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Analyst initiations: LULU, NAVI, RIMM, PALM and MOT

Posted Sep 26th 2007 11:30AM by Eric Buscemi (RSS feed)
Filed under: Analyst reports, Motorola (MOT), Whole Foods Market (WFMI), Research in Motion (RIMM), Palm Inc (PALM), Analyst initiations

MOST NOTEWORTHY: Lululemon, NaviSite, Research in Motion, Palm and Motorola were today's noteworthy initiations:
  • Lululemon Athletica (NASDAQ: LULU) was initiated with a Neutral rating and $42 target at Credit Suisse on valuation.
  • NaviSite Inc (NASDAQ: NAVI) was initiated with a Buy rating at Merriman after reporting solid Q4 results. Merriman expects the company's recent acquisitions to significantly increase margins.
  • Citigroup believes Research in Motion Limited (NASDAQ: RIMM) is not a pure momentum stock as fundamentals are driving share appreciation. They think the company's subscriber growth is beginning to hit critical mass and expect 15M subscribers within 12 months. The firm started shares with a Buy rating and $115 target.
  • Citigroup also initiated shares of Palm Inc (NASDAQ: PALM) with a Sell rating and $13.50 target, expecting the company's market share losses to continue to EPS to decline.
  • Citigroup started Motorola Inc (NYSE: MOT) with a Hold rating and $20 target, as they believe its recovery may take longer than expected, noting its new silicon platform does not come out until 2H08.
OTHER INITIATIONS:

Analyst upgrades: NGG, SHPGY, ONNN and ENB

Posted Sep 18th 2007 11:00AM by Eric Buscemi (RSS feed)
Filed under: Analyst reports, Analyst upgrades and downgrades, Lockheed Martin (LMT)

MOST NOTEWORTHY: National Grid, Shire Plc, On Semiconductor and Enbridge were today's noteworthy upgrades:
  • Deutsche Bank upgraded shares of National Grid (NYSE: NGG) to Buy from Hold as they believe the Keyspan deal will be positive for shareholders.
  • Goldman upgraded shares of Shire Plc (NASDAQ: SHPGY) to Buy from Neutral and added the stock to their Conviction Buy List on valuation and expected gains in the ADHD market.
  • On Semiconductor (NASDAQ: ONNN) was upgraded to Outperform from Market Perform at Wachovia on valuation.
  • Enbridge Inc (NYSE: ENB) was raised to Sector Outperformer from Sector Performer at CIBC World Markets, as the firm sees an attractive 3-year return potential as new projects come into service and expects the stock's relative underperformance to come to an end.
OTHER UPGRADES:

Analyst initiations: CHS, FII, RENT and TIBX

Posted Jul 30th 2007 11:35AM by Kevin Shult (RSS feed)
Filed under: Analyst reports, Analyst initiations, Stocks to Buy

MOST NOTEWORTHY: Chico's FAS (CHS), MetroPCS (PCS), Federated Investors (FII) and Tibco (TIBX) were today's noteworthy initiations:
  • Roth Capital believes Chico's FAS (NYSE: CHS) growth will be back on track given the changes within the merchandise organization and recent infrastructure investments, and initiated shares with a Buy rating and $24 target.
  • Pacific Crest believes MetroPCS's (NYSE: PCS) low-cost business model creates opportunities and that its large market focus should drive outperformance, and initiated shares with an Outperform rating.
  • JMP Securities believes near-term upside in Federated Investors (NYSE: FII) could be seen with hurricane season and resumed coverage of Federated Investors with an Overweight rating and $178 target.
  • Pacific Crest believes 2007 is a transition year for Tibco (NASDAQ: TIBX) and started shares with a Sector Perform rating...
OTHER INITIATIONS:
  • BWS Financial initiated Rentrak (NASDAQ: RENT) with a Buy rating and $20 target.
  • HSBC started Lukoil (OTC: LUKOY) with an Overweight rating.
  • Pacific Crest started shares of On Semiconductor (NASDAQ: ONNN) with an Outperform rating and $16 target.
  • BMO Capital initiated Ares Capital (NASDAQ: ARCC) with an Outperform rating and $18 target.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Semiconductor demand is moderating

Posted Mar 20th 2007 2:53PM by Eric Buscemi (RSS feed)
Filed under: Industry, Microsoft (MSFT), Intel (INTC), Advanced Micro Dev (AMD), Texas Instruments (TXN), Cypress Semiconductor (CY), Broadcom Corp'A' (BRCM)

We blogged late last fall about semiconductor stocks fundamentals rolling over. It appears semi management is beginning to whisper more and more of moderating results to analysts:
  • Lehman cuts Micron Technology Inc's (NYSE: MU) estimates and sees losses for the next three quarters. The increase in demand for memory chips due to Microsoft Corporation's (NASDAQ: MSFT) Vista demanding more memory is not happening.
  • Pacific Crest Securities wrote second quarter chip demand is underwhelming, with notebooks and the Nintendo (OTC: NTDOY) Wii the only bright spots.
  • J.P. Morgan wrote consensus expectations for both the second quarter and all of 2007 are too high and is trimming estimates, The more significant earnings misses could come from Advanced Micro Devices Inc (NYSE: AMD), Cypress Semiconductor Corporation (NYSE: CY), Intel Corporation (NASDAQ: INTC) and On Semiconductor Corporation (NASDAQ: ONNN); with smaller cuts for Texas Instrments Inc (NYSE: TXN), Broadcom Corporation (NASDAQ: BRCM), Altera Corporation (NASDAQ: ALTR), Xilinx Inc (NASDAQ: XLNX) and Fairchild Semiconductor International (NYSE: FCS).
We began blogging about a slowdown in semiconductor stocks in November. However, most of this slowdown could be coming to an end. It appears from both National Semiconductor Corporation (NYSE: NSM) and Texas Instruments recent earnings releases that both companies are seeing the industry downturn ending as inventories have been worked down and backlog is beginning to build again.

The other major points we have been making is that we are entering the seasonally weak period for these stocks. So be cautious about jumping in with both feet in the early Spring.

Most likely, the two drivers for these stocks is the Fed lowering rates or the typically seasonal pick up which occurs in late summer. Since the Fed is on hold, there appears to be no need to jump into these stocks yet. Let the bad news hit these stocks and then start bottom fishing.

Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 25, 2009: 07:42 PM

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