Thursday's Analysts' Upgrades and Downgrades

TSC Staff

CHANGE IN RATINGS

Amgen (AMGN Quote) upgraded at Bear: AMGN was upgraded to Outperform at Bear Stearns. Fears of CERA launch are already priced in. $77 price target.

Duke Energy (DUK Quote) downgraded at Merrill: DUK downgraded to Neutral rating from Buy at Merrill Lynch. Following the completion of Spectra Energy spin-off, Merrill believes that the company is fairly valued at these levels. New EPS estimates stand at $1.20 for 2007 and $1.25 for 2008.

Energy East (EAS Quote) downgraded at Merrill: Merrill Lynch downgrades Energy East to sell based on valuation and increased regulatory risk.

First Solar (FSLR Quote) rated new Outperfrom at Credit Suisse: Credit Suisse is initiating coverage on FSLR with an Outperfrom rating based on strong demand for PV modules. Sets $32 target price.

Genzyme (GENZ Quote) upgraded at Baird: GENZ was upgraded from Neutral to Outperform at Robert Baird. $75 price target. Near-term competitive pressure on Renagel should be offset by the Renvela approval expected later this year.

Health Net (HNT Quote) upgraded to Buy at Merrill: HNT upgraded to Buy rating from Neutral at Merrill Lynch. 2007 EPS estimates lift to $3.65 from $3.45. Price target set at $55.

Hyperion Solutions (HYSL Quote) downgraded at Merrill: Merrill Lynch downgrades shares of Hyperion Solutions to neutral based on near term headwinds as the company enters a seasonally soft March quarter.

Imclone (IMCL Quote) upgraded at Merrill: IMCL was upgraded from Sell to Neutral at Merrill Lynch. Erbitux sentiment may have turned too negative, relative to the potential for positive phase-III clinical data.

Jabil (JBL Quote) downgraded at Morgan Stanley: Morgan Stanley downgrades Jabil to equalweight as it believes Jabil will struggle to make consensus numbers for this year due to declining margins.

Move (MOVE Quote) upgraded at JP Morgan: JP Morgan is upgrading MOVE to Neutral from Underweight. Believes new structure and upcoming product enhancements will drive revenue and operating leverage.

Nymex (NMX Quote) rated new Sell at Merrill: NMX was initiated with a Sell rating at Merrill Lynch. Stock has already doubled since its IPO, and trades at a premium valuation to its peers. Company can earn $2.05 a share in 2007.

Sovereign Bancorp (SOV Quote) downgraded at Bear: SOV was downgraded from Peer Perform to Underperform at Bear Stearns. Stock is already pricing in a sale of the company, which will likely not materialize. Recent initiatives will also dilute earnings.

Smurfit-Stone (SSCC Quote) downgraded at Prudential: Prudential downgrades Smurfit-Stone to underweight as it believes cost inflation should offset cost initiatives more than previously thought.

Wachovia (WB Quote) upgraded at Credit Suisse: Credit Suisse is upgrading WB to Outperform from Neutral based on valuation. Raised target price to $64 from $61.

Zimmer (ZMH Quote) upgraded at Wachovia: ZMH was upgraded to Outperform at Wachovia. 2007 guidance could prove conservative, and the company could gain market share from BMET in the near term.

STOCK COMMENTS / EPS CHANGES

Chattem(CHTT Quote) estimates increased at Goldman: Goldman is raising its 2007 estimates on CHTT to $2.87 from $2.29 after company acquired five JNJ brands - Act, Unisom, Cortizone, Kaopectate, and Balmex. Maintained Neutral rating. Price target increased to $50.50 from $48.

Con-Way (CNW Quote) estimates lowered at Credit Suisse: Credit Suisse is lowering its 2007 EPS estimates on CNW by 5 cents to $4.00 after company reduced 4Q guidance. Maintained Outperform rating.

Home Depot (HD Quote) target raised at Goldman: Goldman is upping its price target on HD by a dollar to $42 following the resignation of CEO Nardelli. Increase reflects increased likelihood of LBO. Otherwise see minimal impact, with slight negative as management disruption drives execution risk. Maintained Neutral rating.

Marvell Technology (MRVL Quote) numbers lowered at UBS: MRVL numbers lowered at UBS. 2008 EPS estimate drops to $0.55 from $0.57. Price target lowered to $28 from $30. Reiterates Buy rating.

Micron (MU Quote) numbers lowered at UBS: MU numbers lowered at UBS. 2008 EPS estimates drop to $1.35 from $1.45. Price target lowered to $20 from $22. Reiterates Buy rating.

Pepsi (PEP Quote) added to Focus List at JP Morgan: PEP was added to the Focus List at JP Morgan. $75 price target. Recent pullback in the stock has been overdone, as raw materials cost increases have already been priced in. Overweight rating.

Tetra Tech (TTI Quote) numbers lowered at Jefferies: TTI numbers lowered at Jefferies. 2007 EPS estimates drop to $2.15 from $2.25. Price target lowered to $37 from $40. Reiterates Buy rating.

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