Dow (DOW) (SPRT) (FL) (DNKN) (SPPI) (SLXP) Get New Coverage

The Dow Chemical Company (NYSE: DOW), Support.Com Inc. (NASDAQ: SPRT), Dunkin Brands (NASDAQ: DNKN), Spectrum Pharma (NASDAQ: SPPI), Foot Locker (NYSE: FL) and Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP) get new coverage from analysts.

Jefferies (NYSE:JEF) initiated coverage on The Dow Chemical Company (DOW). They placed a “Hold” rating and a price target of $27.00 on the company.

Northland Securities initiated coverage on Support.Com Inc. (SPRT). They placed an “Outperform” rating and a price target of $3.00 on the company.

Argus initiated coverage on Dunkin Brands (DNKN). They placed a “Hold” rating on the company.

Foot Locker (FL) is now covered by DA Davidson. They placed a “Neutral” rating and a $24.00 price target on the company.

Auriga initiated coverage on Spectrum Pharma (SPPI). They placed a “Buy” rating and a price target of $11.50 on the company.

Auriga initiated coverage on Salix Pharmaceuticals, Ltd. (SLXP). They placed a “Hold” rating and a price target of $30.00 on the company.

DragonWave (DRWI) (HEES) (LIFE) (NOK) (RVBD) Get Coverage Initiations from Analysts

DragonWave Inc (NASDAQ: DRWI), H&E Equipment Services, Inc. (NASDAQ: HEES), Life Technologies Corporation (NASDAQ: LIFE), Nokia Co. (NYSE: NOK) and Riverbed Technology, Inc. (NASDAQ: RVBD) now getting coverage initiated by these analysts.

Brigantine initiated coverage on DragonWave Inc (DRWI). They placed a “Hold” rating on the firm.

Northcoast Research initiated coverage on H&E Equipment Services, Inc. (HEES). They have a “Buy” rating on the stock.

Auriga initiated coverage on Life Technologies Corporation (LIFE). They placed a “Buy” rating and a price target of $63 on the company.

ThinkEquity initiated coverage on Nokia Co. (NOK). They started with a “Hold” rating and a price target of $8 on the Nokia.

Morgan Keegan initiated coverage on Riverbed Technology, Inc. (RVBD). They have an “Outperform” rating and a price target of $45 on the business.

Daqq New Energy (NYSE:DQ) Should Benefit from Chinese Government Restrictions

Daqq New Energy (NYSE:DQ) should benefit from new restricions of the Chinese government on polysilicon production, which should, at minimum, support polysilicon prices in the short term.

Auriga says, "We reiterate our price target on Buy-rated Daqq following recent press reports of Chinese government mandated restrictions on polysilicon production. The stated goal to reduce pollution and decrease electricity usage should push out marginal suppliers and, at least in the near term, prevent a decline in polysilicon prices when increasing supply should push spot prices lower. We believe DQ meets all of the requirements put forth in the new regulation while continuing production in a more firm price environment. Our research suggests that DQ management was involved with the formation of the new government restriction during the past year, and that the recently announced polysilicon facility destined for production in mid-2012, will also adhere to the new restrictions."

Auriga maintains a "Buy" rating on Daqq New Energy (DQ), which closed Thursday at $13.28, up $0.11, or 0.84 percent. Auriga has a price target on Daqq of $20.

Maxim (NASDAQ:MXIM) Surges on Strong Guidance

Maxim's (NASDAQ:MXIM) latest quarter was inline with analysts' expectations, although their guidance was a nice surprise, as it was strong for the third quarter of 2011.

Auriga said that "days of inventory was up 8 days to 89 days, book-to-bill is below 1.0, channel inventory was up 5 days to 59 days, deferred income has risen significantly over the past two quarters, and lead times are steadily shrinking."

Auriga raised their full year 2011 and full year 2012 EPS/revenue estimates from $1.46/$2.3 billion and $1.43/$2.3 billion to $1.59/$2.4B and $1.52/$2.3 billion.

They maintain their "Hold" rating on Maxim, which was trading at $26.83, gaining $1.23, or 4.80 percent, as of 12:30 PM EST. Auriga raised their price target on Maxim from $19 to $23.

Xilinx (NASDAQ:XLNX) Margins Under Pressure Long Term

Xilinx (NASDAQ:XLNX) recently released their third-quarter results, and along with guidance, were largely in line with company guidance.

But over the long terms, according to comments from the company, their margins look like they'll be coming under pressure.

Auriga commented, saying that Xilinx "management highlighted increased R&D spending to accelerate the release of 28nm products. Along with our recent comments about checks suggesting more aggressive pricing from XLNX for new design wins, we remain concerned about the implications for longer term operating margins."

Auriga is changing their fourth quarter 2011 and full year 2011 EPS/revenue estimates from $0.54/$578 million and $2.29/$2.37 billion to $0.55/$582 million and $2.37/$2.36 billion. Estimates for 2012 remain in place.

