CHANGE IN RATINGSAnn Taylor Stores ( ANN) upgraded at Goldman to Buy from Neutral. The co. has been executing efficiently and has a less risk and more reward scenario affiliated with it. New products which are more brand appropriate, conservative inventory plans and changes to merchandise flow which will increase gross margins and act as catalysts following the upgrade. Increased price target to $13 from $6.50. Aeropostale ( ARO) downgraded at Goldman to Neutral from Buy based on valuation as it is nearing its expectations. The firm believes that significant improvements in product and process at the co. will yield to the upside of its consensus estimates. Maintained $38 price target. C.R. Bard ( BCR) downgraded at Piper Jaffray. Rating lowered to Neutral from Overweight. Price target lowered to $77 from $86. 2009 EPS estimates lowered to $5.07 from $5.09.
Citrix Systems ( CTXS) numbers raised at Credit Suisse to $32.50 from $24.50. The firm has a positive outlook on the co. as it believes their opportunity in desktop virtualization with XenDesktop could double the company's market over the next five years. Maintained Neutral rating. Changyou.com ( CYOU) downgraded at Susquehanna from Positive to Neutral. Stock is up 180% from its IPO price, though the fundamental outlook remains positive. eBay ( EBAY) upgraded at Merrill/BofA to Neutral on expected revenue acceleration in second half. Price target lifted to $22 from $16. 2009 and 2010 EPS estimates set at $1.52 and $1.62 respectively. eBay ( EBAY) target raised at Goldman to $20.50 from $18. The firm expects a slow recovery in 2010 due to competitive pressures and sees PayPal as a high growth unit. Maintained Neutral rating. eBay ( EBAY) target raised at Credit Suisse to $20 from $15. The co. performed better than expected and forecasted a future outlook higher than the firm's expectations. Catalysts driving better than expected guidance are easing FX trends, better performance in Marketplace, and continued growth in PayPal and Skype. Maintained Neutral rating. F5 Networks ( FFIV) upgraded at Merrill/BofA to Neutral from Underperform as the quarterly results suggest they have turned the corner, with new products and addressable markets. Price target surged to $40 from $25. 2009 and 2010 EPS estimates set at $1.08 and $1.21, respectively. Intuitive Surgical ( ISRG) upgraded at Brean Murray to Buy. $235 price target. Company posted strong numbers, and may have already seen the worst economic pressures.
Intuitive Surgical ( ISRG) estimates raised at Morgan Stanley through 2010. Box placement number reversed during the quarter. Equal-weight rating. Microsemi ( MSCC) downgraded at Oppenheimer. Rating lowered to Perform from Outperform. Removes $17 price target. Maintains 2009 EPS estimates of $0.99. NetApp ( NTAP) upgraded at Piper Jaffray. Rating raised to Overweight from Neutral. Price target raised to $28 from $18. Fiscal 2010 EPS estimates raised to $1.19 from $1.14. Onyx Pharmaceuticals ( ONXX) upgraded at BMO to Outperform. $47 price target. Nexavar data exceeded expectations. Red Hat ( RHT) downgraded at Jefferies. Rating lowered to Hold from Buy. Maintains #23 price target and 2009 fiscal 2010 EPS estimates of $0.62. Sanima-SCI Corp. ( SANM) upgraded at Credit Suisse to Neutral from Underperform. The co. reported gross margins 40 bps higher than their estimates which was fueled by restructuring efforts. Therefore, the firm believes there is an ongoing benefit to the P&L. Increased price target to $0.60 from $0.32. SanDisk ( SNDK) estimates raised at Goldman to -$0.46 from -$0.90 for FY09 as the firm believes the market continue to undervalue the co.'s intellectual property. Maintained Buy rating. SanDisk ( SNDK) downgraded at ThinkEquity from Buy to Accumulate. $19 price target. Risk/reward appears less favorable in the second half of the year. VMware ( VMW) estimates lowered at Goldman to $0.55 from $0.58 based on the firm's aggressive license revenue estimates. The co. is expecting typical seasonality in Q3 with some improved visibility in its pipelines. Maintained Neutral rating.
