Then it distributes it at lower voltages to homes and business. Acquisitions will also help it to grow. Analysts expect 2008 earnings to climb 17% to $1.96 a share, and then be up 14% in 2009 and 21% in 2010.
Yahoo-YHOO: Lowering below-Street estimates further@COWN
Cowen lowered its below-Street estimate further due to the deteriorating display advertising environment. The firm believes YHOO will report an inline Q2 report but views 2H08 Street estimates as too high. Shares are Neutral rated.
U.S. equity futures continue to point to a higher open
U.S. stock futures are still pointing to a higher open. This week starts one of the most heavily loaded weeks in terms of earnings reports for the June quarter. Most are hopeful that the existing positive tone on Wall Street will continue to lift stocks. Earnings so far seem to be “not as bad” as investors and analysts feared. The past week saw some of the biggest financial institutions, such as Citigroup (C) and Wells Fargo (WFC) post Q2 results that came in above Wall Street’s already lowered expectations. Investors this week turn to more earnings from the battered financials, with Bank of America (BAC) beating consensus estimates this morning and Wachovia (WB) scheduled to report earnings this morning, and with American Express (AXP) to report after the market close. Also, we will have a flurry of regional banks report throughout the week. Currently the indices are showing: S&P 500 futures rose 5.5 points to 1,265 and Nasdaq 100 futures added 8.2 points to 1,837. Dow industrial futures rose 34 points to 11,535.
SanDisk-SNDK: Expect to see higher share price after earnings@NEED
Needham believes shares are oversold at current levels and expects Q3 guidance to reflect sequential revenue growth, which they think is better than the lowered expectation. The firm lowered their target price to $23 from $38 but maintains a Buy rating on the stock.
BIIB upgraded to Buy from Underperform@MLCO
Merrill upgraded BIIB based on earnings growth, improved outlook for multiple sclerosis market, and its diversified mid to late-stage pipeline. Target $79
GOOG: Would buy stock more aggressively at these levels@GABE
After Google reported that its Q2 EPS declined slightly compared with Q1, Gabelli continues to believe that paid search advertising may be the most resilient among ad media to economic weakness. The firm believes that Google is facing mainly short-term concerns, and they think the company will weather the macro environment by gaining market share.
Northern Oil and Gas-NOG announces significant Bakken discoveries
Northern Oil and Gas has recently participated in the successful completion of three wells in the emerging North Dakota Bakken play, bringing to eleven the total number of producing wells in which Northern holds an interest. In addition, Northern holds a working interest in an additional fourteen wells that are in the drilling or completion stages and is included in nearly 70 permitted or docketed-for-permit drilling locations that are expected to drill between now and early 2009. Northern Oil controls approximately 60,000 net acres in the North Dakota Bakken play, yielding over 90 net well locations based on 640 acre drilling units. In addition, Northern controls approximately 22,000 net acres in Sheridan County, Montana and has successfully completed two wells to the Red River formation.
Elan Corp-ELN: An EDT divestiture would ba a financial plus@COWN
Cowen said their are reports that Elan may divest its Elan Drug Technologies division. The firm said the divestiture would be a financial positive as it would remove a significant debt overhang. Shares are Neutral rated.
Genentech-DNA: Expect higher bid by Roche, target to $95@BARD
Baird expects Roche to raise their $89 bid for DNA shares and recommends buying DNA into the low-to-mid $90s. The firm raised their price target to $95 from $87. Shares are Outperform rated.
Genentech-DNA: View Roche offer as too low@OPCO
Oppenheimer views Roche’s $89 per share offer for 44.1% of Genentech’s shares as too low. The firm believes Genentech has reached an inflection point. They think the company deserves a 25%-35% premium due to its successful launch of mBC, as well as the firm’s belief that the drug will successfully treat adjuvant CRC. Oppenheimer maintained their Outperform rating on Genentech.
Genentech-DNA: Believe $89/share offer undervalues pipeline@JPMS
JP Morgan believes the offer by Roche “substantially” undervalues DNA’s pipeline and would not be surprised to see the offer go higher. Shares remain Overweight rated.
CF Industries-CF estimates raised on strong near-term fundamentals@JPMS
JP Morgan raised their 2008 estimate to $14.75 from $11.50 to reflect strong near-term fundamentals in both Nitrogen and Phosphate. Shares remain Overweight rated.
Utilities Vulnerable to Takeovers@LYON
Calyon’s stock screen identified underperforming stocks relative to their peer group which help identify possible takeover candidates. The firm’s new screen added teh following names to the list: BKH, PNW, EE, AEE, CHG, ED, CPK, EDE, and LNT. The firm views BKH as an attractive investment but not necessarily a takeover candidate at this point.
Potash-POT estimates raised on recent price increases@JPMS
JP Morgan raised their 2009 estimate to $24.50 from $18.50 to reflect the potash price increases over the past few weeks. Shares remain Overweight rated.
Dry Bulk: Reiterate Overweight rating on the sector@BOFA
Banc of America notes that on Friday, the Argentina export tax issue was resolved after President Fernandez de Kirchner cancelled a farm export tax hike. The firm views this as positive for the Dry Bulk sector and highlights Navios Maritime (NM) as their top pick in the space.
Genentech-DNA upgraded to Overweight from Equal Weight@LEHM
Lehman upgraded DNA following Roche’s offer to acquire the rest of the company.
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