The firm remains buyers of DNA into the mid-$80s given 2H08 EPS acceleration, Avastin upside, and expected clinical newsflow in 2H08. Shares are Outperform rated.
DNA target raised to $85 from $83, maintain Buy@DBAB
Deutsche Bank attributes the EPS miss in the quarter to one time items and points out DNA actually raised guidance. The firm raised their target to reflect the Avastin upside as sales grew the first time sequentially since Q3 of 2007.
RIG initiated with a Buy, target $231.88@JSLC
Jesup & Lamont believes RIG is the market leader in deepwater drilling rigs and premium jackups.
MSFT: Company’s shares are attractive in the short-term@OPCO
Oppenheimer believes the company’s stock is attractive heading into its results on Thursday, as they expect its shares to jump about 10% following the results. The firm expects the company to report at least in-line results and reiterate its guidance for its 2009, and they would be buyers of the stock before the results.
Ads on Yahoo could cost 22% more-NYT
Advertisers are skeptical of of Yahoo’s (YHOO) deal to have search ads sold by Google (GOOG) because the premium could go up as much as 22% if Google sells the ads.A study conducted by Search Ignite, looked at 12 million paid clicks for 15,000 keywords to determine the price variance.
Ackman says common, preferred equity should be extinguished-Bloomberg
Ackman said he would buy Fannie stock in a ‘newly, restructured’ model.
AXP estimates lowered on higher credit losses@PIPR
Piper lowered their 2008 estimate to $3.22 from $3.40 and 2009 estimate to $3.40 from $3.75 to reflect higher credit losses and lower spending growth. However, Piper maintains a Buy rating given AXP’s franchise example.
U.S. Banks: Expect significant writedowns, capital pressure well into 2009@OPCO
Oppenheimer believes that banks’ valuations of mortgage-related assets are still too high. The firm believes that all the banks they cover have unrealistic housing price appreciation assumptions, and they expect this situation to result in continued writedowns and capital pressure on the banks.
GOOG: Expect solid, ‘not spectacular,’ Q2 results@WBLR
William Blair maintains an Outperform rating on GOOG shares buts expect that an in-line quarter will have only a minor impact on the stock.
PGR: Reiterate Outperform following June operating results@FBRC
Friedman Billings admits the June results were lackluster, but believes one month does not make a trend. The firm lowered their target to $23 from $24 but reiterates an Outperform rating.
COF announces June charge-offs and 30+ days delinquency rates
Capital One reports June annualized net charge off rate of 6.42% and a 30 days + delinquency rate of 3.85%.
Asian Markets Wrap-Up for Tuesday, July 15
Stocks dropped on worries about banks’ profits. JAPAN: Shares slumped, with financials spearheading the decline. The Nikkei 225 sank 1.96% to 12,754.56. Sumitomo Mitsui Financial (SMFNF), a bank, lost 6.1%, while Mizuho Financial Group (MFG), another bank, retreated 5% and Sumitomo Realty & Development (SURDF) fell 6.5%. A number of exporters also dropped, with Mazda (MZDAF) declining 3%, and Toshiba (TOSBF) losing 3%. CHINA: The CSI 300 Index tumbled 4.13% to 2,852.98. Insurance company Ping An (PNGAY) declined 6% and China Life Insurance (LFC) also fell 6%. Bank of China (BACHF) retreated 3.1% and Industrial & Commercial Bank of China finished 3.4% lower. COFCO Property and Poly Real Estate both tumbled by the maximum 10%. AROUND ASIA: Hong Kong’s Hang Seng Index declined 3.81%, while South Korea’s KRX 100 dipped 3.07% and Taiwan’s Taiex sank 4.51%…Fitch reduced India’s credit rating to negative.
WB downgraded to Underperform from Perform@OPCO
Oppenheimer downgraded shares as they believe the outlook is “bleak” for equity shareholders. The firm thinks Wachovia’s expenses can’t come down fast enough too offset earnings erosion.
FCX: Estimates raised on copper prices@MSCO
Morgan Stanley raised 2008 and 2009 EPS estimates for FCX based on higher copper prices. The firm’s 2009 EPS estimate is 7% above consensus, which they do not believe reflects higher copper prices. Shares are Overweight rated.
Jim Cramer’s “Mad Money”
Cramer says, “The best way to invest is not to buy a bunch of stocks and just sit on them.” He also said that paying taxes on gains is a good thing, much better than posting a loss. Instead of buy and hold, he said investors should buy and do the homework. Cramer says, “When it’s time to sell, then sell and move on.” He recommended mutual funds as great investment vehicles for those who don’t have the time to do the homework and manage their portfolios. Cramer urged investors to remain involved in their portfolios.
