Posts for Ticker ‘RHT’

Top 10 Analyst Upgrades, Downgrades, Initiations (ADBE, ARIA, BX, CMO, CRL, GPS, RHT, RSH, VECO, VRSN)

These are this Monday’s top ten analyst calls with upgrades, downgrades, and initiations in Wall Street research calls:

Adobe Systems (NASDAQ: ADBE) Raised to Buy at Goldman Sachs.
Ariad Pharmaceuticals (NASDAQ: ARIA) Raised to Overweight at JP Morgan.
Blackstone Group (NYSE: BX) Raised to Outperform at KBW.
Charles River Labs (CRL) Cut to Equal Weight at Barclays.
Gap Inc. (GPS) Cut to Equal Weight at Barclays.
Red Hat (NYSE: RHT) Cut to Neutral at Goldman Sachs.
Capstead Mortgage (NYSE: CMO) Raised to Outperform at KBW.
RadioShack (NYSE: RSH) Raised to Outperform at Credit Suisse.
Veeco Instruments Inc. (NASDAQ: VECO) Started as Overweight at Piper Jaffray.
VeriSign (NASDAQ: VRSN) Cut to Sell at Goldman Sachs.

You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.

Jon C. Ogg
November 9, 2009

52-Week High Club

Dr. Reddy’s Laboratories (NYSE: RDY) hit a yearly high of $19.32 today, building on momentum initiated yesterday when it was reporeted that the company had received approval from regulators to distribute its high blood pressure drug in the UK.

Red Hat Inc. (NYSE: RHT) hit a yearly high of $27.95 after a wave of analyst upgrades.

OSG America (NYSE: OSP) hit a yearly high of $10.15 after the company announced that it is raising the price that it will pay for all of its publicly traded securities from $8.00 to $10.25.

Pacific Gas & Electric C. (NYSE: PCG) hit a yearly high of $41.75 following an announcement that a unit at its Diablo Canyon nuclear power facility has come back online at full capacity following repairs.  

Garrett W. McIntyre

Top Analyst Upgrades (ADPI, EXP, GE, GSM, IHG, ERIC, PMT, RHT, TKTM, VMW)

These are some of the top early morning analyst upgrades and positive research calls we have seen from Wall Street early this Tuesday morning:

American Dental (ADPI) Started as Outperform at Robert W. Baird.
Eagle Materials (EXP) Raised to Neutral at JPMorgan.
General Electric (GE) raised to Overweight at JPMorgan.
Globe Specialty Metals (GSM) Started as Buy at Jefferies & Co.
Intercontinental Hotels Group (IHG) Raised to Outperform at Credit Suisse.
LM Ericsson (ERIC) Raised to Hold from Sell at Deutsche Bank.
PennyMac Mortgage (PMT) STarted as Buy at Deutsche Bank.
Red Hat (RHT) Raised to Buy at Goldman Sachs.
Ticketmaster (TKTM) Raised to Overweight at Thomas Weisel.
VMware (VMW) Raised to Buy at Goldman Sachs.

JON C. OGG

Winning Stocks on a Down Week (ADY, BCRX, DDRX, DGI, FAZ, LORL, RHT, WX)

This was a week of profit taking and a probable realization that a move of 30% and more from the lows in March was probably a bit much in the face of only consistent “less-bad” economic data.  But as every optimist says, “There is always a bull market somewhere.”  We saw a drop of  about -3.6% to 8,268.64, while the S&P 500 Index slid by -4.% to 882.88.  The NASDAQ was the ‘better’ of the losers with a drop of -3.4% to 1,680.14.  But there are many standout stocks, and some of the key big movers and winners this week were American Dairy Inc. (NYSE: ADY), Biocryst Pharmaceuticals Inc. (NASDAQ: BCRX), Diedrich Coffee Inc. (NASDAQ: DDRX), DigitalGlobe, Inc. (NYSE: DGI), Direxion Daily Financial Bear 3X Shares (NYSE: FAZ), Loral Space & Communications, Inc. (NASDAQ: LORL), Red Hat Inc. (NYSE: RHT) and WuXi PharmaTech Inc. (NYSE: WX).

