Analysts' Upgrades, Downgrades: Morgan Stanley

Change in Ratings

American International Group(AIG Quote) upgraded at B of A to Buy from Neutral. $35 price target. The risk/reward for AIG has become very attractive based upon the de-leveraging, risk reduction and simplification of the company.

Biogen(BIIB Quote) upgraded at Merrill Lynch to Buy from Underperform. $64-$79 price target. Upgrade is based upon earning growth potential, improved outlook for the multiple sclerosis market and a diverse mid-late stage pipeline.

Cintas(CTAS Quote) upgraded at Morgan Stanley to Equal-weight. $29 price target. CTAS has turned in very respectable F4Q08 performance in light of the weak economy, fierce competition and high energy prices. The stock is down 20% on the year and the risk/reward within the stock is now more balanced leading to the Equal-weight rating.

Sherwin-Williams(SHW Quote) downgraded at Goldman Sachs to Sell from Neutral due to valuation. Shares are trading at around 14.5 times forward earnings compared to 11 times forward earnings during prior housing/economic recessions. Also note that shares trade at premium to other paint peers. Shares are up 20% since July 14. Price target lowered to $46 from $54.

Stanley Works(SWK Quote) downgraded at Deutsche to Hold. $52 price target. SWK has been downgraded based upon the growing signs of weakness in the European and non-res market. This could lead to them missing 2Q08 EPS and lowering FY08 guidance.

Teva Pharmaceutical(TEVA Quote) upgraded at Deutche to Buy. $56 price target. Management has an excellent track record and the company has a sizeable generic pipeline. With a strong new product cycle Teva again merits a premium valuation.

Timken(TKR Quote) upgraded at BB&T to Buy. $40 price target. Business is stable outside of the company's automotive customers.

Whole Foods Market(WFMI Quote) upgraded at Morgan Stanley to Equal-weight. Investors should cover shorts, as the stock is trading at a historic low valuation. Operations should also begin to improve in 2009.

Wilmington Trust(WL Quote) downgraded at Suntrust to Neutral. Core earnings miss last quarter was driven by higher provision expenses. Capital ratios also declined meaningfully.

Stock Comments / EPS Changes

Brown & Brown(BRO Quote) numbers lowered at RBC to $22 from $23 and FY09 ebitda estimates drop to $414.5 from $444.7. Reiterates Sector Perform rating and Average Risk qualifier.

Endo Parmaceuticals(ENDP Quote) numbers lowered at RBC to $30 from $34 and FY09 EPS estimates drop to $2.20 from $2.35. Reiterates Sector Perform rating and Above Average Risk qualifier.

Honeywell(HON Quote) target cut at Morgan Stanley to $62 a share. Market multiple is moving lower, though the stock remains a good place to hide in the current downcycle. Overweight rating.

Manpower(MAN Quote) numbers cut at Morgan Stanley as the company is seeing weakness across several key European regions. Equal-weight rating.

Schlumberger(SLB Quote) price target raised at Goldman to $130 from $125 based on increased expectations for global spending and greater potential for improving international margins and stabilizing domestic margins. Maintained Buy rating.

Wilmington Trust Corp(WL Quote) numbers lowered at RBC to $20 from $26 and FY09 EPS estimates drop to $2.20 from $2.52. Reiterates Underperform rating and Average Risk qualifier.