Analysts Have Conflicting Sentiments on These Services Companies: Magna International (NYSE: MGA), Sprouts Farmers (NASDAQ: SFM) and Hyatt Hotels Corp. (NYSE: H)

By Austin Angelo

Analysts have been eager to weigh in on the Services sector with new ratings on Magna International (NYSE: MGA), Sprouts Farmers (NASDAQ: SFM) and Hyatt Hotels Corp. (NYSE: H).

Magna International (NYSE: MGA)

BMO Capital analyst Peter Sklar reiterated a Hold rating on Magna International (NYSE: MGA) yesterday and set a price target of $41. The company’s shares opened today at $39.05.

According to TipRanks.com, Sklar is a 4-star analyst with an average return of 24.9% and a 66.7% success rate. Sklar covers the Services sector, focusing on stocks such as Restaurant Brands International, Alimentation Couche Tard, and Dollarama, Inc.

Magna International has an analyst consensus of Moderate Buy, with a price target consensus of $48.40.

Sprouts Farmers (NASDAQ: SFM)

In a report released today, Robert Ohmes from Merrill Lynch reiterated a Buy rating on Sprouts Farmers (NASDAQ: SFM), with a price target of $28. The company’s shares opened today at $19.96, close to its 52-week low of $18.70.

According to TipRanks.com, Ohmes is a 2-star analyst with an average return of 0.2% and a 49.1% success rate. Ohmes covers the Services sector, focusing on stocks such as United Natural Foods, The Finish Line, and Wal-Mart Stores.

Currently, the analyst consensus on Sprouts Farmers is Moderate Buy and the average price target is $23.67, representing a 18.6% upside.

In a report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $23 price target.
Hyatt Hotels Corp. (NYSE: H)

MKM Partners analyst Christopher Agnew reiterated a Sell rating on Hyatt Hotels Corp. (NYSE: H) yesterday and set a price target of $44. The company’s shares opened today at $51.19.

Agnew said:

“We believe the risk/ reward to 4Q RevPAR is skewed to the downside with group likely to decelerate (reversal of the 3Q benefit from the timing of Jewish Holidays) and softer corporate transient demand. Reiterated FY16 RevPAR Guidance; Implies 4Q RevPAR of ~3%. After lowering FY16 RevPAR guidance more than its peers last quarter, H reiterated guidance of 2%-3%. Implied 4Q RevPAR guidance of ~1%-5% is ahead of peer Hilton (HLT, Sell, $22.30, $20 PT) which guided up 0%-1%. EBITDA Slightly Ahead; EPS Beat from Equity Earnings from Unconsolidated Ventures. H reported 3Q16 adj. EBITDA of $192mn, up 12.3% y/y, slightly ahead of consensus of $189mn (MKM: $189mn). Revenues of $1,088mn were just below consensus of $1,102mn (MKM: $1,109mn) with owned softer than expected ($519mn vs. consensus of $529mn) driven by owned RevPAR growth of 1.0%. Softer top-line growth was offset by an 80bps margin improved in owned and leased (largely due to non-operational items). Adj. EPS of $0.47 was ahead of consensus of $0.29 and our estimate of $0.34. The EPS beat to consensus was likely driven by equity earnings from unconsolidated hospitality ventures of $25mn (we modeled $10mn) compared to loss of $17mn LY .”

According to TipRanks.com, Agnew is a 3-star analyst with an average return of 1.4% and a 42.9% success rate. Agnew covers the Services sector, focusing on stocks such as Intercontinental Hotels Group, Morgans Hotel Group Co., and Interval Leisure Group.

Hyatt Hotels Corp. has an analyst consensus of Hold, with a price target consensus of $57.50.