MORNING COFFEE

GM To Leave Taxpayers On The Hook. In a report issued by the Congressional Oversight Panel says that taxpayers will unlikely to recover the full $50 billion investment in GM (GM). The shortfall is in part due to the government selling a larger chunk of shares at the IPO price of $33.00 instead of waiting for a higher price.  The government’s breakeven point is $53.00 per share.  The government's stake is currently down to 26.5% from a high of 61% and has recovered around $23 billion.

Upgrades

AFLAC (AFL): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $59.00 to $69.00.

UnitedHealth (UNH): Wedbush raised their rating from Neutral to Outperform and raised their target price from $41.00 to $48.00.

Chipotle Mexican Grill (CMG): Miller Tabak raised their rating from Hold to Buy and raised their target price from $210.00 to $255.00.

Micron (MU): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $12.00 on the company.

Micron (MU): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $8.00 to $15.00.

Coverage Initiated

General Motors (GM): Argus initiated coverage with a Buy rating and target price of $47.00.

Precision Castparts (PCP): Stifel Nicolaus initiated coverage with a Buy rating and target price of $175.00.

Earning Reports

Infosys Technologies (INFY): Reported FQ3 EPS of $0.69 beating estimates by +$0.02 on revenue of $1.59 billion, up +28.7%.

·         Futures at 7:00: Dow 0.0%. S&P 0.0%. Nasdaq 0.0%. Crude -0.2% to $91.65. Gold -0.5% to $1378.60.

·         Europe: London -0.3%. Paris +0.3%. Frankfurt -0.1%.

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