Stock Insights: Intel, Mattel, Corrections Corp, Village Super Market, Google June 6th
Intel Corporation (NASDAQ:INTC): JPMorgan lowered its earnings estimates for Intel (NASDAQ:INTC), AMD (NYSE:AMD), Texas Instruments (NYSE:TXN), ON Semiconductor (NASDAQ:ONNN), and Vishay (NYSE:VSH), a stock it also downgraded to Neutral from Overweight, after its channel checks indicated slowing demand for semiconductors. The firm says its second half of 2012 and 2013 estimates are now below consensus for almost every semi name it covers, but adds that low channel inventory and margins should mitigate the demand slowdown. JPMorgan believes the communications end market is the strongest, which it says is positive for both Altera (NASDAQ:ALTR) and Xilinx (NASDAQ:XLNX).
Mattel Inc. (NASDAQ:MAT): Sterne Agee believes that toys are more resistant to weak economic trends than other consumer categories, and it reiterates a Buy rating on Mattel.
Corrections Corporation of America (NYSE:CXW): Barclays believes there is a 80% probability Corrections Corp. (NYSE:CXW) converts to a REIT given recent trends in IRS rulings and its prior history as a REIT. The firm believes a Corrections Corp. REIT conversion would be quicker and simpler than Iron Mountain’s (NYSE:IRM). Share are Overweight rated.
Village Super Market Inc. (NASDAQ:VLGEA): Reports Q3 revenue $347M vs. $316.59M in Q3 of FY11
Google Inc. (NASDAQ:GOOG): JPMorgan lowered its estimates for Google (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Priceline.com (NASDAQ:PCLN) and HomeAway (NASDAQ:HWAY) citing currency moves and macro concerns. The firm dropped its price target for Google shares to $670 from $730, for Amazon to $245 from $250, for eBay to $39 from $41, for Priceline to $770 from $810, and for HomAway to $28 from $30. However, JPMorgan finds its two top large-cap picks, Priceline and Amazon, more attractive following the recent pullbacks, and says it is more constructive on Google at current levels.
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