09:43 am DIRECTV tgt raised to $37.50 at Wunderlich based on growth and M&A assumptions: . Wunderlich raises their DTV tgt to $37.50 from $33 off a revised assumption that DTV can grow its business LT in line with real 2% GDP growth v. 0% previously, and a game theory driven possibility of an acquisition by a telco to provide a national video bundling edge against commoditized wireless competitors. The firm notes that U.S. wireless is commoditizing so rapidly that a video bundling element could soon be strategically imperative. The firm notes that only DirecTV and DISH Network (DISH) map against the full wireless footprints of AT&T (T) and Verizon (VZ). Meanwhile, a video bundle could help consolidate the market down to three or even two credible players from five or six nominal entrants currently. The firm believes that a DTV takeout price could be in the $45 vicinity - assuming regulatory approval. Furthermore, the firm believes that the announcement of Pepsi International (PEP) CEO and Vice Chairman Michael White as new DTV CEO and President is congruent with DTV's marketing culture, while his age, 57, and earlier retirement plans do not work against a possible DTV sale.

09:41 am Express Scripts initiated with a Hold at Stifel Nicolaus: . Stifel Nicolaus initiates ESRX with a Hold. Firm believes that recent organic sales growth supports the independent PBM business model and that the co's pending acquisition of WellPoint's NextRx PBM will transform the organization in terms of both operating leverage and ability to secure new contracts. ESRX could exceed variable NextRx expectations, in their view. However, firm notes, government regulation of private companies within the healthcare industry is pervasive and increasing which could pressure margins at some point. Moreover, NextRx represents the largest acquisition in ESRX's history which might present unforeseen integration challenges and the lack of visibility into its financial contribution creates additional uncertainty.

09:40 am Best Buy: Credit Suisse sees better gross margins in the consumer electronics sector: . Credit Suisse believes that the consumer electronic sector is set to produce better gross margins than expected due to changes and stronger enforcement of MAP pricing by suppliers and what appears to be less promotional pricing for the Black Friday circulars from the major retailers left in consumer electronics. They note promotional activity remans rational. They also believe certain vendors are increasing their efforts to enforce MAP pricing, a positive for BBY as it competes against AMZN and others. BBY's stock underperformed after both Q1 and Q2, but in Q1 reflecting weaker sales and in Q2 reflecting weaker margins. The co has provided what appears to be cautious guidance heading into 2H. They believe that if sales trends stay consistent with 1H (on a two-year basis), comps could exceed expectations, and combined with signals that gross margins may be better, that could lead to upside to earnings.

09:39 am Salix Pharm tgt upped to $33 at Credit Suisse following analyst day: . Credit Suisse is raising their tgt to $33 from $27 following the co's analyst day yesterday. Incremental daily supportive data and an implied 30% price increase improves their risk adjustment and drives up their sales est. They believe the Lupin and Cipla deals strengthen the Xifaxan IP. They've reduced their FY10 EPS to $0.21 from $0.25 to reflect the new shares but their FY11 EPS moves to $1.71 from $1.36 with the price increase (consensus $0.17 and $1.22). If (risk) adjusted to realistic levels; their DCF suggests a value above $40; the underlying asset continues to have appreciable upside.

09:38 am Advanced Micro upgraded to Buy at Broadpoint AmTech Research; tgt raised to $10: . Broadpoint AmTech Research upgrades AMD to Buy from Neutral and raises their tgt to $10 from $5.80 as the recent positive events (Analyst Day/INTC settlement/capital structure) lead the firm to believe that AMD's risk/reward is now compelling. The firm notes that AMD's capital structure improved as a result of INTC's $1.25 bln settlement and yesterday's announcement of debt restructuring actions. The firm believes that AMD's debt of ~$3.7 bln will be reduced by ~25%, while also lowering interest expense slightly less, ~20%. Should Global Foundries and ATIC's chartered purchase be consolidated, the firm believes that they could see deconsolidation in the following 3-6 months. Furthermore, the firm feels that revenue growth in the coming quarters will prove to be stronger than the Street is modeling, driven by: a healthy Win7 cycle; leadership in the Evergreen GPU platform; more focused marketing; and possible tailwind from INTC settlement headlines entering the selling season.

09:37 am Google: Perspectives on a potential Google branded smartphone - Broadpoint AmTech: . Broadpoint AmTech notes although there has been chatter for years about a Google phone, firm thinks this time it is different and that there may be some truth to the current news flow about a GOOG-branded phone/mobile device. Given GOOG's focus on mobile as the long-term driver of increased Internet penetration globally, a Google phone could be a meaningful long-term opportunity for the co, not only in terms of its own model/strategy, but also if it helps GOOG influence the development of the broadly-defined mobile Web and the Internet more generally. Firm does not think GOOG would get into this area unless it felt strongly that it could have an impact. GOOG would be competing with the same Android OEMs which it supports, raising a real strategic issue. Firm's view on MOT is unchanged pending greater visibility on a GOOG entry, though it believes MOT and other Android vendors would face risks should a GOOG phone materialize. Despite all the new smartphones slated to hit the market in the coming months, firm has conviction in its view that AAPL will continue along its share gain trajectory in both the global handset and computing markets.

09:36 am InterMune: Wedbush discusses ITMN-191's implications of ITMN, VRUS, and VRTX: . Wedbush notes that yesterday a dose group in the Phase IIb study of ITMN-191+P/R was disontinued. They estimate that the pullback in the stock since the announcement of discontinuation of the 900 mg BID represents approximately 30-50% of the ITMN-191 value in the stock. They believe the ITMN stock will be under pressure going forward, until further data on safety and clarity from Roche on INFORM designs and timelines are made known. As ITMN and Roche release the RVR data from the ongoing Phase IIb study in 1Q10, they hope to be able to learn about the safety data beyond 4 weeks at that time to evaluate the chance of success of the program going forward. They note VRUS stock has pulled back in sympathy with ITMN due to uncertainty around the future of the INFORM studies; estimate that the combination opportunity with ITMN-191 represents approximately 30% of the VRUS stock value. As the Roche (RHHBY.PK) combo is among the strongest competitors to telaprevir and the future telaprevir+VX-222 combo, any setback to its development is positive for VRTX.

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