Copyright © Daniel Cullinane CPA.
MARCH NEWSLETTER 2
Modern cars, light trucks and sport utility vehicles are all built with safety cages around the passenger compartment that are designed to minimize the effects of head-on collisions and crashes where 40% of the vehicle’s front hits an obstruction. In such crashes, the cages do their jobs well, according to the Insurance Institute for Highway Safety (IIHS).
Where many pickups have struggled is on a test called the small-overlap frontal test where just 25% of the vehicle’s front hits an obstruction. Most pickups perform well in a driver-side small overlap test, and significantly less well when the test is performed on the passenger side of the truck.
In its most recent round of testing on crew-cab (four-door) pickup trucks, IIHS gave two pickups Good ratings (the highest) for their ability to maintain their structures and protect the passengers in the small-overlap testing. These two were the Ford F-150 and the Nissan Titan, both full-sized pickups. The full-size Ram 1500 earned a Good rating on this test late last year on trucks built after July 2018.
This video from IIHS shows the results of a passenger-side small-overlap frontal crash.
IIHS has rated 11 crew-cab pickups on the passenger-side test, four full-size trucks and seven midsize trucks. Only the Ford, Nissan and Ram models achieved a Good rating while one, the Toyota Tundra, received a Poor rating.
Of the other trucks tested, two — the full-sized Honda Ridgeline and the midsize Toyota Tacoma — were rated Acceptable. The Chevrolet Colorado, GMC Canyon, Nissan Frontier, Chevrolet Silverado 1500 and GMC Sierra 1500 received Marginal ratings.
What’s the difference between a Good and a Poor rating? Here’s IIHS’s description of the test results on the F-150 and the Toyota Tundra:
The Ford F-150 was the best performer in the passenger-side test. The structure held up well with maximum intrusion of 5 inches at the rightmost section of the toepan. The seat belts and airbags worked well together to control the movement of the passenger and driver dummies, and neither dummy recorded any potential injuries.
The Tundra, in contrast, was seriously compromised by intruding structure. Maximum intrusion, also at the rightmost part of the toepan, measured 15 inches. There was also intrusion of more than a foot at the lower door hinge pillar. The passenger dummy’s head hit the grab handle attached to the A-pillar as the A-pillar intruded into the passenger’s space. Measures taken from the dummy indicate that injuries to the right lower leg would be likely in a crash of this severity, and injuries to the right hip would be possible.
The IIHS report and ratings on pickups for both driver-side and passenger side small-frontal crashes are available at the organization’s website.
Despite Fed Chair Jerome Powell and the FOMC signaling the Federal Reserve is going to be all but out of the rate-hiking business this year and most of next year, stocks were indicated to have a softer opening on Thursday as investors digest an entirely flat yield curve. With the market having recouped so much ground in 2019, investors need to be considering how they want their investments and assets positioned for the rest of 2019 and beyond.
24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new trading and investing ideas for our readers. Some analyst reports cover stocks to buy, while some cover stocks to sell or to avoid.
Additional commentary and trading data have been added on some of the daily analyst reports. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters (Refinitiv) sell-side research service.
These are the top analyst upgrades, downgrades and initiations seen on Thursday, March 21, 2019.
Aerie Pharmaceuticals Inc. (NASDAQ: AERI) was started with an Overweight rating and assigned an $80 target price (versus a $45.86 prior close) at Piper Jaffray. It has a 52-week trading range of $32.18 to $74.75.
Apple Inc. (NASDAQ: AAPL) was reiterated as Outperform and the price target was raised to $215 from $200 at Wedbush Securities, with the firm seeing its streaming service adding billions of dollars in shareholder value. Needham also was even stronger, raising its Buy rating to Strong Buy and raising its target to $225 from $180. Apple closed up 0.87% at $188.16 a share on Wednesday and was indicated up 0.8% more at $189.50 on Thursday. Its 52-week range is $142.00 to $233.47, and its consensus target price was $180.85 on last look.
