Earnings Estimate Increased on DELL, BVN, SHLD, VIA, THE, AER, GGL, TFX.
Earnings Estimate Decreased on CDL, GPS, SWN, PRAI, OCR, CMOS, XTXI, XTEX.
Goldman Sachs has noted on BJ’s Wholesale Club (BJ) that a recent private equity purchase of a competitor called Smart & Final could yield $45.00 as a buyout price if the multiples were the same. While they are saying they have a $34 to $35 private equity takeout value, this number is one that is hard to use since the other deal was not really comparable.
Ciena (CIEN) maintained Buy/Attractive despite some problem last quarter; still sees upside to Goldman estimates.
Dell (DELL) was maintained as Neutral but Goldman notes that its margin has has actually held up and the new structure expenses may already be taking some effect.
Goldman Sachs also lists the tower, outdoor and Internet groups leading the CME SECTOR: its best buy list ideas in the sector are IT, GOOG, LEAP, LYV; other focus names include CMCSA, DIS, EBAY, GHS, MHP, NWS, RHD.
American International (AIG) reiterated Buy/Attractive on buybacks, guidance, and dividend hike.
Jon C. Ogg
March 2, 2007