APH, MOLX, TEL, CSIQ, CPHD, EXFO, HOG, HST, LDK Popular Stocks
U.S. stocks rose Wednesday with the Dow Jones Industrial Average climbing 153 points to 10024, the S&P 500 gaining 20 points to 1093 and the Nasdaq Composite rising 33 points to 2172.
For electronic connector makers, late is better than never. Longbow said the market is finally seeing a demand recovery similar to semiconductors and bookings in October and for the December quarter show sequential sales growth continuing. “Lead times have extended and we are hearing of numerous instances of order expediting to meet healthier end demand,” the firm said in upgrading Amphenol Corp. (NYSE:APH, $40.75, +$2.39, 6.23%), Molex Inc. (NASDAQ:MOLX, $22.35, +$1.34, 6.38%) and Tyco Electronics (NYSE:TEL, $23.85, +$1.34, 5.95%) to buy. “We forecast each of the companies will report earnings ahead of the consensus forecast as well as offer guidance that is above the current consensus,” the firm said.
Canadian Solar Inc. (NASDAQ:CSIQ, $17.01, -$0.53, -3.02%) raised its previous shipment guidance and posted an optimistic view for the fourth quarter as robust customer orders helped it top expectations. However, the China-based solar-cell maker separately said it plans to sell at least 6 million shares.
Cepheid (NASDAQ:CPHD, $14.97, +$1.80, 13.67%) gained after preannouncing third-quarter revenue of $41 million, in line with analysts’ estimates. Needham raised Cepheid to buy from hold, saying it now expects 2009 revenue to be within guidance of $164 million to $170 million; the firm also sees potential for upside to current Street estimates. “Despite the declines in overall hospital and laboratory equipment market and declining revenue per system, we expect Cepheid system placement growth to grow over 20% in 2010,” the firm said. It also noted Cepheid could be an attractive acquisition target.
Exfo Electro-Optical Engineering Inc. (NASDAQ:EXFO, $3.53, -$0.16, -4.34%) swung to a loss in its fiscal fourth quarter, though the loss was narrower than it and analysts expected. The Quebec City company provides telecommunication test and measurement equipment.
Wells Fargo raised its rating on Harley-Davidson Inc. (NYSE:HOG, $26.00, +$1.36, 5.52%) to outperform a day before Harley is set to release third-quarter results. The firm said investors haven’t yet fully appreciated a likely supply/demand gap at the year-end that should allow for low single-digit shipment growth in 2010 and 2011, and the benefits of lower operating costs. Wells Fargo added Harley’s likely to resume share buybacks with extra free cash flow. Investors will focus on sell-through and strategy in Thursday’s report, Wells Fargo added.
Host Hotels & Resorts Inc. (NYSE:HST, $12.07, +$0.79, 7.03%) swung to a fiscal third-quarter loss amid weak demand, though the loss wasn’t as wide as Wall Street had feared. The lodging company also gave a slightly more upbeat outlook for the year.
LDK Solar Co. Ltd. (NYSE:LDK, $8.14, -$0.21, -2.52%) said its senior vice president of manufacturing, Nicola Sarna, resigned to pursue personal interests. President and Chief Operator Officer Xingxue Tong will temporarily take over all manufacturing operation functions.
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