Morning Coffee Pre-Market Wall Street News

Oracle Misses Earnings, Shares Get Hammered. Oracle (ORCL) reported Q4 net profit rose 10% to $3.8B and adjusted EPS came in at $0.87 missing Wall Street estimates. Revenue at the company was flat at $10.9B. Some on Wall Street view the company as coming late to the “Cloud” and playing catch-up causing the pressure on earnings and organic growth. Additionally the company said that it would move from the NASDAQ to the NYSE on July 15^th. Once the move is completed Oracle will continue to trade under its current ticket symbol ORCL. Pre-market: 30.75 -2.46 (-7.41%)

Upgrades:

Bayer AG (BAYRY): Goldman Sachs raised their rating from Neutral to Buy.

Cardinal Health (CAH): William Blair raised their rating from Market Perform to Outperform. After Hours: 47.32 +0.25 (0.54%)

Facebook (FB): UBS raised their rating from Neutral to Buy and raised their target price from $28.00 to $30.00. Pre-market: 24.42 +0.52 (2.18%)

Forest Labs (FRX): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $40.00 to $50.00. Pre-market: 41.08 +0.89 (2.21%)

Kennametal (KMT): Barrington raised their rating from Market Perform to Outperform and placed a target price of $45.00 on the company.

Kimberly-Clark (KMB): BMO Capital raised their rating from Underperform to Market Perform and placed a target price of $96.00 on the company. After Hours: 95.00 +0.34 (0.36%)

NetGear (NTGR): Wedbush raised their rating from Neutral to Outperform and raised their target price from $32.00 to $38.00.

Southern Co (SO): Citigroup raised their rating from Neutral to Buy and maintained their target price of $51.00. Pre-market: 43.00 +0.52 (1.22%)

Streelcase (SCS): Longbow raised their rating from Neutral to Buy and placed a target price of $18.00 on the company.

Downgrades:

Diageo PLC (DEO): Santander lowered their rating from Buy to Hold. Pre-market: 115.78 +2.08 (1.83%)

ITT Educational (ESI): Argus lowered their rating from Hold to Sell. Pre-market: 24.85 -0.08 (-0.32%)

Newmont Mining (NEM): UBS lowered their rating from Buy to Neutral. Pre-market: 29.90 +0.15 (0.50%)

Coverage Initiated:

Burger King Worldwide (BKW): Wells Fargo initiated coverage with a Market Perform rating and target range of $21.00 - $22.00.

Wendy’s (WEN): Wells Fargo initiated coverage with a Market Perform rating and target range of $6.00 - $7.00.

Earning Reports:

CarMax (KMX): Reported EPS of $0.64 beating estimates by +$0.06. Pre-market: 45.24 +0.67 (1.50%)

Darden Restaurants (DRI): Reported EPS of $1.01 missing estimates by -$0.04. Pre-market: 51.00 -0.23 (-0.45%)

Oracle (ORCL): Reported EPS of $0.87 missing estimates by -$0.01. Pre-market: 30.75 -2.46 (-7.41%)

TIBCO Software (TIBX): Reported EPS of $0.18 in-line with estimates. Pre-market: 21.36 +0.35 (1.67%)

Markets: 

Futures at 7:00: Dow +0.63%. S&P +0.65%. Nasdaq +0.52%. Crude +0.36% to $95.49. Gold +0.45% to $1292.20.

Europe: London +0.87%. Paris +0.67%. Frankfurt +0.21%. 

Asia: Japan +1.66% to 13230. Hong Kong -0.59% to 20263. China -0.52% to 2073. India +0.29% at 18774. 

Morning Coffee Pre-Market Wall Street News

Valeant to Purchase Bausch & Lomb. Bausch & Lomb which is currently owned by Warburg Pincus LLC will be purchased by Valeant (VRX) for $8.7B in cash, including $4.2B in debt. The Bausch & Lomb deal is the largest of 15 acquisitions for the Montreal-based company. In 2012 Bausch & Lomb generated $3 billion in sales from its contact lenses, eye-care solutions and prescription medicines.

Upgrades

Bayer AG (BAYRY): Jefferies raised their rating from Hold to Buy.

Eli Lilly (ELI): Jefferies raised their rating from Underperform to Hold and raised their target price from $44.00 to $49.00.

Expeditors International (EXPD): BB&T raised their rating from Hold to Buy and placed a target price of $50.00 on the company.

GlaxoSmithKline (GSK): Deutsche Bank raised their rating from Hold to Buy.

Merck & CO (MRK): Jefferies raised their rating from Hold to Buy and raised their target price from $48.00 to $54.00.

Novo Nordisk (NVO): Deutsche Bank raised their rating from Sell to Hold.

Texas Instruments (TXN): Drexel Hamilton raised their rating from Hold to Buy and raised their target price from $32.00 to $40.00.

Downgrades

Broadcom (BRCM): Susquehanna lowered their rating from Positive to Neutral and placed a target price of $39.00.

Lloyds Banking Group (LYG): Citigroup lowered their rating from Buy to Neutral.

Royal Bank of Scotland (RBS): Citigroup lowered their rating from Hold to Sell.

St. Jude Medical (STJ): Canaccord Genuity lowered their rating from Hold to Sell.

Coverage Initiated

Jabil Circuit (JBL): Standpoint Research initiated coverage with a Buy rating and target price of $28.00.

Earning Reports

Tiffany & Co (TIF): Reported EPS of $0.70 beating estimates by +$0.18.

Markets: 
Futures at 9:09: Dow +0.78%. S&P +0.81%. Nasdaq +0.93%. Crude +1.09% to $94.15. Gold -0.41% to $1381.10.

Europe: London +1.80%. Paris +1.46%. Frankfurt +1.22%. 

Asia: Japan +1.20% to 14312. Hong Kong +1.05% to 22924. China +1.23% to 2321. India +0.65% to 20161.