Believe it or not, some of these are up exponentially off of the lows.  One is up 30-fold from the end of March, and amazingly the best winners were not in tech or biotech.  We have provided a weekly synopsis and the reason for their from the lows.
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Top 10 Analyst Upgrades & Downgrades (ADBE, RATE, BWA, MRO, RHT, SEPR, SYMC, SINA)

Monday is starting the week off with a pretty light wave of analyst calls.  The top 10 analyst upgrades and downgrades are not even a full 10 calls with more than two hours until the market opens:

Adobe Systems (ADBE) Cut to Hold at Citigroup; Cut to Neutral at UBS.
Bankrate (RATE) Cut to Market Perform at JMP Securities.
BorgWarner Inc. (BWA) Cut to Equal Weight at Barclays.
Marathon Oil (MRO) Cut to Neutral at Credit Suisse.
Red Hat (RHT) Raised to Buy at UBS.
Sepracor (SEPR) Raised to Overweight at JPMorgan.
Symantec (SYMC) Raised to Overweight at Thomas Weisel.
Sina Corp. (SINA) Cut to Perform at Oppenheimer.

JON C. OGG

Top 10 Analyst Calls (AMSF, AMCC, DMND, DLB, GDP, FLO, QLGC, RHT, SONS, URBN)

These are ten of the top research calls with upgrades and downgrades from Wall Street analysts this Friday morning:

Amerisafe (AMSF) Raised to Outperform at Oppenheimer.
Applied Micro Circuits (AMCC) Raised to Outperform at Oppenheimer.
Diamond Foods (DMND) Started as Buy at KeyBanc.
Dolby Labs (DLB) Cut to Neutral at JPMorgan.
Goodrich Petroleum (GDP) Started as Underweight at Thomas Weisel.
Flowers Foods (FLO) Started as Buy at KeyBanc.
QLogic (QLGC) Raised to Outperform at Baird.
Red Hat (RHT) Cut to Neutral at Baird.
Sonus Networks (SONS) Cut to Hold at Jefferies.
Urban Outfitters (URBN) Cut to Neutral at Sun Trust Robinson Humphrey.

JON C. OGG

Cisco’s Unified Computing: Many Risks, Questionable Rewards (CSCO, VMW, EMC, BMC, MSFT, RHT, ACN)

cisco-logoCisco Systems, Inc. (NASDAQ: CSCO) came out with its big technology platform announcement, as prior reports had hinted at.  This includes announcements for services and products involving Microsoft Corp. (NASDAQ: MSFT), Red Hat Inc. (NYSE: RHT), VMware, Inc. (NYSE: VMW)and EMC Corp. (NYSE: EMC), BMC Software Inc. (NYSE: BMC), and Accenture Ltd. (NYSE: ACN).  While this sounds complex, it is not really that complex.  But there are some risks.  This could cloud the waters at Cisco in determining if it wants to use the business model of an arms dealer or a mercenary.  It may also open the company to risks in new businesses which it has been able to avoid to date.
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Will India’s $10 Laptop Kill PC Business? (DELL, HPQ, AAPL, MSFT, RHT)

Burning_money_pic_4 The massive power in the newest of low-cost PC’s is killing the computer companies  PC’s are becoming about the same as refrigerators and toasters.  And now the $10 laptop is on the verge of  being launched in India.  We have read about this for well about two years, and it almost seems too good to be true…. 

Should companies such as Dell (NASDAQ: DELL) and Hewlett-Packard (NYSE: HPQ) be shivering?  What about Microsoft (NASDAQ: MSFT) where one cheap version of Windows or a student version of MS Office costs multiples of this?  What about the premium computers sold by Apple (NASDAQ: AAPL).

