Friday, December 6, 2013
4:16 PMBullish Pac Crest note helps Palo Alto continue fall rally
- Pac Crest trumpets Palo Alto Networks' (PANW +3.8%) firewall share gains, and declares the company a disruptive force in the network security space. It also asserts shares are trading at a 45%+ discount to those of companies growing at similar rates (Palo Alto posted 49% rev. growth in its Oct. quarter), and predicts the company's closely-watched legal battle with Juniper won't have serious consequences.
- Shares are now up 27% from their early-November lows. They jumped two weeks ago after Palo Alto beat FQ1 estimates and reported strong deferred revenue growth.
4:02 PMInvenSense outperforms following bullish Maxim note
- Maxim's Ashok Kumar reports InvenSense's (INVN +2.3%) orders from top customer Samsung remain strong. He's also optimistic about the motion sensor vendor's ability to win orders from Apple down the road.
- Kumar's predictions regarding InvenSense's 2013 iPhone/iPad design wins (or lack thereof) were more accurate than those of many peers.
- InvenSense mentioned on its FQ2 (Sep. quarter) CC Samsung is expected to continue accounting for a mid-30s percentage of total revenue. In a November note, Piper cited higher Samsung penetration as a potential growth catalyst for InvenSense.
3:54 PMChart Industries -7% after cautious comments from William Blair
- Consensus earnings estimates for Chart Industries (GTLS -7.1%) are likely to drop, William Blair says after meeting with management; the firm sees slower China activity, uncertainty in biomedical, and issues concerning large heat exchanger projects pressuring gross margins in 2014.
- The firm keeps a Market Perform rating on the stock and believes GTLS remains well positioned longer term.
3:30 PMGolar LNG Partners -6.2% but still seen positively after expected deal
- Golar LNG Partners (GMLP -6.2%) is defended at Clarkson Capital, which reiterates its Outperform rating and $38 price target after GMLP reveals plans to offer 5.1M units; parent Golar LNG (GLNG +0.4%) will sell 3.4M GMLP units as part of the offering.
- The acquisition of the Golar Igloo from GLNG was expected before the vessel begins service on a five-year contract to Kuwait National Petroleum in March 2014, the firm says; the transaction value is in-line with expectations, and the firm believes GMLP has solid distribution growth potential and strong unit coverage.
3:16 PMCiti lifts Celgene target on Revlimid outlook
- Citi is out with some bullish commentary on Celgene (CELG +0.9%).
- Analyst Yaron Werber went out and conducted a "detailed analysis," before ultimately determining that "Revlimid/dex is set to dominate the myeloma market over the long-term."
- Not only does Werber think the "tailwind" for Revlimid/ Pomalyst is "much greater than appreciated," the analyst also says the company's pipeline should "further sustain its dominance" in myeloma.
- Price target hiked to $204 from $182.
- Related from last month: BofA note spooks Amgen
2:59 PMBitcoin tumbles as Baidu reportedly stops accepting for payment| Comment!
2:37 PMBTIG sees 18% upside for Allergan| Comment!
2:27 PMInvestor sentiment in big oil stocks may rise, HSBC says
- Big oil has remained out of favor with investors, but the companies’ robust underlying cash flows aren't being recognized, and investor sentiment may shift next year, HSBC says as it tags Royal Dutch Shell (RDS.A +2.8%) and BP (BP +0.8%) with Overweight ratings.
- The sector is under-owned by large institutional investors that hold stocks for the long term, so “it may not need too much of a shift in sentiment towards the sector to prompt increased weightings,” HSBC adds.
- Shell is a "good buy-and-hold stock for long-term investors, particularly those with a cautious market outlook,” the firm says, while BP is "close to the end of [its] rehabilitation period."
1:52 PMCanaccord steps to sidelines on Sarepta
- Sarepta Therapeutics (SRPT -3.1%) falls as Canaccord downgrades the shares to Neutral from Buy.
- "We still predict eventual clinical/commercial success, but feel there is major near-term uncertainty in eteplirsen's regulatory timelines," analyst Ritu Baral notes.
