB
OPB
PBCT
PVTB
SBNY
SIVB
SNV
TLMR
TCB
TRMK
UMPQ
VLY
WBS
ZION
OW
N
OW
N
OW
NR
NR
UW
OW
N
N
OW
OW
N
OW
N
UW
N
UW
N
N
USD
USD
USD
USD
USD
--
60.00
20.50
26.00
11.00
17.00
--
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
--
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
14.00
37.00
15.50
34.50
145.00
140.00
27.00
17.00
18.50
24.00
19.00
9.50
34.00
33.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Preeti S Dixit +1 212 622 9864 preeti.s.dixit@jpmorgan.com
Company Name
Green Bancorp, Inc.
Susquehanna Bancshares
Washington Federal, Inc.
Ticker
GNBC
SUSQ
WAFD
Rating
N
N
N
Cur
USD
USD
USD
PT
20.00
11.00
24.00
EndDate
Dec-15
Dec-15
Dec-15
Brokers, Asset Managers & Exchanges
Kenneth B. Worthington, CFA +1 212 622 6613 kenneth.b.worthington@jpmorgan.com
Company Name
Apollo Global Management
Ares Management
BlackRock
CBOE Holdings
Charles Schwab
CME Group Inc.
Eaton Vance Corp
Evercore Partners Inc.
Federated Investors, Inc.
Franklin Resources
FXCM
Invesco Ltd.
Investment Technology Group
Janus Capital Group
KCG Holdings
LPL Financial Holdings Inc.
Manning & Napier
Moelis
Nasdaq OMX
Oaktree Capital Group, LLC
Och-Ziff Capital Management
Pzena Investment Management
T. Rowe Price Group, Inc
The Carlyle Group
The Intercontinental Exchange
Ticker
APO
ARES
BLK
CBOE
SCHW
CME
EV
EVR
FII
BEN
FXCM
IVZ
ITG
JNS
KCG
LPLA
MN
MC
NDAQ
OAK
OZM
PZN
TROW
CG
ICE
Rating
OW
OW
OW
N
N
N
N
N
UW
N
OW
OW
N
UW
N
OW
N
OW
N
N
OW
OW
OW
OW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
28.00
21.00
415.00
53.00
30.00
68.00
38.00
35.00
29.00
64.00
15.00
49.00
20.00
14.00
13.00
60.00
20.00
31.00
43.00
63.00
17.00
13.00
93.00
45.00
228.00
EndDate
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-11
Dec-15
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Insurance — Life
Jimmy S. Bhullar, CFA +1 212 622 6397 jimmy.s.bhullar@jpmorgan.com
Company Name
AFLAC, Inc.
American International Group
Assurant, Inc.
Fidelity & Guaranty Life
Genworth Financial, Inc.
Hartford Financial Services
Lincoln National
MetLife, Inc.
Phoenix Companies
Principal Financial Group
Ticker
AFL
AIG
AIZ
FGL
GNW
HIG
LNC
MET
PNX
PFG
Rating
N
N
N
N
N
N
N
OW
UW
UW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
69.00
64.00
73.00
25.00
18.00
40.00
62.00
63.00
50.00
48.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Protective Life
Prudential Financial
Reinsurance Group of America
Symetra Financial
Third Point Reinsurance Ltd.
Torchmark Corp
Unum Group
Voya Financial, Inc.
PL
PRU
RGA
SYA
TPRE
TMK
UNM
VOYA
N
OW
OW
N
N
N
N
UW
USD
USD
USD
USD
USD
USD
USD
USD
70.00
105.00
94.00
23.00
19.00
53.00
40.00
39.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
REITs
Michael W. Mueller, CFA +1 212 622 6689 michael.w.mueller@jpmorgan.com
Company Name
Acadia Realty Trust
Brixmor Property Group
CBL & Associates Properties
DCT Industrial Trust
DDR Corp
Equity One Inc.
Federal Realty Investment Trust
First Industrial Realty Trust
General Growth Properties
HCP, Inc.
Health Care REIT
Healthcare Realty Trust
Healthcare Trust of America
Jones Lang LaSalle Inc
Kimco Realty Corporation
Macerich
Medical Properties Trust
Pennsylvania REIT
Prologis
PS Business Parks
Public Storage
Ramco-Gershenson Properties Trust
Regency Centers
Retail Properties of America
Rexford Industrial Realty
Simon Property Group
STAG Industrial, Inc.
Tanger Factory Outlet Centers
Taubman Centers
Weingarten Realty Investors
Ticker
AKR
BRX
CBL
DCT
DDR
EQY
FRT
FR
GGP
HCP
HCN
HR
HTA
JLL
KIM
MAC
MPW
PEI
PLD
PSB
PSA
RPT
REG
RPAI
REXR
SPG
STAG
SKT
TCO
WRI
Rating
N
OW
N
N
OW
N
OW
N
OW
N
OW
N
N
OW
N
N
N
N
OW
N
OW
N
OW
UW
OW
OW
OW
N
N
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
29.00
25.00
20.00
8.00
19.00
23.00
129.00
20.00
25.00
43.00
69.00
25.00
12.00
143.00
23.00
69.00
13.00
19.00
46.00
85.00
183.00
17.50
59.00
15.00
16.00
180.00
26.00
36.00
77.00
33.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Anthony Paolone, CFA +1 212 622 6682 anthony.paolone@jpmorgan.com
Company Name
AIMCO
Alexandria Real Estate Equities
Altisource Residential
American Campus Communities
American Homes 4 Rent
American Realty Capital Properties
AvalonBay Communities
Boston Properties
Brandywine Realty Trust
Camden Property Trust
CBRE Group, Inc
Corporate Office Properties
Cousins Properties
Douglas Emmett, Inc.
Duke Realty
Education Realty Trust
EPR Properties
Equity Residential
Essex Property Trust
Getty Realty
Kilroy Realty
Lexington Realty Trust
Liberty Property Trust
Mack-Cali Realty
Piedmont Office Realty Trust
Post Properties
Ticker
AIV
ARE
RESI
ACC
AMH
ARCP
AVB
BXP
BDN
CPT
CBG
OFC
CUZ
DEI
DRE
EDR
EPR
EQR
ESS
GTY
KRC
LXP
LPT
CLI
PDM
PPS
Rating
N
N
N
N
OW
OW
OW
N
OW
N
OW
N
N
OW
N
N
OW
N
OW
UW
OW
N
N
UW
N
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
36.00
78.00
26.00
43.00
19.00
15.00
160.00
119.00
16.00
75.00
36.00
29.00
12.00
30.00
18.00
12.00
58.00
66.00
200.00
16.00
63.00
11.00
39.00
21.00
21.00
57.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
33
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
RE/MAX Holdings Inc.
Realogy Holdings Corp.
Realty Income
Silver Bay Realty Trust
SL Green Realty Corp.
UDR, Inc.
