Stock Upgrades, Downgrades From TheStreet.com Ratings

Embraer(ERJ Quote - Cramer on ERJ - Stock Picks), a Brazilian commercial jet maker, has been upgraded to hold. While the company has experienced revenue growth and solid stock price performance, it has also seen feeble EPS growth, deteriorating net income and generally poor debt management. Earlier this month, Embraer said second-quarter profit sank about 49% to $39.9 million, or 6 cents a share. The company cited higher costs connected to longer production cycles and labor costs, including overtime and recently hired employees. Sales were essentially flat at $1.1 billion. This week the company announced a contract with Brazilian airline BRA Transportes Aereos with a firm order valued at $730 million, which with rolling options, could total $2.7 billion, if all the options are confirmed. Embraer had been rated sell since June.

Chip maker Semtech(SMTC Quote - Cramer on SMTC - Stock Picks) has been downgraded to hold. The company's financial position is largely firm, with solid stock performance and expanding profit margins. However, Semtech has also seen deteriorating net income, with disappointing return on equity and weak operating cash flow. In May, Semtech said first-quarter profit fell 33% to $7.9 million, or 11 cents a share, while sales fell 8% to $60.6 million. Excluding items, Semtech earned $10.6 million or 14 cents a share. The company still beat Wall Street's estimates and said it expects second-quarter results, scheduled for release on Aug. 28, to be above analysts' forecasts. New orders were up 7% over the fourth quarter of 2007. Semtech had been rated buy since July.

Enterprise GP(EPE Quote - Cramer on EPE - Stock Picks), which develops pipeline and other midstream energy infrastructure, has been upgraded to hold. While the company has experienced revenue growth and good cash flow from operations, it has also been marked by unimpressive growth in net income, generally poor debt management and disappointing return on equity. Last month, Enterprise GP said second-quarter net income slipped to $22 million, or 21 cents a unit, compared with $31 million, or 30 cents a unit a year earlier. Revenue totaled $6.3 billion, up from $5.9 billion a year ago. Enterprise was initiated with a sell rating in September 2006.

Additional ratings changes are listed below.

Stock Upgrades, Downgrades
Ticker	Company Name	Change	New Rating	Former Rating
OMX	OfficeMax	Downgrade	Hold	Buy
AOI	Alliance One International	Upgrade	Hold	Sell
ESE	Esco Technologies	Downgrade	Hold	Buy
JEN	Jennifer Convertables	Upgrade	Hold	Sell
UFPI	Universal Forest Products	Downgrade	Hold	Buy
MDTH	MedCath	Upgrade	Buy	Hold
IDMI	IDM Pharma	Downgrade	Sell	Hold
NPTE	North Pointe	Initiation	Sell	n/a
NBF	Nova Biosource Fuels	Initiation	Hold	n/a
Source: TheStreet.com Ratings

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