- Long story short: Canaccord likes the DMD treatment's efficacy and safety profile but doesn't necessarily like the confirmatory trial ambiguity.
- Price target is still $20.
1:50 PMCitrix outperforms as Stifel hikes PT; VMware also rallying
- Stifel's Brad Reback has raised his Citrix (CTXS +2.4%) PT to $74 from $70, while reiterating a Buy. Citrix has topped $60, and virtualization archrival VMware (VMW +2.9%) has rallied above $86.
- Reback's talks with Citrix's IR chief strengthened his belief the company's "uneven performance" (highlighted by its Q3 warning) is only due to sales execution and cyclical (rather than secular) headwinds. He also declares Amazon's WorkSpaces cloud PC virtualization service "more of a side-show than a meaningful enterprise threat, especially over the near-to-medium term."
- Both Citrix and VMware sold off when WorkSpaces was first announced. Though Reback disagreed, several analysts argued WorkSpaces could be a long-term threat, as its feature set grows.
- Reback likes the fact Citrix only trades at 10.8x his 2014 free cash flow estimate of $876.4M, and sees demand for Citrix's mobile software and the latest version of its XenDesktop PC virtualization platform acting as potential catalysts.
1:27 PMQuestcor slips as Citron mentions shares
- Although this comes with the "correlation does not necessarily equal causation" caveat, shares of Questcor Pharmaceuticals (QCOR -4.3%) began to move notably lower a little over a half hour ago.
- The timing of the move equates almost exactly with new tweets from Citron Research.
- See Citron's feed for details.
- For more on Citron's QCOR research, see here.
12:49 PMVoxeljet buys HQ for €10M, shares lower
- Voxeljet (VJET -3.2%) discloses it has bought its Deuter, Germany HQ for €9.97M ($13.6M). The property is 15K sq. meters large, and contains two 3D printing production halls and an office building. (6-K)
- With Voxeljet only having €142K in cash/equivalents and €679K in "financial assets" at the end of Q3, the company doubtlessly used some of its Oct. IPO proceeds to finance the purchase.
12:25 PMSolar stocks fall in spite of market rally; ReneSola leads the way
- Even as markets rally in response to a favorable NFP report, solar stocks are giving back some of this year's gains. ReneSola (SOL -10.3%), which tumbled yesterday after positing Q3 results and announcing it's shuttering a polysilicon plant, is the biggest decliner.
- Credit Suisse has cut its ReneSola PT to $3 from $5, while reiterating an Underperform. The firm notes the plant shutdown removes 40% of ReneSola's polysilicon capacity, and undermines arguments the company will benefit from rising polysilicon prices in 2014/2015. It's also worried about ReneSola's "relatively low margins" and limited downstream (solar plant) exposure.
- One positive piece of industry news: A Japanese trade group estimates Japan's solar cell/module shipments rose 25% Q/Q and 231% Y/Y in Q3 to 2.075GW. Imports accounted for 58% of shipments, and rose 30% Q/Q and 540% Y/Y.
- Rising shipments to Japan have already lifted the sales and margins of many Chinese module suppliers. First Solar (FSLR -1.9%) announced its entry into the market last month.
- Notable solar decliners: YGE -6.7%. TSL -3.5%. CSIQ -2.7%. JKS -2.6%. LDK -2.1%. JKS -2.6%. JASO -2.2%.
- Solar ETFs: KWT, TAN
12:19 PMVaalco cleared to move ahead with offshore Angola drilling program
- Vaalco Energy (EGY +14.2%) says it received clearance to proceed with its drilling program offshore Angola, as the oil ministry assigns the available 40% working interest in Block 5 to EGY partner Sonangol.
- EGY says it is beginning the process of contacting drilling rig companies to secure a semi-submersible rig to commence the exploration phase of the pre-salt/post-salt Kwanza Basin program.
- Shares are upgraded to Outperform from Sector Perform with a $9 target price at RBC Capital.