Equity Insights Mar. 22nd: Zynga, Actuant, Calpine, MAPP, Navistar

Zynga (NASDAQ:ZNGA): After Zynga agreed to acquire Draw Something creator OMGPOP, Sterne Agee thinks that the deal could be expensive if the acquisition price is close to the $150M-$250M level, as some have speculated. The firm believes it’s too early to tell if Zynga can monetize Draw Something beyond the initial 99c app fee, and it reiterates an Underperform rating on Zynga.

Actuant Corporation (NYSE:ATU): BMO Capital increased its target on Actuant after the company reported higher than expected Q2 EPS. The firm maintains an Outperform rating on the stock.

Calpine Corp. (NYSE:CPN): After meeting with Calpine’s CFO, BMO Capital is more upbeat on the company and thinks that its 2012 adjusted EBITDA guidance is conservative, given several upcoming positive catalysts. The firm reiterates an Outperform rating on the stock.

MAP Pharmaceuticals, Inc. (NASDAQ:MAPP): Lazard Capital raised its price target for MAP Pharmaceuticals to $22 from $19 ahead of the March 26 PDUFA for the company’s acute migraine treatment Levadex. The firm sees significant upside in Map shares should the drug be approved, and thinks Levadex has a high probability of approval.

Navistar International Corp. (NYSE:NAV): After meeting with Navistar and attending the Mid-America Truck show, Sterne Agee believes that Navistar can become a significant player in the natural gas/hybrid truck engine market, which could reach 20% of industry sales within two to three years. The firm believes that Navistar is likely to receive EPA approval for its 0.20 Nox engine by early summer, and the firm maintains a Buy rating on the stock.

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

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com