Let’s take a quick look at analysts’ morning research notes.
The Motorola stock split is on everyone’s minds this morning with a few firms initiating coverage with hold and buy ratings. Here is what they are also telling clients to look at:
- The Clorox Company: Remain on sidelines after another Staples group sales miss
- Johnson & Johnson: Lowering estimates on expectations of slower recovery
- Calix, Inc.: Removing from buy list as stock has reached price target.
- GM added to buy list
- Smith Micro Software: Channel checks showed strong 4G mobile computing upgrade sales; reiterate buy and increase target to $23
- Oil States International: Maintain buy, raise target to $79
- Scotts REIT: Mortgage extended by one month, expecting to receive approval for five more months; maintaining hold and $7.70 target
- Bank of America: Reducing agency reps/warranties loss estimates by $1.2 billion to $10.4 billion given yesterday’s actions and Bank of America’s commentary that it is 70-75% the way thru Government Sponsored Enterprise claims
- Supervalu: Downgrading shares to underweight because the company’s shift in strategy to reduce prices and correct overpricing will collide with an inflationary food cost backdrop
- Safeway: Downgrading shares from equalweight to underweight because grocers will have problems passing through inflation or higher prices could ration demand and translate to disappointing sales
- KapStone Paper: Initiate coverage with hold. Further equity gains require evidence of further margin expansion or a successful acquisition
- Carnival Corporation: Upgraded from hold to buy. Its recent final results indicate a healthy outlook for 2011.
- Motorola split: Shareholders can now decide what level of exposure they want. High growth but with competition and execution risk in smartphones with Motorola Mobility or slower growth but steady margins and cash flows in public safety with Motorola Solutions.
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