MORNING COFFEE

Apple to Buy Sony? Yesterday there were rumors that Apple (APPL) may purchase Sony (SNE).  But the rumors didn’t affect Sony’s Shares which were up only +1.0% in trading.  Many analysts questioned the logic since Apple expertise is its products and brand which doesn’t fit with Sony’s business lines.  Apple has $51 billion in cash that its sitting on and many are questioning what Apple will do with all that cash.

Upgrades

Motorola (MOT): MKM Partners raised their rating from Neutral to Buy and raised their target price from $7.00 to $10.00.

Check Point Software (CHKP): HSBC Securities MKM Partners raised their rating from Neutral to Overweight and raised their target price from $41.00 to $49.00.

Downgrades

Abbott Labs (ABT): Argus lowered their rating from Buy to Hold.

Coverage Initiated

Texas Industries (TXI): Jefferies initiated coverage with a Buy rating and target price of $43.00.

Coverage Reiterated/Price Target Changed 

National Oilwell Varco (NOV): RBC Capital Markets reiterated their Outperform rating and raised their target price from $55.00 to $70.00.

Kimberly-Clark (KMB): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $70.00 to $68.00.

Fiserv (FISV): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $51.00 to $57.00.

Broadcom (BRCM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $43.00 to $45.00.

Broadcom (BRCM): FBR Capital reiterated their Outperform rating and raised their target price from $42.00 to $45.00.

Under Armour (UA): FBR Capital reiterated their Market Perform rating and raised their target price from $42.00 to $50.00.

Earnings

Brinker International (EAT): Reported FQ1 EPS of $0.21 beating estimates by +$0.06 on revenue of $655 million.

Elan (ELN): Reported Q3 EPS of -$0.07 missing estimates by -$0.02 on revenue of $281 million.

SAP AG (SAP): Reported Q3 EPS of $0.57 missing estimates by -$0.04 on revenue of $4.1 billion.

AFLAC (AFL): Reported Q3 EPS of $1.46 beating estimates by +$0.13 on revenue of $5.4 billion.

Broadcom (BRCM): Reported Q3 EPS of $0.60 beating estimates by +$0.05 on revenue of $1.8 billion.

Fiserv (FISV): Reported Q3 EPS of $1.04 beating estimates by +$0.04 on revenue of $1 billion.

Western Union (WU): Reported Q3 EPS of $0.37 beating estimates by +$0.02 on revenue of $1.3 billion. 

Mylan Laboratories (MYL): Reported Q3 EPS of $0.43 beating estimates by +$0.01 on revenue of $1.4 billion. 

Whirlpool (WHR): Reported Q3 EPS of $1.02 beating estimates by +$0.14 revenue of $4.5 billion.

AFLAC (AFL): Reported EPS of $1.46 beating estimates by +$0.07.

Taubman Centers (TCO): Reported EPS of -$0.56 missing estimates -$0.78.

·         Futures: Dow -0.2%. S&P -0.3%. Nasdaq -0.15%. Crude -0.9% to $81.83. Gold -0.4% to $1333.80.

·         Asia: Japan +0.1% to 9387. Hong Kong -1.9% to 23165. China -1.5% to 2997. India -1.1% to 20005.

·         Europe: London -0.5%. Paris -0.2%. Frankfurt +0.1%.