Meredith Adler |
First TeamMeredith Adler Lehman Second Team Robert Summers, Bear Stearns Third Team John Heinbockel, Goldman Sachs Runners-Up Stephen Chick, JPMorgan; Mark Husson, HSBC; Scott Mushkin, BofA |
A standout contrarian call helps Meredith Adler, praised by clients for “robust research” and “detailed valuation models,” extend her reign to a sixth straight year. The Lehman Brothers analyst, 53, initiated coverage of Rite Aid Corp. in July 2006 with a buy recommendation, at $4.40, on improved profit margins stemming from the rising popularity of generic pharmaceuticals. The stock skyrocketed 52.3 percent by June 2007, before giving back some of its gains in the summer’s general market sell-off. Even so, as of mid-September shares of the Camp Hill, Pennsylvania–based retail drugstore chain were up 13.6 percent from the time of Adler’s call. During this period the sector advanced 3.4 percent. Debuting in second, Robert Summers of Bear Stearns has “nonconsensus views and strong convictions,” notes one investor. His “short call on Whole Foods Market was right on,” says another. Summers downgraded the Austin, Texas–based supermarket chain’s stock to underperform in July 2005, at a split-adjusted $56.21, citing concerns over increased competition and margin erosion. He held fast even as shares rose 33.2 percent by January 2006, before starting to slip. By mid-September 2007 they were down to $43.38. At No. 3 for a third straight year, John Heinbockel of Goldman Sachs earns client appreciation for “comprehensive thoughts” and “encyclopedic detail” on stocks. Last November he recommended CVS Corp., calling the Woonsocket, Rhode Island–based chain’s shares undervalued at $29.78 in light of its proposed merger with Caremark Rx, a Nashville-based pharmacy benefits manager. The merger was completed in March, and by mid-September the share price of CVS Caremark Corp. was up a healthy 27.0 percent, to $37.83. |
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Consumer: Retailing/ Food & Drug Chains