MORNING COFFEE

J&J Offerso Buy Crucell. Johnson & Johnson (JNJ) announced a bid to purchase the rest of Crucell (CRXL) it does not already own.  J&J offered the company €24.75/share.  If the deal goes through J&J will gain the biotech firms profitable vaccine business.  Crucell shareholders will vote on the offer in February.

Fortune Brands To Split Up. Fortune Brands (FO) announced plans to split itself into three different companies.  The company said that it will spin off its home and security unit in a tax-free transaction to shareholders.  The company’s golf unit will either be sold or spun off and the liquor brands have already generated takeover interest.

Upgrades

Red Hat (RHT): RBC Capital Markets raised their rating from Sector Perform to Outperform and raised their target price from $40.00 to $57.00.

Coverage Initiated

Occidental Petro (OXY): RBC Capital Markets initiated coverage with an Outperform rating and target price of $105.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Stifel Nicolaus reiterated their Buy rating and raised their target price from $360.00 to $3900.00.

3M (MMM): FBR Capital reiterated their Outperform rating and lowered their target price from $101.00 to $98.00.

Texas Instruments (TXN): Oppenheimer reiterated their Outperform rating and raised their target price from $30.00 to $41.00.

Salesforce.com (CRM): Wedbush reiterated their Outperform rating and raised their target price from $135.00 to $155.00.

Salesforce.com (CRM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $150.00 to $175.00.

Salesforce.com (CRM): Stifel Nicolaus reiterated their Buy rating and raised their target price from $144.00 to $160.00.

Earning Reports

Costco (COST): Reported FQ1 EPS of $0.71 beating estimates by +$0.02 on revenue of $19.24 billion, up +11.2%.

H&R Block (HRB): Reported FQ2 EPS of -$0.35 beating estimates by +$0.03 on revenue of $322.9 million, down -1%. 

·         Futures at 7:00: Dow -0.2%. S&P -0.1%. Nasdaq +0.1%. Crude -0.5% to $88.23. Gold -0.75% to $1398.40.

·         Asia: Japan +0.9% to 10232. Hong Kong -1.4% to 23093. China -0.9% to 2849. India -1.2% to 19696.

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

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