MORNING COFFEE

Texas Instruments To Buy National Semi. 

After the market closed yesterday Texas Instruments (TXN) announced that they have agreed to buy National Semiconductor (NSM).  Shares of National Semi shares surged +73% in after-hours trading on the news.  Texas Instruments (TXN) will purchase National Semi for $6.5 billion, or $25 a share.  Some analysts are openly questioning the price, saying that Texas Instruments is paying too much.  TXN Pre-market: 33.00 -1.11 (-3.25%), NSM Pre-market: 24.18 +10.11 (71.86%)

Earning Reports

Intl Speedway (ISCA): Reported EPS of $0.49 beating estimates by +$0.01.

KB Home (KBH): Reported EPS of -$1.49 missing estimates by -$1.22.

Upgrades

Analog Devices (ADI): Auriga U.S.A raised their rating from Sell to Hold and raised their target price from $31.00 to $39.00.

IDEX Corp (IEX): Oppenheimer raised their rating from Perform to Outperform and placed a Target price of $53.00 on the company.

Coverage Initiated

PMC-Sierra (PMCS): Kaufman Bros initiated coverage with a Buy rating and target price of $8.50.

Almost Family (AFAM): Collins Stewart initiated coverage with a Hold rating and target price of $38.00.

Coverage Resumed

Broadcom (BRCM): Kaufman Bros resumed coverage with a Buy rating and target price of $48.00.

Texas Instruments (TXN): Kaufman Bros resumed coverage with a Buy rating and target price of $40.00.

Intel (INTC): Kaufman Bros resumed coverage with a Buy rating and target price of $25.00.

Qualcomm (QCOM): Kaufman Bros resumed coverage with a Buy rating and target price of $65.00.

Coverage Reiterated/Price Target Changed

BP (BP): The Benchmark Company reiterated their Buy rating and raised their target price from $55.00 to $70.00.

·         Futures at 7:00: Dow -0.2%. S&P -0.3%. Nasdaq -0.8%. Crude -0.65% to $107.76. Gold 0.0% at $1432.90.

·         Europe: London -0.3%. Paris -0.6%. Frankfurt -0.3%.

·         Asia: Japan -1.1% to 9616. Hong Kong closed. China closed. India -0.1% to 19687.