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S&P Endorses Linux, Raising Red Hat (RHT)

Red_hat_logoYou do not see too many upgrades in corporate credit ratings during this part of the business cycle, let alone in technology and software.  But Red Hat, Inc. (NYSE: RHT) was just raised by Standard & Poor’s ratings today.  You might even wonder if S&P is almost endorsing Linux after all these years after you look through the notes.

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Top Pre-Market Analyst Upgrades (AMZN, AMAT, NILE, CECE, DCP, GPN, RHT, AUY, YRCW)

These are some of the top pre-market analyst upgrades we have seen this Thursday morning:

  • Amazon.com (AMZN) Raised to Overweight at Barclays.
  • Applied Materials (AMAT) Raised to Buy at Citigroup.
  • Blue Nile (NILE) Raised to Overweight at Barclays.
  • CECO Environmental (CECE) Started as Buy at Cantor Fitzgerald.
  • DynCorp (DCP) Started as Buy at Stanford.
  • Global Payments (GPN) Raised to Buy at Goldman Sachs.
  • Red Hat (RHT) Raised to Buy at Jefferies.
  • Yamana Gold (AUY) Started as Outperform ar Raymond James.
  • YRC Worldwide (YRCW) Raised to Neutral at JPMorgan.

Jon C. Ogg
December 4, 2008

Red Hat Continues Deferred Revenue Growth (RHT)

Red_hat_logo_2Red Hat, Inc. (NYSE: RHT), the largest seller of Linux operating systems and office suites, today reported that quarterly revenue soared 29% revenue to $164.4 million. It posted non-GAAP earnings of $0.20 per share.  First Call had estimates at $0.18 for earnings and $163.6 million for revenue.

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Mini Tech Earnings Season Next Week (ORCL, RHT, RIMM, MU, PALM)

Next Wednesday we will have what almost feels like a tech earnings season, although it’s really just the end of the road before the earnings flurry picks up in mid to late July.  We have Oracle Corp. (NASDAQ:ORCL), Red Hat Inc. (NYSE: RHT), and Research In Motion Ltd. (NASDAQ: RIMM) all reporting earnings.  To make matters even more interesting, we have Palm Inc. (NASDAQ: PALM) and Micron Tech (NYSE: MU) reporting earning on Thursday.  We have included estimates out of First Call and average analyst targets for each, but keep in mind that these estimates will change slightly after the weekend.

Oracle Corp. (NASDAQ:ORCL) is going to to be the most important for determining th strength of enterprise business operations for tech.  The enterprise software giant is expected to post $0.44 EPS on $6.86 Billion in revenues in its year-end report for Fiscal May 2008.  For the year ahead, its May-2009 estimates are expected to be $1.50 EPS on $25.67 Billion in estimates.  Average analyst targets are roughly $25.00.

We will also get earnings out of Linux software maker Red Hat Inc. (NYSE: RHT) with First Call estimates of $0.18 EPS on just over $153 million in revenues.  The next quarter after this for August will also maek its fiscal year end and estimates are $0.19 EPS on $163.36 million in revenues.  As far as average analyst targets, this one is very close with targets being around $23.00 to $24.00.

The entire cell phone and electronic gadget market is going to brace for Research In Motion Ltd. (NASDAQ: RIMM) earnings on Wednesday.  The company is expected to to post $0.85 EPS on $2.27 Billion in revenues.  For the next quarter estimates are $0.90 EPS on $2.43 Billion in revenues, and the estimates for Fiscal Feb-2009 are $3.88 EPS on $10.35 Billion in revenues.  Analysts have an average of target range of between $160.00 and $165.00, although some newer and raised targets have recently taken this one over $200.00 for a year out.

To make matters even more interesting, we have Palm Inc. (NASDAQ: PALM) and Micron Tech (NYSE: MU) reporting earning on Thursday. 

With today being options expiration date we are not including any options expectations to the stocks.  We’ll also follow up ahead of earnings with more detailed analysis on what the charts and other key metric expectations are for each company.  It may be a slow summer, but not every day.

