Analysts' Upgrades and Downgrades

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Analysts' Upgrades/Downgrades: J. Crew

TheStreet.com Ratings Staff

Change in Ratings

American Eagle Outfitters(AEO Quote) coverage initiated at Goldman with a Sell rating. See significant risk stemming from increased fashion element intended to attract older teen demographic. See strategy as a distraction that could hurt healthy guys and young girls businesses. Note this month's departure of President Susan McGalla. Price target at $12.

Ann Taylor(ANN Quote) coverage initiated at Goldman Sachs with a Sell rating, based on potential negative impact of plans to modernize apparel lines. See departure from classic heritage as an aggressive plan that could move too fast. Note cautious view on apparel sector and overall negative macro outlook. Price target at $21.

Aeropostale(ARO Quote) coverage initiated at Goldman with a Buy rating and $36 price target. Believe consensus estimate do not reflect near-term opportunities, particularly in core younger teen demographic. Note that value model has historically driven solid results in the current environment, even as peers struggle.

Chico's(CHS Quote) FAS coverage initiated at Goldman Sachs with a Sell rating based on major concerns over potential for profit recovery. See ongoing sales pressure on mature women's retailers, driven by environmental headwinds, changing customer tastes, and overcapacity. Price target at $5.

Dr. Pepper Snapple(DPS Quote) upgraded at UBS to Buy from Neutral. 2008 EPS estimates lowered to $1.87 from $1.98. Price target lowered to $24 from $28.

Gap(GPS Quote) coverage initiated with a Neutral rating at Goldman. Note potential risk from fashion shift at Old Navy, as well as weak trends at Banana Republic. See addition of CEO Glenn Murphy as a potential positive, based on initiatives to capture low-hanging profit opportunities. Target at $17.

J. Crew(JCG Quote) coverage initiated at Goldman Sachs with a Neutral rating, based on balanced risk/reward. See attractive growth profile, controlled store growth, strong direct business, and solid management. Note risk stemming from continued macroeconomic pressures. Price target at $32.

Lululemon(LULU Quote) initiated with a Neutral rating at Goldman Sachs with a Neutral rating, as shares reflect attractive growth story along with operating risks. Note concerns regarding differences between U.S. and Canadian markets and high management turnover. Target at $27.

Urban Outfitters(URBN Quote) coverage initiated at Goldman with a Buy rating. See extremely attractive store growth profile and potential to triple store base in coming years. Believe company can continue to show strength in difficult environment, as assortments are more attractive to budget-constrained shoppers compared to peers. Target at $34.

Stock Comments / EPS Changes

Amgen(AMGN Quote) estimates raised at Jefferies raised to $4.40 from $.36. Maintains Buy rating and $71 price target.

Amgen(AMGN Quote) estimates raised at UBS to $4.27 from $4.17. Maintains Neutral rating and $47 price target.

Clorox(CLX Quote) numbers lowered at UBS to $3.24 from $3.25. Price target lowered to $67 from $75. Maintains Buy rating.

Global Payments(GPN Quote) price target lowered at UBS to $51 from $56. 2008 EPS estimates raised to $2.28 from $2.23. Maintains Buy rating.

Merrill Lynch(MER Quote) numbers lowered at UBS to -$11.36 from -$5.47. Price target lowered to $26 from $30. Maintains Neutral.

Starbucks(SBUX Quote) numbers lowered at UBS to $0.83 from $0.84. Price target lowered to $18 from $19. Maintains Buy rating.

Sohu.com(SOHU Quote) numbers raised at RBC to $91 from $80 and FY09 revenue estimates upped to $513 million from 486 million. Reiterates Outperform rating and Speculative Risk qualifier.

Texas Roadhouse(TXRH Quote) numbers lowered at RBC to $13 from $14 and FY09 eps estimates drop to $0.61 from $0.67. Reiterates Outperform rating and Average Risk qualifier.

XL Capital(XL Quote) numbers lowered at UBS to $5.30 from $8.00. Price target lowered to $35 from $53. Maintains Buy rating.

Zoran(ZRAN Quote) numbers cut at RBC to $13 from $18 and FY09 revenue estimates drop to $523 million from $636 million. Reiterates Outperform rating and Above Average Risk qualifier.