Tuesday's Analysts' Upgrades and Downgrades

TSC Staff

CHANGE IN RATINGS

Aquantive (AQNT Quote) upgraded at Oppenheimer: AQNT was upgraded from Neutral to Buy, Oppenheimer said. $28 price target. Recent pullback presents a buying opportunity, as the company remains leveraged to the strong online advertising market.

Ashland (ASH Quote) downgraded at JP Morgan: ASH was downgraded from Overweight to Neutral, JP Morgan said. Shares appear fully valued, though the private-market price could be as high as $75. Company will likely pay more special dividends.

American Express (AXP Quote) downgraded at AG Edwards: AXP was downgraded from Buy to Hold, AG Edwards said. $60 price target. Valuation call, plus the outlook for consumer spending and credit quality is murky.

Centene (CNC Quote) downgraded at Goldman Sachs: Goldman said it is downgrading CNC to a Sell rating from Neutral based on valuation. Believe price no longer reflects underlying risk of earnings shortfall. Target price at $22.

ConocoPhillips (COP Quote) upgraded at Deutsche: COP was upgraded from Hold to Buy, Deutsche Bank said. $80 price target. Company will likely pare back capex spending in 2007, and focus its excess cash flow toward buying back stock.

UBS downgrades shares of Hershey (HSY Quote): HSY downgraded to a Neutral rating from Buy, UBS said. Lowers 2007 EPS estimates to $2.66 from $2.71 and drops price target to $56.00 from $60.00.

Kyphon (KYPH Quote) upgraded at Morgan Stanley: Morgan Stanley upgrades Kyphon from underweight to equalweight after its recent purchase of SFMT.

ManPower (MAN Quote) upgraded at Morgan Stanley: Morgan Stanley upgrades Manpower to overweight from equalweight, and raises its price target from $65 to $67.

Magna International (MGA Quote) downgraded at UBS: MGA shares downgraded to Neutral from Buy, UBS said. Drops price target to $85.00 from $88.00 and lowers 2007 EPS estimates to $6.41 from $7.00.

Marathon Oil (MRO Quote) downgraded at Deutsche: MRO was downgraded from Buy to Hold, Deutsche Bank said. $96 price target. Stock is more expensive than COP, but shares similar characteristics.

Starbucks (SBUX Quote) upgraded at UBS: UBS upgrades shares of SBUX to a Buy rating from Neutral. Maintains price target at $42.

Sirius Satellite (SIRI Quote) downgraded at Bear: SIRI was downgraded from Outperform to Underperform, Bear Stearns said. Company warned of lower subscriber growth, and the retail environment could remain soft. OEM customers also losing market share to XMSR.

Schlumberger (SLB Quote) downgraded at Wachovia: SLB was downgraded to Market Perform, Wachovia said. Company is trading at a 44% premium to its peers and a 20% premium to its average historical valuation.

Station Casinos (STN Quote) downgraded at Bear: STN was downgraded from Outperform to Peer Perform, Bear Stearns said. Stock is already reflecting an anticipated takeover bid in the mid- to high-$80's.

STOCK COMMENTS / EPS CHANGES

Bank of New York (BK Quote) numbers raised at UBS: UBS raised numbers at BK. Ups 2007 EPS estimates to $2.49 from $2.42 and lifts price target to $44.00 from $38.00. Reiterates Neutral rating.

CIT (CIT Quote) price target raised at UBS: CIT price target raised, UBS said. Lifts price target to $62.00 from $57.00. Reiterates Buy rating.

Henry Schein (HSIC Quote) estimates decreased at Goldman: 2006 estimates on HSIC lowered to $1.99 from $2.10, Goldman said. Company lowered guidance due to lower demand for flu vaccine and shift in expected meningitis vaccine sales to 2007. Maintained Neutral rating and $53 target.

Lubrizol (LZ Quote) target raised at Jefferies: LZ price target raised, Jefferies said. Ups to $57.00 from $53.00. Reiterated Buy rating.

Psychiatric Solutions (PSYS Quote) estimates raised at Jefferies: PSYS EPS estimates raised at Jefferies. 2007 EPS estimates lift to $1.44 from $1.39. Price target remains at $36.00 and reiterates Hold rating.

Sirius Satellite (SIRI Quote) estimates cut at Goldman: Goldman said it is lowering its 2006 estimates on SIRI to a 79-cent loss from a 52-cent loss after company lowered year-end subscriber target range to 5.9-6 million from 6.3 million previously. Target price decreased to $3.50 from $3.75 and maintained Sell rating.

---