SolarWinds, Inc. (NYSE: SWI), Harmonic (NASDAQ: HLIT), BMC Software, Inc. (NYSE: BMC), The Western Union Company (NYSE: WU), Amtrust Financial Services, Inc. (NASDAQ: AFSI) and Quest Software, Inc. (NASDAQ: QSFT) getting new coverage from analysts.
Jefferies (NYSE:JEF) initiated coverage on SolarWinds, Inc. (SWI). They placed a “Buy” rating and a price target of $27.00 on the company.
Kaufman Brothers initiated coverage on Harmonic (HLIT). They placed a “Hold” rating and a price target of $6.50 on the company.
Jefferies initiated coverage on BMC Software, Inc. (BMC). They placed a “buy” rating and a $53.00 price target on the company.
Sterne Agee initiated coverage on The Western Union Company (WU). They placed a “buy” rating and a price target of $21.00 on the company.
SunTrust (NYSE:STI) initiated coverage on Amtrust Financial Services, Inc. (AFSI). They placed a “Buy” rating on the company.
Jefferies initiated coverage on Quest Software, Inc. (QSFT). They placed a “Hold” rating and a price target of $16.00 on the company.
Showing posts with label Kaufman. Show all posts
Showing posts with label Kaufman. Show all posts
Friday, August 19, 2011
Wednesday, April 27, 2011
AK Steel (AKS), First Solar (FSLR), Gulfmark Offshore (GLF) Get Ratings Upgrade
Shares of AK Steel (NYSE:AKS), First Solar (NASDAQ:FSLR) and Gulfmark Offshore (NYSE:GLF) were all upgraded to "Buy" or "Neutral" on April 27 by various brokerages.
AK Steel (AKS) was upgraded by Dahlman Rose from "Hold" to "Buy." They have a price target of $22 on AK. The steel firm is seeing higher volumes and is successfully managing costs.
First Solar (FSLR) was upgraded by Kaufman from "Hold" to "Buy." Kaufman Bros. has a price target of $165 on the company. The share price has plunged 25 percent since January highs and the company is considered the likely candidate to emerge as a clear leader in the solar industry.
Global Hunter Securities upgraded Gulfmark Offshore (NYSE:GLF) from "Reduce" to "Neutral."
AK Steel (AKS) was upgraded by Dahlman Rose from "Hold" to "Buy." They have a price target of $22 on AK. The steel firm is seeing higher volumes and is successfully managing costs.
First Solar (FSLR) was upgraded by Kaufman from "Hold" to "Buy." Kaufman Bros. has a price target of $165 on the company. The share price has plunged 25 percent since January highs and the company is considered the likely candidate to emerge as a clear leader in the solar industry.
Global Hunter Securities upgraded Gulfmark Offshore (NYSE:GLF) from "Reduce" to "Neutral."
Tuesday, April 26, 2011
Microsoft (MSFT) (BEAV) (OTEX) (SFSF) (VECO) PTs Boosted
The shares of Microsoft Corp (NASDAQ: MSFT), BE Aerospace (NASDAQ: BEAV), Open Text (NASDAQ: OTEX), SuccessFactors, Inc. (NASDAQ: SFSF) and Veeco Instruments Inc. (NASDAQ: VECO) were all boosted April 26 by several analysts.
RBC Capital raised their price target on BE Aerospace (BEAV) from $46.00 to $48.00. They have a “Top Pick” rating on the company.
Morgan Stanley (NYSE:MS) boosted its price target on Microsoft Corp (MSFT) to $32.00. They have an “Overweight” rating on the software giant.
Wedbush raised their price target on Open Text (OTEX) from $55.00 to $65.00. They have a “Neutral” rating on the OTEX.
RBC Capital increased its price target on SuccessFactors, Inc. (SFSF) from $35.00 to $40.00. They have an “Outperform” rating on them.
Kaufman Brothers raised its price target on Veeco Instruments Inc. (VECO) from $55.00 to $60.00. They have a “Buy” rating on the firm.
RBC Capital raised their price target on BE Aerospace (BEAV) from $46.00 to $48.00. They have a “Top Pick” rating on the company.
Morgan Stanley (NYSE:MS) boosted its price target on Microsoft Corp (MSFT) to $32.00. They have an “Overweight” rating on the software giant.
Wedbush raised their price target on Open Text (OTEX) from $55.00 to $65.00. They have a “Neutral” rating on the OTEX.
