Analyst Actions: Research in Motion, Intel, Crocs
GOLDMAN REMOVES RESEARCH IN MOTION FROM FAVORITE GROWTH LIST
Goldman Sachs analyst Sarah Friar is removing Research in Motion (RIMM) shares from the Favorite Growth list of Goldman Sachs Technology Framework due to Goldman's internal stop-loss discipline. She notes RIMM is down 19.3% (before open) since being added to the Framework on Nov. 3, 2008 vs. S&P 500's decline of 7.0%.
Friar keeps a buy opinion, estimates and $68 price target; she believes ongoing market volatility and concerns about increasing competition in the smartphone market caused a pull-back in the stock.
She notes, however, that RIMM remains one of her top ideas, as she believes it is a long-term winner in the fast-growing smartphone market.
FBR CAPITAL CUTS ESTIMATES, TARGET, KEEPS MARKET PERFORM ON INTEL
FBR Capital analyst Craig Berger says Intel (INTC) sees fourth quarter revenue down 9%-15% sequentially to midpoint of $9 billion, vs. previous guidance of -1% to +7%.
Berger cuts his $1.18 2008 EPS estimate to $1.09, $1.10 for 2009 to $0.95, and $19 price target to $17, a constant 16 p-e, to account for the weakening macro environment and slowing PC demand.
He fears weakening international PC demand could drive additional consensus revenue estimate cuts. He says major restructuring actions are already completed, leaving few incremental opportunities. He notes Intel's new Atom processors could drive customers to mix down to lower average selling priced (ASP) parts.
WEDBUSH MORGAN CUTS ESTIMATES FOR CROCS
Wedbush Morgan analyst Jeff Mintz says Crocs (CROX) reported $1.79 third quarter GAAP loss came in far below his and the Street's $0.02 EPS view.
Mintz notes that revenue in the U.S. fell 45%, while revenue in Europe sank 50%, just two quarters after being up 109%. He sees revenue in Asia, which rose 14% in the third quarter, also "falling off a cliff."
He notes, although CROX has taken steps to reduce costs, the decline in revenue has occurred faster. Therefore, he sees significant losses continuing through at least 2009.
He cuts $0.15 2008 EPS estimate to $1.00 loss and $0.47 2009 EPS to $1.02 loss. He maintains a hold opinion on the stock.
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