- Jefferies is calling DUSA Pharm (NASDAQ:DUSA) extremely undervalued saying they would be buyers of the stock at current levels. Firm expects DUSA to report solid 2Q results (to be released on August 8th). They believe there is solid upside to their revenue and EPS estimates of $6.4 million and ($0.10) respectively. Notes Stiefel and DUSA are in discussions to extend their current Brazilian distribution agreement into one for all of Europe. Believes the expanded distribution deal should provide upside to current estimates, as it will likely be announced in 2H06.
Thinks the current stock price has fallen well below the company's core value, and expects the stock to recover on improving adoption trends. Reits Buy and $13 tgt.
Notablecalls: Huge target for a $4 stock. Would not be surprised to see some interest in shares.
- FBR positive on ASML Holding (NASDAQ:ASML) noting that following the co's May-23 announcement that 2Q system bookings will be at least 40% higher QOQ, or at least 87 units, they were expecting 3Q bookings to decline to 55- 62 units, or in line with 4Q05/1Q06 levels. However, recent checks in U.S./Japan suggests that 3Q bookings could actually exceed expectations, driven by increasing lead times/continued share gain.
Firm reminds investors that ASML's 1-2-3 punch, capacity buy/technology upgrade/share gain, has enabled it to report better than expected system bookings. To that end, ASML, like no other capital equipment company, is expected to ride out any "lull" in system bookings in 3Q/4Q time frame. Reiterates Outperform rating going into SemiconWest (July 11-14)/2Q report (with estimates expected to be revised up).
Notablecalls: Not actionable but good to know category.
- Banc of America comments on General Motors (NYSE:GM) saying they can't help but read what is going on in GM's business as a liquidity tactic. Firm estimates GM is raising price at least 1% in 2006 to capitalize on market inelasticity (1% price equates to 2% volume) and shore up margins. However, they believe GM management is glossing over the current and future cost of rightsizing the business for the lower share.
Sees GM burning its final precious dollars and raising prices just to try to stop the burn. The math may work in the short term and especially in 2Q06 where inventory was built, but after 2Q06 production begins to fall. Then, they think the stock market will have a hard time seeing how else GM can stop the cash burn. Maintains Sell and $10 tgt.
Notablecalls: Not actionable but good to know category.
- Citigroup is adding Apple Computer (NASDAQ:AAPL), McDonald's (NYSE:MCD), and Alltel (NYSE:AT) to firm's Recommended List:
Thinks the current stock price has fallen well below the company's core value, and expects the stock to recover on improving adoption trends. Reits Buy and $13 tgt.
Notablecalls: Huge target for a $4 stock. Would not be surprised to see some interest in shares.
- FBR positive on ASML Holding (NASDAQ:ASML) noting that following the co's May-23 announcement that 2Q system bookings will be at least 40% higher QOQ, or at least 87 units, they were expecting 3Q bookings to decline to 55- 62 units, or in line with 4Q05/1Q06 levels. However, recent checks in U.S./Japan suggests that 3Q bookings could actually exceed expectations, driven by increasing lead times/continued share gain.
Firm reminds investors that ASML's 1-2-3 punch, capacity buy/technology upgrade/share gain, has enabled it to report better than expected system bookings. To that end, ASML, like no other capital equipment company, is expected to ride out any "lull" in system bookings in 3Q/4Q time frame. Reiterates Outperform rating going into SemiconWest (July 11-14)/2Q report (with estimates expected to be revised up).
Notablecalls: Not actionable but good to know category.
- Banc of America comments on General Motors (NYSE:GM) saying they can't help but read what is going on in GM's business as a liquidity tactic. Firm estimates GM is raising price at least 1% in 2006 to capitalize on market inelasticity (1% price equates to 2% volume) and shore up margins. However, they believe GM management is glossing over the current and future cost of rightsizing the business for the lower share.
Sees GM burning its final precious dollars and raising prices just to try to stop the burn. The math may work in the short term and especially in 2Q06 where inventory was built, but after 2Q06 production begins to fall. Then, they think the stock market will have a hard time seeing how else GM can stop the cash burn. Maintains Sell and $10 tgt.
Notablecalls: Not actionable but good to know category.
- Citigroup is adding Apple Computer (NASDAQ:AAPL), McDonald's (NYSE:MCD), and Alltel (NYSE:AT) to firm's Recommended List:
* The addition of Apple derives from firm's view that recent share price weakness has presented an attractive entry point into a high quality technology/consumer products company that we believe has a strong fundamental context (given its exposure to the continued digitization of entertainment) and is likely to continue taking market share in the PC business. Wile number of product transitions will likely limit Apple's ability to deliver upside to June quarter EPS estimates, the firm believes that this has been priced into the stock and that the potential for upside surprises to consensus numbers will return in the calendar third quarter.
* The decision to add McDonald's is driven by a different rationale. In firm's commentary on the state of the broader market, they have noted that they think that a shift in leadership away from small caps, emerging markets, and natural resource driven names is underway. Firm has suggested that new leadership might be found in "large cap and large cash" rather than any one particular sector or industry group. McDonald's, which is among the top 20% of S&P 500 names by market cap and has strong free cash flow, fits this theme very well.
* Notes the addition of Alltel is more of a housekeeping matter as the firm upgraded Telecom Services sector on April 13, 2006 and needs to keep their Recommended List as a rough reflection of their recommended sector weights.
Notablecalls: Not actionable but good to know category.
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