Outperform - Price 12.76 on June 9 by Pacific Crest We're raising our estimates after the E3 [electronic entertainment expo in Los Angeles], based on increased confidence in Activision's upcoming slate. We believe the introduction of DJ Hero [a music videogame] and reintroduction of Tony Hawk [a skateboard game] require higher dollar estimates than we previously assumed, among other adjustments. Our 2009 revenue and earnings-per-share estimates go to $4.90 billion and 67 cents, from $4.85 billion and 65 cents....We are initiating 2010 estimates ... of $5.30 billion and 78 cents. Our target goes to 15, or 19 times our new 2010 EPS estimate, from 13. Most of the 2010 growth in our model comes from a stronger catalog in the first half, given our positive stance on Activision's new opportunities for the second half of 2009. We believe it is shaping up to be another strong year. Market cap: $17.3 billion.

Hold - Price 37.70 on June 10 by Sandler O'Neill Beverly Hills-based financial-services company City National announced an agreement to acquire a majority interest in Lee Munder Capital Group, a Boston-based asset manager. Lee Munder...utilizes a variety of investment strategies, including small-cap growth, small- and mid-cap value, global multi-cap, large-cap core, international equity and fixed income. We think the deal is a natural fit for City National, given that it continues to build out its wealth-management business. Lee Munder will merge with Independence Investments, a Boston-based institutional asset-management firm in which City National holds a majority interest, and will become City National's primary institutional asset-management affiliate. The combined asset manager will have [more than] $4 billion of assets under management and will operate under the Lee Munder Capital Group name as an affiliate of Convergent Capital Management -- the Chicago-based asset-management holding company that City National acquired in 2003. We see very little risk with the deal....With the addition of Lee Munder, City National will increase its assets under management to nearly $32 billion, and assets under administration to $49 billion-plus. Market cap: $1.9 billion.

Hold - Price 22.52 on June 9 by Wedbush Morgan We believe ITG will continue to be a solid investment in the growth of global-trading volumes and...a leading candidate for early bull-market success. But we expect less than trend-line results in the next [bear-market] stages. ITG U.S. volume of 4.15 billion or 208 million/day [marks an increase of] 17% over May '08 and 5.5% over April on a per-day basis. This is less than our 4.5 billion expectation, but more than the 3.9 billion we would have anticipated, based on market volumes and April market-share levels. We estimate that ITG's market share increased from 2.22% in April to 2.34% in May. We believe the higher growth relative to overall market-volume levels is driven by increased activity of ITG's traditional full-service institutional clients, as retail investors return to the market and stop withdrawing their existing investments. We're maintaining 2009 EPS estimate of $1.43, as market share gains offset weaker than expected consolidated volume growth. However, we are increasing our 2010 EPS estimate to $1.51 from $1.48, as anticipated market-share gains flow through to 2010. Maintain Hold and 20 target...based on a 14 times multiple on our FY 2009 EPS estimate. We believe this multiple is in line with current market multiples, balancing the short-term risks with the longer-term opportunity. Market cap: $982 million.

Hold - Price 2.93 on June 9 by Jefferies & Co. [Seismic research company] Ion entered into a private placement [from which] net proceeds will be used to repay a 25% bridge loan. This transaction should lift the liquidity overhang that has pressured the stock. However, we continue to maintain our Hold rating primarily on weak fundamentals with seismic demand. Market cap: $292 million.

