Analysts' Upgrades and Downgrades

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Tuesday's Analysts' Upgrades, Downgrades

TheStreet.com Ratings Staff

Change in Ratings

American Express(AXP Quote - Cramer on AXP - Stock Picks) upgraded at Goldman Sachs to buy from neutral, based on valuation. See risks of slowing growth in consumer spending and deteriorating consumer credit trends fully priced into shares. Price target at $53.

Franklin Resources(BEN Quote - Cramer on BEN - Stock Picks) upgraded at Goldman to buy from neutral based on attractive risk/reward stemming from attractive valuation and strong fundamentals. Price target raised to $135 from $110.

Bank of New York Mellon(BK Quote - Cramer on BK - Stock Picks) upgraded at Goldman to buy from neutral based on valuation. See Fed actions offsetting effects of weak equity markets. Note discount to other trust banks and historical average. Price target at $53.

Cinemark(CNK Quote - Cramer on CNK - Stock Picks) downgraded at JPMorgan from overweight to neutral. Estimates also cut, on expected weaker overall box office results in the second and third quarter.

Discover Financial(DFS Quote - Cramer on DFS - Stock Picks) upgraded at Goldman Sachs to neutral from sell following announcement of Diners Club acquisition. See increased high-multiple network earnings and expansion into markets outside U.S. with better outlook for consumer spending. Target raised to $17 from $14.

Energy Transfer(ETP Quote - Cramer on ETP - Stock Picks) upgraded at UBS to buy rating from neutral. Price target holds at $54 while fiscal year 2008 EPS estimates upped to $3.68 from $3.44.

Federated Investors(FII Quote - Cramer on FII - Stock Picks) downgraded at Goldman Sachs to neutral from buy based on less defensive stance on asset managers. Also see increased fee competition for money market funds and concerns over SIV exposure as potential negatives. Target lowered to $43 from $45.

Flowserve(FLS Quote - Cramer on FLS - Stock Picks) downgraded at Baird to neutral with a $120 price target. Valuation call. Continue to expect strong first-quarter results.

Janus Capital(JNS Quote - Cramer on JNS - Stock Picks) upgraded at Goldman Sachs to buy from neutral. Note stock's underperformance year to date alongside improved performance in funds. Note highest average fund rank among peers, according to Morningstar. Price target at $32.

Kinetic Concepts(KCI Quote - Cramer on KCI - Stock Picks) upgraded at Wachovia to outperform. Expect fewer share losses in VAC, and the LIFC acquisition helps to diversify the revenue stream.

MetLife(MET Quote - Cramer on MET - Stock Picks) upgraded at Goldman Sachs to buy from neutral based on valuation and benefits of steepening yield curve. See shares returning to average price/book valuation (since 2004). Price target raised to $72 from $65.

Knight Capital(NITE Quote - Cramer on NITE - Stock Picks) downgraded at Goldman to neutral from buy, based on weaker Deephaven results. See recent strong growth in Global Markets volumes slowing. Price target at $20.

NYSE Euronext(NYX Quote - Cramer on NYX - Stock Picks) upgraded at Goldman Sachs to buy from neutral based on broader view of a recovery in financial stocks. See numerous long-term catalysts for NYX, including earnings growth sparked by integration of acquisitions and joint ventures, and a focus on stabilizing market share through price actions and market structure adjustments. Price target at $87.

Och-Ziff Capital(OZM Quote - Cramer on OZM - Stock Picks) downgraded at Goldman to neutral from buy. In lieu of more aggressive view of finance names, see greater upside at other asset managers. Note recent weak fund performance and $0.5 billion in outflows during March. Price target at $23.

Wells Fargo(WFC Quote - Cramer on WFC - Stock Picks) downgraded at Goldman to neutral from buy based on more bearish forecast for home equity. With major exposure to home equity loans in weak markets including California, see bank poorly positioned for 2008. Note near-term credit risk beyond $1.4 billion reserve taken in fourth quarter. Price target at $33.

Washington Mutual(WM Quote - Cramer on WM - Stock Picks) downgraded at KBW to underperform with a $10 price target. Expect financing to carry heavy dilution.

Stock Comments/EPS Changes

Lions Gate(LGF Quote - Cramer on LGF - Stock Picks) initiated at Jefferies with hold rating. Price target starts at $10.50 with fiscal year 2009 EPS estimates at 45 cents.