RBC Capital increased its price target on SuccessFactors, Inc. (SFSF) from $35.00 to $40.00. They have an “Outperform” rating on them.
Kaufman Brothers raised its price target on Veeco Instruments Inc. (VECO) from $55.00 to $60.00. They have a “Buy” rating on the firm.
Thursday, April 21, 2011
Quest Diagnostics (DGX) PT Raised on Stronger Volumes
Quest Diagnostics (NYSE:DGX) had its price target raised on it by Kaufman Brothers, citing an improvement in volume at the company.
Kaufman says that, "volume is a leading indicator that Quest is not only retaining its current volume base, but with somewhat spotty reports on the physician office visit front, that it could also be seeing the early signs of "traction" with its specialized sales initiative that could lead to some mild market share gains. Pricing softness disappointed us. Importantly, there is "visibility" on improvement, as contract discounts are set to anniversary in 2H11."
Kaufman Bros. is cutting its full year 2011 EPS estimate from $4.55 to $4.37 and is maintaining its full year 2012 estimate of $4.95. It also raised its full year 2011 revenue by 1 percent to $7,532.9 million.
Quest was trading at $56.71, falling $1.15, or 1.99 percent, as of 2:25 PM EDT. Kaufman maintains a "Buy" rating on Quest Diagnostics, while increasing its price target from $64 to $69.
Kaufman says that, "volume is a leading indicator that Quest is not only retaining its current volume base, but with somewhat spotty reports on the physician office visit front, that it could also be seeing the early signs of "traction" with its specialized sales initiative that could lead to some mild market share gains. Pricing softness disappointed us. Importantly, there is "visibility" on improvement, as contract discounts are set to anniversary in 2H11."
Kaufman Bros. is cutting its full year 2011 EPS estimate from $4.55 to $4.37 and is maintaining its full year 2012 estimate of $4.95. It also raised its full year 2011 revenue by 1 percent to $7,532.9 million.
Quest was trading at $56.71, falling $1.15, or 1.99 percent, as of 2:25 PM EDT. Kaufman maintains a "Buy" rating on Quest Diagnostics, while increasing its price target from $64 to $69.
Thursday, February 24, 2011
Buy Sprint (S) Says Kaufman, Citing Smartphones, ARPU
Kaufman Brothers analyst Ben Abramovitz started coverage on Sprint (NYSE:S) with a "Buy" rating, citing average revenue per user and growing smartphone share.
On ARPU Abramovitz noted, “It is no surprise that given faster throughput, coupled with mobility, data consumption will tend to rise,” he said, which could lead to, “a new generation in wireless revenue potential with fewer competitors in the domestic market and a decline in the cost of network equipment. Wireless data ARPU is up nearly $2 in the past year alone, ending the year at close to an average of $18 in the fourth quarter and with pricing rising in 2011, we continue to see further improvement to data revenues on the horizon.”
Abramovitz said concerning smartphones that “At present, 50% of Sprint’s CDMA post-paid wireless customer base is using smartphones with 69% of all new customers in 4Q electing to purchase one. We continue to believe that penetration rates within the customer base will quickly move toward 70% potentially benefiting wireless revenue.”
Sprint closed Wednesday at $4.20, dropping $0.12, or 2.78 percent. Abramovitz has a price target of $6.25 on Sprint.
On ARPU Abramovitz noted, “It is no surprise that given faster throughput, coupled with mobility, data consumption will tend to rise,” he said, which could lead to, “a new generation in wireless revenue potential with fewer competitors in the domestic market and a decline in the cost of network equipment. Wireless data ARPU is up nearly $2 in the past year alone, ending the year at close to an average of $18 in the fourth quarter and with pricing rising in 2011, we continue to see further improvement to data revenues on the horizon.”
Abramovitz said concerning smartphones that “At present, 50% of Sprint’s CDMA post-paid wireless customer base is using smartphones with 69% of all new customers in 4Q electing to purchase one. We continue to believe that penetration rates within the customer base will quickly move toward 70% potentially benefiting wireless revenue.”
Sprint closed Wednesday at $4.20, dropping $0.12, or 2.78 percent. Abramovitz has a price target of $6.25 on Sprint.
Monday, January 31, 2011
Amazon.com's (NASDAQ:AMZN) Long-Term Growth Outlook Remains Solid
While Amazon.com (NASDAQ:AMZN) won't escape the short-term punishment of their share price after their recent quarterly report, over the long haul they're still positioned for a successful run.
