Stock Upgrades & Downgrades to consider- MER, GM, NTAP & BHP
By Yaser Anwar, CSC of Equity Investment Ideas
Merrill Lynch "buy" target price reduced- Analyst Richard X Bove of Punk Ziegel & Co maintains his "buy" rating on Merrill Lynch (MER). The target price has been reduced from $90 to $84.In a research note published this morning, the analyst mentions that the company’s performance in this fiscal quarter is unlikely to be as healthy as that of its peers, since its calendar year ends in June and in this quarter it will witness two bad months, May and June. Merrill Lynch is a more equity-focused than a trading-oriented company as compared to its peers and hence its F2Q performance is expected to be below that of other brokers in New York, the analyst says. The downward revision of the company’s target price reflects the application of a higher discounting factor to its future earnings flows, Punk Ziegel & Co adds.
General Motors "sell"- Analyst Ron Tadross of Banc of America Securities maintains his "sell" rating on General Motors (GMA). The target price is set to $10.In a research note published this morning, the analyst mentions that the company is likely to hike prices by 1% or more in 2006 in order to benefit from market inelasticity and increase in margins. General Motors expects to utilize its new secured credit line worth $4.5 billion. General Motors is unlikely to limit its cash burn after 2Q06, the analyst says.
Network Appliance "outperform"- Analysts at Morgan Keegan maintain their "outperform" rating on Network Appliance Inc (NTAP).In a research note published on June 23, the analysts mention that the company is selling its NetCache division to Blue Coat Systems for around $28.3 million. The sale was prompted by NetCache's underperformance in FY06, as compared to the rest of Network Appliance's businesses, the analysts say. Morgan Keegan expects the deal to positively impact the company’s growth going forward.
BHP Billiton "buy"- Analysts at Irwin, Jacobs, Greene & Associates maintain their "buy" rating on BHP Billiton (BHP).In a research note published this morning, the analysts mention that the company has announced that it had raised its stake in Skye Resources by 6.8% to 16.5%. BHP Billiton bought these shares for the purpose of investment and to enhance the company’s interest in mining opportunities in Guatemala, the analysts say.
http://www.equityinvestmentideas.blogspot.com/
Merrill Lynch "buy" target price reduced- Analyst Richard X Bove of Punk Ziegel & Co maintains his "buy" rating on Merrill Lynch (MER). The target price has been reduced from $90 to $84.In a research note published this morning, the analyst mentions that the company’s performance in this fiscal quarter is unlikely to be as healthy as that of its peers, since its calendar year ends in June and in this quarter it will witness two bad months, May and June. Merrill Lynch is a more equity-focused than a trading-oriented company as compared to its peers and hence its F2Q performance is expected to be below that of other brokers in New York, the analyst says. The downward revision of the company’s target price reflects the application of a higher discounting factor to its future earnings flows, Punk Ziegel & Co adds.
General Motors "sell"- Analyst Ron Tadross of Banc of America Securities maintains his "sell" rating on General Motors (GMA). The target price is set to $10.In a research note published this morning, the analyst mentions that the company is likely to hike prices by 1% or more in 2006 in order to benefit from market inelasticity and increase in margins. General Motors expects to utilize its new secured credit line worth $4.5 billion. General Motors is unlikely to limit its cash burn after 2Q06, the analyst says.
Network Appliance "outperform"- Analysts at Morgan Keegan maintain their "outperform" rating on Network Appliance Inc (NTAP).In a research note published on June 23, the analysts mention that the company is selling its NetCache division to Blue Coat Systems for around $28.3 million. The sale was prompted by NetCache's underperformance in FY06, as compared to the rest of Network Appliance's businesses, the analysts say. Morgan Keegan expects the deal to positively impact the company’s growth going forward.
BHP Billiton "buy"- Analysts at Irwin, Jacobs, Greene & Associates maintain their "buy" rating on BHP Billiton (BHP).In a research note published this morning, the analysts mention that the company has announced that it had raised its stake in Skye Resources by 6.8% to 16.5%. BHP Billiton bought these shares for the purpose of investment and to enhance the company’s interest in mining opportunities in Guatemala, the analysts say.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 5:12 AM
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