ConocoPhillips (NYSE: COP) was raised to Overweight from Neutral at Piper Jaffray. After closing up 0.3% at $67.54, its shares were indicated up another 0.7% at $68.00 on Thursday. The consensus target price is $78.00.
CubeSmart (NYSE: CUBE) was raised to Outperform from Market Perform at Raymond James. The 52-week range is $27.04 to $33.18 and the consensus analyst target is $31.13.
Diplomat Pharmacy Inc. (NASDAQ: DPLO) was raised to Outperform from Market Perform at Raymond James. The 52-week range is $5.16 to $28.74 and the consensus analyst target is $6.94.
Eagle Materials Inc. (NYSE: EXP) was started as Neutral at JPMorgan. The 52-week range is $57.00 to $115.75 and the consensus analyst target is $86.30.
Extra Space Storage Inc. (NYSE: EXR) was downgraded to Market Perform from Outperform at Raymond James. The 52-week range is $82.80 to $101.96 and the consensus analyst target is $98.08.
Greenhill & Co. Inc. (NYSE: GHL) was raised to Neutral from Sell at UBS. The 52-week range is $17.65 to $33.45 and the consensus price target is $22.96.
Internap Corp. (NASDAQ: INAP) was raised to Outperform from Market Perform with an $8 price target at Wells Fargo. After rising 3.75% to $4.98 on Wednesday, shares were indicated up 4% at $5.18 after the call.
International Flavors & Fragrances Inc. (NYSE: IFF) was raised to Buy from Neutral with a $151 price target (versus a $122.54 close) at Goldman Sachs. IFF has a 52-week range of $121.85 to $150.57 and a consensus target price of $145.27.
Magna International Inc. (NYSE: MGA) was downgraded to Market Perform from Outperform at BMO Capital Markets. The 52-week range is $42.88 to $67.47 and the consensus analyst target is $61.79.
Martin Marietta Materials Inc. (NYSE: MLM) was started as Overweight with a $225 price target (versus a $195.76 close) at JPMorgan. The 52-week range is $150.75 to $232.89 and the consensus analyst target is $211.50.
Medicines Co. (NASDAQ: MDCO) was started as Buy with a $75 price target (versus a $27.05 close) at Roth Capital. The 52-week trading range is $16.69 to $41.57, and the consensus target price is $46.15.
Micron Technology Inc. (NASDAQ: MU) closed down 0.6% at $40.13 ahead of earnings but was last seen trading up 4.3% at $41.86 as guidance was not as weak as some investors may have feared. Citigroup downgraded Micron to Sell from Neutral after the report.
Steelcase Inc. (NYSE: SCS) was raised to Strong Buy from Outperform and the price target was raised to $21 from $20 (versus a $15.11 close) at Raymond James. The stock closed down 13.5% on Wednesday but was indicated up almost 3% at $15.55 on Thursday. Shares have a 52-week range of $13.10 to $19.35.
Summit Materials Inc. (NYSE: SUM) was started as Neutral at JPMorgan. The 52-week range is $11.25 to $31.36 and the consensus analyst target is $19.73.
Vulcan Materials Co. (NYSE: VMC) was started as Overweight with a $135 price target (versus a $115.35 close) at JPMorgan. The 52-week range is $82.52 to $133.59 and the consensus analyst target is $127.53.
Wipro Ltd. (NYSE: WIT) was reiterated as Underperform and the price target was lowered to $3.75 from $4.25 (versus a $4.10 close) at Wedbush. This call comes after a recent issuance of bonus shares, and it also noted that Wipro is the weakest Tier I IT Services provider of its peers and that the company hasn’t been able to appropriately or timely adjust to the new technology landscape taking shape.
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Wednesday’s top analyst calls included Allergan, Costco, Cree, Dollar Tree, Eli Lilly, FedEx, Mylan, NextEra Energy, Peabody Energy, Teva Pharmaceutical, Yum Brands and many more.
Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778