Filed under: Analyst initiations

MOST NOTEWORTHY: Greatbatch and Blue Coat Systems were today’s noteworthy initiations:

• Piper assumed coverage of Greatbatch (NYSE: GB) with a Neutral rating and $19.50 target as they believe acquisition-related expenses will weigh on near-term bottom-line results.
• Collins Stewart believes shares of Blue Coat Systems (NASDAQ: BCSI) are highly attractive at current levels. The firm started shares with a Buy rating and $29 target.

OTHER INITIATIONS:

• Ultra Petroleum (NYSE: UPL) was initiated at Credit Suisse with an Outperform rating and $82 target.
• Lehman assumed Dana Holding (NYSE: DAN) with an Overweight rating and $15 target.

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Filed under: Analyst upgrades and downgrades, CIT Group (CIT), Gap Inc (GPS), Wells Fargo (WFC), Lehman Br Holdings (LEH)

MOST NOTEWORTHY: Lehman, CIT Group and Auxilium Pharma were today’s noteworthy downgrades:

• Oppenheimer cut Lehman (NYSE: LEH) to Perform from Outperform on valuation, as they see a “protracted challenging capital markets environment.”
• The firm also downgraded CIT Group (NYSE: CIT) to Perform from Outperform, as they believe the company addressed its liquidity concerns too late and will be forced into a fire sale of assets.
• Merriman downgraded shares of Auxilium Pharma (NASDAQ: AUXL) to Sell from Neutral as they believe there were a number of unexpected adverse events in the phase 3 trials of XIAFLEX that could potentially delay the approval and launch. They see significant potential downside in the interim.

OTHER DOWNGRADES:

• Gap (NYSE: GPS) was lowered to Neutral from Buy at UBS.
• Wachovia cut Symmetry Medical (NYSE: SMA) to Market Perform from Outperform.
• Wells Fargo (NYSE: WFC) was downgraded by Baird to Underperform from Neutral.

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Filed under: Analyst upgrades and downgrades, CIT Group (CIT), Gap Inc (GPS), Wells Fargo (WFC), Lehman Br Holdings (LEH)

MOST NOTEWORTHY: Lehman, CIT Group and Auxilium Pharma were today’s noteworthy downgrades:

• Oppenheimer cut Lehman (NYSE: LEH) to Perform from Outperform on valuation, as they see a “protracted challenging capital markets environment.”
• The firm also downgraded CIT Group (NYSE: CIT) to Perform from Outperform, as they believe the company addressed its liquidity concerns too late and will be forced into a fire sale of assets.
• Merriman downgraded shares of Auxilium Pharma (NASDAQ: AUXL) to Sell from Neutral as they believe there were a number of unexpected adverse events in the phase 3 trials of XIAFLEX that could potentially delay the approval and launch. They see significant potential downside in the interim.

OTHER DOWNGRADES:

• Gap (NYSE: GPS) was lowered to Neutral from Buy at UBS.
• Wachovia cut Symmetry Medical (NYSE: SMA) to Market Perform from Outperform.
• Wells Fargo (NYSE: WFC) was downgraded by Baird to Underperform from Neutral.

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Filed under: Analyst upgrades and downgrades, CIGNA Corp (CI)

MOST NOTEWORTHY: Analog Semiconductors, Hill International and Varian Semi were today’s noteworthy upgrades:

• Lehman upgraded Analog Devices (NYSE: ADI), Fairchild Semi (NYSE: FCS), and Intersil Corp (NASDAQ: ISIL) to Overweight from Equal Weight. The firm believes Analog semis have one of the most attractive risk/reward profiles in technology and expects the group to outperform in 2008.
• B. Riley raised Hill International (NYSE: HIL) to Buy from Neutral following the company’s Q4 results which they believe continued to reflect strong growth across both segments of the business.
• ThinkEquity upgraded Varian Semi (NASDAQ: VSEA) to Accumulate from Source of Funds citing valuation and expectations that the company will end up with over 70% of the overall implant market past 2008. The firm adds that scale and pricing power should drive upside to margins.

OTHER UPGRADES:

• Collective Brands (NYSE: PSS) was raised to Buy from Hold at Soleil.
• JP Morgan upgraded Rockwell Collins (NYSE: COL) to Overweight from Neutral.
• UBS upgraded Cigna (NYSE: CI) to Buy from Neutral.

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Filed under: Analyst upgrades and downgrades, CIGNA Corp (CI)

MOST NOTEWORTHY: Analog Semiconductors, Hill International and Varian Semi were today’s noteworthy upgrades:

• Lehman upgraded Analog Devices (NYSE: ADI), Fairchild Semi (NYSE: FCS), and Intersil Corp (NASDAQ: ISIL) to Overweight from Equal Weight. The firm believes Analog semis have one of the most attractive risk/reward profiles in technology and expects the group to outperform in 2008.
• B. Riley raised Hill International (NYSE: HIL) to Buy from Neutral following the company’s Q4 results which they believe continued to reflect strong growth across both segments of the business.
• ThinkEquity upgraded Varian Semi (NASDAQ: VSEA) to Accumulate from Source of Funds citing valuation and expectations that the company will end up with over 70% of the overall implant market past 2008. The firm adds that scale and pricing power should drive upside to margins.

OTHER UPGRADES:

• Collective Brands (NYSE: PSS) was raised to Buy from Hold at Soleil.
• JP Morgan upgraded Rockwell Collins (NYSE: COL) to Overweight from Neutral.
• UBS upgraded Cigna (NYSE: CI) to Buy from Neutral.

