Let’s take a look at analysts’ morning notes
- Intel (INTC): Buy. We do not expect the projected PC growth rate of 12%-15% and instead are expecting 6%.
- Merck (MRK): Downgrading to hold. The loss of vorapaxar news flow in 2011 removes Merck’s most significant near-term game-changer.
- It is one of the few large cap names expected to post top- & bottom-line growth until 2015 but with the loss of Vorapaxar and not too many other drug catalysts on the horizon, the company has a dim outlook for expansion.
- Intel (INTC): Buy. This year it is expected to follow up its recent success by expanding margins with a bigger push for revenue growth in both its core and emerging markets.
- If Intel succeeds in these markets, especially emerging, then we think earnings-per-share and valuation will expand.
- Expedia (EXPE): Buy. We will hear more from American Airlines on its earnings call and a court update on the American Airlines/Sabre dispute.
- There is also an expected update from the Department of Justics on the review of the Google/ITA transactions. These upcoming events will be catalysts for shares of this stock.
- Merck (MRK): Buy. Price target lowered by $2 due to removal of Vorapaxar sales.
- We forecast revenues of $11.5 billion which is in line with projections, and earnings-per-share of $0.85, which is a penny above consensus.
- This year synergy targets from the Schering-Plough deal should reach $2.6 billion which will help leverage its income statement.
- After the Vorapaxar disappointment, it may take good guidance on 2011 and good news on the drug Boceprevir to get the stock moving again.
- Marathon Oil (MRO): Equalweight rating. The spin-off announcement initially got investors excited but we think management’s decision to own 100% of the logistics system instead of creating a logistics Master Limited Partnership could be slightly disappointing.
- Some investors may have hoped that an MLP would act as another value creation vehicle.
- Coinstar (CSTR): Maintain neutral. Cutting estimates and price target. It issued a fourth quarter negative preannouncement citing execution challenges that seemed fixable.
- However 2011 guidance was reduced by 12% which indicates a bigger problem that was not revealed in the press release.
- The company is taking action to remedy these problems.
- Intel (INTC): Overweight. Intel is laying the groundwork to be a formidable competitor in the growing tablet and smartphone markets while its largest PC competitor is shifting strategy and searching for a new ceo.
Business Insider Emails & Alerts
Site highlights each day to your inbox.