Auriga maintains their "Hold" rating on Xilinx (XLNX), which was trading at $31.27, up $0.25, or 0.81 percent, at 12:34 PM EST. Auriga has a price target on Xilinx of $35.

Xilinx (NASDAQ:XLNX) Battling for Market Share with Aggressive Pricing

Weak demand is forcing Xilinx to cut prices in an attempt to get more market share as it erodes in the weak economic climate.

Auriga said, "XLNX has recently become much more aggressive on pricing, particularly at communications customers, to stem market share erosion."

The one positive note, as with peers of Xilinx, is edge routers are selling well.

That has caused Auriga to actually raised their fourth quarter 2011, full year 2011 and full year 2012 estimates on Xilinx from $0.52, $2.25, and $2.23 to to $0.54, $2.29, and $2.28.

Auriga reiterates a "Hold" rating on Xilinx, which closed Tuesday at 31.77, up $0.08, or 0.25 percent. Auriga raised their price target on Xilinx from $29 to $35.

Short selling on Xilinx has reached a 25-month high as earnings approaches.

NetLogic (NASDAQ:NETL) Will Benefit from Service Provider Order Boost

Even though there is more inventory build at companies like Cisco (Nasdaq:CSCO), that hasn't stopped service providers from boosting orders for things like edge routers.

Auriga noted, "as service providers scramble to update their networks to keep up with increased video streaming and wireless traffic. Somewhat surprisingly, our checks suggest that equipment providers are seeing service provider order strength across all major geographies, including Western Europe."

In response, Auriga is increasing their first quarter, full year 2011, and full year 2012 EPS estimates from $0.19, $0.86, and $1.16 to $0.22, $1.00, and $1.30 .

Auriga maintains their "Hold" rating on NetLogic, which closed Tuesday at $37.20, gaining $0.18, or 0.49 percent. Auriga raised their price target on NetLogic from $29 to $39.

Intel (NASDAQ:INTC) Boosted on 4Q Beat

Analysts raised their price targets on Intel (NASDAQ:INTC) as they exceeded expectations for their latest quarter.

Deutsche says, "Intel began semi earnings season with a bang by beating 4Q ests, guiding for a strong 1Q and unleashing its biggest capex plan in history. For 2011, we expect INTC to follow up its recent success in expanding margins with a more aggressive drive for revenue growth in both its core and emerging mkts (tablets, smartphones and embedded). Should the company succeed in these initiatives (especially in emerging mkts), we expect both EPS and valuation to expand."

Auriga boosted the revenue/EPS estimates from 10.6B/$0.44 to $11.5B/$0.52, full year 2011 went from $44B/$1.86, to $45.4B/$2.04 and their full year 2012 went from $44.7B/$1.87 to $46.5B/$2.14.

Deutsche Bank raised their price target on Intel to $27, and Auriga raised it to $26.

Intel was trading at $21.08, losing $0.22, or 1.01 percent, as of 12:43 PM EST.

Intel (NASDAQ:INTC) May Benefit from Tablet Market

Intel (NASDAQ:INTC) could benefit more than expected from the surge in tablet sales, based on the strength in data center products, says Auriga.

They noted, "For OEMs to generate meaningful tablet unit sales, the devices will have to be inexpensive, meaning the hardware will be underpowered. The actual computing power will therefore likely live in the cloud -- INTC should benefit by virtue of its strong data center products."

Intel has a conference on January 13, and questions about Intel's exposure to tablets is one of the major questions shareholders and investors are looking to have answered.

Other issues are more information needed on the Infineon (NYSE:IFX) wireless and McAfee (NYSE:MFE) acquisitions, and the cross-license deal with NVidia (NASDAQ:NVDA).

Auriga maintains a "Buy" rating on Intel, which was trading at $21.23, up $0.18, or 0.86 percent, as of 11:58 AM EST.

Suntech Power's (NYSE:STP) Gross Margins Should Exceed 20 Percent into 2012

Auriga continues their love affair with the solar sector, this time commenting on Suntech Power (NYSE:STP), which they see generating gross margins of over 20 percent into 2012.

The full year 2012 EPS estimate of Suntech of $1.63 is based on the expected 25 percent growth in shipments versus a 12 percent decline in ASP.

They also see wafer capacity surging to 50 percent of the projected 3.1GW of cell/module capacity.

Concerning the cost of polysilicon, they see that dropping from $52/kg in 2011 to $45/kg in 2012.

Auriga reiterates a "Buy" rating on Suntech Power, which closed Tuesday at $9.00, gaining $0.25, or 2.86 percent. Auriga has a price target of $13 on Suntech, raising it from $12.

