24/7 Wall St. » ZMH

Top Analyst Upgrades & Downgrades (AMZN, AMAT, SAM, CAM, CIM, GNW, MHR, MPEL, NVDA, PKD, PLSX, RF, SVU, UTHR, ZMH)

Administrator — Fri, 11 Nov 2011 13:21:17 +0000

These are some of Friday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Amazon.com Inc. (NASDAQ: AMZN) Started as Neutral at Nomura.
Applied Materials Inc. (NASDAQ: AMAT) Started as Neutral with $13 target at Credit Suisse.
Boston Beer Company (NYSE: SAM) named Momentum stock of the day at Zacks.
Cameron International (NYSE: CAM) Reiterated Buy with $73 target at BofA/ML.
Chimera Investment Corporation (NYSE: CIM) Raised to Neutral at Stern Agee.
Genworth Financial Inc. (NYSE: GNW) Raised to Neutral at Citigroup.
Magnum Hunter Resources (NYSE: MHR) reiterated Buy and raised target to $8.00 at Canaccord Genuity.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) maintained Neutral but cut target to $14 at JPMorgan.
NVIDIA Corporation (NASDAQ: NVDA) Reiterated Buy with $18 target at BofA/ML.
Parker Drilling Company (NYSE: PKD) named value stock of the day at Zacks.
Plexus Corporation (NASDAQ: PLXS) named Bear of the Day at Zacks.
Regions Financial Corporation (NYSE: RF) Started as Outperform at BMO Capital.
SUPERVALU Inc. (NYSE: SVU) Reinstated as Neutral at BofA/ML.
United Therapeutics (NASDAQ: UTHR) Raised to Outperform as Bull of the Day as Zacks.
Zimmer Holdings Inc. (NYSE: ZMH) Cut to Hold at Argus.

JON C. OGG

Filed under: Analyst Calls Tagged: AMAT, AMZN, CAM, CIM, GNW, MHR, MPEL, NVDA, PKD, PLSX, RF, SAM, SVU, UTHR, ZMH

The Eleven Most Implanted Medical Devices In America

247wallst — Tue, 19 Jul 2011 00:02:40 +0000

Implanted medical devices are one of the most profitable businesses of the U.S. healthcare industry. While many devices help extend and improve quality of life, a great many others may not be necessary. In some cases devices such as stents, screws, and artificial joints do not work well or are not any better than a cheaper procedure; in others, the risks may not be worth the benefits. All of the devices place a large cost-burden on U.S. medical spending, whether entirely effective or not.

Read: The Eleven Most Implanted Medical Devices In America

On a yearly basis, medical device companies across the world bring in over $200 billion in revenue. In the U.S. alone, these companies take in over $85 billion a year. A large portion of that is for devices that are implanted in the human body.

On the whole, there is little concentrated information on the industry. Data on which company makes what device; sales figures of each individual implants per medical device companies; or the number of procedures done for each implant each year are not always readily available. More troubling, there is little information gathered in any one place about the potential dangers and flaws of these devices, or the complications that occur due to their implantation procedure.

24/7 Wall St. has examined National Health Survey data, multiple professional physician services, peer-reviewed journals, and SEC filings to complete a list of the most frequently implanted medical devices today. While many of these are life saving, controversy swirls around several others. In some cases, we found exact total costs from self-reporting by physician sub-specialties. In others, we estimated costs based on medicare outlays, industry reports, and academic publications.

Many of the devices implanted are medically necessary and do their jobs extending lives and improving quality of life, the 24/7 Wall St. research shows. Some products, such as artificial knees may even be underutilized. Others, like implantable cardio-defibrillators, may be over-utilized. What is certain in most of the cases we reviewed is that the effectiveness of these devices is not as well researched or understood as their widespread use may imply.

These are 24/7 Wall St.’s Eleven Most Implanted Medical Devices In America.

Filed under: Healthcare, Medical Tagged: ABT, AGN, BSX, JNJ, MDT, NVS, TEVA, ZMH

When CEOs Fail and ‘Retire’… Ray Elliott (BSX, ZMH)

Administrator — Tue, 10 May 2011 15:19:16 +0000

Boston Scientific Corporation (NYSE: BSX) is already losing its replacement CEO. Ray Elliott has announced that he will retire as President and Chief Executive Officer on December 31, 2011. As this is a by-year-end announcement, the transition here is an obvious personal one even if the shares have dipped as a result. The problem is that shareholders have just not gotten to enjoy the great promise of that long-awaited turnaround and the turnaround claims have yet to reward shareholders.