Kaufman said, "We continue to believe that while Amazon has excellent long-term growth prospects, the stock should trade sideways near term, due to margin pressure, fully priced valuation and tougher comps. Recent financial results support our thesis of top-line growth with margin pressure. That said, we believe Amazon deserves kudos for being able to grow at a high rate despite a very large base. We are keeping our 2011 revenue numbers unchanged at $45.5B, while lowering our earnings estimate by 8% to reflect continued pressure on operating margins."
Kaufman maintains a "Hold" rating on Amazon.com, which closed Friday at $171.14, losing $13.31, or 7.22 percent. Kaufman lowered their price target on Amazon from $163 to $154.
Kaufman said, "We continue to believe that while Amazon has excellent long-term growth prospects, the stock should trade sideways near term, due to margin pressure, fully priced valuation and tougher comps. Recent financial results support our thesis of top-line growth with margin pressure. That said, we believe Amazon deserves kudos for being able to grow at a high rate despite a very large base. We are keeping our 2011 revenue numbers unchanged at $45.5B, while lowering our earnings estimate by 8% to reflect continued pressure on operating margins."
Kaufman maintains a "Hold" rating on Amazon.com, which closed Friday at $171.14, losing $13.31, or 7.22 percent. Kaufman lowered their price target on Amazon from $163 to $154.
Thursday, January 27, 2011
MEMC Electronic Materials (Nasdaq:MEMC) Revenues Expected to Improve in Solar, Semi
MEMC Electronic Materials (Nasdaq:MEMC) is expected to have a strong quarter, according to Kaufman, led by revenue increases in semi and solar.
Kaufman says, "We look for meaningful improvements to semi and solar revenues driven by modest increases to ASPs and volumes. We expect significant improvement from MEMC's subsidary, SunEdison, as the remaining payment for the Rovigo project was completed in December 2010. Our estimates for this piece of the business implies fourth quarter and 2010 installations of 110 MWs and 139 MWs at a module cost of $5.50, but only 25% revenue recognition. For 4Q10, we forecast non-GAAP revenues of $1.1 billion which is 26% above consensus expectations of $901 million. For 2010, we anticipate non-GAAP revenues of $2.6 billion versus consensus expectations of $2.2 billion...Our 2011 non-GAAP EPS estimate of $1.14 is 15% above the consensus estimate of $0.99."
Kaufman Bros. reiterates a "Buy" rating on MEMC Electronic Materials (MEMC), which was trading at $11.32, falling $0.21, or 1.82 percent, as of 2:27 PM EST. Kaufman has a price target on MEMC of $13.50.
Kaufman says, "We look for meaningful improvements to semi and solar revenues driven by modest increases to ASPs and volumes. We expect significant improvement from MEMC's subsidary, SunEdison, as the remaining payment for the Rovigo project was completed in December 2010. Our estimates for this piece of the business implies fourth quarter and 2010 installations of 110 MWs and 139 MWs at a module cost of $5.50, but only 25% revenue recognition. For 4Q10, we forecast non-GAAP revenues of $1.1 billion which is 26% above consensus expectations of $901 million. For 2010, we anticipate non-GAAP revenues of $2.6 billion versus consensus expectations of $2.2 billion...Our 2011 non-GAAP EPS estimate of $1.14 is 15% above the consensus estimate of $0.99."
Kaufman Bros. reiterates a "Buy" rating on MEMC Electronic Materials (MEMC), which was trading at $11.32, falling $0.21, or 1.82 percent, as of 2:27 PM EST. Kaufman has a price target on MEMC of $13.50.
Kaufman Sees Amazon.com (Nasdaq:AMZN) Beat, But Possible Downside Ahead
Amazon.com (Nasdaq:AMZN) should beat analysts estimates when they report fourth quarter earnings after close today, but Kaufman sees some potential for downside, even though they raised their EPS and PT on them.
As far as beating Street estimates, Kaufman gave their reasoning as "acceleration in US eCommerce, blow out Kindle sales since the price cut and Kindle 3 launch and continued strong international sales." They added that "PF EPS should be largely in line with consensus on higher fulfillment and marketing expenses."
Kaufman raised fourth quarter EPS from $1.02 to $1.17, full year 2010 from $3.28 to $3.42 and full year 2011 from $4.68 to $4.80.
Kaufman reiterates their "Hold" rating on Amazon.com, which closed Wednesday at $175.39, dropping $1.31, or 0.74 percent. Kaufman raised their price target on Amazon from $145 to $163.
