- Banc of America is positive on Flextronics International (NASDAQ:FLEX) noting that while there has been some speculation around a new win with MOT, they believe the win is bigger than expected and incremental to FLEX's original target of ~$1+ billion of handheld revenue growth in F2007 - FLEX realized $4.1 billion of handheld revenue in F2006. The new handset program should contribute $500m in F2007 sales and could be $1+ billion, over time. Firm's channel checks indicate that FLEX continues to win new business across multiple end markets.
Firm's new revenue estimates for F07 and F08 are $17.0 billion and $19.3 billion, respectively, up from $16.6 billion and $18.8 billion. They now forecast 10% organic revenue growth for F07 versus prior estimate of 5%. Maintains estimates due to expected margin pressure.
FLEX's stock trades at 11x C07 EPS estimate, versus EMS sector average of 12x and 14x for S&P 500. Firm views current valuation as very attractive. Reiterates Buy rating.
Notablecalls: Not actionable but good to know category.
- Citigroup comments on Telecommunications Equipment space 2Q order conditions were inline through May, but slowed in the first half of June. While orders in the second half of June sharply accelerated, it looks like 2Q sequential order growth was only about 10% compared to seasonally typical 15+%. Firm's contacts report strong activity levels and pipelines with larger, more strategic enterprise projects, and they are upbeat on 2H prospects. However, they are more concerned about the uncertain interest rate and energy price environment and the potential for sustained enterprise order push-outs.
Because of the concerns about CY 2Q conditions and the potential for sustained weakness, they are cutting estimates on four companies -- Avaya (NYSE:AV), Extreme (NASDAQ:EXTR), Foundry (NASDAQ:FDRY), and Juniper (NASDAQJNPR). The firm is also cutting their target price on Foundry and Juniper.
Notablecalls: Not actionable but good to know category. It's hardly a surprise there is a slowdown in telco eq. spending. The only player standing strong remains to be CSCO. Citi notes they believe co's orders are running at 100%-105% of plan.
- Morgan Stanley is defending Wyeth (NYSE:WYE) noting that although the co has not been providing investors with much to get excited about over the last 2 months, they believe the recent pullback in the stock has gotten excessive.
With the stock trading at 12.8x firm's 2007 EPS estimate, an 11% discount to its peers (ex-SGP), they believe this may be an attractive entry point for investors interested in holding a large-cap pharma stock with good near-term earnings visibility.
Notablecalls: Not actionable but good to know category.
Firm's new revenue estimates for F07 and F08 are $17.0 billion and $19.3 billion, respectively, up from $16.6 billion and $18.8 billion. They now forecast 10% organic revenue growth for F07 versus prior estimate of 5%. Maintains estimates due to expected margin pressure.
FLEX's stock trades at 11x C07 EPS estimate, versus EMS sector average of 12x and 14x for S&P 500. Firm views current valuation as very attractive. Reiterates Buy rating.
Notablecalls: Not actionable but good to know category.
- Citigroup comments on Telecommunications Equipment space 2Q order conditions were inline through May, but slowed in the first half of June. While orders in the second half of June sharply accelerated, it looks like 2Q sequential order growth was only about 10% compared to seasonally typical 15+%. Firm's contacts report strong activity levels and pipelines with larger, more strategic enterprise projects, and they are upbeat on 2H prospects. However, they are more concerned about the uncertain interest rate and energy price environment and the potential for sustained enterprise order push-outs.
Because of the concerns about CY 2Q conditions and the potential for sustained weakness, they are cutting estimates on four companies -- Avaya (NYSE:AV), Extreme (NASDAQ:EXTR), Foundry (NASDAQ:FDRY), and Juniper (NASDAQJNPR). The firm is also cutting their target price on Foundry and Juniper.
Notablecalls: Not actionable but good to know category. It's hardly a surprise there is a slowdown in telco eq. spending. The only player standing strong remains to be CSCO. Citi notes they believe co's orders are running at 100%-105% of plan.
- Morgan Stanley is defending Wyeth (NYSE:WYE) noting that although the co has not been providing investors with much to get excited about over the last 2 months, they believe the recent pullback in the stock has gotten excessive.
With the stock trading at 12.8x firm's 2007 EPS estimate, an 11% discount to its peers (ex-SGP), they believe this may be an attractive entry point for investors interested in holding a large-cap pharma stock with good near-term earnings visibility.
Notablecalls: Not actionable but good to know category.
No comments:
Post a Comment