Thursday's Analysts' Upgrades, Downgrades

Change in Ratings

Blockbuster(BBI) upgraded at JPMorgan from neutral to overweight, JPMorgan said. Fourth-quarter results should meet or beat consensus analyst estimates on March 6. Also believe there's upside potential for 2008 guidance.

Chemtura(CEM) upgraded at Goldman Sachs to buy from neutral based on valuation and potential for additional earnings momentum. Note that fourth-quarter results were the first time CEM beat consensus estimates since 2006. Price target at $11.

Forest Laboratories(FRX) downgraded at FBR from outperform to market perform. New analyst also set a $42 price target. Company will face an uphill battle bringing new products to the market.

Minerals Technology(MTX) downgraded at Goldman Sachs to neutral from buy based on relative valuation. See progress in turnaround story but note multiple unprofitable growth projects (SYNSIL, Coating PCC, Filler Fiber) in recent years. Believe other names are more attractive currently. Maintained $77 price target.

National Cinemedia(NCMI) upgraded at Morgan Stanley to equal-weight, with a $23 price target. Selloff on macro concerns and Loews competition appear overdone.

Varian(VARI) upgraded at UBS to buy rating from neutral. Price target and fiscal-year 2008 EPS hold at $75 and $2.78, respectively.

Western Digital(WDC) downgraded at UBS to neutral rating from buy. However, price target and fiscal-year 2008 EPS both raised to $36 and $3.97, respectively.

Stock Comments/EPS Changes

Boyd Gaming(BYD) estimates cut at Deutsche Bank by 32 cents to $1.54 a share due to weak first-quarter guidance. Maintained buy rating.

Carter's(CRI) numbers lowered at Morgan Stanley by 18%. Growth has clearly slowed, and margins have another 2% to 3% downside potential over the coming quarters. Underweight rating and new $17.50 price target.

Hertz(HTZ) target price lowered at Deutsche Bank to $17 due to updated sum of the parts valuation. Maintained buy rating.

Magna International(MGA) estimates raised at Deutsche Bank by 40 cents to $7.95 a share to reflect higher cost savings. Maintained hold rating.

Nortel(NT) estimates cut at Morgan Stanley by 45% for both 2008 and 2009. Company seeing slowing demand and margin improvement has taken a step backwards. Equal-weight rating.

USEC(USU) price target slashed at Goldman to $6.50 from $10 due to significantly higher American Centrifuge Project costs. Expect additional detail following completion of full project budget in the second quarter. Maintained neutral rating.

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