With regulators, politicians and rating firms biting at their heels, Countrywide Financial Corporation (NYSE: CFC) believed that it had no choice but to approach Bank of America Corporation (NYSE: BAC) last month about a merger, reported the Wall Street Journal. That fear led to BAC's $4B takeover of Countrywide, the Wall Street Journal reported.
According to the Financial Times, European public health specialists have found "significant resistance" to Roche Holding Ltd's (OTC: RHHBY) widely purchased influenza antiviral medicine Tamiflu.
OTHER PAPERS:
Shares of Britain's third-largest drug maker, Shire Plc (NASDAQ: SHPGY) plummeted yesterday to a two-year low on concerns about demand for its attention deficit hyperactivity disorder treatment for children, Vyvanse, the Telegraph reported.
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.
MOST NOTEWORTHY: Shire Plc (SHPGY), Cablevision Systems Corp (CVC), Yahoo! (YHOO), Ensco International (ESV) and Clear Channel Outdoor Holdings (CCO) were today's noteworthy downgrades:
JP Morgan downgraded shares of Shire Plc (NASDAQ: SHPGY) to Neutral from Overweight to reflect risk of Adderall XR patients switching to Vyvanse.
Deutsche Bank cut Cablevision (NYSE: CVC) to Hold from Buy, saying shares reflect a likely higher bid from the Dolan family.
ThinkEquity downgraded shares of Yahoo! (NASDAQ: YHOO) to Accumulate from Buy following checks that indicate marginal Panama upside, poor execution in premium display and an incomplete/vulnerable non-premium display strategy.
Credit Suisse cut Ensco International (NYSE: ESV) to Underperform from Neutral on valuation.
SMH Capital downgraded Clear Channel Outdoors (NYSE: CCO) to Sell from Neutral and recommended investors to swap into Lamar Advertising Co (NASDAQ: LAMR), based on the company's higher-quality name in the outdoor advertising sub-space...
OTHER DOWNGRADES:
Baidu.com (NASDAQ: BIDU) was cut to Hold from Buy at Citigroup.
Brinker International (NYSE: EAT) was downgraded to Underweight from Equal Weight at Morgan Stanley.
Hilliard Lyons downgraded Nike Inc (NYSE: NKE) to Neutral from Long-Term Buy.
Lowe's Companies Inc (NYSE: LOW) to report Q1 earnings; conference call at 9am. Lowe's is expected to post sub-par revenue results and an EPS decline, given the continued sluggishness in U.S. housing sector.
PDUFA date for Shire plc's (NASDAQ: SHPGY) SPD-465 for ADHD in adults.
Tuesday May 22
Staples Inc (NASDAQ: SPLS) to report Q2 earnings; conference call at 8am.
Men's Wearhouse Inc (NYSE: MW) to hold conference to at 5pm discuss Q1 earnings, detail its acquisition of After Hours and discuss the impact on 2007 guidance.
MOST NOTEWORTHY: Specialty pharmaceutical companies make up today's most noteworthy list:
The Bank of America initiated Shire plc (NASDAQ: SHPGY), Mentor Corp (NYSE: MNT), Alcon, Inc (NYSE: ACL) and Allergan, Inc (NYSE: AGN) with Buy ratings and initiated Cephalon, Inc (NASDAQ: CEPH), Forest Laboratories, Inc (NYSE: FRX), Sepracor Inc (NASDAQ: SEPR) with Neutral ratings. Bank of America's top pick is Shire plc as the firm expects the company to launch six products or product extensions by mid-2008, followed by Mentor Corp, as the conversion to silicone breast implants should drive a period of stronger-than-expected sales and earnings.
OTHER INITIATIONS:
Ford Motor Co (NYSE: F) was initiated at Buckingham with an Underperform rating and General Motors (GM) was started with a Neutral rating.
Nollenberger believes Under Armour, Inc (NYSE: UA), started with a Buy rating, is positioned to outperform the market based on the strength of its brand name and demand through the continued introduction of new products along with European growth.
Barr Pharmaceuticals, Inc (NYSE: BRL) was initiated with an Equal Weight rating and $53 target at Morgan Stanley.
XM Satellite Radio Holdings Inc (NASDAQ: XMSR) to report Q4 earnings; conference call at 10am. Analysts will review XM's overall subscribers, new subscribers, retention rates, average monthly fees, pricing plans, new broadcast content agreements, marketing strategy, operating costs, sector position, and margins. Equally significant, Wall Street will also pay very close attention to management's operational posture moving forward, in light of its proposed merger agreement with Sirius Satellite Radio Inc (NASDAQ: SIRI).
Tuesday February 27
Sirius Satellite Radio to report Q4 earnings; conference call at 8am. The concerns for Sirius mirror the previously mentioned concerns for XM.
Wednesday February 28
PDUFA Date for Novartis AG ADS's (NYSE: NVS) Galvus, an innovative oral therapy for people with type 2 diabetes.
Thursday March 1
Echostar Communications Corporation (NASDAQ: DISH) to report Q4 earnings; conference call at 12pm. Analysts will focus on Echostar's success at adding value to its offerings, amid intensifying competition from digital cable and communications companies offering TV services.
PDUFA date for New River Pharmaceuticals Inc (NASDAQ: NRPH) and Shire plc ADS's (NASDAQ: SHPGY) Vyvanse, for the treatment of Attention Deficit Hyperactivity Disorder [ADHD].
PDUFA date for Merck Serono SA ADS's (NYSE: SRA) Serostim, a treatment for AIDs wasting.
Friday March 2
THQ Inc (NASDAQ: THQI) to hold analyst meeting in San Fransisco, CA.
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