As far as beating Street estimates, Kaufman gave their reasoning as "acceleration in US eCommerce, blow out Kindle sales since the price cut and Kindle 3 launch and continued strong international sales." They added that "PF EPS should be largely in line with consensus on higher fulfillment and marketing expenses."
Kaufman raised fourth quarter EPS from $1.02 to $1.17, full year 2010 from $3.28 to $3.42 and full year 2011 from $4.68 to $4.80.
Kaufman reiterates their "Hold" rating on Amazon.com, which closed Wednesday at $175.39, dropping $1.31, or 0.74 percent. Kaufman raised their price target on Amazon from $145 to $163.
Tuesday, January 11, 2011
Rovi Corp. (NASDAQ:ROVI) Estimates Lowered on Probable Profit-Taking
Rovi Corp. (NASDAQ:ROVI) had their EPS estimate lowered by Kaufman Bros., based on their belief the company will be experiencing some profit-taking soon.
Kaufman cited the run-up in the share price of Rovi by 94 percent in 2010 as a major part of their reasoning.
They lowered their full year 2011 EPS/revenue estimates to $2.55/$605 million from $2.65/$622 million. Rovi also gave guidance of $585 million - $615 million for revenue and $2.35-$2.55 for EPS estimates for full year 2011.
Rovi added full year 2011 revenue will be more back-ended than normal.
Kaufman said they see this as a positive and would consider a pullback a buying opportunity.
Rovi closed Monday at $64.33, gaining $1.55, or 2.47 percent. Volume was over 4 times the 3-month daily average.
Kaufman cited the run-up in the share price of Rovi by 94 percent in 2010 as a major part of their reasoning.
They lowered their full year 2011 EPS/revenue estimates to $2.55/$605 million from $2.65/$622 million. Rovi also gave guidance of $585 million - $615 million for revenue and $2.35-$2.55 for EPS estimates for full year 2011.
Rovi added full year 2011 revenue will be more back-ended than normal.
Kaufman said they see this as a positive and would consider a pullback a buying opportunity.
Rovi closed Monday at $64.33, gaining $1.55, or 2.47 percent. Volume was over 4 times the 3-month daily average.
Monday, January 3, 2011
Sprint (NYSE:S) Expected to Acquire $200 Million of Clearwire (NASDAQ:CLWR) Debt
In an effort to keep their majority stake in Clearwire (NASDAQ:CLWR), Sprint (NYSE:S) is expected to acquire about $200 million in Clearwire debt.
Kaufman noted, "Expecting Sprint (NYSE: S) to opt-in and purchase roughly $200 million of Clearwire debt...we expect Sprint to participate but reduce its economic interest to just above 50%, down from 54% before the debt offering...Total fund raising would exceed $2 billion with full Sprint participation."
Kaufman Bros. maintains a "Hold' on Clearwire, which closed Friday at $5.15, down $0.07, or 1.34 percent. They have a price target of $7 on Clearwire. Sprint closed Friday at $4.23, up $0.07, or 1.68 percent.
Kaufman noted, "Expecting Sprint (NYSE: S) to opt-in and purchase roughly $200 million of Clearwire debt...we expect Sprint to participate but reduce its economic interest to just above 50%, down from 54% before the debt offering...Total fund raising would exceed $2 billion with full Sprint participation."
Kaufman Bros. maintains a "Hold' on Clearwire, which closed Friday at $5.15, down $0.07, or 1.34 percent. They have a price target of $7 on Clearwire. Sprint closed Friday at $4.23, up $0.07, or 1.68 percent.
Johnson Controls (NYSE:JCI) Acquisitions Bodes Well for 2011
Johnson Controls (NYSE:JCI) has a history of successfully acquiring and assimilating companies into their fold, and with their acquisitions of KEIPER and Recaro, they are positioned well heading into the new year.
Kaufman said, "JCI expands seat business with acquisitions. JCI announced two acquisitions yesterday to augment its Automotive Experience segment. The first acquisition was for KEIPER, which manufactures the mechanisms for seats, and the second was the sport seat business of Recaro. While financial terms were not disclosed, the company has a long history of successfully integrating acquisitions and importantly taking out costs and achieving meaningful synergies...Maintaining above-consensus 2011/2012 EPS estimates of $2.60 and $3.00."