VMWare ( VMW) upgraded at Needham from Hold to Buy. $42 price target. Company had positive June quarter results and field checks confirm an improving environment. Estimates also boosted. VMware ( VMW) price target raised at Barclays to $30 from $25 after decent 2Q09 results. Maintain 2009 and 2010 EPS estimates of $0.90 and $1.05, respectively. Reiterate Equal Weight Rating. MEMC Electronic ( WFR) upgraded at Merrill/BofA to Neutral from Underperform. Analysts mentioned semi wafer volume recovering, potential for wafer pricing to stabilize, and diminishing risk in solar. Price target nearly doubled from $13 to $23. 2009 and 2010 EPS estimates set at $0.07 and $0.55, respectively. Walter Energy ( WLT) upgraded at Brean Murray from Hold to Buy. $57 price target. Company posted a strong quarter and end-market conditions are improving.
STOCK COMMENTS / EPS CHANGESAlliance Data ( ADS) target lifted, estimates changed at Barclays to $51 from $48 as favorable trends emerge into second half and 2010. 2009 EPS estimate cut to $5.07 from $5.08, and 2010 EPS estimate raised to $6.20 from $6.05. Maintain Overweight rating. Allegheny Technologies ( ATI) price target cut at Merrill/BofA to $25 from $27. Maintain Underperform rating. Boeing ( BA) target increased at Goldman to $52 from $51. Cites the flow coming from the co.'s 2Q upside, assumptions that the 737 cut will happen in 2010, and on valuation. Maintained Neutral rating. Boeing ( BA) target cut at Morgan Stanley to $45. 787 may be facing a forward loss. Equal-weight rating. C.R. Bard ( BCR) target lowered at Credit Suisse to $76 from $80. The co. missed its sales expectations and new oncology softness generates growth concerns. Maintained Neutral rating.
Chipotle ( CMG) estimates, target raised at Morgan Stanley to $65. Estimates also boosted, to reflect significantly higher margins. Underweight rating. Equinix ( EQIX) estimates raised at Goldman to $1.34 from $1.05 for FY09 based on the co.'s key growth drivers in Europe following significantly higher incremental billing cabinets and higher pent-up demand. Maintained Neutral rating. Electronic Arts ( ERTS) target raised at Goldman to $25 from $24. The increase stems from higher expectations for the co.'s recent release schedule, margin expansion, and the probability of M&A's. Maintained Buy rating. Eaton ( ETN) price target surges at Barclays to $40 from $27 after better than expected 2Q09 numbers. 2009 EPS estimate lifted to $1.60 from $1.15. Reiterate Underweight rating. Genzyme ( GENZ) target lowered at Goldman to $54 from $60 based on inventory risks and the probability of delaying Myozyme manufacturing. Maintained Sell rating. Genzyme ( GENZ) target, estimates plummet at Barclays. Price target from $83 to $63 after disappointing 2Q09 update. 2009 EPS estimate dropped to $2.89 from $3.52. Maintain Overweight rating. Genzyme ( GENZ)estimates, target cut at Morgan Stanley. Target lowered to $74. Estimates also reduced, because of manufacturing issues. Overweight rating. Hubbell ( HUBB) price target, estimates raised at Barclays. Price target to $32 from $25 as the company reported better than expected 2Q09 numbers. 2009 and 2010 EPS estimates increased to $2.65 from $2.50 and to $2.60 from $2.25, respectively. Maintain Equal Weight rating. Illinois Tool Works ( ITW) numbers raised at Goldman to $44 from $39.The co's stronger than expected earnings, cost reductions, and high margins helped raise its target along with recent signs of macro stabilization. Maintained Neutral rating.
Illinois Tool Works ( ITW)numbers raised at Friedman, Billings Ramsey through 2010. Company delivered impressive sequential improvement. Market Perform rating and new $42 price target. Kellogg ( K) target raised at Morgan Stanley to $52. Company should post solid quarterly results on July 30. Overweight rating. Linear Technologies ( LLTC) target, estimates lifted at Barclays. Price target to $24 from $18. 2009 and 2010 EPS estimates increased to $1.27 from $1.25 and to $1.01 from $1.09, respectively. Maintain Equal Weight rating. Eli Lilly ( LLY) estimates raised at Goldman to $4.28 from $4.26 for FY09. The co.'s Q2 beat drove a modest boost in guidance and expectations for the Effient launch are factors resulting in its numbers raise. Maintained Neutral rating. Eli Lilly ( LLY) target raised at Morgan Stanley through 2011. Company posted a strong quarter and has a robust pipeline. Underweight rating and $34 price target. MKS Instruments ( MKSI) price target lifted at Merrill/BofA to $24 from $18. Reiterate Buy rating. Mellanox Technologies ( MLNX) target increased at Credit Suisse to $15 from $10. Cites valuation and near term growth prospects of InfiniBand beyond its high performance computing niche. Maintained Neutral rating. Altria ( MO) estimates raised at Goldman to $1.76 from $1.73 for FY09. The firm cites better visibility within the co., volume declines seem manageable, and the pricing environment remains generally rational. Maintained Neutral rating. Morgan Stanley ( MS) target raised at Friedman, Billings Ramsey to $29. Fundamental visibility is improving. Market Perform rating. Nabors ( NBR) target upped at FBR to $16. Visibility is improving regarding the magnitude and timing of a pick-up in demand. Market Perform rating.
