Analyst Says Take Profits in Baxter Shares, Speculation Swirls Over Transocean

Baxter International Inc.(NYSE:BAX): Dougherty is cautious ahead of Baxter’s Q4 report on January 26 and believes the company could provide lower than expected 2012 guidance. The firm recommends taking profits following last nights favorable DSMD interim review.

Transocean Ltd.(NYSE:RIG): Jefferies commented on speculation that Petrobras (NYSE:PBR) may be interested in acquiring Transocean (NYSE:RIG). The firm said the deal does not make sense strategically and the price seems high also.

Universal Display Corp.(NASDAQ:PANL): Avondale said Universal Displays didn’t break out previous guidance assumptions but could raise it based upon increasing OLED product launches.

Cavium Networks, Inc.(NASDAQ:CAVM): Piper Jaffray expects Cavium Networks to report in-line Q4 results on February 2, but believes the company lacks earnings power. The firm recommends selling the stock aggressively at current levels and reiterates an Underweight rating on the name with a $16 price target.

Scientific Games Corporation(NASDAQ:SGMS): Craig-Hallum said the Playtech JV restructuring news is a non-event and that Scientific Games related weakness is a buying opportunity. Shares are Buy rated.

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

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