Analysts' Upgrades, Downgrades: BofA

CHANGE IN RATINGS

Diageo (DEO Quote) upgraded to a Buy at BofA/ML with a price target of $58, which implies a fwd. PE multiple of 12.8x and 7.2% FCF yield. Despite tough industry news Diageo's share price appears to have found a floor. On an absolute basis price target and 4% DY implies attractive total return. On a relative basis, ML believes that Diageo is likely to underperform if the market rallies.

Guess (GES Quote) coverage started as new Equal-weight at Barclays Capital. $25 price target. Company has little visibility, despite its long-term growth potential.

Jacobs Engineering (JEC Quote) downgraded at UBS from Buy to Neutral. $47 price target. Lower capital spending in end market will make growth challenging. Stock is also up 65% from the bottom, while consensus estimates look to high.

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