MORNING COFFEE

Sanofi And Genzyme Nearing Deal. Reports say that the boards of Sanofi-Aventis (SNY) and Genzyme (GENZ) met separately Sunday to finalize details of their $20 billion deal. Reports are that Sanofi will pay $74.00 per share in cash, along with a contingent value right worth around $5-6 per share.  The companies are expected to finalize the deal early this week.

Upgrades

United Technologies (UTX): Argus raised their rating from Hold to Buy and placed a target price of $96.00 on the company.

Downgrades

Dominion (D): Argus lowered their rating from Buy to Hold.

Weyerhaeuser (WY): RBC Capital Markets lowered their rating from Market Perform to Underperform and placed a target price of $18.00 on the company.

Weyerhaeuser (WY): McAdams Wright Ragen lowered their rating from Buy to Hold and placed a target price of $22.00 on the company.

Coverage Reiterated/Price Target Changed

Clorox (CLX): Oppenheimer reiterated their Outperform rating and raised their target price from $68.00 to $72.00.

Hansen Natural (HANS): Stifel Nicolaus reiterated their Buy rating and raised their target price from $55.00 to $59.00.

Express Scripts (ESRX): Stifel Nicolaus reiterated their Buy rating and raised their target price from $60.00 to $65.00.

Automatic Data (ADP): Stifel Nicolaus reiterated their Buy rating and raised their target price from $57.00 to $60.00.

Earning Reports

Cognizant Technology Solutions (CTSH): Reported Q4 EPS of $0.66 beating estimates by +$0.01 on revenue of $1.31 billion, up +45.2%.

Hasbro (HAS): Reported Q4 EPS of $0.99 beating estimates by +$0.07 on revenue of $1.28 billion, down -7.0%.

Humana (HUM): Reported Q4 EPS of $0.63 missing estimates by -$0.18 on revenue of $8.35 billion, up +9.4%.

Loews Corp (L): Reported Q4 EPS of $1.12 beating estimates by +$0.24 on revenue of $3.72 bilion, down -2.8%.

·         Futures at 7:00: Dow +0.2%. S&P +0.3%. Nasdaq +0.2%. Crude +0.4% to $89.37. Gold -0.1% to $1347.20.

·         Europe: London +0.7%. Paris +0.9%. Frankfurt +0.7%.

·         Asia: Japan +0.5% to 10592. Hong Kong -1.5% to 23554. China closed. India +0.2% to 18037.