STR Holdings (NYSE:STRI) Earnings to Increase in 2012 Says Auriga

STR Holdings (NYSE:STRI) earnings are expected to increase in 2012, although Auriga isn't convinced the company will grow share against its Asian competitors.

Auriga noted, "While we are skeptical of share gains vs. Asian competitors, in-line growth and reasonable price decline assumptions still lead to increased 2012 earnings. We expect STRI to execute cost declines behind price declines, but volume growth at existing customers should make up for the difference and lead to 14% y/y earnings growth in 2012...We shift valuation to 2012 estimates and increase our price target to $22, 12x our non-GAAP 2012 EPS estimate of $1.88."

Auriga reiterates a "Hold" rating on STR Holdings, which closed Tuesday at $18.34, down $0.42, or 2.24 percent. Auriga raised their price target on them from $20 to $22.

Trina Solar (NYSE:TSL) Should Remain Cost Leader in Solar

Trina Solar (NYSE:TSL) appears to be able to hold their position as cost leader in the solar industry in 2011, as they sales and capacity increase over the year.

Auriga said, "We expect Trina to maintain its industry-leading cost position as it expands capacity and sales. This powerful combination is largely a result of a strong and sober management team and stands in stark contrast to industry peers brought down by higher cost legacy manufacturing assets. We see 1Q11 results as a catalyst to re-rate the stock when results show TSL bucking the expected seasonality trend at the expense of Western solar.

"We expect higher than previously expected volume in 1Q11 with better ASPs offset by a persistently lower euro. We increase our 2011 sales estimate to $2.12bln from $2.09bln, and increase our 2011 EPS estimate to $3.88 from $3.84."

Auriga maintains a "Buy" rating on Trina Solar, which closed Tuesday at $26.32, up $0.70, or 2.73 percent. Auriga raised their price target on Trina from $38 to $41.

Yingli Green Energy (NYSE:YGE) Continues to Get Punished on Margins

Shares of Yingli Green Energy (NYSE:YGE) continue to get punished on concerns over margins.

Auriga noted, "Our analysis indicates concerns about the margin impact from Fine Silicon depreciation and Panda startup costs are clearly overblown. Although it is hard to ignore the specter of peaking margins, we find the extent of YGE's punishment bewildering. Given YGE's standing at the heart of the solar industry, we see today's compelling price not likely to last much longer...We shift valuation to 2012 estimates and increase our price target to $17, 10x our 2012 EPS estimate of $1.70."

Auriga reiterates a "Buy" on Yingli Green Energy, which closed Tuesday at $10.56, losing $0.09, or 0.85 percent. Auriga raised their price target on them from $13 to $17.

Auriga Says Solarfun Power (NASDAQ:SOLF) Valuation Too Low

Saying the perception that Solarfun Power (NASDAQ:SOLF) is the weakest of Chinese solar companies shipping in volume, Auriga says that doesn't justify the current valuation of the company.

Auriga said, "While SOLF continues to be perceived as the weakest in the group of Chinese players shipping in volume, we do not believe this justifies its current valuation near tangible book. Well established sales channels and the recent backing by Hanwha (880.kr, NR) increase the probability of continued share gain at the expense of Western solar; in addition, an improving cost structure offsets any disastrous ASP declines that might occur. Our $16 target is 8x our 2012 EPS estimate of $1.93, up from our prior 2011 EPS estimate of $1.75."

Auriga maintains a "Buy" rating on Solarfun Power, which closed Tuesday at $9.14, gaining $0.06, or 0.66 percent. Auriga raised their price target on them from $14 to $16.

ReneSola Ltd. (NYSE:SOL) Undervalued Says Auriga

Auriga seems to think numerous companies in the solar sector are undervalued, such as ReneSola Ltd. (NYSE:SOL), which makes one wonder if some true believer is making the assertions, rather than solid analysis.

When so many companies are said to be undervalued by them, it's hard to believe the so many analysts are completely blind to the health of solar companies.

As far as ReneSola Ltd. goes, Auriga says, "Despite recent commentary suggesting spot poly prices are in free fall, we note that there has so far been no change to our flattish 4Q10 and 1Q11 expectations."

They added that ReneSola is trading far beneath their peers, and so they're raising their price target on the company .

Auriga put a full year 2012 EPS estimate on ReneSola of $3.47.

Auriga maintains their "Buy" rating on ReneSola, which closed Tuesday at $10.77, gaining $0.24, or 2.28 percent. Auriga increased their price target on them from $20 to $27.

JinkoSolar Holding (NYSE:JKS) Attractive at Current Prices Says Auriga

Believing JinkoSolar Holding (NYSE:JKS) shares are being unfairly punished, Auriga says they see them handily beating consensus in the short-term, which should result in an increase in EPS estimates in the near future.