Kaufman Bros. maintains a "Buy" rating on Johnson Controls, which closed Friday at $18.53, up $0.36, or 1.98 percent. Kaufman raised their price target on them to $41.
Kaufman said, "JCI expands seat business with acquisitions. JCI announced two acquisitions yesterday to augment its Automotive Experience segment. The first acquisition was for KEIPER, which manufactures the mechanisms for seats, and the second was the sport seat business of Recaro. While financial terms were not disclosed, the company has a long history of successfully integrating acquisitions and importantly taking out costs and achieving meaningful synergies...Maintaining above-consensus 2011/2012 EPS estimates of $2.60 and $3.00."
Kaufman Bros. maintains a "Buy" rating on Johnson Controls, which closed Friday at $18.53, up $0.36, or 1.98 percent. Kaufman raised their price target on them to $41.
Thursday, December 30, 2010
Research In Motion (Nasdaq:RIMM) Denies Battery Claim
Recently a Kaufman analyst reported the battery life of their Playbook only lasted up to 4 hours, an assertion Research In Motion (Nasdaq:RIMM) has come out and denied.
RIM said testing would have been performed on a pre-beta unit, which didn't include the power management device installed and would have ended with different results.
“Any testing of battery life to date by anyone outside of RIM would have been performed using pre-beta units that were built without power management implemented,” RIM said in a statement. “RIM is on track with its schedule to optimize the BlackBerry PlayBook’s battery life and looks forward to providing customers with a professional grade tablet that offers superior performance with comparable battery life.”
We'll see if that has changed any of the story that claimed the release of Playbook would have to be pushed back in order to improve the battery. If it wasn't a problem than release should be close to being on schedule.
Research In Motion was trading at $57.94, down $0.23, or 0.40 percent.
RIM said testing would have been performed on a pre-beta unit, which didn't include the power management device installed and would have ended with different results.
“Any testing of battery life to date by anyone outside of RIM would have been performed using pre-beta units that were built without power management implemented,” RIM said in a statement. “RIM is on track with its schedule to optimize the BlackBerry PlayBook’s battery life and looks forward to providing customers with a professional grade tablet that offers superior performance with comparable battery life.”
We'll see if that has changed any of the story that claimed the release of Playbook would have to be pushed back in order to improve the battery. If it wasn't a problem than release should be close to being on schedule.
Research In Motion was trading at $57.94, down $0.23, or 0.40 percent.
IPC The Hospitalist Company's (NASDAQ:IPCM) HIMS Acquisition Pure Upside in 2011
Saying the size and timing of the acquisition of HIMS by IPC The Hospitalist Company (NASDAQ:IPCM) positions them for "pure" upside for their EPS estimate, Kaufman raised it, while added they've secured growth in 2011 from a range of 25 percent to 30 percent.
Kaufman noted, "We now look for 2011E EPS growth of 27%. Similar to the SCOC transaction (announced on 12/1/10), based on the size and the timing so late in 2010, the HIMS acquisition represents virtually "pure" upside to our 2011E EPS expectation, where we pre-layered $20M in acquisition spend throughout the year that we still expect to occur. As a result, we are raising our 2011E EPS by $0.05 to $1.83. In our view, IPC has secured its 2011 growth in the 25%-30% range with the flurry of acquisition activity in 4Q10, and while we think it is prudent to maintain a PEG discount based on the DOJ investigation, we are comfortable with a multiple in line with its current earnings growth rate (i.e., 2010 in the 23%-24% range)."
Kaufman Bros. maintains a "Buy" rating on IPC The Hospitalist Company, which closed Wednesday at $38.65, gaining $0.45, or 1.18 percent. Kaufman raised their price target on them from $36 to $43.
Kaufman noted, "We now look for 2011E EPS growth of 27%. Similar to the SCOC transaction (announced on 12/1/10), based on the size and the timing so late in 2010, the HIMS acquisition represents virtually "pure" upside to our 2011E EPS expectation, where we pre-layered $20M in acquisition spend throughout the year that we still expect to occur. As a result, we are raising our 2011E EPS by $0.05 to $1.83. In our view, IPC has secured its 2011 growth in the 25%-30% range with the flurry of acquisition activity in 4Q10, and while we think it is prudent to maintain a PEG discount based on the DOJ investigation, we are comfortable with a multiple in line with its current earnings growth rate (i.e., 2010 in the 23%-24% range)."
