Fastenal Co (FAST) 67.00 -3.39: In morning note, Robert W. Baird downgrades to MARKET PERFORM from MARKET
OUTPERFORM rating with price target of $68 in light of significant price appreciation (+28.3% YTD); long term, firm continues to believe
that Fastenal is a solid core holding in the industrial distribution industry and feels that the company will continue to gain market share and
show profitability and returns well above those of its peers; however, the current valuation seems to be discounting a significant US
economic recovery and may overstate the company's near-term earnings prospects.
12:00 -- 13:00 ET (Updated throughout the hour)******
Westell Tech (WSTL) 2.20 +0.01: In morning note, Robinson Humphrey downgrades to NEUTRAL from OUTPERFORM due to
deteriorating fundamentals and lack of potential catalysts in coming quarters.
ViroLogic (VLGC) 3.54 -0.55: -Before the open- Prudential downgrades to HOLD from STRONG BUY based on capital risk;
says VLGC has a cash position of $18.9 mln and a cash burn rate of $6-7 mln per quarter, which suggests the company has less than a
year of cash available for operations; while VLGC is currently exploring strategies for additional financing with two investment banks,
firm believes shares will continue to trade sideways until capital risk is addressed definitively.
Hughes Supply (HUG) 19.12 +0.27: In morning note, Robinson Humphrey upgrades to OUTPERFORM from NEUTRAL; despite
weak earnings trends expected this year, firm thinks Hughes is well positioned to resume above-average EPS growth as the economy
rebounds; believes company will begin showing favorable leverage from IT investments, integration of past acquisitions and enhanced
logistics; thinks HUG 's modest P/E multiple can expand once the bottom of this economic downturn passes.
KPMG Consulting (KCIN) 19.14 +0.19: In morning note, SG Cowen upgrades to STRONG BUY from NEUTRAL; firm's analysis
does not indicate any significant project deferrals this quarter; says momentum in weakest vertical (financial services) is not deteriorating,
while high tech is steady and public services and communications continue to grow; believes KCIN is among main beneficiaries of pending
IT spending recovery.
Techne Corp (TECH) 35.48 -0.92: In morning note, Thomas Weisel downgrades to BUY from STRONG BUY based on its recent
share price appreciation; firm expects company's revenue growth will accelerate from historical levels of 13-16% as the discovery of
proteins increases; says potential catalysts for Techne stock will be earnings results, revenue growth accelerating beyond expectations, and
the pricing of June 2003 earnings in the stock.
HEICO Corporation (HEI) 19.17 -0.85: In morning note, First Union Securities downgrades maker of jet engine replacement parts to
MARKET PERFORM from BUY; while firm likes the company long-term, including the recent American Airlines venture, feels the stock is
too expensive given the earnings trend and the airline profitability trends (and the implication for engine parts sales).
11:00 -- 12:00 ET (Updated throughout the hour)******
Briazz (BRZZ) 6.80 -0.20: W.R. Hambrecht initiates coverage with a BUY rating and price target of $10; BRZZ provides high quality
gourmet foods, ranging from sandwiches to soups and salads, to on-the-go consumers through 40 company-operated cafés; firm believes
that BRZZ shares represent a compelling long-term value with highly visible growth potential, which should lead to shareholder value
creation longer-term.
Simplex Solutions (SPLX) 20.71 -1.06: Robertson Stephens initiates coverage with a BUY; believes Simplex has a significant market
opportunity; thinks company will be the next generation leader in the physical verification segment of design automation; Simplex has
established significant technology and marketing barriers to entry; believes Simplex is the leading contender to be the standard for next
generation timing sign-off, which will include power grid and noise analysis; Robertson Stephens participated in underwriting the recent IPO.
W.R. Berkley (BER) 40.88 +0.98: Morgan Stanley upgrades insurance holding company to STRONG BUY from OUTPERFORM
rating and price target of $54; firm's conviction on the cycle turn's sustainability is heightened, and firm sees BER as the best idea to play this
theme in its market cap range; also cites valuation.
Chubb (CB) 74.41 +1.19: Morgan Stanley upgrades to OUTPERFORM from NEUTRAL with price target of $85; believes CB is
breaking out of a rut after a long period of disappointing results; says CB should see earnings growth and ROE improvement in 2002 with
27% earnings growth and a 13% return on equity; says cycle turn and improved capital management are main catalysts.
Clayton Homes (CMH) 14.65 -0.15: First Union Securities upgrades to STRONG BUY from BUY and ups price target to $19 from
$3; firm believes that the strength of company's balance sheet and recent market share gains on the manufacturing front position the
company for sustained earnings growth as the segment turns. |