Vornado Realty Trust
Washington Real Estate Investment
Trust
RMAX
RLGY
O
SBY
SLG
UDR
VNO
N
OW
N
OW
OW
OW
OW
USD
USD
USD
USD
USD
USD
USD
31.00
45.00
45.00
18.00
107.00
31.00
107.00
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
WRE
UW
USD
26.00
Dec-14
Specialty & Consumer Finance
Richard Shane +1 415 315 6701 richard.b.shane@jpmorgan.com
Company Name
Ally Financial
American Capital
American Capital Agency Corp.
American Express
Annaly Capital
Apollo Commercial Real Estate
Finance
Apollo Investment
Apollo Residential Mortgage
Ares Capital
Ares Commercial Real Estate Corp.
BlackRock Kelso Capital
Blackstone Mortgage Trust
Capital One
Discover Financial
Essent
Fifth Street Finance Corp.
Ladder Capital
MFA Financial
PennantPark Investment
PennyMac Financial Services
Santander Consumer (SC)
Solar Capital
Synchrony Financial
TAL International
TPG Specialty Lending
Two Harbors
Western Asset Mortgage
WhiteHorse Finance
Ticker
ALLY
ACAS
AGNC
AXP
NLY
Rating
OW
OW
OW
UW
N
Cur
USD
USD
USD
USD
USD
PT
32.00
18.50
24.00
95.00
11.50
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
ARI
AINV
AMTG
ARCC
ACRE
BKCC
BXMT
COF
DFS
ESNT
FSC
LADR
MFA
PNNT
PFSI
SC
SLRC
SYF
TAL
TSLX
TWO
WMC
WHF
N
OW
OW
OW
OW
N
OW
OW
N
OW
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
16.50
9.00
18.00
18.50
14.00
9.00
32.00
95.00
65.00
25.00
-21.00
8.00
11.50
17.00
23.00
22.50
30.00
46.00
18.00
11.50
14.00
14.50
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
PT
33.00
-48.00
60.00
220.00
60.00
90.00
-130.00
7.00
6.00
8.00
8.00
20.00
400.00
90.00
53.00
95.00
7.00
92.00
-37.00
EndDate
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
OW
N
N
N
OW
OW
OW
OW
N
OW
N
OW
Health Care
Biotechnology
Cory Kasimov +1 212 622 5266 cory.w.kasimov@jpmorgan.com
Company Name
ACADIA Pharmaceuticals
Acorda Therapeutics Inc.
Aegerion Pharmaceuticals
Agios Pharmaceuticals
Alexion Pharmaceuticals
Alkermes, Inc.
Alnylam Pharmaceuticals
AMAG Pharmaceuticals
Amgen Inc
Amicus Therapeutics
Arena Pharmaceuticals, Inc.
Ariad Pharmaceuticals
Array BioPharma
BioCryst Pharmaceuticals
Biogen Idec
BioMarin Pharmaceuticals
bluebird bio
Celgene
ChemoCentryx, Inc.
Clovis Oncology
Dynavax
Emergent BioSolutions
34
Ticker
ACAD
ACOR
AEGR
AGIO
ALXN
ALKS
ALNY
AMAG
AMGN
FOLD
ARNA
ARIA
ARRY
BCRX
BIIB
BMRN
BLUE
CELG
CCXI
CLVS
DVAX
EBS
Rating
OW
NR
OW
OW
OW
OW
OW
NR
N
OW
N
N
OW
OW
OW
OW
OW
N
N
OW
N
OW
Cur
USD
-USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
Enanta Pharmaceuticals
Gilead Sciences
Halozyme Therapeutics
ImmunoGen
Incyte Corporation
Infinity Pharmaceuticals
Ironwood Pharmaceuticals
Isis Pharmaceuticals
Keryx Biopharmaceuticals
Lexicon Pharmaceuticals
MannKind Corporation
Medivation
Merrimack Pharmaceuticals
Nektar Therapeutics
NPS Pharmaceuticals
Ophthotech
Orexigen Therapeutics
Otonomy
Pharmacyclics, Inc.
PTC Therapeutics
Regeneron Pharmaceuticals
Rigel Pharmaceuticals
Sage Therapeutics
Sangamo BioSciences
Seattle Genetics
Synageva BioPharma
The Medicines Company
Ultragenyx
United Therapeutics
Vertex Pharmaceuticals
VIVUS, Inc
ZIOPHARM Oncology
ZS Pharma
ENTA
GILD
HALO
IMGN
INCY
INFI
IRWD
ISIS
KERX
LXRX
MNKD
MDVN
MACK
NKTR
NPSP
OPHT
OREX
OTIC
PCYC
PTCT
REGN
RIGL
SAGE
SGMO
SGEN
GEVA
MDCO
RARE
UTHR
VRTX
VVUS
ZIOP
ZSPH
OW
OW
OW
N
OW
OW
OW
N
OW
OW
N
OW
OW
OW
OW
OW
OW
OW
OW
OW
N
N
OW
OW
N
OW
OW
OW
N
OW
N
N
OW
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
45.00
110.00
13.00
13.00
80.00
20.00
22.00
38.00
24.00
-6.00
101.00
14.00
17.00
42.00
51.00
12.00
32.00
152.00
40.00
315.00
-42.00
22.00
43.00
115.00
33.00
66.00
105.00
130.00
5.00
-43.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
73.00
75.00
48.00
67.00
91.00
80.00
25.00
114.00
95.00
216.00
73.00
31.00
44.00
37.00
58.00
6.50
70.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
PT
19.00
170.00
19.00
22.00
15.00
13.00
EndDate
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Healthcare Technology & Distribution
Lisa C. Gill +1 212 622 6466 lisa.c.gill@jpmorgan.com
Company Name
AmerisourceBergen
Cardinal Health
Catamaran Corp
Cerner
CVS Health
Express Scripts, Inc.
HealthEquity
Henry Schein Inc
LabCorp
McKesson Corporation
Omnicare Inc.
Owens & Minor, Inc.
Patterson Companies
Premier, Inc.
Quest Diagnostics
Rite Aid
Walgreen Company
Ticker
ABC
CAH
CTRX
CERN
CVS
ESRX
HQY
HSIC
LH
MCK
OCR
OMI
PDCO
PINC
DGX
RAD
WAG
Rating
N
N
OW
OW
OW
OW
OW
N
N
OW
OW
N
N
OW
N
OW
OW
Gavin Weiss +1 212 622 5451 gavin.s.weiss@jpmorgan.com
Company Name
Allscripts
athenahealth
Imprivata
MedAssets
Quality Systems
Vocera
Ticker
MDRX
ATHN
IMPR
MDAS
QSII
VCRA
Rating
OW
OW
OW
N
N
N
Cur
USD
USD
USD
USD
USD
USD
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Life Sciences Tools & Diagnostics
Tycho W. Peterson +1 212 622 6568 tycho.peterson@jpmorgan.com
Company Name
Accuray
Affymetrix
Agilent Technologies
Albany Molecular Research
Bruker Corporation
Catalent
Cellular Dynamics
Cepheid
Charles River Laboratories
Covance
FEI Company
Foundation Medicine
GenMark Diagnostics
Genomic Health
Hologic
ICON Plc
Illumina, Inc.
