Change in Ratings
Apollo Group(APOL Quote - Cramer on APOL - Stock Picks) coverage initiated at Credit Suisse with a neutral rating. See improving trends and limited exposure to lending issues, however note first-quarter slower growth and bachelor's student declines. Price target at $70.
Best Buy(BBY Quote - Cramer on BBY - Stock Picks) downgraded at Morgan Stanley to underweight. Comp sales should turn flat in 2008, which will cut into margins. TV and attachment markets, which drive a considerable part of profits, will not be immune either.
Career Education(CECO Quote - Cramer on CECO - Stock Picks) coverage initiated at Credit Suisse with a neutral rating based on mixed results and resolution of regulatory problems. Note downside risks from lending exposure. Price target at $17.
Discover Financial(DFS Quote - Cramer on DFS - Stock Picks) upgraded at Morgan Stanley to overweight. Company will likely be able to beat conservative 2008 expectations, aided by more conservative lending practices and interest rate cuts.
Discovery(DISCA Quote - Cramer on DISCA - Stock Picks) upgraded at Credit Suisse to neutral from underperform, noting stronger fourth-quarter revenue and margins from international operations. Remain concerned over high expectations for U.S. margin expansion and valuation. Price target at $24.
DirecTV(DTV Quote - Cramer on DTV - Stock Picks) upgraded at Cowen from neutral to outperform. Expect the company to maintain its subscriber momentum and continue to grow free cash flow.
DeVry(DV Quote - Cramer on DV - Stock Picks) coverage initiated at Credit Suisse with an outperform rating. See rising margins and revenue shift towards higher-margin medical and professional segments. Price target at $65.
ITT Educational(ESI Quote - Cramer on ESI - Stock Picks) coverage initiated at Credit Suisse with a neutral rating. Note strong organic growth and industry leading margins, but caution over lending exposure. Price target at $65.
Imclone Systems(IMCL Quote - Cramer on IMCL - Stock Picks) upgraded at Cowen to outperform. Company has yet to receive full credit for FLEX trial. Risk-reward is attractive, given the commercial viability of Erbitux for lung cancer.
Overseas Shipping Group(OSG Quote - Cramer on OSG - Stock Picks) downgraded at Credit Suisse to neutral from outperform based on expected decrease in crude tanker rates in 2008. Target price at $75.
Sovereign Bancorp(SOV Quote - Cramer on SOV - Stock Picks) downgraded at KBW to underperform. CFO departure adds risk to the model. $10 price target.
Strayer Education(STRA Quote - Cramer on STRA - Stock Picks) coverage initiated at Credit Suisse with a neutral rating. See strong reputation and premium multiple justified by organic growth and solid margins. Price target at $175.
Universal Electronics(UEIC Quote - Cramer on UEIC - Stock Picks) downgraded at Deutsche Bank to a hold rating as guidance was weak due to economic conditions in the U.S. and Europe.
United Natural Foods(UNFI Quote - Cramer on UNFI - Stock Picks) upgraded at Goldman Sachs to neutral from sell based on valuation following recent underperformance. Second-quarter earnings missed estimates and 2008 outlook slashed dramatically. Price target at $24.
Stock Comments/EPS Changes
Barrick Gold(ABX Quote - Cramer on ABX - Stock Picks) price target lowered at Goldman to $60 from $66 after fourth-quarter earnings came in below expectations. See slightly weaker 2008 outlook and higher cash cost structure. Maintained buy rating.
Actuant(ATU Quote - Cramer on ATU - Stock Picks) target cut at UBS to $31 from $36 due to lower global economic forecasts and weak outlooks for certain of the company's businesses. Note initiatives that could bolster results, including acquisitions, cost reductions and China sourcing. Maintained neutral rating.
Cbeyond(CBEY Quote - Cramer on CBEY - Stock Picks) target price cut at Deutsche Bank from $33 to $22 as guidance was late and weakening economy is a risk. Maintained hold rating.
Circuit City(CC Quote - Cramer on CC - Stock Picks) estimates cut at Morgan Stanley through 2009. Company to suffer from lower consumer electronic sales. Equal-weight rating.
GFI Group target raised at Jefferies to $100 from $95 based on strong revenue growth, positive outlook and lower than expected tax rate in latest quarterly results. Maintained buy rating.
Intuit(INTU Quote - Cramer on INTU - Stock Picks) price target lowered at UBS to $31 from $33. Second-quarter results came in below consensus estimates and at the low end of guidance. Weakness driven by small business. Maintained neutral rating.
MBIA(MBI Quote - Cramer on MBI - Stock Picks) estimates cut at Deutsche Bank by 20 cents to $1.63 a share to account for capital raising plan. Maintained hold rating.
TheStreet.com Ratings Staff
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