Analysts' Upgrades, Downgrades: IBM

CHANGE IN RATINGS

American Eagle (AEO Quote) upgraded at MKM to Buy. $19 price target. Fashion improvement are helping sales, heading into the second half of the year.

Abercrombie & Fitch (ANF Quote) upgraded at Susquehanna from Neutral to Positive. $33 price target. Company is set to grow overseas, despite the challenging environment.

Cigna (CI Quote) upgraded at Citigroup. Rating raised to Hold from Sell. Raises price target to $23 from $13. Maintains 2009 EPS estimates of $3.33.

CME Group (CME Quote) upgraded at JP Morgan. Rating raised to Neutral from Underweight. Price target raised to $280 from $173. Maintains 2009 EPS estimates at $12.84.

FTI Consulting (FTI Quote) upgraded at Oppenheimer to Outperform from Perform with $62 price target. Upgrade due its diverse portfolio that has afforded it the capability to exceed expectations over the past two quarters, which has re-instilled investor confidence. Furthermore, FCN is well positioned heading into 2H09 given: 1) significantly easier comparisons; 2) a restructuring cycle that appears much deeper and longer than previously anticipated; and 3) increasing potential for the vast majority of its segments to perform well simultaneously.

Johnson Controls (JCI Quote) upgraded at Wachovia to Outperform with a valuation range of $29-$31. Upgrade based on the company's potential earnings power in F2011/12 and opportunity for earnings upside relative to consensus in F2010. The company has a good handle on its cost structure in the auto and power solutions businesses. While concerns about Building Efficiency are justifiable, margins aren't likely to get meaningfully worse. Consensus EPS for 2010 is relatively conservative and there is a growing probability numbers will be revised higher. Longer-term, the company has $2.00+ EPS power in fiscal '11 and $2.50-$2.75 in fiscal '12, assuming a material recovery in auto production from depressed levels (but still well below historical peaks).