Zacks Investment Research upgraded shares of The St. Joe Company (JOE) from UNDERPERFORM to NEUTRAL on July 26, 2013, with a target price of $23.00.
We are upgrading our long-term recommendation for St. Joe to Neutral from Underperform on the back of successful execution of costs and debt reduction initiatives. The company has been in a defensive mode and continues to reduce capital expenditures and debt levels through stringent measures. However, St. Joe came up with disappointing results in first-quarter 2013, with earnings per share missing the Zacks Consensus Estimate due to a dip in real estate revenues. Moreover, a persistent reduction in revenues from the rural land sales segment weakened results further. However, the company has been focusing on opportunities to modernize the use of its land portfolio. Also, given the company's current efforts to enhance its financial and market position, we expect the company to come out of negative lane going forward.
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