Intrexon
Intuitive Surgical, Inc.
Luminex
Mettler-Toledo
Myriad Genetics Inc.
NanoString
Oxford Immunotec
Pacific Biosciences Inc.
PerkinElmer
Qiagen N.V.
Quidel
Quintiles Transnational
Sigma Aldrich
Sirona Dental Systems Inc
Thermo Fisher Scientific
Varian Medical
Waters
WuXi PharmaTech
Zeltiq Aesthetics
Ticker
ARAY
AFFX
A
AMRI
BRKR
CTLT
ICEL
CPHD
CRL
CVD
FEIC
FMI
GNMK
GHDX
HOLX
ICLR
ILMN
XON
ISRG
LMNX
MTD
MYGN
NSTG
OXFD
PACB
PKI
QGEN
QDEL
Q
SIAL
SIRO
TMO
VAR
WAT
WX
ZLTQ
Rating
OW
UW
OW
OW
N
OW
OW
N
OW
OW
OW
N
OW
N
OW
N
OW
OW
OW
UW
N
UW
OW
OW
N
OW
OW
N
OW
NR
N
OW
OW
N
OW
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
PT
12.00
8.00
65.00
25.00
22.00
28.00
16.00
45.00
65.00
100.00
98.00
31.00
17.00
28.00
31.00
52.00
230.00
28.00
550.00
17.00
275.00
25.00
20.00
23.00
7.00
51.00
28.00
22.00
65.00
-75.00
145.00
95.00
115.00
42.00
20.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
PT
82.00
78.00
95.00
51.00
75.00
80.00
40.00
155.00
76.00
46.00
38.00
59.00
90.00
118.00
114.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
PT
44.00
75.00
115.00
14.50
156.00
48.00
110.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Managed Care/Health Care Services
Justin Lake +1 212 622 6600 justin.lake@jpmorgan.com
Company Name
Aetna
Centene
Cigna
Community Health Systems
DaVita HealthCare Partners Inc
HCA
Health Net
Humana
LifePoint
Molina
Surgical Care Affiliates
Tenet
UnitedHealth
Universal Health Services Inc.
WellPoint
Ticker
AET
CNC
CI
CYH
DVA
HCA
HNT
HUM
LPNT
MOH
SCAI
THC
UNH
UHS
WLP
Rating
OW
N
OW
OW
OW
OW
N
OW
OW
N
OW
OW
OW
OW
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Medical Supplies & Devices
Michael Weinstein +1 212 622 6635 mike.weinstein@jpmorgan.com
Company Name
Abbott Laboratories
Baxter Intl
Becton, Dickinson & Co
Boston Scientific Corporation
C.R. Bard Inc.
CareFusion
Covidien
Ticker
ABT
BAX
BDX
BSX
BCR
CFN
COV
Rating
N
N
UW
N
N
OW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
Dexcom
Edwards Lifesciences
Inogen Inc
Insulet Corp
Intersect ENT
Johnson & Johnson
Medtronic
St Jude Medical
Stryker Corp
Tornier
TriVascular Technologies
Zimmer Holdings
DXCM
EW
INGN
PODD
XENT
JNJ
MDT
STJ
SYK
TRNX
TRIV
ZMH
OW
N
OW
OW
OW
N
OW
OW
OW
OW
OW
N
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
46.00
100.00
28.00
45.00
22.00
108.00
78.00
79.00
87.00
26.00
20.00
108.00
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Christopher Pasquale +1 212 622 6590 christopher.t.pasquale@jpmorgan.com
Company Name
Endologix
Heartware International
Integra LifeSciences
NuVasive, Inc.
Spectranetics
The Cooper Companies, Inc.
Thoratec Corp.
Volcano Corporation
Wright Medical Group
Ticker
ELGX
HTWR
IART
NUVA
SPNC
COO
THOR
VOLC
WMGI
Rating
N
OW
N
N
OW
OW
N
N
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
14.00
110.00
56.00
43.00
37.00
195.00
30.00
13.00
40.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Pharmaceuticals — Major / Specialty
Chris Schott, CFA +1 212 622 5676 christopher.t.schott@jpmorgan.com
Company Name
AbbVie
Actavis plc
Allergan
Amarin Corporation
Bristol-Myers Squibb Company
Eli Lilly & Company
Endo International PLC
Hospira, Inc.
Impax Laboratories
Kythera Biopharmaceuticals
Mallinckrodt
Merck & Co., Inc.
Mylan Inc.
Perrigo Company
Pfizer Inc.
Sagent Pharmaceuticals
Teva Pharmaceuticals
Valeant Pharmaceuticals
Zoetis
Ticker
ABBV
ACT
AGN
AMRN
BMY
LLY
ENDP
HSP
IPXL
KYTH
MNK
MRK
MYL
PRGO
PFE
SGNT
TEVA
VRX
ZTS
Rating
NR
OW
OW
N
OW
N
OW
N
N
OW
N
OW
OW
OW
OW
N
N
OW
OW
Cur
-USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
-310.00
210.00
-60.00
63.00
85.00
55.00
25.00
56.00
95.00
64.00
60.00
185.00
35.00
30.00
60.00
175.00
39.00
EndDate
-Dec-15
Dec-15
-Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
Cur
USD
PT
190.00
EndDate
Dec-15
Jessica Fye +1 212 622 4165 jessica.m.fye@jpmorgan.com
Company Name
Jazz Pharmaceuticals
Ticker
JAZZ
Rating
OW
Materials
Chemicals
Jeffrey J. Zekauskas +1 212 622 6644 jeffrey.zekauskas@jpmorgan.com
Company Name
Agrium
Air Products and Chemicals
Albemarle Corporation
Amyris, Inc.
Ashland Inc.
Avery Dennison
Axiall Corp
Cabot Corporation
Celanese
CF Industries Holdings, Inc.
Compass Minerals
Ticker
AGU
APD
ALB
AMRS
ASH
AVY
AXLL
CBT
CE
CF
CMP
Rating
N
N
N
N
N
N
N
OW
N
N
OW
Cur
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
PT
96.00
126.00
61.00
-100.00
50.00
40.00
58.00
60.00
250.00
100.00
EndDate
Dec-14
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
35
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
International, Inc.
CVR Partners LP
Dow Chemical
DuPont
Eastman Chemical Company
Ecolab Inc.
Ferro Corp
H.B. Fuller
Huntsman Corporation
International Flavors &
Fragrances
LyondellBasell Industries
Metabolix
Minerals Technologies
Monsanto
Novozymes
Pall Corporation
Polypore International
Potash Corp.
PPG Industries
Praxair
RPM International Inc.
Scotts Miracle-Gro Co.
Sherwin-Williams
Taminco Corp
The Mosaic Company
Valspar Corp
WD-40 Company
Westlake Chemical Corp.
