Analyst Alerts: Comverse Technology, Phillips 66, Gilead Sciences, Western Digital, Lululemon June 8th

Comverse Technology, Inc. (NASDAQ:CMVT): After Comverse reported weaker than expected Q1 results, RBC Capital still believes that the company’s stock can jump about 60% over current levels. The firm finds the stock’s risk/reward ratio favorable but lowered its target on the shares to $9 from $10 while maintaining an Outperform rating.

Phillips 66 (NYSE:PSX): Credit Suisse believes Phillips 66 could announce a buyback at the July board meeting given increased near-term free cash flow and relative valuation. Shares are Outperform rated with a $42 price target.

Gilead Sciences Inc. (NASDAQ:GILD): RBC Capital believes that Gilead has the greatest potential to develop a simple, all-oral HCV regimen with sales potential of $3B-$5B. The firm sees several upcoming catalysts for the stock and expects it to appreciate into 2013. RBC Capital identifies the stock as its best large cap risk/reward idea and maintains an Outperform rating on the shares.

Western Digital Corp. (NYSE:WDC): Brean Murray said it is too early to change their bullish stance on disk drive stocks despite declining unit shipments and concerns over ASP’s. The firm said their channel checks look reasonable relative to guidance and that numbers are coming down towards their estimates from higher Street estimates. The firm maintains Buy ratings on both Seagate (NASDAQ:STX) and Western Digital (NYSE:WDC)

Lululemon Athletica Inc. (NASDAQ:LULU): Cowen said they would remain buyers of Lululemon following Q1 results. The firm believes the company has the best unit growth in its sector, market share gains potential, and high earnings growth potential. Cowen said Lululemon gave conservative guidance but could see upward estimate revisions if its sales trends continue. Shares are Outperform rated.

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