Active Stock Alerts: AIG, Gap, Sequenom, Advance Auto May 18th
American International Group, Inc. (NYSE:AIG): Deutsche Bank says the Federal Reserve did not curtail plans to sell Maiden Lane III assets; rather it delayed the bidding process because bidders may have needed additional information. The firm believes this could have been misunderstood yesterday, and says its Buy rating on AIG shares is not deterred.
Gap Inc. (NYSE:GPS): Canaccord lowered Gap estimates due to higher operating expenses and believes shares are overvalued given execution risks and lack of square footage growth. Shares are Sell rated with a $20 price target.
Sequenom Inc. (NASDAQ:SQNM): Piper Jaffray thinks Coventry Health reversing its coverage decision on Sequenom’s MaterniT21 test was not due to competition and will not have negative implications on Sequenom’s ongoing payer discussions. Piper keeps an Overweight rating and $6.50 price target on Sequenom shares, but said last night’s news will likely weigh on the shares until the company lands another commercial contract. William Blair spoke to Coventry Health (NYSE:CVH) regarding the company’s decision to cancel a recent coverage decision for Sequenom’s (NASDAQ:SQNM) MaterniT21 PLUS test. Coventry said Sequenom obtained coverage through one of its California offices, and that once the decision was reviewed by the national organization, it was determined that Coventry did not want to cover the test at a national level at this time. At such, While Blair views last night’s news as more of an internal Coventry matter, and keeps an Outperform rating on Sequenom shares.
Advance Auto Parts Inc. (NYSE:AAP): Raymond James said the sell-off in Advance Auto Parts is overdone and that shares should attract value investors. The firm rates shares a Strong Buy with a $80 price target.
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