Knight Capital ( NITE) target raised at Goldman to $22 from $21. The co. is firing on all cylinders as their quarterly results were very solid and is positioned to benefit from several new initiatives including investments in fixed income, pending launches of options markets making, and international equities. Maintained Buy rating. Netgear ( NTGR) target, estimates changed at Barclays to $18 from $14 as stabilization in N. America and Asia forces revenue guidance higher. 2009 EPS guidance slashed to $0.26 from $0.30 and 2010 EPS lifted to $0.78 from $0.75. Maintain Equal Weight rating. P.F. Chang's ( PFCB) estimates raised at Goldman to $1.72 from $1.68 for FY09. Cites SSS tracking around their current level of -7% for the next year, talking down margin expectations due to higher labor costs, preopening expenses, and he cycling of controllables, and Pei Wei's flattish SSS and 300 bps margin improvement. Maintained Neutral rating. Pfizer ( PFE) target raised at Goldman to $19 from $17 based on strong operational execution and confidence in management after increasing its dividend payout. Maintained Buy rating. Piper Jaffray ( PJC) target raised at Goldman to $0.65 from $0.30 from FY09. The health of many fixed income and investment banking markets has improved which could help spur a tailwind affect in the 2H of 2009. Maintained Neutral rating. Qualcomm ( QCOM) target raised at Goldman to $1.34 from $1.29 for FY09 based on better margins and higher investment income. The firm believes that the co. will still experience the ongoing handset inventory correction and may have an even better result from its China 3G build out where the royalty is 3.8% vs. an expected 3.5%. Maintained Conviction Buy rating.
Qualcomm ( QCOM) target, estimates boosted at Barclays. Price target to $52 from $50. Analysts mentioned the solid quarter with sales and operating income above preannounced levels. 2009 and 2010 EPS estimates lifted to $1.78 from $1.75 and to $2.46 from $2.39, respectively. Reiterate Overweight rating. Qualcomm ( QCOM) estimates raised at Friedman, Billings Ramsey through 2010. 3G royalty business is ramping in emerging markets, and the company should gain market shares at NOK and MOT. Outperform rating and $54 price target. SLM Corp ( SLM) price target, estimates higher at Barclays. Price target to $12 from $7. 2009 and 2010 EPS estimates increased to $1.11 from $0.93 and to $1.50 from $1.40, respectively. Maintain Equal Weight rating. Staples ( SPLS) target boosted at Morgan Stanley to $24 a share. Company is a clear market leader. Overweight rating. Skyworks ( SKWS) target, estimates raised at Barclays to $13 from $12 as the semi leader delivered solid 2Q09 results and guided +10% 3Q09 sales growth with better margins. 2009 and 2010 EPS estimates raised to $0.64 from $0.61 and to $0.74 from $0.69, respectively. Reiterate Equal Weight rating. Skyworks ( SKWS) numbers boosted at Morgan Stanley to $13. Estimates also raised, as the company is gaining market share. Overweight rating. Thomas & Betts ( TNB) numbers lowered at FBR to $20. Estimates also cut, to match the company's new guidance. Underperform rating. Triquint ( TQNT) target, estimates increased at Barclays. Price target to $8 from $7 after the RF semi producer delivered robust 2Q09 results and offered solid 3Q09 guidance. 2009 and 2010 EPS estimates raised to $0.23 from $0.14 and to $0.51 from $0.45, respectively. Maintain Overweight rating. Waste Connections ( WCN) price target raised at Merrill/BofA from $30 to $31. Maintain Buy rating.