Goldman Sachs maintained its Buy/Attractive rating on Research-in-Motion (RIMM); stock 1% (mixed analyst calls elsewhere in the stock). The firm cites carriers making 5 times to 6 times the money over other PDA phone models off of subscribers, so they are willing to subsidize the RIM Phones; RIM also experienced pricing power over other models in an otherwise weak environment.
Qualcomm (QCOM) was Reiterated a Buy/Attractive with $1.63 EPS for 2007 & $1.94 EPS in 2008; sees earnings ok and it thinks the market is pricing in 2 unlikely scenarios of a decline in CDMA markets and a decline in th royalty rate to 1% instead of an estimated 4.1%.
Goldman Sachs has raised the HOUSING SECTOR to NEUTRAL, but the call says it is because of inadequate risks to reward in being short at this point. It thinks the downward trajectory is slowing, but fundamentals in the industry are troubling. It has raised DR Horton (DHI), MDC Holdings (MDC), and Toll Brothers (TOL) to BUY Ratings; Downgrades Lennar (LEN) and M/I Homes both to a sell rating.
Goldman has Unisys (UIS) trading down 5% on a downgrade to a SELL rating based on weak prospects tied to IBM weakness and they are trimming estimates ahead of this week’s earnings.
Performance Food Group (PFGC) was maintained as BUY and noted as one of their best 2007 investment ideas; advise buying PFGC with 21% potential upside to its nearly $34 price target.
Gap Inc (GPS) still maintained as SELL/NEUTRAL at Goldman as a new CEO will need great vision and an ability to attract top talent; it also notes the same customer disconnect and the time needed for reconnecting to them.
Citigroup (C) maintained neutral at Goldman Sachs, but it has raised 2007 EPS targets to $4.60 from $4.56 and 2008 EPS targets to $5.10 from $5.05 after in-line results. It feels credit quality is benign with only modest deterioration, while net interest margin was flat.
It also says that UnitedHealth (UNH) results are trending the industry to strength in Medicare being offset by slower commercial results; it expects little upside or downside in the industry.
Cytokinetics (CYTK) maintained Sell/Neutral on promotion of CEO.
Cooper Companies (COO) maintained Buy/Attractive after recent weakness after debt refinancing.
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