UAN
DOW
DD
EMN
ECL
FOE
FUL
HUN
N
N
OW
OW
OW
N
N
N
USD
USD
USD
USD
USD
USD
USD
USD
21.00
50.00
75.00
94.00
118.00
12.00
40.00
27.00
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
IFF
LYB
MBLX
MTX
MON
NZYMb.CO
PLL
PPO
POT
PPG
PX
RPM
SMG
SHW
TAM
MOS
VAL
WDFC
WLK
N
OW
N
OW
OW
N
N
N
N
OW
N
N
OW
N
N
OW
N
N
OW
USD
USD
-USD
USD
DKK
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
104.00
125.00
-74.00
135.00
255.00
83.00
29.00
38.00
230.00
136.00
45.00
66.00
218.00
23.00
55.00
83.00
69.00
80.00
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
PT
79.00
EndDate
Dec-15
Silke Kueck +1 212 622 6503 silke.x.kueck@jpmorgan.com
Company Name
Rockwood Holdings, Inc.
Ticker
ROC
Rating
N
Cur
USD
Metals & Mining
Michael F. Gambardella +1 212 622 6446 michael.gambardella@jpmorgan.com
Company Name
AK Steel
Alcoa
Allegheny Technologies
Carpenter Technology
Century Aluminum Company
Cliffs Natural Resources
Commercial Metals
Dynamic Materials
Freeport-McMoRan
Globe Specialty Metals
GrafTech International
Haynes International
Molycorp
Nucor Corp.
Reliance Steel & Aluminum
RTI International Metals
Ryerson
Steel Dynamics, Inc.
SunCoke Energy Partners, L.P.
Teck Resources
Thompson Creek Metals
U.S. Steel Corp
Worthington Industries
Ticker
AKS
AA
ATI
CRS
CENX
CLF
CMC
BOOM
FCX
GSM
GTI
HAYN
MCP
NUE
RS
RTI
RYI
STLD
SXCP
TCKb.TO
TC
X
WOR
Rating
N
OW
UW
N
OW
OW
N
N
OW
N
UW
OW
UW
OW
N
OW
OW
OW
N
N
N
N
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
CAD
-USD
USD
PT
8.50
24.50
31.00
60.00
24.00
18.00
20.00
21.00
43.00
21.00
5.00
66.00
-57.00
70.00
37.00
15.00
24.50
33.00
25.00
-35.00
42.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-14
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
-Dec-15
Dec-14
Cur
USD
USD
PT
38.00
85.00
EndDate
Dec-15
Dec-15
Brian P. Ossenbeck, CFA +1 212 622 1023 brian.p.ossenbeck@jpmorgan.com
Company Name
Constellium
Kaiser Aluminum
Ticker
CSTM
KALU
Rating
OW
N
Tyler J. Langton +1 212 622 5234 tyler.j.langton@jpmorgan.com
Company Name
Ball Corporation
Crown Holdings
Owens-Illinois
Plum Creek Timber
Weyerhaeuser
Ticker
BLL
CCK
OI
PCL
WY
Rating
N
OW
N
OW
N
Cur
USD
USD
USD
USD
USD
PT
63.00
54.00
34.00
46.00
35.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Precious Metals & Coal
John Bridges, CFA, ACSM +1 212 622 6430 john.bridges@jpmorgan.com
Company Name
Agnico-Eagle Mines
Alliance Resource Partners
Alpha Natural Resources
Arch Coal, Inc.
B2Gold
Barrick Gold
Cloud Peak Energy
Coeur Mining
Compania de Minas Buenaventura
CONSOL Energy
Eldorado Gold
Foresight Energy
Goldcorp Inc
Hecla Mining
Kinross Gold
New Gold
Newmont Mining
NovaGold Resources
Pan American Silver
Peabody Energy
Silver Wheaton
Stillwater Mining
Ticker
AEM
ARLP
ANR
ACI
BTG
ABX
CLD
CDE
BVN
CNX
EGO
FELP
GG
HL
KGC
NGD
NEM
NG
PAAS
BTU
SLW
SWC
Rating
N
N
N
N
OW
N
N
N
OW
OW
OW
N
OW
N
N
OW
N
N
N
OW
OW
OW
Cur
USD
USD
---USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
PT
34.00
49.00
---17.00
17.00
8.50
18.00
48.00
10.00
22.00
32.00
5.00
5.00
7.00
29.00
-15.00
17.00
31.00
20.00
EndDate
Dec-14
Dec-15
---Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
-Dec-14
Dec-15
Dec-14
Dec-14
PT
340.00
17.00
16.00
13.00
47.00
61.00
18.00
92.00
90.00
670.00
9.00
38.00
18.00
241.00
550.00
42.00
1,575.00
6.00
100.00
20.00
-64.00
---
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
---
PT
100.00
EndDate
Dec-15
Media & Telecom
Internet
Doug Anmuth +1 212 622 6571 douglas.anmuth@jpmorgan.com
Company Name
Amazon.com
Bankrate Inc
Care.com
Chegg, Inc.
Criteo
eBay, Inc
Everyday Health
Expedia, Inc.
Facebook
Google
Groupon
HomeAway Inc
King Digital Entertainment
LinkedIn Corp
Netflix Inc
Pandora Media Inc
Priceline.com
ReachLocal
TripAdvisor, Inc.
TrueCar Inc.
Trulia Inc.
Twitter, Inc.
Yahoo Inc
Zynga Inc
Ticker
AMZN
RATE
CRCM
CHGG
CRTO
EBAY
EVDY
EXPE
FB
GOOG
GRPN
AWAY
KING
LNKD
NFLX
P
PCLN
RLOC
TRIP
TRUE
TRLA
TWTR
YHOO
ZNGA
Rating
N
N
OW
OW
OW
N
N
N
OW
OW
N
N
N
OW
OW
OW
OW
N
N
OW
NR
OW
NR
N
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
---
Kaizad Gotla, CFA +1 212 622 6436 kaizad.gotla@jpmorgan.com
Company Name
Yelp Inc.
36
Ticker
YELP
Rating
OW
Cur
USD
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Technology
Media
Alexia S. Quadrani +1 212 622 1896 alexia.quadrani@jpmorgan.com
Company Name
21st Century Fox
AMC Networks
CBS Corporation
CBS Outdoor Americas
Discovery Communications
Disney
Gannett Company
Interpublic Group of Companies
Lamar Advertising Co.
Lionsgate Entertainment
New York Times Company
News Corp
Omnicom Group
Scripps Networks Interactive
SeaWorld Entertainment
Sinclair Broadcast Group
Time Warner
Viacom
Ticker
FOXA
AMCX
CBS
CBSO
DISCA
DIS
GCI
IPG
LAMR
LGF
NYT
NWSA
OMC
SNI
SEAS
SBGI
TWX
VIAB
Rating
OW
N
OW
OW
N
OW
N
OW
N
OW
N
N
OW
N
N
N
OW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
40.00
62.00
70.00
37.00
86.00
100.00
36.00
23.00
54.00
37.00
14.00
18.00
86.00
80.00
21.00
35.00
92.00
96.00
EndDate
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Jun-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-14
Townsend Buckles, CFA, CPA +1 212 622 0461 townsend.buckles@jpmorgan.com
Company Name
Cinemark
IMAX
Madison Square Garden
National CineMedia, Inc.
