Outperform/High Risk - Price 3.93 on Sept. 9 by Boenning & Scattergood With new products and a looming data-center upgrade, 3Com may have its best opportunity to gain market share in recent history. New management has refocused to take market share by emphasizing the best price-performance value in the industry. This is enabled by a deep technology base [and] a low-cost Chinese cost structure...the possibility of new distribution channels offsets the risk of declining Huawei [Chinese partner] revenue, for which we've already modeled significant declines. Target: 6. Market cap: $1.5 billion.

Outperform -Price 29.51 on Sept. 8 by Wedbush/PacGrow Life Sciences Using a 30% annual discount from net peak annual sales of Testim [for treating low testosterone] and net peak Xiaflex [for softening scar tissue] sales, and a seven-to-10 times multiple, we derive a fair value estimate for AUXL of 44, which includes cash per share of $1.91. We do not include value from Xiaflex in the Peyronie's disease indication, as no proof-of-concept data has been established. We estimate there remains significant potential upside to our fair-value estimate. Market cap: $1.2 billion.

Market Perform/Speculative - Price 38.85 on Sept. 10 by Morgan Keegan The Continental story has improved remarkably in the Bakken [notably, the parts of the formation in N. Dakota] against a backdrop of generally higher oil prices. We think the stock deserves a premium valuation, given its immense running room in the play -- but we aren't convinced oil prices can move materially higher, even if the economy recovers as quickly as investors expect, given the already significant upward move so far this year. As such, the shares [of this independent oil-and-natural-gas exploration and production outfit] may be rangebound for the near future. We have boosted our third-quarter '09 and 4Q09 EPS estimates to reflect higher oil prices, but as our 2010 outlook remains unchanged at 60 [a barrel, versus around 70 currently] at this time, we have left next year's estimates largely unchanged. Five-year estimated EPS growth rate: 10%. Market cap: $6.6 billion.

Buy - Price 23.92 on Sept. 9 by Sandler O'Neill Upgrading to Buy, from Hold. We may have missed the first leg up for EVR shares, but we feel better about the firm's outlook, given its recent hiring of CEO Ralph Schlosstein coupled with an improving cyclical outlook for [mergers and acquisitions]. While we do not expect the stock to move straight up, we believe the shares will move toward the mid-$30s range as investors and analysts increasingly begin to think about the potential for 2011 earnings, which we expect will be north of $2. Using this $2 estimate, which we believe to be a good base level of a normalized EPS estimate at this time, and applying the firm's average forward multiple of approximately 16 times, our target is now 32. Market cap: $854 million.

Market Perform - Price 16.62 on Sept. 8 by Barrington Research Total revenue from continuing operations increased 1.3% to $275.5 million in the first quarter of fiscal 2010 from $271.9 million last year, slightly below our ($280.8 million) and First Call consensus ($277 million) estimates. While we see no near-term catalyst for the stock price as we are off-season for the tax-services business (roughly 60% of annual revenue comes in the seasonally strong fiscal fourth quarter), HRB's valuation and cash-flow characteristics and the potential of a better-than-average tax season in 2010 (driven by likely tax code changes) are intriguing. For now, we are maintaining our Market Perform rating, until prospects for the 2010 tax season become more visible. Market cap: $5.6 billion.

Buy - Price 37.15 on Sept. 8 by Broadpoint Amtech HON is a well-diversified, multi-industry company that's positioned to recover as cyclical industrial end-markets bottom out. We believe HON...will gain traction heading into 2011; 41% of HON's market value has been eroded since summer '08, reflecting the global recession. We believe HON's price is factoring in earnings cuts and that now is the time to build a position in the name. The aerospace segment generates almost 50% of the company's total profits, with a key profit driver being the aftermarket mix....HON's other large segment is automation and control solutions, where 50% of sales are derived from a retrofit mix versus new [original-equipment manufacturing]....Total operating margins should trough in '09 at about 12%. HON is trading at 13.2 times price/earnings multiples for '09 and '10 versus its peers at 21.9 times and 17.1 times, respectively. We believe HON's valuation will continue to recover as aftermarket sales stabilize. Market cap: $27.6 billion.

Buy - Price 18.78 on Sept. 8 by Needham & Co. We believe the consensus expectations understate the "Personals" segment's (Match.com) underlying organic growth, profitability and overall value....The net result is that we believe calendar-year '10 consensus estimates for the Personals segment are too low. Our CY10 Oiba [operating income before amortization] estimate of $100 million for IAC's Personals segment is 9% above the consensus mean. And we believe our estimates... could prove too conservative...[and that] the consensus use of 6 times enterprise value/earnings before interest, taxes, depreciation and amortization to value the Personals segment in sum-of-the-parts analysis is too low, and that the business' growth rate, profitability and leading market-share position demand at least an 8 times EV/Ebitda valuation. Market cap: $2.8 billion.

Hold - Price 18.44 on Sept. 9 by Standard & Poor's We think SKX is gaining market share on the strength of its value offerings and marketing. And with inventory now aligned with demand, we expect a return to profitability in Q3. We also view Chief Operating Officer David Weinberg as capable of taking on responsibilities of chief financial officer from Fred Schneider, who is resigning to pursue other interests, effective Feb. '10. We keep our '09 and '10 EPS estimates of 45 cents and 95 cents, but raise our target price by $1 to $19, solely on peer enterprise value-to-Ebitda valuation. Following their recent price increase, however, we view SKX shares as fairly valued. Market cap: $616 million.