Ray Elliott joined Boston Scientific just in 2009 and he came over from Zimmer Holdings Inc. (NYSE: ZMH). Sadly, the shareholder conundrum may not be all Ray Elliott’s fault at all. The company over-bit on its acquisition strategy and it was already stuck in the mud. Shares have slid 8% to $7.10 on the news, but the 52-week range is $5.05 to $7.96. Boston Scientific has formed a search committee and it expects to identify and also to announce a long-term CEO by the end of 2011.

The exit quotes are going to be hard for many investors, analysts, and pundits to agree with… Ray Elliott was quoted, “”We believe we have accomplished a lot during my time here: a strengthened senior leadership team, a clear and executable strategic plan we call ‘POWER,’ a basis for success in Emerging Markets, a solidified balance sheet due to debt paydown and refinancing and much more… And while the Company continues to evolve, we expect that much of the turnaround work will be complete by the end of the year. We believe we are well positioned for future growth. Therefore, I believe the time is right for someone new to take the reins, complete execution of that plan and take Boston Scientific to the next level and new heights.”

Elliott noted that it is time to pass the baton on to a long-term CEO. He is at least right that it is time for someone new for the long-term. A real restructuring may require much stronger efforts and we would not be shocked at all if a new CEO comes in with a total break-up scenario. Maybe that works and maybe not, but it might be the only remaining manner in which a CEO can unlock the value here. The stock does not even have the buffer of a dividend.

This stock has been stuck under $10.00 per share for longer than most shareholders can stomach. The fact that shares were $20 about five years ago and were above $40 in 2004 will likely be too high of a yardstick for measuring success. Still, until Boston Scientific shares are back above $10.00 and it has some decent growth catalysts that shareholders actually believe in then BSX is going to still be considered a company stuck in the mud without adult supervision.

JON C. OGG

Filed under: Management Change, Medical Tagged: BSX, ZMH

Smith & Nephew Becomes Worth an Arm and a Leg in M&A (SNN, JNJ, ZMH, SYK, MDT)

Administrator — Mon, 10 Jan 2011 15:34:45 +0000

Smith & Nephew plc (NYSE: SNN) is trading higher today on reports that it rebuffed an approach for a takeover by Johnson & Johnson (NYSE: JNJ). What is interesting about the implied $10.9 billion, or 750 pence per share in London, was called too low.

If you have been around in the investing world of medical devices for long, Smith & Nephew has has been discussed for some time as a possible buyout target. S&N is a company in orthopedics, endoscopy, and wound management; but it is perhaps best known for its hip, knee, and shoulder joint replacement systems.

This seems a natural fit into the DePuy unit at J&J. At issue is that J&J has recall problems in many aspects of its business, including its hip replacement system. Some have felt that Zimmer Holdings, Inc. (NYSE: ZMH) and Stryker Corp. (NYSE: SYK) could be acquirers to enhance their joint replacement offerings. The problem with Zimmer is that it would be closer to a merger of equals. Stryker is worth more than twice S&N by market cap. Medtronic, Inc. (NYSE: MDT) is another name that could be considered a possible player if it were to choose to. With a $39 billion market cap it has the chips to play if it wishes.

The Daily Mail reported over a month ago that private equity firms were considering a bid higher than J&J’s 750 pence bid up around 800 pence. Nothing has come to fruition there and many, including us, wonder if a private equity consortium might do better looking elsewhere to spend more than $10 billion in a club deal. Club deals have fallen by the wayside since the private equity bubble burst, as have deals greater than $10 billion in size. Biomet was taken private back in 2007 by a private equity consortium for about $11.4 billion. At issue is this: compare the world of 2007 to the world of 2011, even for billionaires wanting to buy companies.

It seems now that the question is not whether S&N would make an attractive target. The question seems to boil down to price. Nearing $11 billion is getting up there for the upper limits of new deals for private companies and public companies alike. S&N’s management maintains that it is undervaluing the company. S&N’s ADRs are up almost 11% at $56.39 on Monday and its year high is now $56.80 from this morning. This one traded above $60 in ADR terms back in 2007 and 2008 before the market went south.

They say that ‘Beauty is in the Eye of the Beholder.’ It just depends upon how much the beholder sees as the crossing-point where value becomes fully-priced.