Neutral/Higher Risk - Price 11.57 on June 10 by Baird Associates Adjusted EPS of [a loss of] 11 cents versus 36 cents was below our estimate of [a loss of] 7 cents for this executive-recruitment firm], and consensus of [a loss of] 5 cents GAAP [generally accepted accounting principles] EPS was [a loss of 45 cents] and includes $25.1 million in restructuring charges. Profitability [adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was] lower than expected -- at minus $5.9 million. Management did not provide formal F4Q EPS guidance; rather, the company indicated that its goal is to maintain break-even to positive Ebitda, plus noncash stock-based compensation expense -- but the company had cautioned that given the timing of planned expense savings, that it may not achieve its goal during F4Q. Fee revenue declined by 49% year/over/year and 22% sequentially to $107 million -- slightly above our $105.5 million estimate, but below consensus of $113.7 million. Management ... indicated that if confirmation trends did not deteriorate further from F3Q results [reported] on March 11, that they expected roughly $110 million in fee revenue in F4Q...Engagement trends [are] beginning to stabilize -- a positive, if it holds. Number of engagements declined by 37% y/o/y and 6% sequentially, to 1,139. Market cap: $504 million.

Buy - Price 8.56 on June 9 by Morgan Joseph MVC reported slightly lower-than-expected [net asset value] per share of $16.84 in F2Q09. This compares to our $17.24 ... In Securities and Exchange Commission filings, MVC reported F2Q09 income from interest, dividends, and fees of $5.8 million, operating income of $2.1 million, net income of $1.7 million, a net realized and unrealized loss on investments of $9.5 million, and a net decrease in assets of $7.8 million. The company also reported realized and unrealized losses of 32 cents per diluted share versus our estimate of a 10-cent gain. We think multiples have bottomed out among portfolio companies, while revenue and Ebidta appear to be stabilizing...We are maintaining our Buy rating and target of 17. We believe MVC's portfolio remains relatively strong and that write-downs to portfolio companies should slow in coming quarters. Our price target is based on our estimated NAV per share of $16.88 at the end of FY2Q [the fiscal second quarter of] 2010. Market cap: $208 million.

Underperform - Price 14.65 on June 9 by Raymond James Penske [intends to buy from General Motors] the Saturn brand and the distribution of Saturn cars and [original-equipment-manufacturer] parts. Penske is not buying manufacturing or retail. The retail network will remain with the current franchise operators. GM will continue to manufacture Saturn vehicles for at least two years. Penske will have the ability to develop source product from other global manufacturers, a process that will take at least two years. We have no visibility on purchase price. However, media reports of a $200 million price could make this an attractive opportunity for Penske. New-vehicle volume, the share of parts in the overall business mix, and the ownership structure are just a few of the key questions that remain unanswered at this time...the capital and ownership structure will [likely] include a direct investment from Chief Executive Officer Roger Penske and perhaps others. The structure and the accounting treatment are still unknown....There are several attractive elements: low fixed investment [costs] beyond the purchase price; minimal working-capital requirements; significant (but still undefined) volume in the high-margin parts-distribution business; and the ability to source product globally, which may allow some offshore manufacturers to enter the U.S. market without the expense of creating a distribution network. We maintain our Underperform rating, and note that the current price is about 17 times our FY10 EPS estimate of 67 cents, plus the pro-forma earnings generated by our Saturn base case at 75,000 units. Market cap: $1.34 billion.

Buy - Price 23.73 on June 9 by Hilliard Lyons We were pleased to see PNY report solid EPS of 73 cents, versus 66 cents, well above the consensus of 68 cents and a penny ahead of our 72 cent estimate. Utility margin rose 5.4% to $170 million, driven by adjustments to regulatory gas-cost accounts, increased rates...and an increased customer base, partially offset by a recession-related lower margin from industrial customers....Management maintained FY09 earnings guidance of $1.45 to $1.60. We are decreasing our FY09 EPS estimate by 2 cents, to $1.63 (but still ahead of guidance), due to higher depreciation and interest assumptions. Our FY10 EPS estimate of $1.70 is unchanged. At 14.6 times and 14 times our FY09 to FY10 estimates, we think the valuation is appealing on both a relative and absolute basis. We derive our 31 target [by] using a multiple of 18 times our FY10 EPS estimate, the approximate midpoint of where PNY typically trades. Market cap: $1.74 billion.