Analysts' Upgrades, Downgrades: General Motors
Change in Ratings
AGCO
(AG) - Get Report
upgraded at Credit Suisse from neutral to outperform with a $72 price target. Due to increasing commonality across platforms, components, parts and sourcing from lower cost countries AG is in a strong position for margin expansion.
American Axle
(AXL) - Get Report
upgraded at Citigroup from hold to buy with a $24 price target. Recent UAW deal should help keep a lid on costs. Company also has a strong liquidity position.
Baker Hughes Incorporated
(BHI)
upgraded at Merrill from neutral to buy with a $105 price target. Upgrade is attributed to continuing growth in the international sector and a recovery in the North American market.
Anheuser-Busch
(BUD) - Get Report
downgraded at Deutsche from buy to hold with a $56 price target. Stock has traded sharply higher on press reports of a takeover by
Inbev
. Such high pricing requires cost reduction and runs the potential risk of harming brands and distribution.
BorgWarner
(BWA) - Get Report
downgraded at KeyBank from buy to hold. The long-term outlook of BWA remains very solid through the current market conditions, however, current valuation foresees little upside to the share price.
Citizens Communications
( CZN) upgraded at Credit Suisse from neutral to outperform with a $12.50 price target. With rural local exchange carriers (RLECs) underperforming the market and the spread widening with the Credit Suisse High Yield Index there is potential upside as the spread should come back within historical norms.
Darden Restaurants
(DRI) - Get Report
upgraded at Merrill from hold to buy with a $39 price target. Macroeconomic factors are due to impact DRI less, and could allow the chain to take share in the market. In addition, supply chain efficiencies leading to lower pricing will enhance the brand's competitive position.
Edison International
(EIX) - Get Report
downgraded at Goldman to neutral from buy based on valuation and recent strong performance. Maintain positive view of nuclear power industry in light of upcoming legislation, but prefer Exelon.
Exelon
(EXC) - Get Report
upgraded at Goldman Sachs to buy from neutral based on potential earnings upside of merchant nuclear business. Upgrade made in conjunction with downgrade of EIX on recent outperformance. EXC price target raised to $101 from $79.
General Motors
(GM) - Get Report
downgraded at Citigroup from buy to hold. Rising commodity costs are cutting into earnings. Cash burn could also increase in the face of declining U.S. demand.
Knight Transportation
(KNX) - Get Report
upgraded at Wachovia from market perform to outperform. KNX is attractively valued for long-term growth potential, cash generation and solid cost controls leading to market expansion as their supply/demand equation improves.
Lam Research
(LRCX) - Get Report
upgraded at Merrill from neutral to buy with a $47 price target. Lam's current strategy should provide for attractive mid-cycle earnings power with an EPS estimate of approximately $3.30.
Las Vegas Sands
(LVS) - Get Report
added to Buy List at Goldman based on announcement that Macau/Hong Kong governments will permit nightime ferry services. Also note new junket commission program and progress in financing needs. Price target at $85.
Marvell Technology
(MRVL) - Get Report
downgraded at Goldman Sachs to neutral from buy based on valuation. Expect strong quarterly results on May 29, but view shares as fully priced. Price target at $15.
Newfield Exploration
(NFX)
upgraded KeyBank from hold to buy with a $77 price target. Upgrade is attributed to several factors including improved production growth, increased earning and cash flow estimates, "hidden value" in Rockies properties, asset base clean up and expected multiple expansions.
Stock Comments/EPS Changes
Central European Distr.
( CEDC) numbers raised at Jefferies. Price target lifts to $85 from $75 and '09 EPS estimates jump to $3.60 from $3.05. Reiterates buy rating.
IndyMac Bancorp
( IMB) numbers slashed at Jefferies. Price target lowered to $2.25 from $5 and fiscal year 2008 EPS estimates drop to loss of $4.65 from loss of $1.50. Reiterates neutral rating.
This article was written by a staff member of TheStreet.com Ratings.