Regal Entertainment
Ticker
CNK
IMAX
MSG
NCMI
RGC
Rating
OW
OW
N
NR
N
Cur
USD
USD
USD
-USD
PT
39.00
32.00
70.00
-22.00
EndDate
Dec-14
Dec-14
Dec-15
-Dec-14
Cur
USD
USD
USD
USD
--USD
USD
USD
--USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
PT
115.00
35.00
18.00
43.00
--87.00
95.00
72.00
--23.00
22.00
55.00
15.00
37.00
125.00
8.00
40.00
34.00
-46.00
59.00
11.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
--Dec-15
Dec-15
Dec-15
--Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Cur
USD
PT
41.00
EndDate
Dec-15
PT
53.00
45.00
42.00
EndDate
Dec-15
Dec-15
Dec-15
Telecom Services / Cable & Satellite
Philip Cusick +1 212 622 1444 philip.cusick@jpmorgan.com
Company Name
American Tower
AT&T
Cablevision
CenturyLink
Charter
Comcast
Crown Castle
DIRECTV
DISH Network
Equinix
Frontier
Gogo
Intelsat
Level 3 Communications
NTELOS
Rackspace Hosting
SBA Communications
Sprint Corp
T-Mobile US Inc.
Telephone & Data Systems
Time Warner Cable
US Cellular
Verizon Communications
Windstream
Ticker
AMT
T
CVC
CTL
CHTR
CMCSA
CCI
DTV
DISH
EQIX
FTR
GOGO
I
LVLT
NTLS
RAX
SBAC
S
TMUS
TDS
TWC
USM
VZ
WIN
Rating
OW
N
N
OW
NR
NR
N
N
OW
NR
NR
OW
N
OW
N
N
OW
N
OW
OW
NR
OW
OW
N
Eric Pan, CFA +1 212 622 5623 eric.pan@jpmorgan.com
Company Name
Cogent Communications
Ticker
CCOI
Rating
OW
Richard Choe +1 212 622 6708 richard.choe@jpmorgan.com
Company Name
BCE Inc
Rogers Communications
TELUS
Ticker
BCE.TO
rRCIb.TO
T.TO
Rating
OW
N
N
Cur
CAD
CAD
CAD
Applied and Emerging Technologies / Alternative Energy
Paul Coster, CFA +1 212 622 6425 paul.coster@jpmorgan.com
Company Name
3D Systems Corporation
Acacia Research Corp.
Canadian Solar
Cree
Cubic Corp
Diebold, Incorporated
DigitalGlobe, Inc.
Dolby Laboratories, Inc.
DTS, Inc.
EnerNOC Inc.
Fabrinet
First Solar, Inc
FLIR Systems Inc
Garmin Ltd.
GoPro, Inc.
iRobot Corporation
Itron, Inc
Logitech International
NCR Corporation
Nice Systems
OmniVision Technologies
Outerwall Inc
Plantronics Inc
Rambus Inc.
RPX Corporation
Rubicon Technology
SolarCity
Stratasys, Ltd.
SunPower Corporation
Synaptics Inc.
TASER International Inc.
TerraForm Power, Inc.
TiVo Inc.
Trimble Navigation
TTM Technologies
Veeco Instruments
Verint Systems, Inc.
Zebra Technologies
Ticker
DDD
ACTG
CSIQ
CREE
CUB
DBD
DGI
DLB
DTSI
ENOC
FN
FSLR
FLIR
GRMN
GPRO
IRBT
ITRI
LOGI
NCR
NICE
OVTI
OUTR
PLT
RMBS
RPXC
RBCN
SCTY
SSYS
SPWR
SYNA
TASR
TERP
TIVO
TRMB
TTMI
VECO
VRNT
ZBRA
Rating
N
OW
OW
OW
OW
UW
OW
UW
N
OW
OW
OW
UW
UW
N
N
UW
N
OW
OW
NR
UW
OW
OW
N
N
OW
OW
OW
OW
OW
N
N
OW
NR
OW
OW
NR
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
--
PT
49.00
20.50
43.50
56.00
49.00
30.00
37.00
43.00
22.50
24.50
22.50
76.00
29.00
51.00
54.00
36.50
31.00
15.00
46.00
47.00
-48.00
56.00
15.50
19.00
8.00
83.00
139.00
43.00
100.00
19.00
35.00
15.00
39.00
-40.00
62.00
--
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
--
Business, Information and Education Services
Andrew C. Steinerman +1 212 622 2527 andrew.steinerman@jpmorgan.com
Company Name
Aramark
Cintas
D&B
Equifax
G&K Services
IHS Inc.
IMS Health
Iron Mountain
ManpowerGroup
Markit
Nielsen Holdings N.V.
Resources Global Professionals
Robert Half International
Solera Holdings
Thomson Reuters
UniFirst
Verisk Analytics
Ticker
ARMK
CTAS
DNB
EFX
GK
IHS
IMS
IRM
MAN
MRKT
NLSN
RECN
RHI
SLH
TRI
UNF
VRSK
Rating
OW
OW
N
OW
OW
N
OW
OW
OW
N
OW
N
OW
OW
N
N
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
31.00
72.00
112.00
85.00
64.00
145.00
30.00
42.00
96.00
27.00
53.00
16.00
56.00
75.00
38.00
115.00
71.00
EndDate
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-15
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
37
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Jeffrey Volshteyn +1 212 622 2940 jvolshteyn@jpmorgan.com
Company Name
American Public Education
Apollo Education Group Inc
Bright Horizons
Capella Education
DeVry
Grand Canyon Education
ITT Educational Services Inc
ServiceMaster
Strayer Education
Towers Watson
Ticker
APEI
APOL
BFAM
CPLA
DV
LOPE
ESI
SERV
STRA
TW
Rating
OW
OW
N
N
N
OW
NR
OW
N
OW
Cur
USD
USD
USD
USD
USD
USD
-USD
USD
USD
PT
44.00
37.00
40.00
63.00
41.00
51.00
-23.00
50.00
125.00
EndDate
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
-Dec-15
Dec-14
Dec-15
Computer Services & IT Consulting
Tien-tsin Huang, CFA +1 212 622 6632 tien-tsin.huang@jpmorgan.com
Company Name
Accenture plc
Automatic Data Processing
Broadridge
CDW
Cognizant
Computer Sciences
EVERTEC
ExlService Holdings Inc.
FIS
Fiserv, Inc.
FleetCor
Genpact
Global Payments
Globant
Green Dot
Heartland Payment Systems
IBM
MasterCard
MoneyGram
Paychex Inc
TriNet
Vantiv
VeriFone
Visa Inc.
Western Union
WEX Inc.
