Analyst Insights: Research In Motion, Tower Semiconductor, Capital One, Blue Nile, Walt Disney May 9th
Research In Motion Limited (NASDAQ:RIMM): Jefferies believes Research in Motion’s new COO and CMO will likely have muted impacts given the continuing deterioration of the company’s fundamentals. The firm says its channel checks indicate RIM suppliers have seen additional production cuts in the last week as excitement over BB10 hurts demand for BB7. Jefferies keeps an Underperform rating on RIM shares with a $12 price target.
Tower Semiconductor Ltd. (NASDAQ:TSEM): Tower Semiconductor’s (NASDAQ:TSEM) TowerJazz unit has signed a definitive credit line agreement with GE Capital (NYSE:GE) to provide TowerJazz’s Nishiwaki facility with a credit line of up to 4B Japanese Yen (approximately $50M). Loans to be obtained under this credit line will carry an interest of the higher of TIBOR rate or LIBOR rate plus 2.6% per annum and will be due for repayment in 2015. Availability under the credit line is calculated according to certain formulas set forth in the agreement and is capped at $30M until June 2013.
Capital One Financial Corp. (NYSE:COF): Citigroup believes Capital One’s (NYSE:COF) appointment of C.P.A.J. Leenaars as a director on behalf of ING (NYSE:ING) signals that ING is not a likely large seller of Capital One shares in the near-term. The firm expects shares of Capital One to outperform today on the news, but believes ING’s potential share sales remains a longer term overhang on the stock. Citi reiterates a Buy rating on Capital One with a $66 price target.
Blue Nile Inc. (NASDAQ:NILE): William Blair notes that Blue Nile’s annual guidance assumes a sharp recovery in earnings for the second half of the year. The firm believes management may be setting the bar too high, but adds it is still early in the year. William Blair keeps a Market Perform rating on shares of Blue Nile after the company’s Q1 earnings results missed consensus.
Walt Disney Co. (NYSE:DIS): Disney price target raised to $50 from $45 at Credit Suisse
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