Equity Insights April 18th: SXC Health Solutions, Cree, Seagate, Zynga

Zynga (NASDAQ:ZNGA): Lazard Capital believes Zynga could report better than expected Q1 results and thinks the company will raise its guidance for 2012, providing a positive catalyst for the stock. The firm attributes the recent underperformance of shares to concerns that the company may make more acquisitions, which Lazard Capital believes is overdone.

SXC Health Solutions, Corp. (NASDAQ:SXCI): SXC Health Solutions (NASDAQ:SXCI) overall option implied volatility of 36 is below its 26-week average of 43 according to Track Data, suggesting decreasing price movement into the purchase of Catalyst Health Solutions (NASDAQ:CHSI) for cash and stock transaction valued at approximately $4.4B.

Cree Inc. (NASDAQ:CREE): After Cree reported weaker than expected Q3 results, Cantor Fitzgerald expects the company’s LED lighting sales to rebound going forward. Maxim believes the post-earnings sell-off in shares of Cree overlooks the company’s margin improvement and one-time nature of the revenue decline in Q3. The firm views the pullback as a buying opportunity and maintains a Buy rating on the name with a $38 price target.

Seagate Technology. (NASDAQ:STX): Needham expects shares of Seagate to continuing working higher in the coming months after the company reported better than expected results and guidance. The firm raised its price target for shares and reiterates a Strong Buy rating on the name.

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