Wednesday, February 3rd, 2010
Notable Analyst Upgrades, Downgrades, and Comments
YES, I want free trades through Zecco.com!
International Paper Company (NYSE:IP),NetLogic Microsystems, Inc. (NASDAQ:NETL), and Baidu, Inc. (NASDAQ:BIDU) are the three most notable analyst upgrades, downgrades and comments made during today’s session.
Worth more than the Paper It’s Printed On
International Paper Company (IP, Free Analysis), a global paper and packing company, saw its shares drop sharply after reporting lackluster earnings and guidance. Despite the drop, many analysts see the move as a buying opportunity. Sterne Agee, for instance, notes that the first quarter guidance was down due to weather and not permanent issues.
The company also remains optimistic about its earnings in 2010, saying that they anticipate positive momentum beginning in the second quarter. Analysts like UBS seem to agree, calling the weakness overdone, especially as the company has managed to increase its cash flows and reduced its debt during the quarter.
NetLogic Surges on Successful Acquisitions
NetLogic Microsystems, Inc. (NETL, Free Analysis), a semiconductor and integrated circuit manufacturer, saw its shares jump more than 10% after reporting better-than-expected earnings. Even previously-skeptical analysts commended the company throughout the day, as it received several upgrades and raised price targets.
Thomas Weisel raised its target price to $65 from $49 and noted that the firm’s acquisitions have outpaced its expectations while the company continues to benefit from several trends. Meanwhile, ThinkEquity raised its estimates for the company, saying that it believes the stock is well-positioned in quickly growing markets and maintained its Buy rating.
Baidu Stands to Benefit from Google’s Exit From China
Baidu, Inc. (BIDU, Free Analysis), the owner of China’s largest search engine, saw its shares jump nearly 5% after a Goldman Sachs analyst raised its price target from $500 to $550, reflecting potential market share gains from Google, Inc.’s (GOOG, Free Analysis) exit from China. Currently, Google is the firm’s largest competitor in the marketplace.
Goldman Sachs believes there is a 70% chance that Google leaves the country, following disputes related to its concern over freedom of speech. Baidu shareholders have not been blind to this possibility, however, as shares have surged more than 5% since the announcement was made, despite a retracement in recent weeks.
Want to become a better trader? Click here to sign-up for a FREE trading e-course taught by a former floor trader!
-- Written by Simon Monger
