Friday's Analysts' Upgrades and Downgrades

TSC Staff

CHANGE IN RATINGS

Ciena (CIEN) upgraded at Jefferies to Hold rating from Underperform. Price target jumps to $29 from $24.50 and 2007 EPS estimates rise to $0.92 from $0.82.

CarMax (KMX) rated new Neutral at Credit Suisse. Sees long-term growth potential but cautious on decelerating gross profit and tough comparisons. Sets $55 target price.

Hertz (HTZ) upgraded at JP Morgan from Neutral to Overweight. Company will continue to cut costs, and 2008 may be conservative by as much as 25%.

Intuit (INTU) upgraded at CIBC from Sector Perform to Outperform. $35 price target. Business is not cyclical, and TurboTax should perform ahead of expectations this year.

Limited Brands (LTD) numbers lowered at Jefferies. Price target drops to $31 from $34 and 2007 EPS estimates lowered to $1.82 from $1.98. Reiterates Hold rating.

Moody's (MCO) upgraded at Bear to Outperform. $80 price target. Stock is down 13% over the past three weeks, and any sub-prime fears have already been priced in.

NCI Building Systems (NCS) upgraded at UBS to Neutral rating from Reduce. Price target holds at $53 and 2007 EPS estimates lowered to $4.10 from $4.40.

Zale(ZLC) upgraded at Merrill to Neutral, Merrill Lynch said. Fundamentals remain weak, but the jewelry retailer has dropped enough that it may become a takeover target.

STOCK COMMENTS / EPS CHANGES

America International Group (AIG) estimates raised at Credit Suisse. It is raising its 2007 EPS estimates on AIG to $6.35 from $6.15 based on new share repurchase program. Maintained Outperform rating.

BJ's Wholesale (BJ) target price raised at Goldman to $35 from $31. Believe management shake-up could spark initiatives that could spark turnaround. See margins expanding due to closing of underperforming pharmacies and ProFoods, lowering SKU counts and better merchandise presentation, and improving treasure hunt and membership acquisition/retention. Maintained Neutral rating.

Ciena (CIEN) estimates raised at Goldman. It is upping its 2008 estimates on CIEN to $1.56 from $1.38 based on bandwidth growth. Believe selloff is overdone. Maintained Buy rating and $42 price target.

Dell (DELL) 2008 estimates cut at Credit Suisse to $1.25 from $1.37 following soft Q4 results. Maintained Outperform rating.

Gap (GPS) 2008 estimates lowered at Goldman to $0.80 from $1.03 after company provided weak guidance along with solid Q4 earnings. See significant hurdles for management to overcome, including bloated cost structure and consumer indifference to product lines. Maintained Sell rating and $17 target.

Limited Brands (LTD) target cut at Goldman. It is reducing its price target on LTD to $29 from $32 after company failed to deliver on Q4 sales guidance. Gross margins tracked lower for the first time all year, and investments in promotions and technology also negatively contributed. Maintained Neutral rating.

Sears (SHLD) 2008 estimates raised at Goldman to $10.30 from $10.05. Company posted better-than-expected Q4 earnings. See improved gross margins as continuing positive. Price target raised to $189 from $184 and maintained Neutral rating.

STRATEGY CALLS / MARKET CALLS

Merrill changes ratings on 2 Chip stocks. It downgraded ALTR from Buy to Neutral. Prefer XLNX at current levels, which was upgraded from Neutral to Buy, with a $33 price target.

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