Jon C. Ogg
June 20, 2008

Top 10 Pre-Market Analyst Calls (ADS, GRMN, HST, JEF, MHS, NCC, RHT, CRM, BRLC, VLTR)

These are some of the top analyst calls that we are focusing on this Tuesday morning in pre-market trading hours:

  • Alliance Data (NYSE: ADS) raised to Overweight at JPMorgan.
  • Garmin Ltd. (NASDAQ: GRMN) started as Neutral at JPMorgan.
  • Host Hotels & Resorts (NYSE: HST) Cut To Hold From Buy By Deutsche Bank.
  • Jefferies Group (NYSE: JEF) Cut to Neutral at Banc of America.
  • Medco Health Solutions (NYSE: MHS) raised to Buy at Jefferies.
  • National City (NYSE: NCC) raised to Buy at Deutsche Bank; Downgraded to Underperform at Bear Stearns.
  • Red Hat (NYSE: RHT) started as Buy at Piper Jaffray.
  • Salesforce.com (NYSE: CRM) started as Buy at Piper Jaffray.
  • Syntax-Brillian (NASDAQ: BRLC) raised to Outperform at Robert W. Baird.
  • Volterra Semi (NASDAQ: VLTR) raised to Buy at Piper Jaffray.

Jon C. Ogg
April 22, 2008

Jon Ogg is a producer of and editor for both the Special Situations newsletter and the "10 Stocks Under $10" weekly newsletter for 247WallSt.com; he can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Top 10 Pre-Market Analyst Calls (BIIB, BMC, COF, CLNE, FSLR, PLT, PMCS, RHT, SLM, WM)

There are many other analyst calls today, but these are the main calls we are looking at this morning:

  • Biogen Idec (BIIB) raised from Underperform to Neutral at Credit Suisse.
  • BMC Software (BMC) raised from Neutral to Outperform at    Credit Suisse.
  • Capitol One (COF) downgraded from Buy to Hold at Jefferies.
  • Clean Energy Fuels (CLNE) started as Strong Buy at Broadpoint Capital.
  • First Solar (FSLR) started as BUY at UBS.
  • Plantronics (PLT) downgraded from Neutral to Underweight at J.P.Morgan.
  • PMC-Sierra (PMCS) started as Sell at Banc of America.
  • Red Hat (RHT) downgraded from Buy to Neutral at Banc of America.
  • SLM Corp. (SLM) raised to Outperform at at Keefe Bruyette Woods.
  • Washington Mutual (WM) downgraded from Neutral to Sell at Banc of America.

Jon C. Ogg
December 13, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Oracle Joins the VMware Fight, Sort Of (VMW, ORCL, RHT, QSFT)

Oracle Corp (NASDAQ:ORCL) made its "virtualization push" public yesterday at its Oracle OpenWorld, which is seeing some mixed reaction on the day after.  The enterprise software giant has not had a public or formal answer to VMWare Inc.’s (NYSE:VMW) virtualization lead.  Oracle’s product is three times more efficient than competitors’ offerings, at least according to the company itself.  The pricing also looks different.  Customers can download "Oracle VM" for free, and the enterprise software giant will sell service contracts ranging from $499 to $999 per year.

VMware shares were hit another 8% yesterday, while Oracle shares rose almost 3%. Apparently Jefferies believes the sell-off in VMware was too much.  Thomas Weisel noted that Oracle VM roughly compares to Red Hat (NYSE:RHT) Enterprise Linux 5.0.

Just this morning, VMware unveiled VMware Server 2, its (already) next generation of the company’s free-of-charge virtualization product, which enables organizations to quickly provision new server capacity by partitioning a physical server into multiple virtual machines.  VMware Server 2 beta for Linux and Windows hosts is available for immediate download, while VMware Server 2 is expected to be generally available next year. Enterprise-class support from VMware is expected to be available for VMware Server 2 at the time of general availability.

As more and more companies enter the virtualization space with announcements, whether the virtualization products are great or not, it is hard not to take heed of Virtual Iron’s CEO comments from our exclusive interviews over the last week: "Anyone can run multiple O/S’s on a server now, but that alone won’t cut it ahead."

