From Standard & Poor's Equity ResearchKEYBANC UPGRADES LANDSTAR SYSTEM TO BUY FROM HOLD
KeyBanc analyst Todd Fowler says he's maintained a positive bias toward Landstar System (LSTR) for some time and believes the recent pullback in shares creates an attractive entry point.
As a result, he upgrades the stock and establishes a 63 price target based on: 1) stabilizing domestic freight trends; 2) his preference for asset-light models in the current fuel environment; 3) traction in non-truck offerings; 4) operating margin expansion; and 5) solid earnings growth and cash flow generation.
Fowler sees EPS of $2.20 for 2008 and $2.50 for 2009. He notes his 63 target assumes 25 times 2009 estimated EPS, vs. a historical 5-year median of 22, and is in line with the current 25 times asset-light peer group multiple.
FRIEDMAN BILLINGS UPGRADES SILICON LABS TO OUTPERFORM FROM MARKET PERFORM
Friedman Billings analyst Craig Berger says recent checks suggest that Silicon Laboratories (SLAB) is having a solid quarter; second quarter financial results are likely tracking in line to slightly better than consensus. Further, he says checks with distributors shipping into networking and communication sector indicate this end market remains robust in the second quarter.
Given this strength, Berger thinks third quarter consensus estimates increasingly look beatable. On the broadcast side, he believes commoditization concerns are now embedded in the company's valuation multiples. He is encouraged by many newly launched products in broadcast and thinks this business will continue to grow into 2009.
He raises his price target to 44 from 41.