Equity Insights April 25th: Ariba, Mercury, Carlisle, Norfolk Southern, Alexion
Ariba Inc. (NASDAQ:ARBA): Goldman expects Ariba to at least meet its 23c/$130M estimate, consensus is 22c/$129M. The firm’s checks show acceleration in business momentum and recommends buying ahead of next quarter. Shares are Buy rated with a $40 price target.
Mercury Computer Systems, Inc. (NASDAQ:MRCY): After Mercury reported stronger than expected Q3 results, Sterne Agee recommends that long-term investors aggressively buy the stock. The firm thinks that the company’s nearer term outlook has some uncertainty and expects delays in orders for the company’s JCREW 3.3,anti-IED product to trigger negative sentiment towards the stock. However, it recommends that longer term investors use any weakness as a buying opportunity.
Carlisle Companies Inc. (NYSE:CSL): Baird said Carlisle shares remain attractive following better than expected Q1 results. The firm cited a cooperative demand backdrop, solid operational execution, and well contained raw material inflation. Baird maintains its Outperform rating and raised its price target to $62 from $55.
Norfolk Southern Corp. (NYSE:NSC): Baird raised its price target on Norfolk Southern following solid Q1 results. The firm said coal remains a near-term headwind but any abatement could be a potential catalyst for the shares. Baird also noted the industry pricing power, secular margin expansion opportunities, and market share gains. Shares are Neutral rated.
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN): Baird said Alexion should be bought on any weakness stemming from its Q1 results. The firm believes investors concerns over management’s reiteration that AMD will not be pursued an an indication for Soliris is misplaced and believes the company is one of biotech’s cleanest commercial stories. Shares remain Outperform rated with a $100 price target.
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