09:34 am GigaMedia downgraded to Hold at Brean
Murray: . Brean Murray downgrades GIGM to Hold
from Buy as they believe given the tweaks in the
timing of new content releases in Asia, that their
previous 2Q09 revenue estimate for Asian online
games may be a bit aggressive. Although, the firm
remains optimistic on the potential for Asian Online
games revenue in 2H09 and FY10 once Warhammer and
NBA Street Online are released. Additionally, though
the firm believes the stock may a warrant higher
valuation if the co executes on the sale of its
online gambling business, the firm believes recent
appreciation takes that somewhat into account, while
the timing and the structure of any transaction
remains uncertain.
09:33 am Callaway Golf upgraded to Hold at
Wedbush Morgan; tgt raised to $8: . Wedbush
Morgan upgrades ELY to Hold from Sell and raises
their tgt to $8 from $6. The firm notes that given
the recent sharp Q1 disappointment and downward
revision in outlook for 2009, they believe short
thesis has played out and stock is rather washed out
at current levels. The firm believes that the market
will soon look beyond 2009 and into 2010 outlook.
Given Callaway Golf's still well-entrenched brand
name, as well as a pristine balance sheet, the firm
believes downside to shares of ELY is limited at
current levels, and that 2009 fundamental
performance likely represents a trough for Callaway.
09:33 am NetScout Systems upgraded to Buy at
Wedbush Morgan; tgt raised to $12: . Wedbush
Morgan upgrades NTCT to Buy from Hold and raises
their tgt to $12 from $8, following Q409 EPS and
revenue that was within guidance but missed
consensus estimates. Firm believes expectations for
the stock remain low and the bad news is in the
stock while new high margin products and a new
relationship with Cisco could be a catalyst for
growth. Firm notes FY10 guidance which appears
reasonable and achievable.
09:32 am Fuel Systems Solutions initiated with
an Accumulate at ThinkEquity; tgt $18: .
ThinkEquity initiates FSYS with an Accumulate and
$18 tgt, as they are impressed with mgmt's ability
to significantly grow revenues, margins, and
earnings in 2008, and would have expected that to
continue if it were not for the global recession.
They expect some reversal of that growth in 2009 due
to the global recession, a weaker Euro, and new
investments in growing a U.S. natural gas
transportation business. However, they expect growth
to resume again in 2010, but will wait for
visibility on that to improve before recommending
the stock.
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