Analysts' Upgrades and Downgrades

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Analysts' Upgrades/Downgrades: J. Crew

TheStreet Ratings Staff

Change in Ratings

American Eagle Outfitters(AEO) 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) 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) 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) 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) 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) 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) 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) 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) 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) estimates raised at Jefferies raised to $4.40 from $.36. Maintains Buy rating and $71 price target.

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

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

Global Payments(GPN) 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) numbers lowered at UBS to -$11.36 from -$5.47. Price target lowered to $26 from $30. Maintains Neutral.

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

Sohu.com(SOHU) 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) 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) numbers lowered at UBS to $5.30 from $8.00. Price target lowered to $35 from $53. Maintains Buy rating.

Zoran(ZRAN) 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.