MARKET TALK: OK Of Medtronic's InSync Not Overwhelming
06 Mar 09:01
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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9:01 (Dow Jones) Medtronic (MDT) got approval from an FDA panel for its
InSync ICD, but the 6-to-5 vote was less enthusiastic than US Bancorp Piper
Jaffray expected. The firm considers final approval likely, but new data
requirements may slow down the process by a quarter from Piper's previous
midsummer assumption. Cuts FY03 revenue and EPS view by $48M and 1c,
respectively, on expectation of slightly later InSync ICD start and slower
ramp. Keeps outperform rating. (TG)
8:53 (Dow Jones) Telecom service provider Genuity (GENU) is making the right
long-term decisions, but the stock lacks near-term catalysts, says Morgan
Stanley analyst Todd Scott, who initiated coverage with a neutral rating. "We
see slow projected growth as Genuity shifts its focus to enterprise; limited
profitability as the slow economy and long-haul overcapacity delay high-margin
incremental revenues," he says. Scott sees execution risk relative to guidance
and long-term funding risk. (JDB)
8:47 (Dow Jones) ABN-Amro visited with Sprint PCS (PCS) recently and came
away with increased confidence in the company's ability to deliver in 2002.
Believes PCS wants to hold the line on pricing, and Amro doesn't believe moves
by Cingular and Verizon Wireless will force a price reduction reaction. Keeps
buy rating. (TG)
8:40 (Dow Jones) First Albany doesn't see any new angle or information in
ISS's backing of the HP (HWP-Compaq (CPQ) merger that wasn't already revealed
by either side. The firm also says ISS's endorsement wasn't "particularly
glowing" and leaves the possibility that its clients could come to a different
conclusion. For example, ISS acknowledges that a spin-off of the Imaging &
Printing unit may be the best option in the short-term, which would make those
investors without a long-term perspective pause. However, First Albany thinks
the decision gives H-P management the edge in winning approval of the deal.
(GS)
8:33 (Dow Jones) Treasurys remain trapped in narrow trading ranges and are
mildly weaker across the curve. Fed's Santomero repeats recent "Fed speak" and
is not exerting much influence on market, which awaits factory orders later.
(MM)
8:30 (Dow Jones) A little more weakness is in store for stocks early. Tech
names are rarely far from the action, and they'll certainly be in the thick of
things Wednesday: Amazon (AMZN) is looking weaker after the resignation of its
CFO, while the parties interested in the Hewlett-Packard (HWP) and Compaq (CPQ)
deal will have a chance to react to that ISS call. Microsoft (MSFT) will be in
court starting today in an effort to resolve its issues with the government.
Refis are still going strong, factory orders should continue the streak of
robust economic data, while the release of the Fed's Beige Book always has the
chance to be a market mover. (TG)
(END) DOW JONES NEWS 03-06-02
09:01 AM |
