- I haven't been able to confirm this one but I'm hearing Goldman Sachs has reduced their price tgt on Nokia (NYSE:NOK) to EUR18.50 from EUR20.
Notablecalls: Not actionable but good to know category.
- Citigroup notes that while they are currently modeling below-guidance revenues for Intel (NASDAQ:INTC)'s 3Q06 (with the SIA data as evidence), they acknowledge that now that the quarter has closed, the likelihood of a negative pre-announcement from Intel is decreased.
Notablecalls: Not actionable but good to know category.
- Citigroup notes that while they are currently modeling below-guidance revenues for Intel (NASDAQ:INTC)'s 3Q06 (with the SIA data as evidence), they acknowledge that now that the quarter has closed, the likelihood of a negative pre-announcement from Intel is decreased.
The SIA's data for microprocessors shows revenues through May indicate the first 2/3's of the quarter are down 20.4% from the first 2/3's of 1Q06. In order for Intel and AMD to collectively meet their guidance, MPU sales would need to rise 7.9% June/March. Firm notes that the r-squared between Intel/AMD results and the SIA data is >80%, indicating >90% correlation.
However, examining Intel's history, they find no instances of negative pre-announcements post the quarter close. Granted, Intel has always provided mid-quarter updates wherein guidance has been revised. Even so, for instances where Intel pre-announced (even when holding a mid-quarter update), such announcements always fell before quarter-end.
Believes investors should be braced for negative news whether Intel pre-announces or not. They recognize, however, that Apple has been strong for Intel and may be contributing to Intel achieving their guidance. Despite the concerns, they believe much negative news is factored into Intel's shares. Firm reminds investors that Intel appears poised to regain lost share and improve its quarterly ROIC. Continues to have a positive longer-term view and would use any near-term pullback as a buying opportunity.
Notablecalls: Not actionable but good to know category.
- James Gilman of Soleil's Cross Research is out with an interesting note on Red Hat (NASDAQ:RHAT) noting that according to recent reports on industry news sites, Firestar Software, a small privately held company in Boxborough, MA, recently filed a patent lawsuit against Red Hat. The lawsuit claims that JBoss' Hibernate 3.0 infringes on Firestar's patent to interface an object oriented software application with a relational database. The firm does not know the strength of the case against Red Hat. However, until the lawsuit is either dismissed or settled, they think there will be some degree of uncertainty surrounding the stock. Believes this uncertainty may put further downward pressure on the stock, which has traded down 6.4% versus up 2.9% for NASDAQ since June 28 when Red Hat reported disappointing F2Q07 guidance related to JBoss. Reiterates Hold.
Notablecalls: Not actionable but good to know category.
- JP Morgan is yet again out cautious on Chattem (NASDAQ:CHTT) noting that previously, on June 5, they lowered their EPS and revenue forecasts well below consensus given Chattem's two key new products, Icy Hot Pro-Therapy and Selsun Salon, were off to a much weaker than expected start based on AC Nielsen scanner data and our retailer contacts.
In the most recent AC Nielsen scanner data for the four-week period ended June 17, results for these two new products actually worsened. Pro Therapy and Selsun Salon each decelerated substantially from the prior period, by 16.3%, and 22.6% respectively. If these brands do not rebound, the firm thinks there is more risk to below consensus EPS and revenue forecasts, but they are leaving their numbers unchanged at this point and expect more clarity with Q2 EPS on July 10.
Maintains Neutral rating due to valuation.
Notablecalls: While I'm not entirely sure the call is actionable, CHTT is one to watch in case it breaks recent lows.
However, examining Intel's history, they find no instances of negative pre-announcements post the quarter close. Granted, Intel has always provided mid-quarter updates wherein guidance has been revised. Even so, for instances where Intel pre-announced (even when holding a mid-quarter update), such announcements always fell before quarter-end.
Believes investors should be braced for negative news whether Intel pre-announces or not. They recognize, however, that Apple has been strong for Intel and may be contributing to Intel achieving their guidance. Despite the concerns, they believe much negative news is factored into Intel's shares. Firm reminds investors that Intel appears poised to regain lost share and improve its quarterly ROIC. Continues to have a positive longer-term view and would use any near-term pullback as a buying opportunity.
Notablecalls: Not actionable but good to know category.
- James Gilman of Soleil's Cross Research is out with an interesting note on Red Hat (NASDAQ:RHAT) noting that according to recent reports on industry news sites, Firestar Software, a small privately held company in Boxborough, MA, recently filed a patent lawsuit against Red Hat. The lawsuit claims that JBoss' Hibernate 3.0 infringes on Firestar's patent to interface an object oriented software application with a relational database. The firm does not know the strength of the case against Red Hat. However, until the lawsuit is either dismissed or settled, they think there will be some degree of uncertainty surrounding the stock. Believes this uncertainty may put further downward pressure on the stock, which has traded down 6.4% versus up 2.9% for NASDAQ since June 28 when Red Hat reported disappointing F2Q07 guidance related to JBoss. Reiterates Hold.
Notablecalls: Not actionable but good to know category.
- JP Morgan is yet again out cautious on Chattem (NASDAQ:CHTT) noting that previously, on June 5, they lowered their EPS and revenue forecasts well below consensus given Chattem's two key new products, Icy Hot Pro-Therapy and Selsun Salon, were off to a much weaker than expected start based on AC Nielsen scanner data and our retailer contacts.
In the most recent AC Nielsen scanner data for the four-week period ended June 17, results for these two new products actually worsened. Pro Therapy and Selsun Salon each decelerated substantially from the prior period, by 16.3%, and 22.6% respectively. If these brands do not rebound, the firm thinks there is more risk to below consensus EPS and revenue forecasts, but they are leaving their numbers unchanged at this point and expect more clarity with Q2 EPS on July 10.
Maintains Neutral rating due to valuation.
Notablecalls: While I'm not entirely sure the call is actionable, CHTT is one to watch in case it breaks recent lows.
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