Solar Industry: Adjusting ASP assumptions due to potential cap in Spain@CSTI
Collins Stewart cut their ASP assumptions for YGE, STP and JASO to reflect the likelihood of Spain establishing a cap on solar installations that will receive a feed-in tarif. The broker says this move will reduce industry demand in 2008 and impact industry pricing. YGE, STP and JASO remain Buy rated.
Broadcom-BRCM upgraded to Buy from Neutral@PIPR
Piper upgraded shares as they believe the Street is underestimating some of the company’s product cycles.
Auto makers hit the brakes against escalating steel prices-WSJ
Some auto makers are fighting back against steel price increases, refusing to pay surcharges and threatening legal action. Negotiations between the two sides are ongoing, reports the Wall Street Journal. “There are some customers who have accepted the surcharges and some who have not. For those who have not, we are still in negotiations,” says Aditya Mittal, ArcelorMittal’s CFO.
GMX Resources-GMXR volatility Elevated on wide share price movement
GMXR, a gas exploration and production company, closed at $76.37. Morgan Keegan say’s “Based on our well model, we can justify a risked, present value analysis of GMXR shares between $120 and $125 per share.” GMXR July option implied volatility of 94 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.
AMGN: See additional upside following recent rally@DBAB
Deutsche Bank believes the valuation is still attractive at current levels and raised their target price to $54 from $52.
Brokers: Recommend buying BLK into earnings following recent weakness@SBSH
Citigroup expects the best core trends in Q2 from retail brokers like AMTD and SCHW and from asset managers delivering core organic growth like BLK and TROW. The firm expects the worst core trends at ETFC, LM, FIG and MER. Citigroup recommends buying BLK into the quarter as they view the recent weakness as an “excellent” buying opportunity.
Goldman Sachs-GS says Q2 Level 3 assets at $78.09B vs. $96.39B in Q1
CF upgraded to Outperform from Neutral@FBCO
Credit Suisse upgraded CF citing valuation. Target $180.
PBR initiated with a Buy, target $92@GSCO
SU upgraded to Outperform from Market Perform@FBRC
Friedman Billings upgraded SU citing valuation. Target to $85 from $53.
SU upgraded to Overweight from Neutral@JPMS
JP Morgan upgraded SU citing valuation.
European Banks sector upgraded to Neutral from Underweight@KBWI
Keefe Bruyette upgraded the sector on valuation as they see limited downside from current levels. Included in the firm’s top picks are HSBC Holdings (HBC) and Banco Santander (STD).
MON: Corn demand concerns could create buying opportunity@JEFF
Jefferies believes perceived risks to corn demand could create a buying opportunity in the second half of 2008 as they feel a secular downshift in corn acreage is highly unlikely. The firm reiterates a Buy rating on MON shares.
Solar: Proposed Spanish 300MW cap unlikely to become law@COWN
Cowen said the proposed 300MW cap in Spanish solar subsidies is unlikely to become law as it would cause significant job losses and business closures. The firm said Outperform rated ENER and FSLR are best positioned and that ESLR, SPWR, and STP are oversold.
Plains Ex & Prod-PXP target raised to $105 from $85@Coker & Palmer
Coker & Palmer raised their target as they believe the company’s joint venture in the Haynesville Shale should generate significant growth. Shares remain Buy rated.
Biotechnology: DNA, AMGN, & CELG poised to beat@FBCO
Credit Suisse believes biotech looks particular attractive given its independence from the broader economy. The firm expects Neutral rated DNA to be a big winner but said Rituxan IMS strength seems odd, while Avastin growth is least surprising given approval in breast.