Kaufman Bros. maintains a "Buy" rating on IPC The Hospitalist Company, which closed Wednesday at $38.65, gaining $0.45, or 1.18 percent. Kaufman raised their price target on them from $36 to $43.
Wednesday, December 29, 2010
Terremark Worldwide's (NASDAQ:TMRK) Momemtum to Continue Through 2012
With the business model of Terremark Worldwide (NASDAQ:TMRK) offering clarity into probable future revenue and earnings, Kaufman sees them growing by 20 percent in fiscal year 2011, and 25 percent in fiscal year 2012.
Kaufman said, "Terremark's business model provides good visibility into future quarters with high recurring revenue. The company continues to demonstrate business momentum and we believe can continue to attract new customers with its mix of colocation, managed hosting and cloud. Despite a soft economic environment the company is poised to grow its top line roughly 20% this fiscal year and we expect growth to accelerate to nearly 25% top-line growth in fiscal 2012 with EBITDA growth of over 37% along with margin expansion. The opportunity provided by the company's relationship with Verizon and the federal government provide a material opportunity to drive additional business momentum."
Kaufman Bros. maintains a "Buy" on Terremark Worldwide, which closed Tuesday at $12.78, down $0.26, or 1.99 percent. Kaufman raised their price target on them from $11 to $15.
Kaufman said, "Terremark's business model provides good visibility into future quarters with high recurring revenue. The company continues to demonstrate business momentum and we believe can continue to attract new customers with its mix of colocation, managed hosting and cloud. Despite a soft economic environment the company is poised to grow its top line roughly 20% this fiscal year and we expect growth to accelerate to nearly 25% top-line growth in fiscal 2012 with EBITDA growth of over 37% along with margin expansion. The opportunity provided by the company's relationship with Verizon and the federal government provide a material opportunity to drive additional business momentum."
Kaufman Bros. maintains a "Buy" on Terremark Worldwide, which closed Tuesday at $12.78, down $0.26, or 1.99 percent. Kaufman raised their price target on them from $11 to $15.
Wednesday, December 22, 2010
Apple (NASDAQ:AAPL) TV Sales Reach 1 Million, Not Relevant Yet
Kaufman Brothers said the announcement by Apple (NASDAQ:AAPL) that they reached 1 million in sales for Apple TV was "Immaterial" at this time, but is considered a positive based on future contributions to the company.
Kaufman said, "While this is in line with the higher-end of expectations of 1 million units per quarter and fairly modest at a $400 million annual revenue run-rate for a company consensus is modeling $88 billion in fiscal 2011 revenue, we nonetheless view it as a positive as we firmly believe Apple TV has the potential to become a more material contributor and game changer in the TV space."
Concerning Apps and Apple TV, they added, "This capability isn't available today but we believe it could be added fairly easily as Apple TV uses a similar A4 processor architecture as the iPhone, iPad and iPod touch."
Apple was trading at $325.21, up $1.01, or 0.31 percent, as of 11:53 AM EST.
Kaufman said, "While this is in line with the higher-end of expectations of 1 million units per quarter and fairly modest at a $400 million annual revenue run-rate for a company consensus is modeling $88 billion in fiscal 2011 revenue, we nonetheless view it as a positive as we firmly believe Apple TV has the potential to become a more material contributor and game changer in the TV space."
Concerning Apps and Apple TV, they added, "This capability isn't available today but we believe it could be added fairly easily as Apple TV uses a similar A4 processor architecture as the iPhone, iPad and iPod touch."
Apple was trading at $325.21, up $1.01, or 0.31 percent, as of 11:53 AM EST.
Friday, December 17, 2010
Apple (NASDAQ:AAPL) Enjoying Strong Sales in Most Segments
Apple (NASDAQ:AAPL) has been enjoying strong sales this Christmas season, as their MacBook Air and iPod sales continue to soar, with some spot shortages.
"We continue to pick up spot shortages of the iPod nano and some iPod touches as well as tight supply of new MacBook Air, driven by strong demand. In addition, our checks indicate that iPad and iPhone momentum is stronger than we expected helped by broader geographic availability and higher production levels," said Kaufman.
Analyst Shaw Wu raised his sales estimates for Apples major products in their fiscal first quarter. For Mac computers, he increased it from 4 million units sold to 4.2 million. For iPads, he upwardly revised units sold from 5.5 million to 6.1 million. For iPhones, from 15.5 million to 16 million, and for iPods, from 16 million to 17 million.
He also raised revenue estimates from $23 billion to $24.2 billion, and EPS estimates from $5.12 to $.36 for the first quarter.
