Thursday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Applied Materials (AMAT Quote) upgraded at Morgan Stanley from equalweight to overweight and moves price target from $20 to $23.

Bayer (BAY Quote) upgraded at UBS to Buy rating from Neutral. Price target jumps to $79.15 from $59.36.

Fastenal (FAST Quote) upgraded at Baird from Neutral to Outperform. Company looks cheap, and the stock should benefit from the recovery of a mid-cycle slowdown. $42 price target.

KLA-Tencor (KLAC Quote) upgraded at Morgan Stanley from equalweight to overweight and moves price target from $60 to $65.

MannKind (MNKD Quote) upgraded at Jefferies to Buy rating from Hold. However, 2007 EPS estimates lowered to loss of $(4.21) from loss of $(3.84) and price target holds at $20.

MSC Industrial (MSM Quote) upgraded at Baird from Neutral to Outperform. $53 price target. Company should outperform over the next several months, as the economy emerges from a mid-cycle slowdown.

AT&T (T Quote) upgraded at AG Edwards from Hold to Buy. $41 price target. Stock is down 7% over the past month, and could return 20% over the next year, including the 4% dividend yield. Wireless will drive growth.

STOCK COMMENTS / EPS CHANGES

American Eagle (AEO Quote) 2007 estimates raised at Goldman to $1.95 from $1.91 after company reported inline Q4 earnings and guidance for 15% growth in 2007. See improvements in both gross and operating margins. Target price raised to $30 from $26 and maintained Neutral rating.