Equity Insights June 13th: Goldman Sachs, Avon, Zynga, Jude Medical, Terex
The Goldman Sachs Group, Inc. (NYSE:GS): After meeting with Goldman’s CFO, Oppenheimer reports that the CFO said that client activity isn’t as weak as in 2H11. The firm believes that the stock’s current valuation makes it “increasingly tempting,” but Oppenheimer continues to view commercial banks as more attractive and maintains a Perform rating on Goldman.
Avon Products Inc. (NYSE:AVP): Morgan Stanley believes a fundamental turnaround is unlikely near-term at Avon given the competitive direct selling environment and broad-based execution issues. The firm maintains its Equal Weight rating.
Zynga (NASDAQ:ZNGA): Lazard Capital believes concerns surrounding Zynga are overdone with the stock down 12% over the past week. The firm thinks Zynga is more about monetization growth than usage growth and believes now is a good time to get more aggressive on the name. Note JPMorgan this morning lowered its price for Zynga shares to $11 but reiterated an Overweight rating on the stock.
St. Jude Medical Inc. (NYSE:STJ): After an externalized conductor was found in St. Jude’s Durata lead and reported to the FDA, BMO Capital notes that high voltage LV leads account for only about 7% of the company’s total sales. The firm thinks that the company can withstand the negative publicity and it maintains an Outperform rating on the shares.
Terex Corp. (NYSE:TEX): Credit Suisse reiterated Terex as a top small-cap pick given its a late cycle play with earnings and deleveraging opportunities. Shares are Outperform rated with a $41 price target.
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