Benzinga's Upgrade Summary for June 25, 2012
Listed below are today's Top Upgrades covered by Benzinga:
Canaccord Genuity notes, "We are upgrading shares of NVDA from Hold to BUY on positive near- and medium-term drivers. NVDA appears positioned to offset near-term PC weakness through Tegra strength and Kepler revenues that were guided by limited 28nm wafer supply, not PC demand. In-line results should distinguish NVDA from other PC-weighted names that appear likely to have near-term number cuts, in our view. Next year, we believe Tegra should continue to benefit from Surface and other tablet wins secured in H2/12, as well as a bundled LTE solution slated for introduction H1/13 (likely in time for Mobile Word Congress)."
Oppenheimer comments, "We believe macro-economic jitters and a recent slowdown in new commercial aircraft orders have caused investors to under-appreciate mounting evidence that the 787 program has finally begun to find its footing. As Boeing's most important multi-year growth driver and the program arguably least vulnerable to immediate macro-economic pressures, the 787 has the potential to buoy Boeing's fundamentals and stock performance even under a scenario of spotty global economic growth. Moreover, while the 787's revenue growth and cash flow story is likely to unfold over an extended period, we see July's Farnborough Airshow serving as a near-term catalyst."
Goldman Sachs comments, "We are upgrading SanDisk to Buy as we see an attractive entry point for the stock: (1) Post NAND industry oversupply and price pressure through 3Q12, we expect a return to supply/demand balance by 4Q12 as we believe suppliers such as Samsung and Hynix are pushing out capacity expansion and shifting some NAND capacity to logic; (2) We expect modest gross margin expansion for SanDisk in 2H12 given tighter supply dynamics; (3) Long term, we see outsized SSD exposure for SanDisk relative to peers; (4) Valuation has become compelling with the stock trading at just 5X 2013E product earnings (given $15 in net cash/share plus $12 in royalty value)."
ISI Group notes, "We believe YTD underperformance, compelling valuation and several identifiable near-term catalysts offer investors an attractive entry point. Our price target increased by $2 to $115 as we raised our forward NAV by 3% to $124 to account for two issues we explored in detail post NAREIT: 1) greater than expected SL rent burn-off in 2013 vs. 2012 and, 2) giving BXP credit for extraordinarily large rent rollups in the GM building in 2019 & 2020 which most investors (and analysts) have largely forgotten about."
All of Benzinga's Upgrade coverage can be viewed here.
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