Deutsche Bank Updates 6/21

Deutsche Bank made a number of updates in a research report published today. Biogen Idec BIIB had its rating upgraded from Hold to Buy. At the same time, Deutsche Bank raised its price target on the company's stock from $106 to $129. In the report, Deutsche Bank states, "Upgrading to Buy, $129 TP... Our TP is based on DCF (discount rate of 9% -- WACC based on a 2 year weekly beta of 0.84 (Bloomberg), risk free rate 3.0%, cost of debt 2.7%, equity risk premium 7.5%). Risks: (1) worse than expected BG-12 data in H2:11, (2) hemophilia trial failure and (3) erosion of Biogen's base business (Avonex/Tysabri)." On Monday, Biogen added 4.05% to its value to finish the day at $98.60. Its shares continued to climb higher in today's pre-market trading, however, rising 2.57% to $101.13. Bed Bath & Beyond BBBY had its rating maintained at Hold, and its price target reiterated at $55. The report states, "We estimate BBBY's long term EPS growth rate at 12% compared to the hardline average of 13%, mostly due to limited margin expansion from an already high level. Therefore, we base our $55 price target on 14x our 2012 forecast, implying a PEG of 110%, in line with the long term hardline average. We think the biggest risks are slowing consumer spending and exposure to housing markets." On Monday, BBBY added 1.15% to its value to close the day at $52.59. Its shares fell a bit in today's pre-market trading, however, sliding 0.02% to $52.58. Aon Corporation AON had its rating maintained at Buy and its price target reiterated at $63. The report states, "Aon has underperformed the group quarter-to-date, with investor concerns over brokerage margins in light of 1Q11 results, and with additional concerns over ability to maintain organic revenue growth in light of recent economic headlines regarding a slowing recovery. However, we believe that such fears are overblown, and expect that even modest improvements to top line and margins will provide a catalyst for the stock, 9% off its recent peak." On Monday, Aon added 0.38% to its value to end the day at $49.58. FedEx Corporation FDX had its rating maintained at Buy and its price target reiterated at $133. The report states, "FDX remains our top pick as we see a compelling risk/reward at current levels given the company's growth prospects, diversified product offering, network franchise, and secular growth of high tech and high value goods. FDX is Buy-rated with a $133 PT, which is based on 18x our CY2012 EPS estimate of $7.40. Risks include operating leverage, rising fuel prices, FedEx Freight's ongoing network restructuring, and the broader economy." On Monday, FedEx rose 0.59% to close the day at $87.50.