Xerox Corporation
Ticker
ACN
ADP
BR
CDW
CTSH
CSC
EVTC
EXLS
FIS
FISV
FLT
G
GPN
GLOB
GDOT
HPY
IBM
MA
MGI
PAYX
TNET
VNTV
PAY
V
WU
WEX
XRX
Rating
OW
N
N
OW
NR
N
OW
UW
N
N
NR
N
N
OW
OW
N
N
OW
N
UW
OW
OW
OW
OW
UW
N
N
Cur
USD
USD
USD
USD
-USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
90.00
75.00
45.00
35.00
-65.00
31.00
29.00
63.00
67.00
-19.00
77.00
16.00
27.00
50.00
215.00
89.00
15.00
43.00
34.00
42.00
42.00
243.00
18.00
118.00
15.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
PT
95.00
39.00
22.00
EndDate
Dec-15
Dec-15
Dec-15
Puneet Jain +1 212 622 1436 puneet.x.jain@jpmorgan.com
Company Name
Syntel, Inc.
Virtusa Corp.
WNS Holdings Ltd.
Ticker
SYNT
VRTU
WNS
Rating
N
OW
N
Cur
USD
USD
USD
Reginald L. Smith, CFA +1 212 622 6743 reginald.l.smith@jpmorgan.com
Company Name
Alliance Data
Cardtronics, Inc
Ticker
ADS
CATM
Rating
N
OW
Cur
USD
USD
PT
283.00
51.00
EndDate
Dec-15
Dec-15
SMid Semiconductors, Semiconductor Cap Equipment & Tech Hardware
Harlan Sur +1 415 315 6700 harlan.sur@jpmorgan.com
Company Name
Advanced Micro Devices
Altera
Analog Devices
Applied Materials
Audience
Avago Technologies
Broadcom Corporation
Cavium Inc
Cypress Semiconductor
Fairchild Semiconductor
Freescale Semiconductor
38
Ticker
AMD
ALTR
ADI
AMAT
ADNC
AVGO
BRCM
CAVM
CY
FCS
FSL
Rating
N
OW
N
OW
OW
N
OW
OW
UW
N
N
Cur
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
-39.00
60.00
30.00
13.00
87.00
48.00
55.00
7.00
12.00
26.00
EndDate
-Dec-14
Dec-14
Dec-15
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Intel
Intermolecular
KLA-Tencor
Lam Research
Linear Technology
M/A-COM
Marvell Technology Group
Maxim Integrated Products
Mellanox Technologies
Microchip Technology
Micron Technology
NVIDIA Corporation
NXP Semiconductors
ON Semiconductor Corporation
Peregrine Semiconductor
SanDisk Corp
Seagate Technology
Texas Instruments
Vishay Intertechnology
Western Digital
Xilinx
INTC
IMI
KLAC
LRCX
LLTC
MTSI
MRVL
MXIM
MLNX
MCHP
MU
NVDA
NXPI
ONNN
PSMI
SNDK
STX
TXN
VSH
WDC
XLNX
OW
N
OW
OW
UW
OW
OW
N
N
NR
N
N
N
N
N
N
N
OW
N
OW
OW
USD
USD
USD
USD
USD
USD
USD
USD
USD
-USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
37.00
7.00
85.00
80.00
32.00
22.00
20.00
28.00
45.00
-36.00
20.00
75.00
10.00
12.50
100.00
60.00
56.00
11.00
120.00
47.00
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
-Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Dec-14
Software — SMid Cap
Sterling Auty, CFA +1 212 622 6389 sterling.auty@jpmorgan.com
Company Name
Advent Software
Akamai Technologies, Inc.
Amdocs
ANSYS, Inc.
Aspen Technology
Autodesk
Barracuda Networks
Blackbaud Inc
Cadence Design Systems
Check Point Software
Dealertrack Technologies
FireEye
Five9
Fortinet, Inc
Guidewire Software
Imperva
Intuit
Medidata Solutions
Mentor Graphics
Model N
Monotype Imaging
Neustar
Paycom
PROS Holdings
PTC Inc
Q2 Holdings Inc.
Qualys
Rovi
SS&C Technologies
Synchronoss Technologies
Synopsys Inc
Veeva Systems
VeriSign
Web.com
Wix.com
Ticker
ADVS
AKAM
DOX
ANSS
AZPN
ADSK
CUDA
BLKB
CDNS
CHKP
TRAK
FEYE
FIVN
FTNT
GWRE
IMPV
INTU
MDSO
MENT
MODN
TYPE
NSR
PAYC
PRO
PTC
QTWO
QLYS
ROVI
SSNC
SNCR
SNPS
VEEV
VRSN
WWWW
WIX
Rating
N
OW
N
N
N
OW
OW
UW
N
OW
OW
N
OW
N
OW
OW
N
OW
N
N
N
N
OW
N
OW
OW
N
N
N
OW
N
OW
N
OW
OW
Cur
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
PT
34.50
73.00
51.50
82.00
46.50
73.00
39.00
40.00
18.00
75.00
56.00
54.00
12.00
28.00
58.00
42.00
89.00
60.00
25.00
14.00
32.50
37.00
19.00
35.00
44.00
20.50
29.00
27.00
45.00
48.50
46.50
32.00
56.50
35.00
42.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-14
Dec-14
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Telecom & Networking Equipment
Rod Hall, CFA +1 415 315 6713 rod.b.hall@jpmorgan.com
Company Name
A10 Networks
ADTRAN
Apple Inc.
Aruba Networks
BlackBerry
Brocade
Ticker
ATEN
ADTN
AAPL
ARUN
BBRY
BRCD
Rating
OW
N
OW
N
N
OW
Cur
USD
USD
USD
USD
USD
USD
PT
16.50
22.50
112.00
21.00
10.00
13.00
EndDate
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
J.P. Morgan North America Equity Research Coverage
Stock Ratings: OW – Overweight • N – Neutral • UW – Underweight • NR – Not Rated
Coverage, Ratings and Price Targets as of October 3, 2014
Ciena Corp.
