Equity Insights June 14th: Dell, Edwards Lifesciences, Motorola, Darden
Dell Inc. (NASDAQ:DELL): Brean Murray said Dell remains an undervalued asset despite a softening PC environment. The firm cited its Enterprise strategy, dividend initiation, and gross margins as reasons to maintain their Buy rating and $16 price target.
Edwards Lifesciences Corp. (NYSE:EW): RBC Capital increased its target on Edwards after an FDA Advisory Panel voted 11-0 to recommend approval of Edwards’ Sapien transcatheter heart valve for a Cohort A indication. The firm expects final FDA approval for the Cohort A indication in 4Q12, and it maintains a Top Pick rating on the stock.
Motorola, Inc. (NYSE:MSI): Goldman lowered IT Supply Chain & Components estimates across the group based on macro concerns, tighter inventory management, and weaker demand and sees risk to 2H 2012 growth. Within the group, the firm views Buy rated Motorola Solutions (NYSE:MSI) as the best defensive name given its stability and pubic safety business visibility and sees the greatest risk to Sell rated Tech Data (NASDAQ:TECD) due to margin and sales concerns.
Darden Restaurants, Inc. (NYSE:DRI): Baird said the risk/reward for Darden remains favorable despite soft trends for chain restaurants. The firm lowered its estimates ahead of Q4 results but believes its dividend rate should support its valuation in the short term while growth should support it linger term. Shares are Outperform rated with a $58 price target.
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