06:50 Early Research Calls II
Upgrades: UBS upgrades PMC Sierra (PMCS 11.32) to Buy from Neutral. Donwgrades: Credit Suisse assumes coverage of FEI Co (FEIC 20.84) with an Underperform down from Neutral and lowers their tgt to $16 from $17.50 following their sector call... Credit assumes coverage of Novellus (NVLS 25.67) with a Neutral down from Outperform and lowers their tgt to $24 from $28 noting concerns on growth and ceiling on margin expansion... HSBC downgrades Anglo American (AAUK 17.65) to Neutral. Miscellaneous: Credit Suisse assumes coverage of the Semiconductor Equiptment sector with a Martket Weight from Underweight saying near term, their outlook for a Mid-Cycle pause in fundamentals offsets an improving long-term secular outlook. Specifically, they expect a bigger mid-year correction for semi-cap orders than what is factored into consensus expectations. Stocks they are transitioning coverage today: AMAT, KLAC (Restricted), NVLS, LRCX, ACLS, VSEA, CYMI, FEIC, and BRKS... Clear Asset Mgmt initiates Schnitzer Steel (SCHN 32.94) with Buy and a $38 tgt based on valuation... HSBC initiates Rio Tinto (RTP 188.09) and BHP Billiton (BHP 35.46) with Overweights saying commodity prices will stay higher for longer, macro signals do not signal a sell, and sector valuations are supportive... HSBC notes that Astrazeneca (AZN 50.92) had a positive Asteriod study, and they think consensus numbers of Crestor likely to move up. |
