Thursday, March 11th, 2010
Notable Analyst Upgrades, Downgrades and Comments
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DaVita Inc. (NYSE:DVA), RadioShack Corporation (NYSE:RSH), and Infinera Corp. (NASDAQ:INFN) are three notable analyst upgrades, downgrades and comments made during today’s session.
DaVita Sell-Off Creates Buying Opportunity
DaVita Inc. (DVA, Free Analysis), a provider of dialysis services in the United States, saw its shares jump nearly 2% after a key analyst called the sell-off a buying opportunity. Jefferies believes that the reduction in the VA’s reimbursement for dialysis was already factored into its FY10 guidance and thinks that the weakness was unjustified.
Meanwhile, Fortune Magazine also recognized the dialysis company as one of its “Most Admired Companies in 2010” for the fifth consecutive year. The company’s health care medical facilities ranged first overall and was specifically recognized in the magazine’s categories of innovation, use of corporate assets, financial soundness, and long-term investment.
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RadioShack Could Make Attractive LBO Target
RadioShack Corporation (RSH, Free Analysis), a large retailer of consumer electronics, saw its shares drop marginally despite rumors that it could be an attractive leveraged buyout target. Shares surged earlier this week amid renewed takeover talk, while at least one analyst hinted that a leveraged buyout could make sense for the retailer.
Deutsche Bank believes that a leverage buyer of the electronics chain could make near 20% returns over five years paying a 20% premium to the current share price, under certain assumed circumstances. However, the analyst maintains its Buy rating on the stock despite the possibility that many investors still see as relatively remote.
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Analyst: Infinera Could Rise More than 50%
Infinera Corp. (INFN, Free Analysis), which develops solutions for optical communications networks, saw its shares drop despite extremely bullish comments out of one analyst. After meeting with management, PacCrest believes that the company is tracking to the high end of its guidance and said the stock could increase 55% down the road.
The comments come after the same analyst noted in February that the capital expenditure recovery in NA is positive for Infinera and that potential upside could be around 91% versus a 12% downside. Throughout the entire time, the analyst maintained its Outperform rating on the stock, as investors also seemed relatively bullish until recently.
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-- Written by Simon Monger
