UBS believes the mobile device industry will show strong value growth this year and next, based on continued strong subscriber growth and replacement demand in both developed and emerging markets. Nokia's (NOK) competitive position within the industry is seen as improving in areas such as relative value share and product portfolio.
Baird notes that Microsoft (MSFT) confirmed it would acquire privately-held Softricty. Firm says there will likely be a good deal of confusion over how the acquisition might impact Citrix Systems (CTXS), and says the bottom line is that the acquisition should not disrupt CTXS' current business, but might alter CTXS' future product plans. The firm maintains an outperform.
Also on MSFT...Tuesday Microsoft Says New Windows Is on Schedule . . . yesterday Ballmer said that the planned January launch may slip further based on feedback from a beta release program and the product road-maps of hardware vendors.
Needham raised their target on Seagate (STX) to $38. The firm is saying that as they suggested earlier, STX Seagate now expects Maxtor integration to proceed faster than originally anticipated, with the bulk completed within 6-9 vs. prior comments of 9-12 months. Most Maxtor product lines will be eliminated by the end of 3rd quarter, with 10KSAS, 500GB, and the company's retail brand remaining. Maxtor's U.S. media production to be shut down, with production shifted to Asia. Long-term Komag supply relationship will be essential in enabling this transition.
UBS cuts their target on Corning (GLW) to $28. The firm is saying that they are reducing their 2006-07 LCD volume growth estimates slightly on lower monitor unit numbers.
Stifel Nicolaus initiated Nvidia (NVDA) with a Hold. They believe that long-term trends in the PC industry should drive the adoption of more capable graphics and logic solutions, which should favor NVDA, given its solid positioning in these markets.
It flopped for Gateway (GTW) but worked for Apple (AAPL). Dell (DELL), which built its business selling PC's and other electronics directly to customers by phone and online, has decided to try something new: a storefront.