EMCORE (EMKR) 9.37 +0.17: After the close yesterday, company said Q2 revenues should exceed the 15%-20% sequential quarterly growth previously projected and announced organizational restructuring. Today, Prudential reiterated Buy rating and price target of $17 as firm believes the organizational changes which have resulted in a 20% workforce reduction is prudent and should help company manage more effectively. At current prices, firm thinks EMRK is a good value play for long-term investors... EMKR trading up 1.9%.
Rambus (RMBS) 7.30 -0.20: Yesterday after the close, company beat Q2 EPS estimates by $0.02 and posted in line revenues. However, stock is trading down 2.7% today as analyst were not impressed... JP Morgan reiterated Market Underperform due to a secular decline in business fundamentals, rich valuation and continued litigation risks. Morgan Stanley reiterated Underweight, given the stable earnings power and uncertainty in its various legal proceedings. Firm believes DRAM pricing and end-market demand will likely remain volatile over next couple of Qs, but with half of the royalties being fixed, expects RMBS's revenue to remain relatively stable in upcoming Qs.
11:00 -- 12:00 ET (Updated throughout the hour)
Yahoo! (YHOO) 16 -2.44: Last night, company posted in line Q1 earnings results and reaffirmed Q2 revenues. Currently, the stock is down more than 13% on the day after some mixed analyst comments... Merrill Lynch downgraded to near-term NEUTRAL from near-term Buy following "solid but unspectacular" Q1 results; Salomon Smth Brny reiterated Buy and upped price target to $24 from $23; Thomas Weisel reiterated Buy, citing solid March Q and many catalysts on the horizon; and USB Piper Jaffray reiterated Outperform, believing YHOO has upside as company's profitability improves, making its high multiple gradually more palatable, while potential of a rebound in ad market makes Yahoo a good play for recovery. |
