Baidu: Analysts' Upgrades, Dowgrades

Change in Ratings

American Eagle(AEO) was upgraded to Buy, Lazard Capital Markets said. Valuation call, based on a $22 price target. Sales trends are also accelerating.

Credit Suisse upgraded Aflac(AFL) to Outperform from Neutral on improved fundamental trends. Price target increased to $60 from $52. 2009 and 2010 EPS estimates set at $4.86 and $5.25, respectively.

Abercrombie & Fitch(ANF) was upgraded to Outperform, Friedman, Billings Ramsey said. Expect more promotions, especially at Hollister, to combat market share losses.

Baidu(BIDU) was downgraded to Market Perform, Bernstein Research said. $460 price target. Valuation has caught up with the fundamentals.

Deere(DE) was upgraded from Market Perform to Outperform, Wells Fargo said. Company had a strong quarter, and earnings should bottom in 2010. Also, Deere estimates were increased through 2011, Goldman Sachs said. Improving commodity prices should boost farm demand. Neutral rating and new $57 price target.

Genzyme(GENZ) was upgraded from Hold to Buy, Citigroup said. $63 price target. Cerezyme shipments are approaching, and the stock is already pricing in several potential negative news items.

Liberty Global(LBTYA) initiated at JP Morgan. Initiated with a Neutral rating and $23.50 price target. Introduces 2009 EPS estimates of -$2.77.

Supervalu(SVU) was downgraded from Equal-weight to Underweight, Morgan Stanley said. Company will struggle to try and turn around its core grocery business.

Safeway(SWY) was upgraded to Equal-weight, Morgan Stanley said. Company appears to be making progress in its price positioning.

US Bancorp(USB) was upgraded from Neutral to Outperform, Robert Baird said. Valuation call, based on a $29 price target. Company is on a clear path to return to normalized earnings.

Watson Pharmaceuticals(WPI) was upgraded from Hold to Buy, Citigroup said. $48 price target. Expect Arrow purchase to add to earnings as well as improving generic margins.

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