Thursday's Analysts' Upgrades and Downgrades

TSC Staff

CHANGE IN RATINGS

American Eagle (AEOS Quote) upgraded at AG Edwards: AEOS was upgraded from Hold to Buy at AG Edwards. Company has the most popular products in the business, and should continue to generate above-average growth for the next several quarters. $41 price target.

AMR (AMR Quote) downgraded at Goldman Sachs: Goldman is downgrading AMR to Neutral from Buy based on valuation and likely waning momentum into 2008 labor talks and fleet replacements. Shares are up 20% since late November. Price target at $40.

Charles River Lab (CRL Quote) upgraded at Jefferies: CRL upgraded to Buy rating from Hold at Jefferies. Price target jumps to $56 from $44. 2007 EPS estimates shade up to $2.47 from $2.46.

JetBlue (JBLU Quote) upgraded at Goldman Sachs: Goldman is upgrading JBLU to Buy from Neutral and adding to the America's Buy List. See margin growth drivers in new E190s vs. legacy carrier RJs, maturation of new markets added in 2006, revenue management initiatives, and option value from new international code shares. Price target at $16.

Nationwide Financial (NFS Quote) upgraded at Bear: NFS was upgraded from Underperform to Peer Perform at Bear Stearns. $55 price target. Company's capital flexibility should drive earnings and return on equity in the coming years.

Nymex (NMX Quote) upgraded at JP Morgan: NMX was upgraded from Underweight to Neutral at JP Morgan. Management is leveraging its global brand and cost-cutting could drive better-than-expected earnings.

Network Appliance (NTAP Quote) upgraded at Friedman, Billings: NTAP was upgraded to Outperform at Friedman, Billings Ramsey. $46 price target. Company posted another strong quarter of free cash flow.

Office Depot (ODP Quote) upgraded at Bear: ODP was upgraded to Outperform at Bear Stearns. Company trades at a discount to its peers and should be able to achieve its lower earnings guidance. $43 price target.

Office Depot price target cut at Goldman: Goldman is cutting its target on ODP to $39 from $44 due to higher capex, lingering profit challenges in Delivery and a murky start to the year in retail. 2007 estimates lowered to $2.30 from $2.43. Maintained Neutral rating.

Transocean (RIG Quote) downgraded at Jefferies: RIG downgraded to Hold rating from Buy at Jefferies. Price target lowered to $87 from $96. 2007 EPS estimates bumps down to $6.97 from $7.39.

Real Networks (RNWK Quote) downgraded at Oppenheimer: RNWK was downgraded from Neutral to Sell at Oppenheimer. Company is seeing sluggish music subscriber growth, and though games revenue continues to expand through acquisitions.

Schering-Plough (SGP Quote) downgraded at Prudential: SGP was downgraded from Overweight to Neutral at Prudential. $27 price target. Stock lacks significant near-term catalysts to drive the price higher over the next several quarters.

Wellcare Health (WCG Quote) downgraded at Wachovia: WCG was downgraded to Market Perform at Wachovia. Stock appears fully valued, trading at a premium to its historical average valuation. Company also faces potential political headwinds.

Zions Banc (ZION Quote) upgraded at Piper: ZION was upgraded from Market Perform to Outperform at Piper Jaffray. $95 price target. Credit quality is stable and the company trades at a discount to its peers. Also do not expect management to attempt any major acquisitions.

STOCK COMMENTS / EPS CHANGES

American Capital Strategies (ACAS Quote)target upped at Jefferies ACAS price target upped at Jefferies. New price target set at $55 from $46. Reiterates Buy rating.

Deere (DE Quote)numbers raised at UBS: DE numbers raised at UBS. Price target jumps to $127 from $119. 2007 EPS estimates lift to $6.60 from $6.30. Reiterates Buy rating.

Deere estimates raised at Goldman: 2007 estimates on DE increased to $6.65 from $6.35 at Goldman. Q1 results came in stronger than expected. See increased confidence that ag equipment operating leverage will be stronger the cycle and that weakness in construction equipment will be contained to 2007. Target price raised to $137 from $133 and reiterated Buy rating.

FMC Technologies (FTI Quote) numbers raised at UBS: FTI numbers raised at UBS. Price target rises to $78 from $71. 2007 EPS estimates upped to $3.22 from $3.09. Reiterates Buy rating.

JP Morgan (JPM Quote) cut from Focus 1 list at Merrill: JPM was cut from the Focus 1 list at Merrill Lynch. Stock has been on the list for the requisite one-year period. Buy rating.

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