Institutional Investor All American Research Team | Page 6

64/research & rankings THE FUTURIST THE CHARTIST CONTENTS INSIDE II OP

DE II OPENING CAPITAL THE 2012 ALL-AMERICA RESEARCH TEAM INVESTING RESEARCH & RANKINGS THE FUTURIST THE CHARTIST CONTEAM INVESTING

continue to pick up market
share at least over the next few
quarters and should significantly outpace the all-terrain
vehicle industry,” he says. The
stock was trading at $75.19 in
late August; Badishkanian has
a price target of $94. Thor “saw
solid sales improvement through
July,” he says, and that will
boost margins. His target is $40
— 27.2 percent above the share
price in late August.
— P
.S.

$148.82, on the strength of the
St. Louis–based bakery-café
chain’s growth prospects. In
July the company reported that
revenue had risen 17.6 percent
year-over-year in the second
quarter, to $530.6 million, and
by late August the stock had
climbed 4.1 percent, to $154.90,
outpacing the sector by 7.9 percentage points.
— K.G.

at $51.07. Grom’s research “has
always been rooted in frequent
store checks, which enable him
to catch meaningful inflection
points that other analysts often
miss,” applauds one fan. — K.G.

ALTERNATIVE ENERGY

J.P. Morgan

RETAILING/FOOD & DRUG CHAINS

Meredith Adler
Barclays
RETAILING/BROADLINES
& DEPARTMENT STORES
RESTAURANTS

Charles Grom

John Glass

Deutsche Bank Securities

Morgan Stanley

The buy side says:
“He knows his companies better
than anyone else, and it shows.”

I

TOBACCO

ENERGY

Brian Tunick

Gregory Melich

n first place for a third year
running is John Glass, 48, of
Morgan Stanley. “He’s an outstanding analyst who thinks
outside the bun and works very
hard to deliver value,” proclaims one client. Glass, who is
based in Boston, is tentative on
his sector — but optimistically
so. “Restaurants have a way of
outperforming the market,” he
says, pointing out that in nine
of the past 12 years, the space
managed to do just that. He is
currently offering investors
three main pillars of advice:
Diversify by choosing stocks
with global exposure; “play
defense” by staying in companies with strong, resilient franchises; and “focus on names
that have idiosyncratic sales
drivers.” One example of the
latter is Panera Bread Co. He
upgraded the stock from neutral to overweight in January, at

of any analyst in any sector,”
insists one buy-side supporter.
— K.G.

RETAILING/SPECIALTY STORES

RETAILING/HARDLINES

The buy side says:
“John Glass is a beacon across
the sea of sameness.”

sector given to extremes, Brian’s
detailed models and industry
experience help investors keep
things in perspective,” notes one
money manager.
— K.G.

brings a perspective that many
equity analysts lack,” observes
one booster.
— K.G.

C

harles Grom rockets to
the top after having fallen
from the roster last year; he is
also a runner-up in Retailing/
Food & Drug Chains. The
38-year-old joined Deutsche
Bank Securities in July 2011
after covering retailers for nine
years at J.P. Morgan; he earned
a bachelor’s degree in economics and accounting at the
College of the Holy Cross in
Worcester, Massachusetts.
“It’s paramount to be aligned
with retailers that have structurally stronger business models
and/or those that operate with
favorable sector tailwinds,” he
contends. Dollar General Corp.
is one such company. Grom
upgraded the Goodlettsville,
Tennessee–based chain from
hold to buy in December, at
$39.47, citing increases in store
traffic, square footage and sales.
Through August the stock rang
up a gain of 29.4 percent, closing

I N S T I T U T I O N A L I N V E S T O R . C O M • O C T O B E R 2 012

The buy side says:
“She knows everything there
is to know about the companies
she covers.”

B

arclays’s Meredith Adler,
58, lands at No. 1 for an
11th consecutive year. “Dollar
stores, which serve the low end
very conveniently, and healthy
living companies, which serve
a specific niche of consumers,
will both generally fare well,”
she believes, whereas “mature
retailers in food and drug are
more likely to be under some
pressure.” The All-America
Research Team Hall of Famer
upgraded Family Dollar Stores
from equal weight to overweight
in October 2011, at $53.90,
citing the Matthews, North
Carolina–based discount retailer’s growth prospects. In June,
after the stock had jumped
35.2 percent, to $72.85, and beat
the sector by 18.1 percentage
points, she moved it back to
equal weight. Later that month
the company reported that earnings per share for its fiscal third
quarter, which ended in May, fell
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