Equity Analysis: Amazon.com’s Kindle Catalyst, Micron Tech, Zynga, Allergan

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Amazon.com Inc. (NASDAQ:AMZN): Pacific Crest increased its 2012 estimate for unit sales of Amazon’s Kindle Fire to 14.9M from 12.7M. The firm believes that increased adoption of Kindle Fire tablets should drive share gains for Amazon over the longer term, but it maintains a Sector Perform rating on the stock.

Micron Technology Inc. (NASDAQ:MU): JMP Securities believes that Micron has several positive catalysts. JMP Securities expects the company’s Analyst Day on February 10 to increase investors’ confidence that a cyclical bottom has been reached, causing the stock to advance. The firm recommends buying the stock.

Zynga (NASDAQ:ZNGA): Pacific Crest said its survey indicates a decline in Facebook gaming by heavy users. The firm said gamers on Facebook that play “often” declined to 15% from 19% between surveys. The firm said Zynga has huge exposure to Facebook heavy users and that shares are overvalued vs. peers. The firm rates Zynga a Sector Perform.

Regal Beloit Corporation (NYSE:RBC): RBC Capital increased its target on Regal Beloit after the company reported stronger than expected Q4 results and provided stronger than expected Q1 guidance. The firm maintains an Outperform rating.

Allergan Inc. (NYSE:AGN): After meeting with Allergan’s management, RBC Capital is more confident that the company will present a robust pipeline during its R&D day on March 28. The firm maintains an Outperform rating.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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

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