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Good morning. Here’s your daily equity research round up from the Street.Citi:
Advanced Micro Devices (AMD): Citi had expected a miss from AMD last night, but the magnitude (a pre-announced sales decline of 11 per cent versus the expected 3 to 5 per cent) was surprising. The decline comes from an overall weak PC market and share loss to Intel. Citi has reduced their target price to $8 from $10.50.
Gaming and Lodging: Credit Suisse has reduced estimates and target prices across the board for the sector, believing the Q1 rally in the sector is firmly over, and that the Q2 correction will continue. A risk off environment coupled with European and Asian macro concerns will keep up the pressure. Affected stocks include Hyatt Hotels (H- $51 to $45) and Las Vegas Sands (LVS- $68 to $59).
American Express (AXP): Nomura has upgraded the credit card company from Neutral to Buy and raised their target price from $52 to $69. Analysts believe the company is evolving into a higher return, lower risk business. Analysts Bill Carcache and Tulu Yunus like AXP’s fee based initiatives and the company’s long term growth prospects.
Alcoa (AA): Alcoa narrowly beat earnings expectations last night, but Jefferies still reduced estimates and their price target from $12 to $11. Analysts say that cost cutting measures are flowing primarily to consumers, not shareholders, and that the strong dollar and sluggish aluminium prices will continue to weigh on the company.