MORNING COFFEE

Sanofi Reaches Deal With Genzyme. After months of negotiations, Sanofi-Aventis (SNY) and Genzyme (GENZ) reached a deal to purchase the company.  The French drugmaker will pay $74 pershare in cash for Genzyme.  Sanofi also agreed on a contingent value right which states that Genzyme shareholders will receive as much as an additional $14 per share.  The amount depends on the performance of Genzyme’s experimental multiple-sclerosis drug Lemtrada and production levels of two of the company’s other products. Premarket: SNY +1.4%, GENZ +0.9%.

Upgrades

Valero Energy (VLO): RBC Capital Markets raised their rating from Sector Perform to Top Pick and raised their target price from $26.00 to $35.00.

Canadian National Rail (CNI): RBC Capital Markets raised their rating from Sector Perform to Outperform and placed a target price of $77.00 on the company.

Sprint Nextel (S): Argus raised their rating from Hold to Buy and placed a target price of $7.00 on the company.

Las Vegas Sands (LVS): KeyBanc Capital Markets raised their rating from Hold to Buy and placed a target price of $57.00 on the company.

Downgrades

Marriott (MAR): Hudson Securities lowered their rating from Buy to Hold.

Coverage Initiated

National Oilwell Varco (NOV): Morgan Keegan initiated coverage with an Outperform rating and target price of $95.00.

Halliburton (HAL): Morgan Keegan initiated coverage with an Outperform rating and target price of $65.00.

Coverage Reiterated/Price Target Changed

Hewlett-Packard (HPQ): Wedbush reiterated their Outperform rating and raised their target price from $50.00 to $55.00.

Dell (DELL): Stifel Nicolaus reiterated their Buy rating and raised their target price from $16.00 to $18.00.

Clorox (CLX): RBC Capital Markets reiterated their Outperform rating and raised their target price from $69.00 to $73.00.

Family Dollar (FDO): RBC Capital Markets reiterated their Outperform rating and raised their target price from $49.00 to $60.00.

Family Dollar (FDO): Wedbush reiterated their Neutral rating and raised their target price from $44.00 to $54.00.

Earning Reports

Allscripts-Misys Healthcare Solutions (MDRX): Reported Q4 EPS of $0.20 beating estimates by +$0.02 on revenue of $337 million, in-line with estimates.

Analog Devices (ADI): Reported FQ1 EPS of $0.70 beating estimates by +$0.05 on revenue of $729 million, in-line with estimates.

Dell (DELL): Reported Q4 EPS of $0.53 beating estimates by +$0.16 on revenue of $15.7 billion, in-line with estimates.

ValueClick (VCLK): Reported Q4 EPS of $0.31 beating estimates by +$0.08 on revenue of $129 million, beating estimates by +$5 million.

Devon Energy (DVN): Reported Q4 EPS of $1.57 beating estimates by +$0.16 on revenue of $2.14 billion, missing estimates by -$0.2 billion.

Talisman Energy (TLM): Reported Q4 EPS of $0.08 missing estimates by -$0.07 on revenue of $1.87 billion, beating estimates by +$0.16 billion.

·         Futures at 7:00: Dow +0.3%. S&P +0.4%. Nasdaq +0.25%. Crude +0.3% to $84.60. Gold -0.1% to $1373.

·         Europe: London +0.4%. Paris +0.8%. Frankfurt +0.1%.

·         Asia: Japan +0.6% to 10808. Hong Kong +1.1% to 23157. China +0.9% to 2924. India +0.15%  to 18301.