EMC, Gilead Sciences and Potash Appealing to Analysts at Start of 2012

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On Wall Street today, the Dow Jones Industrial Average (NYSEARCA:DIA) is up 20 points to 12,417. The S&P 500 (NYSEARCA:SPY) is up 1 point to 1,277, and the Nasdaq (NASDAQ:QQQ) is up 2 points to 2,651. Analysts reviewed and rated these companies in more depth:

EMC Corporation (NYSE:EMC): Credit Suisse adds EMC to U.S. Focus List.  EMC has a commanding position in high-end enterprise storage systems and has been increasing its mid-range competitiveness.  Credit Suisse feels this makes EMC’s valuation attractive with a favorable outlook. The firm has an Outperform rating.

Coinstar Inc. (NASDAQ:CSTR): With the deal between Coinstar’s (NASDAQ:CSTR) Redbox and Warner expiring January 31, Piper Jaffray doesn’t sees a similar renewal. Piper thinks Warner will want to push out the current 28 day delay, a move Redbox doesn’t want. The firm feels there are two alternatives: Warner gets Redbox to lower content cost with a 45-60 day delay, or Redbox creates some type of workaround.  Neither alternative should be as bad as people may think.  The firm stays upbeat on Coinstar’s future rating it Overweight.

Gilead Sciences Inc. (NASDAQ:GILD): Goldman’s Biotechnology 2012 Top Picks. Goldman best ideas for 2012 are Alexion (NASDAQ:ALXN), Gilead (NASDAQ:GILD), Onyx (NASDAQ:ONXX), and Vertex (NASDAQ:VRTX). Soliris should deliver for Alexion.  Gilead is growing through multiple expansion opportunities.   Onyx shares could go higher for a variety of data points and Vertex should benefit from its pipeline for cystic fibrosis.

Anadarko Petroleum Corporation (NYSE:APC): UBS names potential energy and petroleum takeover targets. Citing potential in U.S. shale gas and oil development, UBS feels Majors have moved from selling to buying U.S. properties. UBS sees takeout, or merger and acquisition targets on: Anadarko (NYSE:APC), Cabot Oil & Gas (NYSE:COG), Continental Resources (NYSE:CLR), EOG Resources (NYSE:EOG), Oasis Petroleum (NYSE:OAS), Plains Exploration (NYSE:PXP), Range Resources (NYSE:RRC), SM Energy (NYSE:SM), and Southwestern Energy (NYSE:SWN).

Potash Corp. of Saskatchewan, Inc. (NYSE:POT): Citigroup dropped Potash (NYSE:POT) from its Top Picks Live list but kept a Buy rating and $48 price target. Replacing Potash was CF Industries (NYSE:CF), upgraded by Citi from Neutral to Buy.

Given Imaging Ltd. (NASDAQ:GIVN): Maxim positive on Given Imaging’s PillCam update. Maxim feels today’s update of the PillCam COLON 2 clinical trial, will support clearance by the Food and Drug Administration, allowing a U.S. launch of  PillCam COLON 2 during the first half of 2013. The firm recommends buying Given Imaging shares.

Cliffs Natural Resources Inc. (NYSE:CLF): Cliffs Natural and Freeport McMoRan are buys for Goldman going into earnings. Goldman believes Chinese steel production along with rebounding iron ore prices will help Cliffs Natural (NYSE:CLF) and there may be an upside in volume guidance for Freeport McMoRan (NYSE:FCX).

OraSure Technologies Inc. (NASDAQ:OSUR): Stephens raises OraSure target from $10 to $12. Based on conversations with OraSure’s management and  consumer products experts, Stephens feels OraSure’s over-the-counter HIV test could begin to deliver profits in 2015, creating significant company valuation over current levels. The firm keeps an Overweight rating.

Ventas Inc. (NYSE:VTR): BMO Capital says buy Ventas on weakness. BMO Capital thinks Lazard Real Estate Partners announcement selling 85 percent of its stake will have short-term impact on Ventas’ shares. The firm feels the sale will benefit Ventas and reiterates an Outperform rating.

To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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