Saturday, October 5, 2013

Red Hat, Apple, Facebook get tech’s attention

SAN FRANCISCO (MarketWatch) — Tech stocks put in a mixed trading performance Tuesday, with Red Hat Inc. and Apple Inc. and Facebook Inc. each getting a lift following analysts's ratings upgrades.

Red Hat (RHT)  plunged more than 12%, to $46.34 a share. Late Monday, the open-source software company reported better-than-expected fiscal second-quarter results, but its billings for new orders of $376 million fell short of analysts' consensus expectations of almost $400 million. Analysts at Pacific Crest Securities and Piper Jaffray also cut their ratings on Red Hat's stock.

Apple (AAPL)  was off by almost $2 a share, at $488.60, despite getting upgraded by analyst Chris Caso at Susquehanna Financial Group. He raised his rating on Apple to positive from neutral, and increased his price target on the stock to $625 a share from $440. Caso based his views largely on Apple's strong first-weekend sales of the iPhone 5C and iPhone 5S.

Facebook (FB)  climbed more than 4%, to $49.17, after Citigroup analyst Mark May raised his rating on the social-networking company to buy from neutral, and also upped his price target on Facebook's stock to $55 a share from $32. May based much of his upgrade on feedback from advertising and that Facebook's future advertising opportunities.

Semiconductor-equipment maker Applied Materials Inc. (AMAT)  rose more than 7%, to $17.14, after the company said it would acquire Tokyo Electron Ltd. in an-all stock deal. Applied Materials Chief Executive Gary Dickerson will be CEO of the combined company.

LinkedIn Corp. (LNKD)  shares climbed 4%, to $249.36 after Evercore Partners analyst Ken Sena raised his price target on the company's stock to $280 a share from $250.

The Nasdaq Composite Index (COMP)  rose more than 10 points to 3,774 and the Philadelphia Semiconductor Index (SOX)  rose 0.5%.

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