Afternoon Market Update (POWL, CML, HPQ, PAR, DELL)
Shares of Powell Industries Inc (NASDAQ: POWL) jumped after Sidoti & Co upgraded the company from “neutral” to “buy.” The target price for the company is set to $38. Sidoti analyst John Franzreb said, "Although we expect new orders in the oil and gas sector to remain weak through next year, we think Powell will benefit from spending on transit projects, new green electricity production and stimulus spending." "Should backlog stabilize at these levels we estimate that Powell will be profitable throughout the downturn and its cash position will grow," Franzreb added. POWL’s shares rose about 4% following the upgrade.
Long-term Treasury prices fell moderately to push the yields higher, ahead of the week’s first major auction by government of 30-year inflation-indexed securities. Yields on 10-year notes moved up about 0.08%, while the yields on 30-year bonds gained about 0.57%.
Shares of Compellent (NYSE: CML) advanced today after Hewlett-Packard (NYSE: HPQ) offered $24 per share for 3Par Inc (NYSE: PAR), just days after Dell (NASDAQ: DELL) decided to offer $18 per share for the company. Patrick Walravens of JMP Securities said that the bidding war for 3Par will prove positive for Compellent. CML’s shares jumped about 8% following the announcement by HPQ.
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