Analysts' Upgrades and Downgrades

Return to Article

Wednesday's Analysts' Upgrades and Downgrades

TSC Staff

Change in Ratings

Autodesk(ADSK Quote) upgraded to Outperform rating, Robert W. Baird said. Price target holds at $46 and full-year 2008 EPS estimates lowered to $1.80 from $1.85.

American Express(AXP Quote) upgraded to Outperform rating from Market perform, Friedman Billings Ramsey said. Price target and 2007 EPS estimates remain unchanged at $67 and $3.36, respectively.

Boeing(BA Quote) was upgraded to Neutral, JPMorgan said. Stock has underperformed its peers since June, and the outlook for the aerospace cycle remains strong.

BEA Systems(BEAS Quote) was upgraded from Underperform to Peer Perform, Bear Stearns said. Valuation call, based on the company's steady cash flow.

Ciena(CIEN Quote) was upgraded from Neutral to Overweight, JPMorgan said. Optical market continues to recover faster than expected. Estimates also raised.

Fannie Mae (FNM Quote) was upgraded from Underperform to Market Perform, Friedman Billings Ramsey said. $55 price target. Company has built up capital levels, but fundamentals remain soft.

L-3 Communications(LLL Quote) was upgraded from Underweight to Neutral, JPMorgan said. Stock underperformed over the past year and now appears more attractive based on its free cash flow yield.

Lockheed Martin(LMT Quote) was downgraded from Neutral to Underweight, JPMorgan said. Defense stocks could be challenged in 2007, and LMT appears the most vulnerable. Growth could peak this year, and the company has already gained 56% since early 2006.

Real Networks(RNWK Quote) upgraded to Hold rating from Underperform at Jefferies. Price target and 2007 EPS estimates hold at $8 and $0.21, respectively.

Stock Comments/EPS Changes

2006 estimates on CBS(CBS Quote) raised at Goldman to $1.74 from $1.63 after company reported better-than-expected earnings due to items below EBIT. See few financial levers going forward, with an already high payout ratio and fewer asset divestitures left. Maintained Sell rating and $28 target.

JPMorgan said Dover(DOV Quote) was removed from the Focus List because of a predetermined time limit. Stock failed to reach the $58 price target but did outperform the S&P by 6 percentage points. Overweight rating.

Goldman said it is upping its target on Federated Department Stores(FD Quote) to $52 from $45, based on belief that market has yet to appreciate company's tremendous cash flow, real estate and balance sheet flexibility. Maintained Buy rating.

FD numbers raised at UBS. Price target lifts to $55 from $52, and 2008 EPS estimates rise to $3.00 from $2.90. Reiterates Buy rating.

Credit Suisse said it is raising its target price on Leap Wireless(LEAP Quote) to $76 from $73 after company reported better-than-expected subscriber growth. Maintained Outperform rating.

LEAP price target raised to $76 from $70 at Jefferies, while 2007 EPS estimates lowered to $0.17 from $0.24. Reiterates Buy rating.

Goldman said it is cutting its target on Shuffle Master(SHFL Quote) to $25 from $31 based on lower earnings expectations going forward. Company cited lower revenues and higher costs at Stargames, higher interest expense and slower-than-expected rollout of multiplayer electronic game tables as reasons for lower first-quarter expectations. 2007 estimates cut to $0.65 from $0.87. Maintained Neutral rating.

Credit Suisse said it is raising its 2007 EPS estimates on Target(TGT Quote) to $3.55 from $3.50 after solid fourth-quarter results. Raised target price to $68 from $64.

Credit Suisse said it is lowering its target price on Tenet Healthcare(THC Quote) to $9 from $11 after fourth-quarter results were below expectations. Says turnaround timeline extended as volume challenge remains. Maintained Outperform rating.

Wynn Resorts(WYNN Quote) price target raised at Jefferies on upside potential of projects in Macau and Las Vegas Strip. 2007 EPS estimates lowered to $2.56 from $2.75. Reiterates Buy rating.