Auriga said, "The stock now trades at just 4.2x our newly introduced 2012 estimates. Given Jinko's limited track record, coupled with the investor perception of being a second-tier module supplier, we believe shares of Jinko are being unfairly punished versus a bearish industry attitude. Recent checks suggest near-term results should be well above constrained consensus estimates, leading to further increases to consensus EPS estimates through the remainder of 2011.

"...However, despite the declining gross margin profile, and our more conservative average ASP assumptions of $1.53/w in 2011 and $1.34/w in 2012, our annual EPS estimates continue to increase. We also note that current 2012 consensus of $5.55 roughly agrees with our view of earnings in 2012. We find the shares extremely attractive at current prices."

Auriga maintains a "Buy" rating on JinkoSolar Holding Co., Ltd., which closed Tuesday at $25.94, gaining $0.37, or 1.45 percent. Auriga raised their price target on them from $40 to $45.

Integrated Silicon Solution (NASDAQ:ISSI) Revenue Expected to Fall 10 Percent

The negative preannouncement by Integrated Silicon Solution (NASDAQ:ISSI) hasn't kept Auriga from maintaining their "Buy" rating on the company, even with revenue expected to drop by 10 percent quarter-over-quarter.

Auriga says, "We maintain our rating on ISSI and increase our price target despite its negative FQ111 (December) preannouncement on Friday before market open. Revenue is now expected to be down -10% q/q (-5% below prior guidance) as demand weakness in specialty DRAM products combines with an ongoing inventory correction. Our FY11 estimates were already well below consensus - we have long argued that the Street is too optimistic on the depth and duration of the ongoing cyclical revenue decline. However, our model suggests that ISSI will continue to generate cash across the cycle - with the stock trading below our year-end FY12 book value estimate, we're not sure that reduced EPS estimates will have much of an impact."

Auriga maintains a "Buy" rating on Integrated Silicon Solution, which closed Monday at $8.77, up $0.22, or 2.57 percent. They raised their price target on them from $9 to $10.

First Solar (NASDAQ:FSLR) Adds Trackers in RayTracker Acquisition - SunPower (Nasdaq:SPRWA) Threatened

First Solar's (NASDAQ:FSLR) acquisition of RayTracker adds another arrow in the quiver of the company, and puts direct pressure on SunPower (Nasdaq:SPRWA), whom they compete with.

Auriga says, "In football terms, First Solar just pulled a reverse. For years we have argued that adding trackers to First Solar's system would result in an increase to the price of electricity (LCOE), given that the price of the tracker ($) more than offsets the increased production (kWh). With the announced acquisition of RayTracker (private), we believe FSLR has now found a suitable solution such that utility scale projects using CdTe thin film modules can now benefit from the use of trackers. In short, we believe that First Solar will be enhancing its product strategy by offering both fixed tilt and tracking systems. In terms of competition, we see this move as another threat to SunPower (Nasdaq:SPRWA)(Hold), which competes directly with First Solar for utility scale solar projects."

Auriga maintains a "Buy" rating on First Solar, which closed Friday at $133.58, down $0.95, or 0.71 percent. Auriga has a price target of $167 on First Solar.

MetroPCS (NYSE:PCS) Upside Looks Weak Says Auriga

MetroPCS (NYSE:PCS) appears to have reached its upper level, according to Auriga, and they said they're going to the sidelines on the stock for now.

Auriga says, "PCS reported weaker than expected net additions for 4Q10 of 298K versus 393K consensus. However, churn was improved at 3.5% versus 3.8% in the previous quarter. We are choosing to move to the sidelines for three reasons. These weaker than expected net additions suggest increasing competition, especially from Leap Wireless (LEAP, Hold) which has recently begun to copy PCS's business model. Second, the stock has reached and slightly exceeded our $13 price target. Third, after raising EBITDA estimates multiple times over the past year, we do not believe there is material upside to our and consensus estimates for 2011 and 2012 (unless the sale of data phones exceeds our expectations)."

Auriga downgraded MetroPCS from "Buy" to "Hold." MetroPCS was trading at $12.94, down $0.36, or 2.74 percent, as of 1:36 PM EST. They have a price target on them of $13.

Daqq New Energy (NYSE:DQ) Estimates Lifted on New Guidance

Daqq New Energy (NYSE:DQ) gave updated guidance which resulted in Auriga raising their fourth quarter and full year 2010 estimate on them.

Auriga said, "Daqq's poly plant is running above plan and management was able to positively preannounce Q4 earnings last night. We estimate the plant is running at annual rate greater than 4,500MT, or roughly 200MT above the nameplate capacity of 4,300MT, which enabled production of 930MT to 950MT during Q4; prior guidance was 825MT to 850MT. We are increasing our Q4 and 2010 estimates to account for the updated guidance."

Auriga maintains a 'Buy' on Daqq New Energy, which closed Thursday at $13.50, gaining $2.23, or 19.79 percent. Auriga has a price target of $20 on them.