Analysts' Upgrades and Downgrades

Return to Article

Friday's Analysts' Upgrades and Downgrades

TSC Staff

Change in Ratings

Deutsche Bank downgrades Alltel(AT Quote) to hold, as it believes the firm's valuation is too rich.

Bear Stearns upgrades Eaton Corporation(ETN Quote) to outperform on strong outlook for 2008.

Goldman said it is upgrading Federated Investors(FII Quote) to Buy from Neutral based on valuation. See management improving equity flows in 2007. Dovish Fed or steeper yield curve would also bode well for company's money market business. Target price raised to $42.29 from $36.47.

Wachovia upgrades International Securities Exchange(ISE Quote) to outperform, as it believes market-share gains from the penny pilot program will make up for lackluster volumes.

Morgan Stanley upgrades Coca-Cola(KO Quote) from equalweight to overweight and raises price target to $56.

UBS said it is upgrading New Century Financial(NEW Quote) to Buy from Neutral. Believes most of bad news is priced-in and liquidity likely OK for now. Lowered target price to $17 from $27.50.

UBS said it is upgrading Pan American Silver(PAAS Quote) to Buy from Neutral following strong fourth-quarter results and positive guidance. Raised target price to $35 from $31.

Credit Suisse said it is downgrading RLI(RLI Quote) to Underperform from Neutral based on valuation and increased competition. Maintained $56 target price.

UBS said it is upgrading TCF Financial(TCB Quote) to Buy from Neutral based on favorable risk/reward and possible sale. Raised target price to $32 from $29.

Bear Stearns upgrades Thoratec(THOR Quote) to outperform as it believes the approval and launch of HeartMate II offers potential for growth.

Teekay(TK Quote) was downgraded from Outperform to Peer Perform, Bear Stearns said. Estimates also cut through 2008, to reflect higher tanker supply rates.

Tekelec(TKLC Quote) was downgraded from Buy to Neutral, Oppenheimer said. Estimates also cut, as the company gave disappointing forward guidance.

Stock Comments/EPS Changes

BEA Systems(BEAS Quote) numbers lowered at Jefferies. Price target lowered to $15 from $17. 2008 EPS estimates lowered to $0.59 from $0.65. Reiterates Buy rating.

Endo Pharma(ENDP Quote) numbers raised at Jefferies. Price target raised to $38 from $35. 2008 EPS estimates raised to $2.14 from $2.00. Reiterates Buy rating.

ENSCO International(ESV Quote) estimates raised, price target lowered at Jefferies. Price target lowered to $61 from $67. 2007 EPS estimates increased to $7.25 from $6.98. 2008 EPS estimates raised to $8.68 from $8.44. Reiterates Buy rating.

Health Management(HMA Quote) numbers raised at Jefferies. Price target raised to $22.50 from $20.00. 2007 EPS estimates raised to $0.76 from $0.75. Reiterates Hold rating.

Goldman said it is raising its 2007 estimates on HMA to $0.79 from $0.69, based on increased company guidance. See emphasis on revenue cycle enhancement, volume growth, physician practice management and cost discipline as key drivers in 2007. Price target raised to $10 from $9.50 and maintained Neutral rating.

Target on J.C. Penney(JCP Quote) increased to $90 from $86, Goldman said. Fourth-quarter results beat consensus estimates as lower taxes and interest expense drove upside. 2007 estimates upped to $5.44 from $5.30. Maintained Neutral rating.

Lamar Advertising(LAMR Quote) numbers raised at Jefferies. Price target raised to $78 from $73. 2008 EPS estimates increased to $0.80 from $0.53.

Patterson-UTI Energy(PTEN Quote) estimates lowered at Jefferies. 2007 EPS estimates lowered to $2.30 from $4.01. Reiterates Hold rating and $25 price target.