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Analyst initiations: MPEL, HELE, LHCG and OFG

MOST NOTEWORTHY: Melco PBL Entertainment, Helen of Troy, LHC Group and Oriental Financial were today's noteworthy initiations:
  • Jefferies initiated shares of Melco PBL Entertainment (NASDAQ: MPEL) with a Buy rating and $21 target, as they believe the possibility of A-Max, a VIP junket consolidator, moving up to 10 junkets to the Crown Casino could lead to short-term gains and notes that MPEL is the only Macau pure play in the U.S. stock market.
  • Jefferies also started shares of Helen of Troy (NASDAQ: HELE) with a Hold rating and $21 target, as they sees risks to near-term EPS from soft consumer demand and gross margin pressures.
  • Credit Suisse expects LHC Group's (NASDAQ: LHCG) rural-focused strategy and joint venture partnerships to drive organic growth and started shares off with an Outperform rating and $26 target.
  • Oriental Financial Group (NYSE: OFG) was initiated at B. Riley with a Neutral rating and $12.50 target. The firm does not expect significant multiple expansion from current levels given the slow Puerto Rican economy.
OTHER INITIATIONS:

Analyst upgrades: WMT, MGA, DISH, WSTL and SIRF

MOST NOTEWORTHY: Wal-Mart Stores, Magna International, EchoStar Communications, Westell Technologies and SiRF Technology were today's noteworthy upgrades:
  • Rochdale upgraded shares of Wal-Mart Stores (NYSE: WMT) to Buy from Hold citing improved outlook for margins and ROIC.
  • CIBC World Markets resumed coverage and upgraded shares of Magna International (NYSE: MGA) to Sector Outperformer from Sector Performer as they believe higher multiples are warranted due to the company's improving earnings power and cash flow generation.
  • Oppenheimer upgraded shares of EchoStar Communications (NASDAQ: DISH) to Buy from Neutral as they believe recent events add $4-$6 per share to their valuation analysis.
  • Westell Technologies (NASDAQ: WSTL) was upgraded to Outperform from Neutral at Baird. The firm believes Westell is taking the right steps to improve its market position and financial performance.
  • Credit Suisse upgraded SiRF Technology Holdings (NASDAQ: SIRF) to Outperform from Neutral, expecting the stock to benefit from a strong holiday season at electronic retailers.
OTHER UPGRADES:

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Last updated: November 21, 2008: 08:57 PM

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