Analysts' Upgrades, Downgrades: Fifth Third

CHANGE IN RATINGS

AutoZone (AZO) upgraded at Merrill/BofA to buy from neutral and price target increased to $185 from $165. Upgrade based on accelerated normalized growth rate expectations and continued industry strength. BofA increased normalized 2-3 year EPS growth forecast to 14%, from 11% prior, based on long-term secular improvement. Based on channel checks, BofA believes AZO has been witnessing strength in all markets. Reflecting belief that trends have remained healthy post-fiscal 2Q, 3Q same-store sales estimate raised to 4.7% from 3.5%.

BJ's Wholesale Club (BJ) upgraded at J.P.Morgan to Overweight from Neutral based on potential sales margin improvement in 2009. Believe sentiment is too negative despite improving comparisons and April sales that were likely better-than-expected. Price target raised to $40 from $32.

Choice Hotels (CHH) downgraded at Goldman Sachs to Neutral from Buy. Note attractive business model and high return on invested capital, but prefer riskier names in current environment. Price target at $32.

CNA Financial (CNA) upgraded at Merrill/BofA to Neutral. $16 price target. Company improved its book value and is off to a good start for unrealized gains in April.

Walt Disney (DIS) upgraded at Barclays to overweight from underweight and price target increased to $32 from $17. While DIS still has structural concerns on certain subsectors of media, it is best-positioned for media's digital evolution. DVD sales and ABC are now a smaller component of operating income and thus valuation. The "second derivative" has stabilized at the Parks. Valuation on normalized EPS is attractive vs. historical ratios, and as such, Barclays now prefers to be long-term owners of shares in this best-in-class global Entertainment company.