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Major Movers on May 16; CSCO, TSRO, INFI, AMD, TSLA

Shares of Cisco Systems Inc. (NASDAQ: CSCO) rallied about 12 % by afternoon trade after the network equipment maker, late last evening, reported better-than-expected results for the fiscal third quarter while its guidance on the current quarter was also in-line with analysts’ consensus estimate.

For the fiscal third quarter ended April 27, the Company posted non-GAAP earnings of 51 cents a share, beating analysts’ estimate by 2 cents a share.

Revenue in the third quarter rose 5% to $12.2 billion from $11.6 billion.  Analysts polled by Thomson Reuters had a consensus estimate for $12.18 billion

Shares of TESARO Inc. (NASDAQ: TSRO) rallied about 12% by afternoon trade after analysts at Credit Suisse raised price target to $74 to $70 and set “outperform” rating on the stock. The upgrade comes after analysts at Cowen Securities maintained “buy” rating on the stock, in a research report released on May 2. The firm has set a price target of $68 on the stock. Earlier on April 30, analysts at Barclays Capital maintained “overweight” rating on the stock and set a price target of $92. Analysts at The Street also maintained “buy” rating on the stock, in a research report released April 29. While sixteen equity research analysts maintain a “buy” rating on the stock, three firms have assigned a “hold” rating. On average, the stock has a “buy” rating and price target of $62.36.

Shares of Infinity Pharmaceuticals Inc. (NASDAQ: INFI) slumped 19.50% by afternoon trade. According to the Wall Street Journal, Infinity’s competitors developing Leukemia drugs released strong and incremental clinical data on Wednesday. Although Infinity Pharmaceuticals is expected to disclose its safety and tolerability data of its drug in upcoming ASCO conference in June, investment bank JP Morgan said that investors are getting very edgy. The bank said that it expects “a good showing” but warned that Infinity will not be able to outperform competitors.

Advanced Micro Devices, Inc. (NYSE: AMD) plunged about 13% by afternoon trade after analysts at Goldman Sachs downgraded the stock to “sell” from “neutral” and set a price target of $2.50. In a research note to clients, analysts at Goldman Sachs  “as has been the case with many of the other rallies in AMD, which have all faded, ultimately, the numbers do not justify the move in the stock.”

“We believe this will again be the case as we expect continued disappointing results in the PC segment to mitigate the impact of increased revenue from gaming,” added the note.

Shares of Tesla Motors Inc. (NASDAQ: TSLA) climbed about 6.50% by afternoon trade after the electric car maker announced a secondary offering of 2.7 million shares of common stock along with convertible notes on Wednesday. The money raised through secondary offering will be utilized in paying up the loan it owes to the Energy Department. The offering is expected to generate in excess of $229 million, at current prices. According to CNBC, CEO Elon Musk will purchase about $45 million worth shares of common stock from that offering along with another $55 million worth shares in separate deal.

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