The Zacks Analyst Blog Highlights:Boeing, DDR, Wal-Mart Stores, Target and Bed Bath & Beyond

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Jan 08, 2014, 09:30 ET

CHICAGO, Jan. 8, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Boeing Company (NYSE:BA-Free Report), DDR Corp. (NYSE:DDR-Free Report), Wal-Mart Stores Inc. (NYSE:WMT-Free Report), Target Corp. (NYSE:TGT-Free Report) and Bed Bath & Beyond Inc. (Nasdaq:BBBY-Free Report).

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Here are highlights from Tuesday's Analyst Blog:

Boeing Reports Strong 2013 Deliveries

International commercial aircraft manufacturer, The Boeing Company (NYSE:BA-Free Report) once again reported strong 2013 deliveries making it the world's biggest plane maker for the second straight year. The aerospace major reported record jet deliveries for 2013, beating its own projection, driven by strong commercial numbers. The heightened deliveries were also a function of an increased production rate.

Boeing's commercial delivery of 648 planes during 2013 accelerated 7.8% year over year thanks to robust 787 Dreamliner deliveries, which showed no slowing down even in the face of a series of technical glitches. The year-end figure is likely to beat deliveries of its main European rival Airbus, which has set a target of 620 deliveries in 2013. Airbus is scheduled to report its annual orders and deliveries on Jan 13.

Boeing dispatched a record number of 737 and 777 airplanes, representing growth of 6% and 18%, respectively, year over year. Notably, deliveries of the company's much talked about Dreamliner soared 41.3%. In 2013, the company booked 1,531 gross commercial orders, up 14% from the prior year aided by huge orders from the Dubai Airshow held in November.

During the fourth quarter, Boeing delivered 172 jets compared with 165 deliveries in the comparable period last year. During the quarter, the 737 model continued to be the pillar of Boeing's strength in the commercial airplane sector with deliveries of 110 airplanes, followed by its 777 and 787 models with 25 deliveries each. In the year-earlier period, the company delivered 105 units of the 737, 21 units of the 777 model and 23 units of 787.

Meanwhile, Boeing's deliveries in the defense and space business numbered 52 in the fourth quarter and 171 in 2013 compared with 35 in the fourth quarter of 2012 and 154 in 2012. In 2013, numbering among the total deliveries were 48 F/A-18E/F and EA-18G fighter jets, 44 Chinook helicopters, and 37 Apache helicopters. The company also delivered 14 units of F-15, 11 P-8, 10 C-17 and 7 Satellites.

DDR Provides 2014 Outlook, Hikes Dividend

DDR Corp. (NYSE:DDR-Free Report) has provided the outlook for 2014. The company is guiding for an operating FFO (funds from operations) per share of $1.17 to $1.21 in the year, which reflects an uptick of 5.4% to 9.0% over the midpoint of the latest 2013 outlook of $1.10 and $1.12 per share. The outlook is in line with the Zacks Consensus Estimate that stands at $1.20 for 2014.

Apart from this, DDR announced a 15% hike in its quarterly dividend rate to 15.5 cents. It will be paid on Apr 8, to shareholders of record as of the close of business on Mar 13.

This retail real estate investment trust (REIT), which accomplished $2.33 billion of prime shopping center acquisitions and $433 million of non-prime dispositions, now aims for a same-store net operating income growth of 2.5% to 3.5%, exclusive of significant redevelopment activity. Moreover, DDR guides for at least a 75 basis points increase in the year-end portfolio leased rate.

On the portfolio repositioning front, DDR plans to acquire $250 million of prime shopping centers as well as dispose $200 million of non-prime operating assets and $30 million of non-income producing assets in 2014. Furthermore, the company intends to take at least $100 million of development and redevelopment investment, mainly toward the second half of the year, with a projected cash-on-cost return of at least 10%.

Going forward, we believe that by leveraging on the favorable supply/demand fundamentals, strategic portfolio repositioning efforts and premium power centers, DDR can ride high on the growth trajectory. The company boasts a cluster of industry leading retailers such as Wal-Mart Stores Inc. (NYSE:WMT-Free Report), Target Corp. (NYSE:TGT-Free Report) and Bed Bath & Beyond Inc. (Nasdaq:BBBY-Free Report), which are well-capitalized retailers and are expected to help in providing a steady rental stream.

The past year remained quite favorable for the company and it leased more than 10 million square feet for the fifth consecutive year. Moreover, it increased the portfolio leased rate to 95.1%, reflecting the maximum level since 2008. Its full year same-store net operating income grew above 3% for the third consecutive year while the amount of unencumbered NOI increased by 17% since year-end 2012.

DDR also acquired the remaining 95% stake in 30 prime power centers from its existing joint venture with Blackstone Real Estate Partners VII for $1.46 billion. However, stiff competition from other players in the market and an elevation in Internet sales that adversely affect the demand for retail space remain our concerns.

DDR currently carries a Zacks Rank #3 (Hold).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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