Google Rises

Icahn reiterates offer for Mylan Labs; Nortel shares gain; plus more of Wednesday's stocks in the news

CS First Boston raises Google's (GOOG ) $275 target to $350. S&P says while it has raised its target to $317 based on revised relative analysis, the analyst who follows the stock believes risk/reward considerations warrant a downgrade to hold.

Icahn Group reiterates a $20-per-share offer for Mylan Labs (MYL ). Separately, Mylan says its Mylan Bertek Pharmaceutical unit received an approvable letter from FDA on its new drug application for nebivolol. S&P reiterates hold.

Nortel Networks (NT ) posted a penny (before special item), vs. a penny first-quarter earnings per share on a 3.8% sales rise. S&P reiterates hold.

S&P says EarthLink (ELNK ) shares are lower after news that SBC is offering new residential customers its SBC Yahoo! DSL over Web service for $14.95 a month. Reiterates hold opinion on EarthLink.

Fairchild Semiconductor (FCS ) shares declined Wednesday after the company said it expects second-quarter sales to be flat to down slightly, vs. a prior guidance of "flattish". The company cites efforts to lower distribution inventory.

Kohl's Corp. (KSS ) posted slightly higher May same-store sales and 10% higher total sales. The company continues to expect a 4% to 5% second-quarter same-store sales rise and 49 cents to 52 cents earnings per share.

Educational supply company School Specialty (SCHS ) agrees to be acquired by an affiliate of private investment firm Bain Capital Partners for about $1.5 billion, or $49 per share, including debt.

The FDA approves Amgen Inc.'s (AMGN ) expanded indication for Enbrel to improve physical function in patients with psoriatic arthritis.

Bear Stearns reportedly upgraded General Mills (GIS ) to outperform from market perform.

Hovnanian Enterprises (HOV ) posted $1.62, vs. $1.06 second-quarter earnings per share on 32% higher revenue.

Hospira Inc. (HSP ) agrees to acquire Physiometrix Inc. (PHYX ), developer of non-invasive medical devices, for about $23 million in cash and about $1 million in debt assumption.

Cytogen Corp. (CYTO ) says data obtained over a seven-year period demonstrates Prostacint imaging increased disease-free survival rates and predicted a three-fold increase in the risk of recurrent disease in prostate cancer patients after definitive local therapy.

Semiconductor company Semtech Corp. (SMTC ) posted 14 cents, vs. 19 cents first-quarter earnings per share on 9.2% lower sales. The company sees 14 cents second-quarter earnings per share.

Plantronics (PLT ) revises its fiscal 2005 net income downward as a result of error in the way it accounted for write-off of a tax asset. The company posted $1.92 fiscal 2005 earnings per share, vs. a previously posted $1.97 earnings per share.

Needham reiterates buy on Tibco Software (TIBX ). Yesterday the company forecast lower-than-expected 2 cents to 3 cents second-quarter earnings per share (GAAP) on $100 million to $102 million in total revenue and $40 million to $42 million in license revenue, citing slippage in closing several large deals.

Medtronic (MDT ) provides an update on the Endeavor drug eluting coronary stent program. It says the CE Mark approval of Endeavor now hinges on some remaining regulatory questions after European officials completed the device portion of their review.

CBRL Group (CBRL ) posted 7.1% higher May same-store sales at its Cracker Barrel Old Country Store restaurants and 2.7% higher same-store sales at its Logan's Roadhouse restaurants.

Quest Software (QSFT ) agrees to acquire Vintela Inc. for about $56.5 million. The company notes Vintela is a privately-held leader in innovative platform integration solutions.

Affymetrix (AFFX ) agrees to acquire ParAllele BioScience Inc. for about $120 million. It notes ParAllele is a privately-held, South San Francisco-based provider of assay technology for comprehensive genetic studies.

Engineered Support Systems (EASI ) posted 46 cents, vs. 44 cents second-quarter earnings per share from continuing operations on a 25% revenue rise. The company cuts its 2005 earnings per share forecast to $2.00 to $2.03 due to reduced revenue and earnings per share contributions from its DPGDS program.

IT-services company Dynamics Research (DRCO ) says William Hoover resigned as president and COO. His duties will be re-assumed by Chairman and CEO James Regan. The company sees 23 cents to 25 cents second-quarter earnings per share on $76 million to $78 million in revenue. It reaffirms 2005 guidance of $1.15 to $1.23 earnings per share on $315 million to $323 million in revenue.

Mining-equipment company Terex Corp. (TEX ) posted 59 cents, vs. 34 cents first-quarter earnings per share (GAAP) on 39% higher sales. It sees $3.50 to $3.70 2005 earnings per share.

Real-estate investment trust American Financial Realty (AFR ) agrees to buy 112 properties from banking company Regions Financial Corp. (RF ) for about $114 million.

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