From Standard & Poor's Equity ResearchNEEDHAM CUTS ESTIMATES FOR AGILENT TECHNOLOGIES
Needham analyst John Harmon says the steep fall-off in Agilent Technologies' (A) January orders led to its first quarter shortfall.
Harmon says segment performance was mixed: Electronic Measurement revenues fell 23% (orders declined 28%); Bio-analytical saw orders up 2% organically, sales down 1%; Semiconductor and Board Test was the hardest hit, with orders down 66%, sales off 49%. He cuts $1.40 fiscal year 2009 (October) EPS estimate to $1.00 and $1.80 fiscal year 2010 forecast to $1.40.
Although end markets remain weak, and semiconductor board test is extremely anemic, Agilent possesses significant additional resources to align costs with revenues, he says. He keeps a hold opinion on the stock.
UBS FINANCIAL DOWNGRADES ARENA PHARMACEUTICALS TO NEUTRAL FROM BUY
UBS Financial analyst Jeff Elliott says he believes Arena Pharmaceuticals' (ARNA) current stock price represents a fair value for risk/reward of lorcaserin.
Although he remains positive on the expected outcome of the BLOOM and BLOSSOM trials, until final data is available, the potential for negative efficacy, safety results cannot be eliminated. He says the current tone at the FDA remains conservative, suggesting regulatory risk should not be overlooked.
Elliott raises $6 target to $7 to reflect shorter discount period and increased revenue multiple to reflect a stronger than expected out-licensing environment.