Apple closed Thursday at $321.21, up $0.89, or 0.28 percent. Wu raised his price target on Apple from $380 to $395.
"We continue to pick up spot shortages of the iPod nano and some iPod touches as well as tight supply of new MacBook Air, driven by strong demand. In addition, our checks indicate that iPad and iPhone momentum is stronger than we expected helped by broader geographic availability and higher production levels," said Kaufman.
Analyst Shaw Wu raised his sales estimates for Apples major products in their fiscal first quarter. For Mac computers, he increased it from 4 million units sold to 4.2 million. For iPads, he upwardly revised units sold from 5.5 million to 6.1 million. For iPhones, from 15.5 million to 16 million, and for iPods, from 16 million to 17 million.
He also raised revenue estimates from $23 billion to $24.2 billion, and EPS estimates from $5.12 to $.36 for the first quarter.
Apple closed Thursday at $321.21, up $0.89, or 0.28 percent. Wu raised his price target on Apple from $380 to $395.
Tuesday, December 7, 2010
Apple (NASDAQ:AAPL) Having its Way with Verizon (NYSE:VZ)?
It sounds like Verizon's (NYSE:VZ) reported desire to keep competitors T-Mobile USA and/or Sprint (NYSE:S) from having Apple's (NASDAQ:AAPL) iPhone on their networks is making them very malleable to what Apple wants from them in return.
Kaufman Bros. analyst Shaw Wu said, "We are hearing that (VZ) does not want iPhone, the hottest selling smartphone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T. For these reasons, (VZ) could be more willing to give in to Apple's terms."
The only other competitor in the U.S. for Verizon would be AT&T Inc. (NYSE:T) if this is how it plays out.
Verizon customers should be able to use the iPhone on the wireless network in the early part of 2011.
Verizon closed Monday at $32.89, down $0.01, or 0.03 percent.
Kaufman Bros. analyst Shaw Wu said, "We are hearing that (VZ) does not want iPhone, the hottest selling smartphone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T. For these reasons, (VZ) could be more willing to give in to Apple's terms."
The only other competitor in the U.S. for Verizon would be AT&T Inc. (NYSE:T) if this is how it plays out.
Verizon customers should be able to use the iPhone on the wireless network in the early part of 2011.
Verizon closed Monday at $32.89, down $0.01, or 0.03 percent.
Hanger Orthopedic (NYSE:HGR) PT Raised by Kaufman
With the idea of seeing how Hanger Orthopedic (NYSE:HGR) and its ACP can add to the overall company, they're going to run the two separately in order to measure their contribution to the overall whole.
Initially it'll last from a range of 6 months to up to a year.
Kaufman likes the idea, and raised their price target on Hanger Orthopedic.
Those running ACP believe they can reach as many as 50 buildings a month in 2011.
Hanger closed Monday at an even $20, up by $0.50, or 2.56 percent. Kaufman raised their price target on them from $22 to $25.
Initially it'll last from a range of 6 months to up to a year.
Kaufman likes the idea, and raised their price target on Hanger Orthopedic.
Those running ACP believe they can reach as many as 50 buildings a month in 2011.
Hanger closed Monday at an even $20, up by $0.50, or 2.56 percent. Kaufman raised their price target on them from $22 to $25.
Wednesday, December 1, 2010
Comcast (Nasdaq:CMCSA) Seeking Fees from Akami (Nasdaq:AKAM), Limelight (Nasdaq:LLNW), Level 3 (Nasdaq:LVLT)
Saying they're subsidizing the content delivery businesses of Akami (Nasdaq:AKAM), Limelight (Nasdaq:LLNW) and Level 3 (Nasdaq:LVLT), Comcast (Nasdaq:CMCSA) has asked them all to pay fees to them.
Kaufman said, "On November 19, Comcast informed Level 3 that it would charge it a recurring fee to transmit online video content to Comcast subs. The request followed a November 11 announcement from Level 3 that it was selected as the primary content delivery network (CDN) for Netflix. Comcast also requested fees from Akami and Limelight for similar over-the-top (OTT) services and came to commercial agreements. However, Level 3 balked at the request, and instead accused Comcast of anti-competitive business practices, charging the request violates the principle of net neutrality, and asking the FCC to block the Comcast/NBCU deal. Comcast argues that it has made an investment to enable these services and it should not be forced to subsidize someone else's business."
