Tuesday's Analysts' Upgrades and Downgrades

TSC Staff

CHANGE IN RATINGS

Accuray (ARAY) initiated with Buy rating at Jefferies. Price target begins at $29 and 2007 EPS estimates set at $0.82.

Express Scripts (ESRX) upgraded to Buy rating from Neutral at UBS. Price target jumps to $99 from $77 and 2007 EPS estimates rise to $4.31 from $3.98.

Gilead (GILD) was upgraded from Neutral to Buy at Merrill Lynch. $91 price target. Long-term growth prospects are improving for the HIV franchise, and new product launches could perform ahead of expectations.

Medimmune (MEDI) was downgraded to Peer Perform at Bear Stearns. Upside could be limited over the next 6 to 12 quarters, unless the stock is taken over.

Credit Suisse is downgrading Oneok (OKE) to Neutral from Outperform based on valuation. Stock has essentially reached target price of $46.

PPG Industries (PPG) was upgraded from Hold to Buy at Deutsche Bank. $80 price target. Company is more likely to sell its chlor-alkali division, which has been depressing the valuation.

Praxair (PX) was upgraded to Buy at Merrill Lynch. $70 price target. Stock has pulled back more than 30% from its highs, and revenue growth is set to rebound over the coming quarters.

Switch & Data (SDXC) was initiated with a Buy rating at Jefferies. Price target begins at $22 and 2007 EPS estimates set at $0.09.

Valspar (VAL) was upgraded at Deutsche Bank from Hold to Buy. $34 price target. Further consolidation in the business should help the company, which would be a key target for Akzo or PPG.

STOCK COMMENTS / EPS CHANGES

Coach (COH) price target raised at UBS. New price objective rises to $58 from $54, while 2007 EPS estimates hold at $1.72. Reiterates Buy rating.

CVS (CVS) price target raised at Goldman to $43 from $39.19 based on upcoming closing of Caremark merger. See shares moving higher on abatement of technical short selling, launch of $5.3 billion tender offer, the end of Express Scripts' negative commentary on vertical integrations, and increased recognition of 2008 earnings potential. Maintained Buy rating.

Credit Suisse is lowering its 2007 EPS estimates on PeopleSupport (PSPT) to 47 cents from 64 cents following loss of Vonage contract. Lowered target price to $14 from $23.

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