notablecalls@gmail.com

Wednesday, July 12, 2006

Calls of Note Part 2

- UBS is cutting estimates once again for Dell Computer (NASDAQ:DELL) as they believe the company continues to be impacted by the issues that have adversely impacted sales & profits over the last year. Checks indicate that sales may be slowing further (even after only 6% revenue growth last quarter) given weakness in Europe as well as slower demand in corporate PCs & servers near-term.

Firm is adjusting their 2Q07 estimate to $0.31 from $0.33 (consensus=$0.32) based on revenue growth of 4% to $14B (was $14.2B) vs. consensus of $14.26B, which even includes an incremental $50mm in sales from Alienware. They believe Dell continues to be impacted by competition & adverse mix shifts within the PC market.

Tgt goes to $24 from $26. Maintains Neutral.

Notablecalls: Not actionable but good to know category.

- RBC Capital comments on Google (NASDAQ:GOOG) noting things are solid at co, but they remind investors that 2Q suffers from a seasonal fade in the U.S., even if third party data sources suggest otherwise. In Europe, unseasonably warm weather and the World Cup may have exacerbated the June fade, which is the weakest month of the year for paid search in the region. In addition, the new deal with AOL, which closed March 22nd, may carry higher costs for GOOG. Firm has maintained their long-term rating of Outperform, as we begin to look ahead at 2008 EPS estimates at $15 or more, but would urge patience heading into the results next week.

Notablecalls: I think this is an important call from RBC but I'm not sure it's outright actionable here.

- RBC Capital is positive on WebEx Communications (NASDAQ:WEBX) saying that based on their research, new bookings most likely exceeded internal plans again in Q2/06. As mainstream adoption of web conferencing accelerates, WebEx is a clear benefactor due to its dominant market share position. In addition to positive industry momentum, WebEx is also benefiting from several new growth initiatives including new products, new markets and new channels. Firm considers the shares attractive at current levels and reiterates Outperform rating and $42 price target.

Notablecalls: Like the chart. Think it can move higher.

No comments:

Post a Comment