Time 9:14

Stocks in the news:


MA MasterCard: Lehman expects sustainable long-term growth; tgt raised to $335 (309.00 ) -Update-
Lehman says the U.S. spend volume has slowed in the first couple of months of the second quarter; however, with international growth and cross-border activity still strong, 2Q08 GDV growth is trending higher overall vs. 1Q08 levels. Longer-term, the consistent shift of cash and checks to plastic payments, cross-border strength, SEPA opportunities, pricing power, and new product initiatives, are all variables that enabled MA to raise its long-term guidance for rev growth and operating margin expansion. Overall, firm expects MA to see consistent EPS growth of 25% or more for many years, which they believe should translate to a consistent forward multiple near 30x, offering a compelling long-term investment opportunity. Firm raises their tgt to $335 from $300.


MA MasterCard: Ongoing shift from cash to cards remains major global growth opportunity; Keybanc raises price tgt to $350 (309.00 )
Keybanc raises their MA tgt $350 from $325 following yesterday's analyst day. Firm says key highlights from the meeting were: 1) continued substantial non-U.S. growth opportunities; 2) signs of progress in Europe arising from the Single European Payments Area (SEPA) initiative; 3) the difficulty of building an alternate payments network; 4) MA's U.S. debit initiative; and 5) room for continued substantial margin improvement. Firm also believes that MA should be able to eventually reach margins in excess of 45%.

CSIQ, SOL:

Solar stocks rally as concerns ease over subsidy cuts - Bloomberg.com
Bloomberg.com reports Q-Cells paced gains among German solar stocks in Frankfurt trading after Deutsche Presse Agentur said proposed cuts in govt subsidies to the industry may be smaller than expected. Q-Cells, the country's largest solar-power co, surged as much as 8.8% to 77.46 euros and traded at 76.06 euros as of midday. Solarworld, Germany's third-biggest solar co, jumped as much as 9.5% to 32.85 euros and was last at 32.23 euros. Phoenix Solar added 8.0% to 47.35 euros. The govt reached an agreement to cut subsidies for the solar-energy industry by as much as 10%, DPA said, citing unidentified people familiar with the matter. Solar stocks slumped this week after an industry association said May 27 that Germany's Christian Democrats and Christian Social Union favored cutting grants by more than 25% over the next two years. (Briefing.com note: Although not specifically named in the report, some solar names include: ESLR, SPWR, JASO, STP, TSL, FSLR, SOL, CSIQ, YGE, ASTI, SOLF, CSUN, LDK, AKNS, EMKR)


Piper Jaffray says to cover your solar shorts
Piper Jaffray notes that according to German news agency DPA, the German Government reached final agreement on feed-in tariff reduction for Solar and Wind at 02.00 AM this morning. The firm says they also understand that the bill will be voted through parliament as early as Friday next week rather than end of June. The firm says the feed-in tariff reduction is said to be 8% for 2009 (previous 9.1%), 8% for 2010 (previous 7%) and 9% for 2011 and onwards (previous 8%). The firm concludes that further changes are highly unlikely and would recommend investors to buy the sector

FUQI:

TIF Tiffany & Co Earnings Conference Call Summary (47.74 ) -Update-
Co achieved a 12% increase in worldwide sales, despite softness in U.S. business. Co says worldwide sales performance in May to date is meeting expectations which consistent with the Q1 pattern reflecting strength in markets throughout Asia Pacific other than Japan and in Europe, more than offsetting softness in U.S. Sales. Co is now assuming that the recovery in U.S. sales might occur a bit later in the year than previously thought... Aggregate U.S. Brand store comp sales declined 4% in the quarter versus a 9% increase last year, and the softness which was not surprising was not contained to any particular region. The single digit sales declines in Florida and in California were not meaningful it different from the overall branch store comp decline. As I mentioned sales to foreign visitors especially from Europe continued to have a markedly positive effect on sales in the New York flagship store. The monthly comp trend ranged from flat in February to a 4% increase in March, to a 3% decline in April. Last year, U.S. Comps rose 13%, 10%, and 14% in February, March, and April respectively... Looking overseas, co experienced a continuation of very strong sales growth in Europe and in most of the Asia Pacific Region which easily offset softness in Japan. Total Asia Pacific sales increased 10% in the quarter and comparable store sales rose 4% versus increases of 9% in total and 2% in comps in last years Q1. Exceptionally strong growth in most countries was partly offset by softness in Japan. European sales were also strong in the quarter with a 12% comp store sales increase on top of an 11% increase last year. London represents a bit more than half of our European sales and every one of stores there delivered strong sales growth in the quarter... Co continues to expect the operating margin to be approximately unchanged from last year, when adjusted for the various one-time items recorded in 2007 and the change in the inventory accounting method. That would include an increase in gross margin but also an increase in the SG&A expense ratio.