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Filed under: Goldman Sachs Group (GS), Bear Stearns Cos (BSC)

The New York Times reports that the New York economy is more dependent on Wall Street than ever. For every Wall Street employee, there are three jobs created to “support” that person. These support jobs are related to the multimillion dollar real estate Wall Street sleeps in and the lunches and dinners they get delivered to their desks.

And New York is more dependent on Wall Street than ever. The Times reports that In New York and surrounding counties, for example, financial workers accounted for 29% of all money earned and only 11% of jobs in 2006. That is up significantly from 1990, when the finance industry accounted for 19% of wages and 12% of jobs.

The troubles in the financial markets have led to 20,000 layoffs — a reduction of over 10% from the nearly 200,000 Wall Street employees before the bust began. Most of The Bear Stearns Companies (NYSE: BSC) 14,000 jobs are expected to go. And The Goldman Sachs Group (NYSE: GS) — which has already cut 5% of its jobs — was rumored by the New York Post to be cutting 20% of its employees.

Why should you care? When Wall Street sneezes, America gets pneumonia.

Continue reading How New York’s problems put America at risk

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Filed under: Goldman Sachs Group (GS), Bear Stearns Cos (BSC)

The New York Times reports that the New York economy is more dependent on Wall Street than ever. For every Wall Street employee, there are three jobs created to “support” that person. These support jobs are related to the multimillion dollar real estate Wall Street sleeps in and the lunches and dinners they get delivered to their desks.

And New York is more dependent on Wall Street than ever. The Times reports that In New York and surrounding counties, for example, financial workers accounted for 29% of all money earned and only 11% of jobs in 2006. That is up significantly from 1990, when the finance industry accounted for 19% of wages and 12% of jobs.

The troubles in the financial markets have led to 20,000 layoffs — a reduction of over 10% from the nearly 200,000 Wall Street employees before the bust began. Most of The Bear Stearns Companies (NYSE: BSC) 14,000 jobs are expected to go. And The Goldman Sachs Group (NYSE: GS) — which has already cut 5% of its jobs — was rumored by the New York Post to be cutting 20% of its employees.

Why should you care? When Wall Street sneezes, America gets pneumonia.

Continue reading How New York’s problems put America at risk

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Filed under: Earnings reports, Wal-Mart (WMT), Gap Inc (GPS), Technical Analysis, Stocks to Buy

Inter Parfums (NASDAQ: IPAR) develops, manufactures and distributes prestige perfumes and cosmetics, as the exclusive worldwide licensee for such names as Burberry, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy and Van Cleef & Arpels. The firm owns owns Lanvin Perfumes and Nickel S.A. It also designs and manufactures personal care products under exclusive agreements with the Gap (NYSE: GPS), New York & Company (NYSE: NWY) and Brooks Brothers. Further, it makes fragrances, cosmetics and personal care products for the mass market. The latter lines are offered by such merchandisers as Wal-Mart Stores (NYSE: WMT). Inter Parfums products are sold in over 120 countries.

The firm surprised the Street last week, when it reported Q4 EPS of 41 cents and revenues of $119.4 million. Analysts had been looking for 34 cents and $119.2 million. Management also guided FY08 EPS to about $1.25 ($1.14 consensus) and FY08 revenues to about $442 million ($439.31M consensus).

Continue reading Inter Parfums (IPAR): Shares defining bullish ‘flag’ pattern

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Filed under: Earnings reports, Wal-Mart (WMT), Gap Inc (GPS), Technical Analysis, Stocks to Buy

Inter Parfums (NASDAQ: IPAR) develops, manufactures and distributes prestige perfumes and cosmetics, as the exclusive worldwide licensee for such names as Burberry, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy and Van Cleef & Arpels. The firm owns owns Lanvin Perfumes and Nickel S.A. It also designs and manufactures personal care products under exclusive agreements with the Gap (NYSE: GPS), New York & Company (NYSE: NWY) and Brooks Brothers. Further, it makes fragrances, cosmetics and personal care products for the mass market. The latter lines are offered by such merchandisers as Wal-Mart Stores (NYSE: WMT). Inter Parfums products are sold in over 120 countries.

The firm surprised the Street last week, when it reported Q4 EPS of 41 cents and revenues of $119.4 million. Analysts had been looking for 34 cents and $119.2 million. Management also guided FY08 EPS to about $1.25 ($1.14 consensus) and FY08 revenues to about $442 million ($439.31M consensus).

Continue reading Inter Parfums (IPAR): Shares defining bullish ‘flag’ pattern

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Filed under: Good news, Economic data, Housing

Existing home sales rose 2.9% in February 2008 to a seasonally-adjusted annual rate of 5.03 million units, the National Association of Realtors announced Monday. Economists surveyed by Bloomberg News had expected February 2008 existing home sales to total a 4.85 million unit annualized rate.

Sales are down 23.8% compared to a year ago. Meanwhile, inventories fell 3% to 4.03 million units, which represents a 9.6-month supply at the current sales pace.

The median sales price also plummeted by 8.2% compared to a year ago, to $195,900. February 2008 sales by region were as follows: Northeast, up 11.3%; Midwest, up 2.5%, South, up 2.1%, and the South, down 1.1%.

February 2008 sales of single-family homes rose 2.8%, while condo sales rose 3.7%.

Housing Sector Analysis: For a change, a good monthly existing home sales report. Sales did not rise dramatically, but the important point is that unit sales did not decline substantially in February 2008 either, and it’s likely lower home sale prices are beginning to stimulate modest demand. Still, a word of caution to potential home buyers in the United States: median home sales prices are likely to continue to decline through at least Q3 2008. One month’s rise in existing home sales is not nearly enough to suggest a trend, and inventories are likely to continue to rise given current foreclosure trends, and due to the approaching spring/summer period when many families planning to move list homes for sale.

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