Analyst Actions: Apple, SanDisk, Assured Guaranty
From Standard & Poor’s Equity Research
JP MORGAN CUTS ESTIMATES, KEEPS NEUTRAL ON APPLE
JPMorgan algebraist Mark Moskowitz says Apple (AAPL) shares stand to take a breather. After posting a tenacious quarter, says AAPL lowered its financial year 2009 (September) gross margin expectations to approximately 30%, which could stun the bulls, particularly for the reason that no corresponding revenue bogey was offered.
Moskowitz believes AAPL could have being resetting expectations ahead of the iPhone transition to 70 countries, which could involve temporary hiccups. Reading between the tea leaves, he in addition thinks that AAPL’s commentary on margins could suggest more opportunistic pricing configurations on upcoming product launches.
He cuts $5.19 fiscal year 2008 EPS estimate to $5.14 and $6.06 for fiscal year 2009 to $5.35.
NEEDHAM CUTS SANDISK TO HOLD FROM BUY
Needham algebraist Y. Edwin Mok says, space of time expectations were cheap, SanDisk (SNDK) surprised the Street on the downside with supporter quarter non-GAAP losses and guidance for about 0% product margins. He says it appears SNDK’s ballooned inventory wish prevent any meaningful margins rebound for particular quarters, even as SNDK delays production creep up and trims spending.
Mok believes, while the stock looks cheap, concerns over weaker consumer spending and several quarters of losses will limit any uphill emotion for the share worth. Thus, he considers a hold rating as more appropriate, until he sees clearer signs of improvement.
He slashes $1.50 2008 pro forma EPS appraise to $0.20 loss and $1.75 2009 EPS to $0.16 loss.
JP MORGAN DOWNGRADES ASSURED GUARANTY
JPMorgan analyst Andrew Wessel says he is downgrading Assured Guaranty (AGO) to of neither party from overweight, removing it from Analysts’ Focus List, as Moody’s has placed the company’s insurance financial strength (IFS) rating with less than review for possible downgrade.
Although Wessel views commentary from Moody’s as extremely vague, he feels the rating agency is pique ultra-conservative stance given its sustained misjudgment of larger and more troubled bond insurers over the last 12 months. He assumes Moody’s bequeath drop AGO’s IFS rating to Aa2, and he no longer believes AGO will have indicative insured production growth end 2009.
He cuts $2.10 2008 EPS estimate to $2.00 and $3.90 for 2009 to $2.50.
Original text: http://www.businessweek.com/investor/content/jul2008/pi20080722_329912.htm?campaign_id=rss_null
