Sector Perform - Price 29.39 on Sept. 10 by Pacific Crest AeroVironment develops and produces unmanned aircraft systems and efficient electric-energy technologies. [First-quarter] results beat expectations: fiscal Q1 (July) revenue of $53.6 million and [earnings per share] of 22 cents, ahead of our expectations of $51.9 million and 15 cents. Consensus was $49.9 million/18 cents. Revenue was driven by [research and development]...F2008 EPS is $1. Raising F2009 and F2010 EPS estimates to $1.14 and $1.38. Market cap: $636 million.

Buy - Price 28.11 on Sept. 9 by KeyBanc Capital Markets Upgrading from Hold. Cabot Supermetals is the world's largest and most technologically advanced manufacturer of products used primarily in electronics for producing capacitors. We're increasing our 2009 estimate to $2.60 from $2.20....CBT should hit its 2011 EPS target of $3 before then....Our 40 [share-price] target is based on an [enterprise value/earnings before interest, taxes, depreciation and amortization] multiple of 7.6 times our [fiscal-year] '09 Ebitda estimate of $424 million (total debt estimate, $665 million). The average high over FY03-FY07...is 9.2 times. [Our multiple is] conservative due to current volatility in feedstock costs, upper-management [shifts] and cost savings.... Market cap: $1.8 billion.

Outperform - Price 2.32 on Sept. 10 by Barrington Research Associates Continucare provides primary-care-physician services via 18 medical centers. It reported fourth quarter earnings of 5 cents a share (versus our 4-cent estimate), a 39% [rise] from 3 cents last year. Our $5 price target assumes the shares can trade at an EV/sales ratio of 1.1 times our 2010 revenue estimate of $298 million and represents a P/E of 23 times our F2010 earnings estimate of 22 cents. We believe CNU can maintain [long-term] EPS growth of about 20% through internal growth, accretive acquisitions and share repurchases. In 2006, CNU acquired Miami Dade Health Centers. Target: 5. Market cap: $160 million.

Outperform - Price 13.86 on Sept. 9 by FBR Capital Markets Upgrading to Outperform and raising target to 18 from 12. We believe the decision to place [Fannie Mae and Freddie Mac] into a conservatorship has positive implications for bank stocks...peak defaults and losses in EWBC's residential-construction loan portfolio may be nearer than anticipated. We believe EWBC has been one of the most proactive banks in addressing...problem loans...Maintaining our FY08 and FY09 operating EPS estimates of 0 cents and 95 cents. Market cap: $880 million.

Hold - Price 60.17 on Sept. 10 by Needham & Co. We prefer FactSet's application suite to competitive offerings from Bloomberg and Thomson Reuters. But our concern lies with the fact that 21% of FactSet's [annualized subscription value] is generated by sell-side financial institutions, [which] we believe will continue to face a challenging economic environment. Price/long-term revenue, 5.7 times. Market cap: $3 billion.

Buy - Price 23.74 on Sept. 10 by Jefferies & Co. IVZ trades at 12.4 times our revised '09 est, a discount to peer averages. Our 29 target is based on a 15 times multiple, as we believe a peer average valuation is warranted given IVZ's attractive [assets-under-management] characteristics. Risks include fund outflows and prolonged equity-market weakness. Target: 29. Market cap: $9.5 billion.

Hold - Price 15.24 on Sept. 10 by Morgan Joseph Live Nation, a leading promoter, producer and venue operator for worldwide live entertainment events, completed the Motor Sports Division sale to Feld Entertainment for $205 million. The Motor Sports Ebitda for 2007 was about $23 million on a standalone basis and for 2008 is projected to be approximately $25 million. The sales price was in line with our expectations at a 7 times multiple. The deal slightly raises our estimated 2009 [total enterprise value]/Ebitda multiple to 9.8 times, from 9.5 times. Live intends to reduce its term loan with the proceeds and make further investments in its core music business....which is prudent. Results will be easier to analyze without so many moving parts. Market cap: $1.2 billion.

Strong Buy - Price 58.35 on Sept. 9 by Raymond James This health-care-services company's [prescription] distribution was generally positive; MCK appears well-positioned to benefit from the ongoing generic wave, aided by its longstanding manufacturer and customer relationships. MCK remains our top pick among the Big Three Rx distributors. We expect...margin expansion, driven by its stellar generic distribution franchise, evolving health-care [information-technology] division, and capital deployment. 2008 EPS, $3.34; estimated '09 EPS, $3.82; 2010E EPS, $4.34; P/Es are, respectively, 17.5 times, 15.3 times, and 13.4 times. Market cap: $16.5 billion.