Analysts' Upgrades, Downgrades: Hess

CHANGE IN RATINGS

Anadarko (APC) upgraded at Merrill/BofA from Neutral to Buy. $57 price target. Stock has digested the recent equity offering, and the company will benefit from higher oil prices.

BJ's Wholesale Club (BJ) downgraded at Goldman to sell from neutral and price target reduced to $33 from $39. Goldman expects BJ to be a relative underperformer within coverage given 1) slowing core SSS against challenging comparisons, 2) decelerating EPS growth and 3) a 2H2009 shift in earnings momentum towards discretionary retailers, likely leaving defensive names like BJ as a source of funds. Downgrade attributed to sector-relative idea with no structural issues.

CenturyLink (CTL) upgraded at UBS. Rating raised to Buy from Neutral. Price target raised to $35 from $28. 2009 EPS estimates lowered to $3.16 from $3.20.

Dick's Sporting Goods (DKS) upgraded at Goldman from Neutral to Buy. $20 price target. Stock has sold off with its peers, but remains a premium player in retail.

Hess (HES) upgraded at Barclays. Rating raised to Overweight from Equal Weight. Maintains $75 price target. Increases 2009 EPS estimates to $0.50 from -$0.15.

Keycorp (KEY) upgraded at Keefe, Bruyette & Woods from Market Perform to Outperform. $8 price target. Stock is one of the more inexpensive banks, and the company now has a capital buffer.

Kohl's (KSS) upgraded at Goldman Sachs to a buy from neutral and price target increased to $50 from $44. As an aspirational/desperational winner and Mervyn's consolidation beneficiary, KSS should continue to outperform, averaging SSS declines of (2.7%) since Jan. vs. its department store peers' declines of (8.8%). Assuming 2-yr trends across revenue and GM hold firm, there is upside to estimates and, as such, are raising 2009/2010 EPS estimates to $2.76 and $3.02 from $2.63 and $2.83. Against these revisions, KSS trades at a compelling 14.1X 2010 EPS, below the 2/5 year averages of 14.3X/17.3X, respectively, providing a compelling entry point for shares.