Quest Software (NASDAQ:QSFT) made its own announcement yesterday with its acquisition of privately held Provision Networks Inc.

The VMware Conundrum still exists.  You can expect more ‘virtualization’ announcements today from various players.  There is the "Virtualization Conference & Expo West" from yesterday and today, and UBS is hosting its "Global Technology & Services Conferences" today through Thursday.

Jon C. Ogg
November 13, 2007

Redhat (RHT) Gets A Win For Linux

The advocates of open source keep saying that Linux will eventually start to do some real damage to Microsoft (MSFT) Windows. Well, the largest enterprise Linux company in the US, Redhat (RHT) showed that the dream is still alive.

Net income for the quarter ended August 31 rose 65 percent to $18.2 million, or 9 cents per share, from $11 million, or 5 cents, in the year-ago period. Revenue rose 28 percent to $127.3 million That is still tiny compared to Windows, but at least Linux is not dying.

On the bad news side of town, Redhat suffered another delay in the launch of the PC version of its product.

According to Reuters: "RHT Chief Executive Matthew Szulik said in an interview that the software maker is still working to translate the software into foreign languages, make sure it is compatible with different PC hardware and work out some issues relating to licensing of some of the software in the package."

You can’t win em all.

Douglas A. McIntyre

Media Digest 9/26/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Toyota (TM) says that its sales in the US may not rise this month.

Reuters writes that Microsoft (MSFT) will replace a number of damaged disks from its new Halo 3 game.

Reuters writes that Nasdaq (NDAQ) and Borse Dubai have won approval to buy the OM.

The Wall Street Journal writes that Moody’s and S&P will go before Congress today to defend their ratings of sub-prime instruments and other investments.

The Wall Street Journal writes that Microsoft (MSFT) has begun to turn to outside talent rather than fill key management jobs from within.

The New York Times reports earnings at Redhat (RHT) rose sharply.

The FT reports that Amazon (AMZN) has launched it competition to Apple (AAPL) iTunes.

The FT also reports that Nintendo is now the second largest company in the US based on market cap.

Barron’s reports that quarterly revenue fell at CMGI (CMGI).

Bloomberg writes that GM (GM) and the UAW have reached a tentative contract.

Douglas A. McIntyre

Red Hat Looking More Green & Blue (RHT, VMW)

Red Hat Inc. (NYSE:RHT) is starting to look more and more like a traditional software company each quarter.  The valuations are no longer like virtualization values, and virtualization is probably going to help Linux system sales directly for Red Hat.  Here are the key results:

  • Total revenue for the quarter was $127.3 million, an increase of 28% from the year ago quarter and 7% from the prior quarter. Subscription revenue was $109.2 million, up 29% year-over-year and 6% sequentially. Total revenue expectations from First Call were $117 million.
  • Net income for the quarter was $18.2 million, or $0.09 per diluted share, compared with $16.2 million, or $0.08 per diluted share, for the prior quarter and $11.0 million, or $0.05 per diluted share, in the year ago quarter.
  • Non-GAAP adjusted net income for the quarter was $36.9 million, or $0.17 per diluted share, after adjusting for stock compensation and tax expense as detailed in the tables below. This compares to non-GAAP adjusted net income of $33.7 million, or $0.16 per diluted share, in the prior quarter and $24.5 million, or $0.12 per diluted share, in the year ago period. Non-GAAP expectations from First Call were $0.17 EPS.
  • Guidance was issued for the quarter was $131 to $133 million in revenues, and non-GAAP EPS of $0.18; estimates are $0.18 EPS and $132.5 million revenues.

Red Hat released the beta version of the Red Hat Developer Studio, an integrated Eclipse-based set of open source development tools and runtime environment.  VMware’s (NYSE:VMW) rapid launch and faster investor absorption tied with cheaper RAM and multi-core processors are both lining up to be just what the doctor ordered for Red Hat and other Linux players in general (read about that on the Red Hat site on virtualization).

