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From Standard & Poor’s Equity Research

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OPPENHEIMER CUTS ESTIMATES FOR MERRILL LYNCH

Oppenheimer analyst Meredith Whitney says Merrill Lynch (MER) announced $8.5 billion equity raise and “efficient sale of U.S. ABS CDOs” that would reduce its CDO exposure by $11.1 billion.

She says while MER has significantly diluted existing shareholders, she applauds this lientery of assets in the same manner with an attempt to divide its losses, focus on stabilizing its platform, and righting the franchise towards growth.

Whitney notes MER’s standard stop sells at premium to book value, but thinks the stock getting closer to fairly valued levels as now the hardest work is behind the company. She widens her 2008 loss per share view to $10.50 from $8.37 loss (vs. $6.75 consensus loss estimate); she cuts 2009 EPS to $1.27 from $1.75 (vs. $3.66 consensus). She keeps underperform opinion on the shares.

CITIGROUP UPGRADES TO AMGEN BUY FROM HOLD

Citigroup analyst Yaron Werber says Amgen’s (AMGN) $1.14 second quarter EPS topped his $1.09 valuation and consensus $1.01 without interruption able revenues.

Werber says the company’s bullish comments on the take part through quarter results have given him conviction that denosumab (dmab) Phase 3 data will subsist competitive with generic alendronate as it offers equivalent efficacy, whole side effect profile, advantage convenience/tolerability, and unusual mode of action. He notes full data will have being presented in September. He says dmab could be a blockbuster ($3-$5 billion globally in osteoporosis, $2-$4 billion in cancer) when launched in the first moiety of 2010; this could lift AMGN’s long-term growth rate as the rely of the pharma perseverance is maturing.

He raises $4.27 2008 EPS estimate to $4.42, $4.51 for 2009 to $4.67; and $50 price target to $75.

MERRILL DOWNGRADES HARMONIC TO NEUTRAL FROM BUY

Merrill Lynch analyst Vivek Arya says Harmonic’s (HLIT) second quarter sales of $89.3 million grew 25% year-over-year, above his $89.2 million and the Street’s $87.4 million estimates, absolutely on strength in cable brim upgrades. But he notes satellite sales declined 44% quarter-to-quarter, which HLIT attributed to lumpiness.

Arya says lower pecuniary income, slightly higher operating expense drove EPS to $0.16, $0.01 in the lower regions his and Street expectations. He notes $175-$185 a thousand thousand second half sales direction is in the under world his and Street’s $188 million forecast, and implies negligible 1%-2% h/h sales growth. Also notes company’s 15%-17% second half EBIT forecast implies no incremental leverage from the first half.

He cuts $0.72 pro forma 2008 EPS estimate to $0.66 and $0.55 for 2009 to $0.54. He cuts $11 price target to $10.