From Standard & Poor's Equity ResearchCITIGROUP INITIATES COVERAGE OF WYNN RESORTS WITH SELL
Citigroup analyst Anil Daswani says many landmines are in the road ahead for Wynn Resorts (WYNN).
Daswani says the economic downturn has hit Las Vegas attendances, with declines in monthly gaming in the last nine months. He also notes issues and commission caps in Macau.
He sees $2.92 2008 EPS and $1.45 for 2009. He sees no catalysts for the company until the second half of 2009 when it gets a new CEO. He has a $29 price target on the stock.
He notes key Macau-related gaming stocks have fallen 70%-96% year-to-date, but thinks only now are approaching valuations justified by discounted cash flow (DCF), which he thinks is now relevant for gaming stocks, representing downside support for sector.
FBR CAPITAL UPGRADES BED BATH & BEYOND TO MARKET PERFORM FROM UNDERPERFORM
FBR Capital analyst Stephen Chick says although Bed Bath & Beyond's (BBBY) downward sales and EPS pre-announcement is worse than the Street estimate, investors will likely be willing to give BBBY the benefit of doubt given competitor Linens 'N' Things will not be around this time next year.
Chick notes that Linens is in bankruptcy liquidation; roughly 70% of BBBY's store base is in close proximity to former Linens stores and ought to benefit modestly in the second half of fiscal year 2010 (February). He say this case is easier to make with the stock below $20 than when it was above $30.
He sees $1.65 fiscal year 2009 EPS. He sets $22 fair value target.
NEEDHAM KEEPS BUY ON MARVELL TECHNOLOGY
Needham analyst N. Quinn Bolton says Marvell Technology Group's (MRVL) third quarter results were in line with Nov. 3 pre-announcement due to increased order push-outs, cancellations; reduced consigned inventory pulls in late September and October.
Bolton says while near-term visibility remains low, the two clear highlights from the company's call were: fourth quarter guidance wasn't materially changed from the company's view issued a month ago and order volatility fell significantly in November vs. October.
He raises $0.84 fiscal year 2009 (January) EPS estimate to $0.87 to reflect $0.23 third quarter EPS vs. his $0.20 estimate. However, he cuts $0.75 fiscal year 2010 EPS forecast to $0.55 and $11 price target to $8.25.