In addition, Red Hat today announced that its Board of Directors had authorized the continuation of the Company’s stock and debenture repurchase program. Under the program, the Company is authorized to repurchase in aggregate up to $250 million of the Company’s common stock and in aggregate up to $75 million of the Company’s 0.5% Convertible Senior Debentures due 2024.

If Red Hat just meets fiscal FEB-2008 EPS targets at $0.70 then even after the 4% jump in after-hours prices its forward P/E ratio on a non-GAAP basis is becoming more than easy to mentally absorb at 27.5.  The company does have more competition, but this new opening up of the desktops from virtualization in 2008 to 2009 and beyond may really open up the market for this company. 

The wildcard for this one tomorrow is going to be the Wall Street research calls with upgrades or downgrades.  These numbers on the surface have no WOW-factor to them, but the flip side is that these numbers are also starting to look more normalized.

Jon C. Ogg
September 25, 2007

Jon Ogg produces the 24/7 Wall St., LLC Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Pre-Market Analyst Calls (September 25, 2007)

ACLI cut to Hold at Cantor Fitzgerald.
ARRS cut to Mkt Perform at FBR.
BKR cut to Neutral at Oppenheimer.
BRCM cut to Mkt Perform at FBR.
BZH started as Sell at UBS.
CAKE started as Outperform at Credit Suisse.
CCBL cut to Mkt Perform at FBR.
CKR started as Outperform at Credit Suisse.
CSG cut to Underperform at Bear Stearns.
CTX started as Buy at UBS.
DF cut to Peer PErform at Bear Stearns.
DHI started as Sell at UBS.
EMC started as Buy at B of A.
EMC started as Buy at Jefferies.
FLWS raised to Outperform at CIBC.
GOL raised to Neutral at JPMorgan.
GYI started as Sector Perform at CIBC.
HOV started as Neutral at UBS.
JBX started as Outperform at Credit Suisse.
K cut to Peer PErform at Bear Stearns.
KBH started as Buy at UBS.
LEN started as Sell at UBS.
MCD started as neutral at Credit Suisse.
MMC cut to Neutral at JPMorgan.
MTH started as Neutral at UBS.
NILE started as Sector Perform at CIBC.
NTAP started as Neutral at Bank of America.
NVDA started as Neutral at UBS.
PACR cut to Neutral at JPMorgan.
PFCB started as Underperform at Credit Suisse.
PHM started as Sell at UBS.
RHT started as Sector Perform at RBC.
RT started as Outperform at Credit Suisse.
RYL started as Neutral at UBS.
SNIC raised to Overweight at JPMorgan.
SPF started as Sell at UBS.
TAM raised to Neutral at JPMorgan.
TXRH started as Outperform at Credit Suisse.
WON raised to Buy at Deutsche Bank.

Jon C. Ogg
September 25, 2007

Pre-Market Analyst Calls (September 24, 2007)

ARBA raised to Outperform at Cowen & Co.
BCS cut to Underperform at Bear Stearns.
BEC cut to Peer Perform at Bear Stearns.
CREE cut to Mkt Perform at Morgan Keegan.
EMC raised to Outperform at Bear Stearns.
EMC raised to Buy ai Citigroup.
HOLX started as Outperform at CIBC.
LDK cut to Sector Perform at CIBC.
MOT raised to Outperform at RBC Capital.
MUR started as Hold at Deutsche Bank.
OPTM raised to Buy at Jefferies.
RHT cut to Neutral at Credit Suisse.
ROK cut to Neutral at JPMorgan.
RS cut to Neutral at UBS.
SIRT cut to Neutral at JPMorgan.
SLG raised to Buy at KeyBanc.
SUSS raised to Overweight at JPMorgan.
TKR started as Buy at Citigroup.
VMW full coverage available here, and here was the preview to the quiet period ending.
VR started as Neutral at JPMorgan.
VR started as BUy at UBS.

Jon C. Ogg
September 24, 2007