Wednesday, February 24th, 2010
Notable Analyst Upgrades, Downgrades and Comments
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Volterra Semiconductor Corporation (NASDAQ:VLTR), EMC Corporation (NYSE:EMC), and Tenet Healthcare Corporation (NYSE:THC) are three notable analyst upgrades, downgrades and comments made during today’s session.
Volterra Powered Up for a Solid Year
Volterra Semiconductor Corporation (VLTR, Free Analysis), a semiconductor manufacturer focused on analog and mixed-signal power management, may already be trading near its 52-week high, but at least one analyst sees more upside in the shares. After meeting with management, Caris recommends buying the shares at the current level.
The analyst believes that the semiconductor’s servers business is tracking better-than-expected after meeting with its management team. Currently, the company has a 30% market share in the server market, according to Investor’s Business Daily, that can quickly grow with every next-generation Intel processor that contains its power-saving chip.
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Analysts Conflicted on EMC Inventory Problems
EMC Corporation (EMC, Free Analysis), a provider of information technology products and services, is facing pressure after STEC’s inventory overhang at EMC could damage both of their early 2010 results. However, another analyst disagrees by saying that the old news is already priced into the stock and the revised data is immaterial.
Oppenheimer lowered its target on STEC to $10 from $21 per share to “reflect the company’s overhang” at EMC and STEC’s Q1 guidance. However, Thomas Weisel believes that the inventory is old news and should not be misinterpreted as a red flag or broader enterprise storage demand, and maintains its Overweight rating on EMC shares.
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Analysts Back Tenet Healthcare after Luckluster Results
Tenet Healthcare Corporation (THC, Free Analysis), an operator of general hospitals and related healthcare facilities, may have seen a sharp drop in its shares following a lackluster quarter, but at least two analysts stepped up to defend the shares. Deutsche Bank and Goldman Sachs both believe that the sell-off was overdone and would be buyers at these levels.
Deutsche Bank views the sell-off in the hospital operator to be an overreaction and reiterated its Buy rating on the stocks with a $9.50 price target. Meanwhile, Goldman Sachs remained a buyer ahead of its results and expects 2010 to reflect growth and cost controls. The firm also maintains its Buy rating on the shares with a $9 price target.
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-- Written by Simon Monger
