It has been a tough year for Edwards Lifesciences Corp (NYSE:EW). The stock has declined 24% in 2013 alone due to disappointing sales.
Canaccord’s Jason Mills came out with a note on Monday saying that he expects the company to prevail in its German patent infringement suit against Medtronic, Inc. (NYSE:MDT). The analyst also upgraded the stock with a “Buy” rating and a $85 price target.
Edwards Lifesciences Corp (NYSE:EW) is a medical equipment company specifically in the cardiovascular space. The company is objecting to Medtronic’s CoreValue product, which is part of a line to aid in the treatment of aortic stenosis patients (those considered inoperable). The market is believed to be $4 billion per year – but the company is in competition with Medtronic, Inc. (NYSE:MDT).
The key is whether or not Edwards Lifesciences can secure its patent disputes, and become the leader in this space. At this point, it is yet to be seen – but Canaccord is taking the side of Edwards Lifesciences Corp (NYSE:EW). Personally, I’d wait to see how it all plays out.
This smartphone supplier is a “Strong Buy”
Last Friday, there were reports that Samsung had issued building cuts of the Galaxy S4. RF Micro Devices, Inc. (NASDAQ:RFMD) is a leading supplier – it immediately traded lower on the news – but Charter Equity is saying “no worries” with its Strong Buy upgrade.
According to the firm, channel checks indicate strong sales and any weakness are focused primarily in Europe. The firm also notes that RF Micro is a supplier for more than just the Galaxy S4, and that growth as a whole is robust.
In addition to its current fundamentals, Charter speculates that RF Micro Devices, Inc. (NASDAQ:RFMD) will win the amplifier design and will maintain the antenna tuner for upcoming iPhones. With both of these developments, Charter sees upside of 160%! RF Micro moved almost 4% on the news.
While I am not sure of the 160% premium awarded, I tend to agree with the reasons of Charter. The smartphone market is growing, and RF Micro plays a pivotal role. During its last quarter alone, the company grew sales nearly 50% year-over-year and trades at just 1.5 times 12 months sales. Therefore, I agree that there is indubitably value present in this stock.
I couldn’t agree more with this call
Stifel has been one of the logical firms who cover Facebook Inc (NASDAQ:FB). In the past, Stifel has not been dictated by price movement when making its calls. Hence, on January 31, when the stock was $31, the firm downgraded the stock to “Hold” as other firms were upgrading the stock. Now, the firm is upgrading to “Buy” and sees value in the future.
According to Stifel, Q2 PC ad sales will see a boost. The firm expects Facebook Inc (NASDAQ:FB) to benefit as companies prepare for back to school marketing campaigns, and believes that Facebook will see strong growth from a competitive market. Furthermore, Stifel predicts Facebook Inc (NASDAQ:FB) being part of the S&P 500 in the immediate future, which could lead to further buying pressure from index funds.