Kaufman made several other observations:
1) Comcast's actions put the concept of Net Neutrality to a test. Comcast's demands from Level 3 clearly violate the principals of net neutrality. That being open and equal access to all Internet content. However, the commercial model for achieving this goal remains elusive, particularly when juxtaposed against the FCC's other mandate of increasing broadband penetration, and importantly, the legal framework for defining and enforcing these principles is virtually nonexistent;
2) Aggressive stance signals comfort with regulatory environment. Comcast is a relatively conservative organization. We believe Comcast's aggressive stance with Level 3 is a signal that it is comfortable with the regulatory treatment of both the proposed NBCU deal and the FCC's upcoming proclamation on net neutrality;
3) The ability to charge for last-mile access would enhance cable's position...If Comcast is successful in seeking a fee from Level 3, the CDN will likely be forced to push this cost back to Netflix, or other OTT content providers, effectively ending the economic advantage of OTT distribution.
Kaufman maintains a "Buy" rating on Comcast, which closed Tuesday at $20.04, falling $0.17, or 0.87 percent. Kaufman has a price target of $25 on them.
Kaufman said, "On November 19, Comcast informed Level 3 that it would charge it a recurring fee to transmit online video content to Comcast subs. The request followed a November 11 announcement from Level 3 that it was selected as the primary content delivery network (CDN) for Netflix. Comcast also requested fees from Akami and Limelight for similar over-the-top (OTT) services and came to commercial agreements. However, Level 3 balked at the request, and instead accused Comcast of anti-competitive business practices, charging the request violates the principle of net neutrality, and asking the FCC to block the Comcast/NBCU deal. Comcast argues that it has made an investment to enable these services and it should not be forced to subsidize someone else's business."
Kaufman made several other observations:
1) Comcast's actions put the concept of Net Neutrality to a test. Comcast's demands from Level 3 clearly violate the principals of net neutrality. That being open and equal access to all Internet content. However, the commercial model for achieving this goal remains elusive, particularly when juxtaposed against the FCC's other mandate of increasing broadband penetration, and importantly, the legal framework for defining and enforcing these principles is virtually nonexistent;
2) Aggressive stance signals comfort with regulatory environment. Comcast is a relatively conservative organization. We believe Comcast's aggressive stance with Level 3 is a signal that it is comfortable with the regulatory treatment of both the proposed NBCU deal and the FCC's upcoming proclamation on net neutrality;
3) The ability to charge for last-mile access would enhance cable's position...If Comcast is successful in seeking a fee from Level 3, the CDN will likely be forced to push this cost back to Netflix, or other OTT content providers, effectively ending the economic advantage of OTT distribution.
Kaufman maintains a "Buy" rating on Comcast, which closed Tuesday at $20.04, falling $0.17, or 0.87 percent. Kaufman has a price target of $25 on them.
Monday, November 29, 2010
Google (Nasdaq:GOOG) Android Ads Growing Faster than Apple's (Nasdaq:AAPL) iOS
Kaufman Bros, said that the mobile ad market in the U.S. is poised to jump by 55 percent in 2011, as growth in 2010 should soar by 80 percent before the end of the year, and Google (Nasdaq:GOOG) Android's ad impressions are growing a lot faster then Apple's (Nasdaq:AAPL) iOS, which should make them the main beneficiary of the mobile ad growth going forward.
On average, Kaufman said mobile advertising campaigns are now at a range of about $75,000 to $100,000 each, not a small budget. Overall advertising in 2011 is estimated to reach about $1 billion.
Kaufman also noted that a number of large advertisers like Citigroup (NYSE:C), among a number of others, are allocating more of their advertising spend to mobile devices.
Google closed Friday at $590.00, falling $4.97, or 0.84 percent. Apple closed at $315.00, gaining $0.20, or 0.07 percent.
Kaufman maintains a "Buy" rating on Google, and have placed a price target of $650 on them.
On average, Kaufman said mobile advertising campaigns are now at a range of about $75,000 to $100,000 each, not a small budget. Overall advertising in 2011 is estimated to reach about $1 billion.
Kaufman also noted that a number of large advertisers like Citigroup (NYSE:C), among a number of others, are allocating more of their advertising spend to mobile devices.
Google closed Friday at $590.00, falling $4.97, or 0.84 percent. Apple closed at $315.00, gaining $0.20, or 0.07 percent.
Kaufman maintains a "Buy" rating on Google, and have placed a price target of $650 on them.
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