Cisco Systems
CommScope
Corning
Cyan
F5 Networks
Hewlett-Packard
Infinera
JDS Uniphase
Juniper Networks
Motorola Solutions
QUALCOMM
Riverbed
CIEN
CSCO
COMM
GLW
CYNI
FFIV
HPQ
INFN
JDSU
JNPR
MSI
QCOM
RVBD
OW
UW
OW
N
UW
N
OW
OW
N
OW
NR
N
N
USD
USD
USD
USD
-USD
USD
USD
USD
USD
-USD
USD
30.00
17.00
30.00
21.00
-112.00
38.00
13.00
14.00
30.00
-65.00
19.00
Dec-15
Dec-15
Dec-15
Dec-15
-Dec-15
Dec-15
Dec-14
Dec-15
Dec-14
-Dec-15
Dec-15
39
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
J.P. Morgan U.S. Equity Research Roster
Management
Head of North America Equity Research
Head of Latin American Equity Research
Global Head of Macro Derivatives and Systematic Strategies
Deputy Head of Americas Equity Research & Product
Management
As of September 30, 2014
Nicholas Rosato Jr. (1-212) 622-2302
Pedro Martins Junior (55-11) 4950-4121
Marko Kolanovic (1-212) 272-1438
Andrew Skala (1-212) 622-2889
Deputy Director of US Equity Research
Global Business Manager
Capital Goods / Industrials
Aerospace & Defense
Claudia Hueston (1-212) 622-6437
John Roberts (1-212) 622-6709
Senior Analyst
Joseph Nadol III (1-212) 622-6548
Electrical Equipment & Multi-Industry
Stephen Tusa (1-212) 622-6623
Machinery
Ann Duignan (1-212) 622-0381
Marine Transportation
Consumer
Airlines
Nishant Mani (1-212) 622-5707
Senior Analyst
Jamie Baker (1-212) 622-6713
Autos & Auto Parts
Ryan Brinkman (1-212) 622-6581
Food Manufacturing and Retail
Kenneth Goldman (1-212) 622-0359
Gaming & Lodging
Joseph Greff (1-212) 622-0548
Homebuilders & Building Products
Michael Rehaut (1-212) 622-6696
Household & Personal Care Products / Beverages
John Faucher (1-212) 622-6443
Leisure
Restaurants
Kevin Milota (1-212) 622-0987
John Ivankoe (1-212) 622-6487
Retailing — Broadlines/Apparel & Footwear
Matthew Boss (1-212) 622-2630
Retailing — Hardlines
Christopher Horvers (1-212) 622-1316
Energy
Electric Utilities
Senior Analyst
Christopher Turnure (1-212) 622-5696
Energy MLPs
Jeremy Tonet (1-212) 622-4915
Integrated Oils
Phil Gresh (1-212) 622-4861
Oil & Gas Exploration & Production / Natural Gas
Joseph Allman (1-212) 622-4864
40
Associate / Analyst
Min Moon (1-212) 272-8456
William Funke (1-212) 622-2597
Reed Kern (1-212) 622-7401
Lisa Hilleboe (1-212) 622-4122
Amanda McLoughlin (1-212) 622-5584
Michell Swan (1-212) 622-5527
Associate / Analyst
Seth Seifman (1-212) 622-5597
Christopher Sands (1-212) 622-9224
Rajat Gupta (1-212) 622-6382
Daniel Innamorato (1-212) 622-9884
Piyush Sharma (91-22) 6157-3327
Michael Conlon (1-212) 622-9368
Thomas Simonitsch (1-212) 622-2250
Naa-Sakle Akuete (1-212) 622-9878
Associate / Analyst
Nishant Mani (1-212) 622-5707
Naa-Sakle Akuete (1-212) 622-9878
Samik Chatterjee (1-212) 622-0798
David Karnovsky (1-212) 622-1206
Joshua Levine (1-212) 622-6217
Thomas Palmer (1-212) 622-5582
Kevin Milota (1-212) 622-0987
Jonathan Mohraz (1-212) 622-1111
Brian Mullan (1-212) 622-8170
Jason Marcus (1-212) 622-4906
William Wong (1-415) 315-8818
Peter K Grom (1-212) 622-4876
Sofya Tsinis (1-212) 622-6391
Amod Gautam (1-212) 622-6417
Jason Price (1-212) 622-1050
Anne McCormick (1-212) 622-4163
Esteban Gomez (1-212) 622-2725
Kate Fitzsimons (1-212) 622-0149
Mark Becks (1-212) 622-5265
Garrett A Castellani (1-212) 622-1442
Tami Zakaria (1-212) 622-9773
Associate / Analyst
Nazia Sheikh (1-212) 622-5403
Anant Kapur (91-22) 6157 5013
Chris Z. Neyor (1-212) 622-0334
Andy Burd (1-212) 622-2316
Gabriel Daoud (1-212) 622-0654
Rahul Krotthapalli (91-22) 6157-3307
John Royall (1-212) 622-6406
Rohit Alluri (91-22) 6157-5082)
Kevin Kwan (1-212) 622 0109
Vibhav Zutshi (91-22) 6157-5037
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
J.P. Morgan U.S. Equity Research Roster
Financials
Banks — Large-Cap
As of September 30, 2014
Senior Analyst
Vivek Juneja (1-212) 622-6465
Banks — Small and Mid Cap
Steven Alexopoulos (1-212) 622-6041
Brokers, Asset Managers & Exchanges
Kenneth Worthington (1-212) 622-6613
Insurance — Life
REITs
Jimmy Bhullar (1-212) 622-6397
Michael Mueller (1-212) 622-6689
Anthony Paolone (1-212) 622-6682
Specialty & Consumer Finance
Richard Shane (1-415) 315-6701
Healthcare
Biotechnology — SMid Cap
Senior Analyst
Cory Kasimov (1-212) 622-5266
Healthcare Technology & Distribution
Lisa Gill (1-212) 622-6466
Life Sciences Tools & Diagnostics
Tycho Peterson (1-212) 622-6568
Managed Care/Health Care Services
Justin Lake (1-212) 622-6600
Medical Supplies & Devices
Michael Weinstein (1-212) 662-6635
Medical Supplies & Devices
Pharmaceuticals — Major / Specialty
Christopher Pasquale (1-212) 622-6590
Chris Schott (1-212) 622-5676
Materials
Chemicals
Senior Analyst
Jeffrey Zekauskas (1-212) 622-6644
Metals & Mining
Michael Gambardella (1-212) 622-6446
Paper & Packaging
Precious Metals & Coal
Tyler Langton (1-212) 622-5234
John Bridges (1-212) 622-6430
Media & Telecom
Internet
Senior Analyst
Doug Anmuth (1-212) 622-6571
Media
Alexia Quadrani (1-212) 622-1896
Telecom Services / Cable & Satellite
Philip Cusick (1-212) 622-1444
Associate / Analyst
John Grassano (1-212) 622-5605
Chris Baydar (1-212) 622-8115
Preeti Dixit (1-212) 622-9864
David Norton (1-212) 622-5787
Kartheek Konanki (1-212) 622-4904
Alex Kigel (1-212) 622-6454
Amanda Yao (1-212) 622-6495
Pablo Singzon (1-212) 622-2295
Anupam P Singh (91-22) 6157-3363
Emil Shalmiyev (1-212) 622-6615
Lina Rudashevski (1-212) 622-6416
Gene Nusinzon (1-212) 622-1041
Amrita Ganguly (1-415) 315-6725
Melissa Wedel (1-415) 315-6763
Vaibhav Bhandari (91-22) 6157-3264
Associate / Analyst
Matthew Lowe (1-212) 622-0848
Sukalp Tipre (91-22) 6157-3007
Whitney Ijem (1-212) 622-4668
Brittany Terner (1-212) 622-8527
Michael Minchak (1-212) 622-6506
Gavin Weiss (1-212) 622-5451
Patrick Donnelly (1-212) 622-9735
Tejas Savant (1-212) 622-5650
Jordan McKinnie (1-212) 622-7059
Michael Newshel (1-212) 622-5075
Neal Miniyar (1-212) 622-3662
Andrew Tom (1-212) 622-5846
Ross Comeaux (1-212) 622-1895
Christopher Pasquale (1-212) 622-6590
Richard Marcus (1-212) 622-6657
Jessica Fye (1-212) 622-4165
Wendy Lin (1-212) 622-5350
Dana Flanders (1-212) 622-1256
Associate / Analyst
Silke Kueck (1-212) 622-6503
Benjamin Richardson (1-212) 622-6455
Youyou Yan (1-212) 622-4951
Tyler Langton (1-212) 622-5234
Brian Ossenbeck (1-212) 622-1023
Anant Inani (1-212) 622-2684
Kushank Poddar (91-22) 6157-3273
Associate / Analyst
Kaizad Gotla (1-212) 622-6436
Diana Kluger (1-212) 622-4539
Zhaokun (James) Ma (1-212) 622-9885
Townsend Buckles (1-212) 622-0461
James Kopelman (1-212) 270-5899
Julia Yue (1-212) 622-9896
Richard Choe (1-212) 622-6708
Eric Pan (1-212) 622-5623
Ava Zhang (1-212) 622-8529
41
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
J.P. Morgan U.S. Equity Research Roster
Technology
Applied and Emerging Technologies / Alternative Energy
As of September 30, 2014
Senior Analyst
Paul Coster (1-212) 622-6425
Business, Information and Education Services
Andrew Steinerman (1-212) 622-2527
Business & Education Services
Computer Services & IT Consulting
