Research Oracle roundup for 27 June 2008

Research Oracle roundup for 27 June 2008:

Today’s BUY’s – full update reports

Top BUY: Increasing demand for solar energy, coupled with greater production capacity and output will drive JA Solar Holdings Co., Ltd.’s (NASDAQ:JASO) top-line. Although margins will experience pressure from silicon wafer and R&D costs in the short term, we expect margin expansion in the longer term, and have strong expectations for the company.

An expectation of stable revenue growth in FY 2008, driven by emerging markets, and the company’s acquisition of Trane Inc., supported by the impact of expected synergies on operating performance in the long term, lead to a positive outlook for Ingersoll-Rand Company Limited (NYSE:IR).

After recent decline, France Telecom’s (NYSE:FTE) current stock price places the company, supported by projected growth from the Personal and Home Communication segments and improved EBITDA, in an appealing position, while strong growth from the EMAPA region and emerging markets should drive Vodafone Group PLC’s (NYSE:VOD) subscriber base and revenues.

Global oil prices and growth projects to boost production volumes make Vodafone Group PLC’s (NYSE:VOD) subscriber base and revenues.

Global oil prices and growth projects to boost production volumes make Vodafone Group PLC’s (NYSE:VOD) subscriber base and revenues.

Global oil prices and growth projects to boost production volumes make Vodafone Group PLC’s (NYSE:VOD) subscriber base and revenues.

Global oil prices and growth projects to boost production volumes make Petro-Canada (NYSE:PCZ) an attractive prospect.

Driven by strength in major customer Chi Mei Optoelectronics’ sales, significant market share in the small and medium display driver market and the success of Management’s cost reduction initiatives, Himax Technologies Inc. (NASDAQ:HIMX) is expected to perform strongly over the next couple of years.

Novo Nordisk A.S.’s (NYSE:NVO) focus on strengthening its product pipeline and ever expanding diabetes treatment market lead to strong top-line growth potential going forward; and after the recent stock market decline, we are upgrading the stock from a HOLD to a BUY.

Results

Accenture Ltd.’s (NYSE:ACN) results surpassed our and market expectations, with strong revenue and earnings growth and a positive outlook for FY 2008. We maintain our positive outlook for the stock.

News
Orbotech Limited’s (NASDAQ:ORBK) acquisition of Photon Dynamics, Inc. for US$290 mn will improve the FPD segment’s market exposure and support revenue growth for the company, but given that it is incurring losses, the impact on Orbotech’s already weak operating margin leads us to downgrade the stock to a HOLD.

Sony Corporation (NYSE:SNE) announced a series of initiatives in it Corporate strategy update to strengthen core business and boost revenues from emerging markets. However, our neutral outlook remains and we reiterate a HOLD rating.

As oil hit a record, inflation escalates and the financial crisis continues, stocks plunged across markets, with these stocks under our coverage all marking significant declines:

We believe the fall in Sterlite Industries (India) Ltd. (NYSE:SLT) creates a strong buying opportunity, in light of high copper and aluminum prices and the company’s profitability. Despite concerns over economic downturn and a decline in demand for automobiles in key markets, safety regulations across geographies should protect Autoliv Inc.’s (NYSE:ALV) market to some extent, and from current levels, we maintain a positive outlook. Expectation of growth in subscriber-base and revenues leads us to reiterate a fundamental BUY rating for Turkcell İletişim Hizmetleri A.Ş. (NYSE: TKC). Below market expectation guidance for 3Q 08 sharpened Xyratex Ltd.’s (NASDAQ:XRTX) price decline, but our own estimates for the stock are not significantly impacted and we broadly maintain our positive fundamental outlook. Qimonda AG (NYSE:QI) is another stock that we believe has fallen beyond fundamentally valid levels, and we reiterate a BUY. We believe the significant further decline in stock price, partly reflecting recent bearish comments about the UK housing market, has left Lloyds TSB Group PLC (NYSE:LYG) offering an attractive investment opportunity. However, the decline in RenaissanceRe Holdings Ltd.’s (NYSE:RNR) stock price is also driven by catastrophe losses and softening premium rates and we reiterate a HOLD rating.

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