From perma bull Abby Joseph Cohen and Goldman Sachs:
"The sharp decline in share prices has enhanced the already attractive valuation of the S&P 500, as has the decline in bond yields. Commentators have provided long lists of possible catalysts, both domestic and global. But US fundamentals have changed very little. Recession remains highly unlikely. Inflation is not problematic, and Fed ease is a possibility, if needed. The 1987 sell-off in global markets was exacerbated by so-called portfolio insurance schemes that failed. Did the rush to reduce risk have a similar, albeit smaller, effect 20 years later? No change in ourviews on corporate earnings, balance sheets or yearend fair value target forthe S&P 500 of 1550. US shares offer good expected returns, even with our intentionally conservative model inputs for earnings and interest rates. Current p/eof 15x is below the avg. of 18.5x during periods of comparable inflation."
Some interesting analyst notes this morning:
- Goldman reiterates Neutral on Motorola (MOT) sees share loss, risk of downside going into earnings.
- Deere (DE) upgraded to Buy from Hold by Lehman with a $135 target. What's interesting about the report is that Lehman says it is growing confident that Ag-commodity prices will remain strong.
- SOLE initiated coverage of AMR with a Hold, saying labor talks will cap the stock.
- There are few downgrades, but I did find one from Goldman. Goldman cut Campbell's (CPB) rating to Sell from Neutral seeing little upside over the next year.
- Google got a buy upgrade following the stocks recent slide from UBS (U Be Screwed), target remains at $560.
"More competition coming in US brokerage industry?? SEC couldwiden access to US investors....Stock exchanges and brokers outside theUS would be able to service US investors directly for the first timewithout having to submit to regulation by the Securities and ExchangeCommission under proposals being worked on by the watchdog's staff."
This is way cool: Dell May offer Linux based system. Customers "inundated" with request for alternative to Windows. Here that Microsoft? No, of course they don't.