Active Stock Analysis: Baidu, Merck, Heartware, Deckers, ArthroCare

Baidu, Inc. (NASDAQ:BIDU): Collins Stewart believes Baidu’s story is changing and that future share upside will come from multiple expansion rather than strong beat-and-raise quarters. Nonetheless, the firm reiterates a Buy rating on the stock with a $215 price target following the company’s Q4 results.

Merck & Co. Inc. (NYSE:MRK): JPMorgan views the current risk/reward profile on shares of Merck as highly favorable. The firm believes the company’s pipeline assets are not reflected in the share price and that the core business can exceed expectations. JPMorgan keeps an Overweight rating on Merck shares.

Heartware International Inc. (NASDAQ:HTWR): Canaccord recommends buying HeartWare at current levels based on OUS share gains and expectations for a positive April 25 FDA panel approval. Shares are Buy rated with a $95 price target.

Deckers Outdoor Corp. (NASDAQ:DECK): Jefferies said it would be a buyer of Deckers Outdoor shares ahead of next Thursday’s Q4 earnings report. The firm believes conservative 2012 guidance is a largely priced into the stock at current levels and thinks brand fears are overdone.

ArthroCare Corporation (NASDAQ:ARTC): BMO Capital reduced its target on ArthoCare after the company reported weaker than expected Q4 results and announced that the Department of Justice was investigating the marketing of its coblation products. However, the firm still thinks that the company’s business is valuable and that it may ultimately become a takeover target. The firm maintains an Outperform rating.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com