Jeffrey Volshteyn (1-212) 622-2940
Tien-tsin Huang (1-212) 622-6632
Semiconductors,Semiconductor Cap Equipment & Tech Hardware
Software
Harlan Sur (1-415) 315-6700
Mark Murphy (1-415) 315-6736
Software — SMid Cap
Sterling Auty II (1-212) 622-6389
Telecom & Networking Equipment
Rod Hall (1-415) 315-6713
Strategy / Quant / Derivatives
Global Head of Derivative & Quantitative Strategies
Senior Analyst
Marko Kolanovic (1-212) 272-1438
U.S. Equity and Quantitative Strategy
Dubravko Lakos-Bujas (1-212) 622- 3601
42
Associate / Analyst
Mark Strouse (1-212) 622-8244
Paul J. Chung (1-212) 622-5552
Jeffrey Volshteyn (1-212) 622-2940
Judah Sokel (1-212) 622-6669
Sharon Sodano (1-212) 622-6605
Stephanie Davis (1-212) 622-6591
Puneet Jain (1-212) 622-1436
Reginald Smith Jr (1-212) 622-6743
Saqib Jalil (1-415) 315-6761
Albert Chi (1-212) 622-5316
Pinjalim Bora (1-415) 315-6764
Matthew J Coss (1-415) 315-7505
Jackson Ader (1-212) 622-6102
Darren Jue (1-212) 622-4071
Kenneth R Talanian Jr. (1-212) 622-1303
Hemant Jodha (91-22) 6157 3318
Ashwin Kesireddy (1-415) 315-6756
Rajagopal Raghunathan (91-22) 6157-3255
Associate / Analyst
Min Moon (1-212) 272-8456
Bram Kaplan (212) 272-1215
Arjun Mehra (1-212) 622-8030
Sang (David) Han (1-212) 622-6424
Bhupinder Singh (1-212) 622-9812
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
43
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
44
North America Equity Research
06 October 2014
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
Analyst Certification: The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple research
analysts are primarily responsible for this report, the research analyst denoted by an “AC” on the cover or within the document
individually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views
expressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of
any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views
expressed by the research analyst(s) in this report. For all Korea-based research analysts listed on the front cover, they also certify, as per
KOFIA requirements, that their analysis was made in good faith and that the views reflect their own opinion, without undue influence or
intervention.
Research excerpts: This note includes excerpts from previously published research. For access to the full reports, including analyst
certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please contact your
salesperson or the covering analyst’s team or visit www.jpmorganmarkets.com.
Important Disclosures
Company-Specific Disclosures: Important disclosures, including price charts, are available for compendium reports and all J.P. Morgan–
covered companies by visiting https://jpmm.com/research/disclosures, calling 1-800-477-0406, or e-mailing
research.disclosure.inquiries@jpmorgan.com with your request. J.P. Morgan’s Strategy, Technical, and Quantitative Research teams may
screen companies not covered by J.P. Morgan. For important disclosures for these companies, please call 1-800-477-0406 or e-mail
research.disclosure.inquiries@jpmorgan.com.
Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, if
applicable, the price target, for this stock because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy
reasons. The previous rating and, if applicable, the price target, no longer should be relied upon. An NR designation is not a
recommendation or a rating. In our Asia (ex-Australia) and U.K. small- and mid-cap equity research, each stock’s expected total return is
compared to the expected total return of a benchmark country market index, not to those analysts’ coverage universe. If it does not appear
in the Important Disclosures section of this report, the certifying analyst’s coverage universe can be found on J.P. Morgan’s research
website, www.jpmorganmarkets.com.
J.P. Morgan Equity Research Ratings Distribution, as of September 30, 2014
J.P. Morgan Global Equity Research Coverage
IB clients*
JPMS Equity Research Coverage
IB clients*
Overweight
(buy)
46%
57%
46%
76%
Neutral
(hold)
42%
49%
48%
67%
Underweight
(sell)
12%
34%
7%
51%
*Percentage of investment banking clients in each rating category.
For purposes only of FINRA/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold
rating category; and our Underweight rating falls into a sell rating category. Please note that stocks with an NR designation are not included in the table
above.
Equity Valuation and Risks: For valuation methodology and risks associated with covered companies or price targets for covered
companies, please see the most recent company-specific research report at http://www.jpmorganmarkets.com, contact the primary analyst
or your J.P. Morgan representative, or email research.disclosure.inquiries@jpmorgan.com.
Equity Analysts' Compensation: The equity research analysts responsible for the preparation of this report receive compensation based
upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues.
Other Disclosures
J.P. Morgan ("JPM") is the global brand name for J.P. Morgan Securities LLC ("JPMS") and its affiliates worldwide. J.P. Morgan Cazenove is a marketing
name for the U.K. investment banking businesses and EMEA cash equities and equity research businesses of JPMorgan Chase & Co. and its subsidiaries.
45
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
All research reports made available to clients are simultaneously available on our client website, J.P. Morgan Markets. Not all research content is
redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your sales
representative.
Options related research: If the information contained herein regards options related research, such information is available only to persons who have
received the proper option risk disclosure documents. For a copy of the Option Clearing Corporation's Characteristics and Risks of Standardized Options,
please contact your J.P. Morgan Representative or visit the OCC's website at http://www.optionsclearing.com/publications/risks/riskstoc.pdf
Legal Entities Disclosures
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Branch, is authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and to limited regulation by
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regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England & Wales No. 2711006. Registered Office 25
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regulated by the Korea Financial Supervisory Service. Australia: J.P. Morgan Australia Limited (JPMAL) (ABN 52 002 888 011/AFS Licence No:
238188) is regulated by ASIC and J.P. Morgan Securities Australia Limited (JPMSAL) (ABN 61 003 245 234/AFS Licence No: 238066) is regulated by
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46
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
North America Equity Research
06 October 2014
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47
Nicholas Rosato Jr.
(1-212) 622-2302
Nicholas.Rosato@jpmorgan.com
48
North America Equity Research
06 October 2014