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*Each target price is (1) computed using CGFS' proprietary valuation and simulation approach and (2) adjusted within 3 standard errors of the estimate. Assumption and computation details are inserted at the end of each write-up.
This Week's Picks:
- Our Weekly Stock Picks*
- Macro Environment
- The Bond Report, What's next, & Key Earnings
*Each target price is (1) computed using CGFS' proprietary valuation and simulation approach and (2) adjusted within 3 standard errors of the estimate. Assumption and computation details are inserted at the end of each write-up.
This Week's Picks:
Coach is working on increasing the customers’ experience by remodeling their stores located in North America. This ensures COH to generate a better ROI per store. Furthermore, it continues to expand its presence in Asia through Hong Kong and China. Furthermore through the acquisition of Stuart Weitzman, COH will be able to expand its product line, to increase its market share. This will lead to higher revenue. COH’s margin is higher than its competitors and COH is also able to create more value than its competitors, which means that they are more profitable than its competitors.
Farmer Brothers has been a staple in the coffee industry for a number of years. The business is founded on the value of service for others, and that tradition is still upheld with the desire to provide high-quality products to customers of all markets, such as foodservice, hospitality, and healthcare to name a few. The company’s service record has historically resulted in an expanding customer base. Widespread presence in the coffee industry is growing. Product diversification and variety is expanding, and the company is currently in the process of a relocation in order to better its competitive advantage within the market. Despite incurring heavy costs and some distractions, the company still saw marginal expansion and performed well financially. Considering these factors, the national increase in coffee consumption, and an experienced management team, Farmer Brothers is well positioned to maintain its place as a stronghold in the specialty coffee industry and make a statement towards greater market share.
John Bean Technologies established a global presence through rapid expansion. New market development will help John Bean Technologies grow and succeed, as seen with the 13% revenue growth in Asia alone, they plan to prepare for the future. A strong middle class will create market opportunities by increasing demand for value added food. John Bean Technologies is prepared to release their Q1 Earnings which can drive the stock up and prepare investors for the future guidance of the company. After repeatedly beating earnings, we can be optimistic with the future of this company. The Elevate Plan is projected to drive John Bean Technologies to a $1.7 to $1.8 billion company by 2019 with EBIT margins north of 10%. With a forward P/E ratio of 24.72, John Bean Technologies is fairly priced among the industry. Driven by the catalysts and global growth, John Bean Technologies is a buy.
For the following years, REV will ensure revenue growth by expanding their brand on the international market. At the same time, REV will be able to ensure a strategic shift in order to increase its brand image and to create products that fits well the demand for customers. Moreover, REV will continually to exercise its competitive advantage on profitability compare to its competitors.