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New Stock Coverage: Avis Learns the Hard Way That Love Hertz

Posted
12/11/2013 9:27:00 AM
By: Minyanville
Referenced Stocks:BAC;GM;TAXI;YHOO;ZU

Lady Luck did her bit, only to find Mr. Market utterly missing in action. General Motors ( GM ) named Mary Barra to replace Dan the man. Yahoo ( YHOO ) - to be Fair , " Thy name is Vanity ," Marissa Mayer - surged 3.47% to a six-year peak, and Twitter (NYSE: TWTR ), on a tear since belatedly naming a woman to its board , jumped 5.80% to a post-IPO best. Yet US stock markets still ended lower. Even GM, which lost 1.22% as investors opted against parking their money in the auto outfit. (One wonders why, with the gals better than us guys at parking the car .) As for the fellas, a beefcake calendar of taxi drivers saw Medallion Financial ( TAXI ), which tumbled 10% last week, arrest its slide with a 0.82% advance. But the day definitely belonged to the distaff side. Retailer Zulily ( ZU ), whose market is young moms, gained 4.91% even as it merited only a lukewarm 'Neutral' at the Bank of America ( BAC ) unit long known as "Mother Merrill." That brokerage had an equally eventful session, simultaneously playing the role of Cassandra and Pollyanna .

In terms of economic events that may move US markets today, analysts expect November's budget deficit to widen at 2:00 p.m. Eastern. Regarding specific stocks, Costco (COST), Inditex (MCE:ITX), Joy Global (JOY), Men's Wearhouse (MW), and Nordson (NDSN) are all due to release results. And Hilton Worldwide (HLT) prices its initial public offering.

Brocade (BRCD): Citigroup starts the stock at a Sell.

BlackBerry (BBRY): BlackBerry stock is trading lower today after Citi transitioned analyst coverage with a Sell from the prior Neutral. BlackBerry stock has recently traded to 10-year lows.

Car Rental Companies : Deutsche Bank has only a Hold on Avis Budget Group (CAR) but begins Buy-rated research on its archival Hertz Global Holdings (HTZ). Its respective stock price objectives are $42 and $33.

Corning (GLW): The glass giant gets assigned a new Neutral at Citigroup.

eHealth (EHTH): Jefferies starts the stock at a Buy. Its target price is $56.

F5 Networks (FFIV): Citi has a fresh Buy on FFIV.

Networking Stocks : Mizuho has a new Neutral on and $23 target on Dow (INDEXDJX:.DJI) member Cisco Systems (CSCO), but is more upbeat on Buy-rated Juniper Networks (JNPR), on which it has a $28 target. (Note that Cisco was separately started with a rare Sell rating at Citigroup, whose objective is $18.)

Ratings Agencies : McGraw-Hill Financial (MHFI) and Moody's (MCO) are each initiated with Outperforms at Credit Suisse.

Telecom Stocks : Mizuho has a Buy and $15 price objective on Ericsson (ERIC). Nokia (NOK), however, only rates a Neutral ($8 objective) amid uncertainty surrounding its strategy and cash deployment.

3D Printing : Jefferies begins Buys on ExOne (XONE), 3D Systems (DDD), and Stratasys (SSYS), assigning respective price objectives of $72, $102, and $155.

Twitter (TWTR): The stock, a stellar performer thus far in December, is only a Neutral at Macquarie. Valuation issues loom understandably large.

(See also: Stock Upgrades: 3M Gets Out of a Sticky Situation and Stock Downgrades: W.R. Grace Isn't Amazing )