JON C. OGG

Filed under: ADR, Medical, Mergers and Buy Outs, Private Equity, Rumors Tagged: JNJ, MDT, SNN, SYK, ZMH

Top Analyst Upgrades & Downgrades (AMCC, BSX, CLWR, FLEX, JACK, MDT, MPEL, MCO, NFLX, PPL, RTP, ZMH)

Administrator — Thu, 02 Sep 2010 12:13:12 +0000

These are some of this Thursday’s top analyst upgrades, downgrades and initiations seen from Wall Street research calls:

Applied Micro Circuits Corp. (NASDAQ: AMCC) Cut to Sell at S&P Equity Research (late Wednesday call).
Boston Scientific Corp. (NYSE: BSX) Started as Hold at Stifel Nicloaus.
Clearwire Corporation (NASDAQ: CLWR) Started as Buy at Kaufman Bros.
Flextronics International LTD. (NASDAQ: FLEX) Cut to Buy from Strong Buy at S&P Equity Research (late Wednesday call).
Jack in the Box Inc. (NASDAQ: JACK) Started as Equalweight at Morgan Stanley.
Medtronic, Inc. (NYSE: MDT) Started as Hold at Stifel Nicloaus.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Raised to Overweight at Morgan Stanley.
Moody’s Corp. (NYSE: MCO) Started as Market Perform at KBW.
Netflix, Inc. (NASDAQ: NFLX) Started as Hold at ThinkEquity.
PPL Corporation (NYSE: PPL) Cut to Hold at Citigroup.
Rio Tinto plc (NYSE: RTP) Raised to Outperform at RBC.
Zimmer Holdings Inc. (NYSE: ZMH) Started as Buy at Stifel Nicolaus.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: AMCC, BSX, CLWR, FLEX, JACK, MCO, MDT, MPEL, NFLX, PPL, RTP, ZMH

Top 10 Analyst Upgrades and Downgrades (DELL, FNGN, HEW, NWL, NKE, NOK, PRSP, HOT, TMO, ZMH)

Administrator — Mon, 26 Apr 2010 12:25:06 +0000

These are ten of the top analyst calls seen so far this Monday morning from the upgrades, downgrades, and initiations from Wall Street firms:

Dell Inc. (NASDAQ: DELL) Cut to Hold at Standpoint Research.
Financial Engines, Inc. (NASDAQ: FNGN) Started as Neutral at Goldman Sachs; Started as Overweight at Piper Jaffray.
Hewitt Associates Inc. (NYSE: HEW) Raised to Neutral from Sell at Goldman Sachs.
Newell Rubbermaid Inc. (NYSE: NWL) Cut to Market Perform at BMO Capital.
Nike Inc. (NYSE: NKE) Reiterated Buy and Raised target to $85 at Goldman Sachs.
Nokia Corp. (NYSE: NOK) Cut to Hold at Citigroup.
Prosperity Bancshares (NASDAQ: PRSP) Cut to Neutral at SunTrust Robinson Humphreys.
Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) Raised to Buy at Stifel Nicolaus.
Thermo Fisher Scientific (NYSE: TMO) Raised to Buy at Jefferies.
Zimmer Holdings (NYSE: ZMH) Raised to Overweight at JPMorgan.

JON C. OGG

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Filed under: Analyst Calls Tagged: DELL, FNGN, HEW, HOT, NKE, NOK, NWL, PRSP, TMO, ZMH

Top Analyst Upgrades & Downgrades (APA, JPM, JCOM, FCX, PLD, RTP, SLB, SCR, SLM, TXN, UNH, X, ZMH)

247wallst — Fri, 22 Jan 2010 13:30:03 +0000

These are this morning’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls:

Apache Corp. (NYSE: APA) Started as Sector Underperform at Scotia.
JPMorgan Chase & Co. (NYSE: JPM) Raised to Buy at Citigroup.
j2 Global Communications (NASDAQ: JCOM) Raised to Outperform at Morgan Keegan.
Freeport McMoRan (NYSE: FCX) Cut to Neutral from buy at Goldman Sachs.
ProLogis (NYSE: PLD) Cut to Underperform at Wells Fargo.
Rio Tinto (NYSE: RTP) Raised to Overweight from Neutral at HSBC.
Schlumberger Ltd. (NYSE: SLB) Raised to Buy at Calyon.
Simcere Pharmaceutical Group (NYSE: SCR) Cut to Perform at Oppenheimer.
SLM Corp. (NYSE: SLM) Cut to Neutral at Ladenberg Thalmann.
Texas Instruments (NYSE: TXN) Raised estimates but Maintained Sell at Auriga.
UnitedHealth Group (NYSE: UNH) Raised to Conviction Buy List at Goldman Sachs.
United States Steel (NYSE: X) Cut to Buy from Conviction Buy at Goldman Sachs.
Zimmer Holdings (NYSE: ZMH) Started as Buy at Jefferies.

