Analyst Alerts: Chesapeake, Silicon Motion, Merck & Co., Zynga, China Unicom April 30th
Chesapeake Energy Corporation (NYSE:CHK): After speaking with management, Oppenheimer said it remains confident that Chesapeake’s Founder’s Well Participation Plan is fully legal with no recourse to the company. Opco believes Chesapeake has one of the most undervalued energy assets in the industry, and thinks the company is worth significantly more than the current share price indicates, even if a fire sale were to occur.
Silicon Motion Technology Corp. (NASDAQ:SIMO): Craig-Hallum would use Silicon Motion weakness as a buying opportunity. The firm believes estimates will prove to be conservative and said its thesis remains intact. Shares are Buy rated with a $27 price target.
Merck & Co. Inc. (NYSE:MRK): Wells Fargo liked Merck’s expense constraint in Q1 ahead of the Singulair exclusivity loss and maintains an Outperform rating on the stock. Wells believes Merck is well positioned for growth beyond Singulair.
Zynga (NASDAQ:ZNGA): Correction: Zynga reiterated as an Underperform at Needham
China Unicom (Hong Kong) Limited (NYSE:CHU): Wedge Partners continues to recommend avoiding China Unicom. The firm believes China Unicom’s earnings growth is “very overstated” and that ARPU will continue to fall due to low end 3G user growth.
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