Novellus Systems (NASDAQ:NVLS): Upgraded to Buy at Amtech
AmTech: Novellus Systems (NASDAQ:NVLS): upgrade to Buy. We think much of yesterday's neg pre-ann was based on 1-time events including CMP rev recognition change, inventory write-down, & higher tax rate. Based on checks we think a restructuring of NVLS's biz is currently underway and CMP and dry strip will be discontinued (unprofitable), along w/layoffs. This will improve NVLS's profitability & make it more attractive as a take-over candidate. Stock is currently trading near trough valn levels at 1.6x book. PT $27.50.
Notablecalls: I like this call as the timing is just perfect. The stock got killed yesterday following the pre-announcement & looks to be ready for a bounce.
Strongly believe Ferumoxytol will recieve first pass approval- JefferiesJefferies out on the box saying to buy AMAG agressively here. Analyst says there will be NO delay.
Notablecalls: I do agree - at $38 the stock is a buy.
notes on Friday they held a conference call for clients featuring AMAG
CEO Dr. Brian Pereira. The firm says AMAG bears have argued that the
ferumoxytol development program does not include a sufficient number of
patient exposures to meet I.C.H safety guidelines (N=1,500). To set the
record straight the firm notes, AMAG's CEO went on record (again) to
confirm that, in total, over 1,700 patients and healthy volunteers were
treated with ferumoxytol in the co's eleven clinical studies. The firm
also says the fact that AMAG has the resources to execute additional
clinical trials in C.K.D, but has chosen not to do so, suggests that
AMAG strongly believes the filing is complete in its current form, per
Downgraded to Sell at Merrill LynchMerrill saying it's worth $21 to $29. They now see potential for a delayed launch til 2011.
This thing could be down 10%+ today.
PS: One NCN member has some interesting comments on the AMAG downgrade.
the third time hes downgraded it in 10 weeks - first Jan 30 then Feb 28
and now. Nothing new in the report. Also the analyst was hired by
Merrill only last year and I think the guy's trying to make a name for
Jan 30 he went from a $100 target to $78 the stock fell 6 points. Than Feb 28 he went to Neutral and stock fell $4 I think.
I'm just saying the whole street knows he has it out for AMAG.
Notablecalls: Excellent colour.
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