You are invited to join our free daily email distribution list to hear about top analyst upgrades and downgrades, IPOs and secondary offerings, ongoing day trader and options trader alerts, stock and market rumors, Buffett and guru investor news, M&A and more.

JON C. OGG

Posted in Analyst Calls Tagged: APA, FCX, JCOM, JPM, PLD, RTP, SCR, SLB, SLM, TXN, UNH, X, ZMH

Top Analyst Upgrades (AMD, AXP, ACI, ASH, STD, BRCD, COF, DFS, HIBB, MSCC, RCL, ZMH)

247wallst — Mon, 24 Aug 2009 11:58:51 +0000

There were quite a few analyst upgrades and positive research calls this Monday morning. These are the calls we have seen from Wall Street firms early this morning with about two hours until the market opens:

Advanced Micro Devices (AMD) Raised to Buy at Citigroup.
American Express (AXP) Raised to Overweight at Barclays.
Arch Coal (ACI) Raised to Overweight at JPMorgan.
Ashland (ASH) Raised to Buy at KeyBanc.
Banco Santander (STD) Raised to Overweight at JPMorgan.
Brocade (BRCD) Raised to Buy at Argus.
Capital One (COF) Raised to Overweight at Barclays.
Discover Financial (DFS) Raised to Overweight at Barclays.
Hibbett Sports (HIBB) Raised to Overweight at JPMorgan.
Microsemi (MSCC) Raised to Overweight at Thomas Weisel.
Royal Caribbean (RCL) Raised to Buy at Argus.
Zimmer Holdings (ZMH) Raised to Overweight at Thomas Weisel.

If you wish to be reminded of daily upgrades and downgrades as well as other key market issues like mergers and top stories, you can join our open email distribution list to receive updates several times per week.

JON C. OGG

Posted in Analyst Calls Tagged: ACI, AMD, ASH, AXP, BRCD, COF, DFS, HIBB, MSCC, RCL, STD, ZMH

Top Pre-Market Analyst Downgrades (ADCT, ALV, CAT, FORM, GMR, GIII, MIR, SNIC, TGT, TOPS, WM, ZMH)

247wallst — Wed, 23 Jul 2008 06:29:25 +0000

These are some of the top downgrades or negative analyst calls we are seeing this Wednesday morning in early pre-market hours:

ADC Telecom (ADCT) Cut to Neutral at Baird; Cut to Market Perform at FBR.
Autoliv (ALV) Cut to Hold at Deutsche Bank.
Caterpillar (CAT) Cut to Neutral at JPMorgan.
FormFactor (FORM) Cut to Perform at Oppenheimer.
General Maritime (GMR) Cut to Neutral at JPMorgan.
G-III Apparel Group (GIII) Cut to Market Weight at Thomas Weisel.
Mirant (MIR) Cut to Equal Weight at Lehman.
Sonic Solutions (SNIC) Cut to Neutral at JPMorgan.
Target Corp. (TGT) Cut to Neutral at Credit Suisse.
Top Ships (TOPS) Cut to Underweight at JPMorgan.
Washington Mutual (WM) Cut to Sell at Piper Jaffray.
Zimmer Holdings (ZMH) Cut to Neutral at Piper Jaffray.

Jon C. Ogg
July 23, 2008

Top 10 Pre-Market Analyst Calls (ABT, MO, AMGN, CRME, FNM, FRE, IBN, PNRA, SNDK, ZMH)

247wallst — Thu, 20 Mar 2008 06:28:05 +0000

These are the top analyst calls we are focusing on early this Thursday morning in pre-market trading:

Abbott Laboratories (NYSE: ABT) Raised To Outperform at Wachovia.
Altria (NYSE: MO) started as Buy at UBS.
Amgen (NASDAQ: AMGN) downgraded to Market Perform at Wachovia.
Cardiome Pharma (NASDAQ: CRME) started At Outperform at Wachovia.
Fannie Mae (NYSE: FNM) raised to Outperform at KBW.
Freddie Mac (NYSE: FRE) raised to Outperform at KBW.
ICICI Bank (NYSE: IBN) downgraded to Underperform at Jefferies.
Panera Bread (NASDAQ: PNRA) downgraded to Neutral at JP Morgan.
SanDisk NASDAQ: SNDK) downgraded to Neutral at JP Morgan.
Zimmer Holdings (NYSE: ZMH) raised to Overweight at Lehman Brothers.

Jon C. Ogg
March 20, 2008