Tuesday's Analysts' Upgrades, Downgrades
Change in Ratings
Agco
(AG) - Get Report
upgraded at Goldman Sachs to buy from neutral based on continuing strength in agricultural industry and recent underperformance in stock. Note AG's potential to rebound sharply and lack of exposure to weak construction equipment markets. Price target at $71.
CNH Global
(CNH)
downgraded at Goldman Sachs to neutral from buy based on preference for AG. Note that company posted disappointing earnings in most recent two quarters, and also increased funding needed in CNH Capital unit. Maintained $53 target.
Hess
(HES) - Get Report
added to Buy List at Goldman Sachs, based on view that crude oil prices have additional upside over next six to 24 months. Note company's attractive exploration program. Maintained $130 price target.
Sunoco
(SUN) - Get Report
downgraded at JPMorgan from neutral to underweight. Company is highly leveraged to the challenging margin environment, given its exposure to sweet crude and East Coast gasoline.
Sunoco downgraded at Goldman Sachs to neutral from buy due to refining exposure. See companies leveraged to crude oil prices as more attractive than refiners, based on continuing weakness in crack spreads. Price target cut to $53 from $70.
Valero
(VLO) - Get Report
downgraded at JPMorgan from overweight to neutral. New analyst does not believe the stock will outperform integrated names. That said, the company is still the best positioned of the independent refiners.
Stock Comments/EPS Changes
Airgas
(ARG)
numbers raised at Jefferies. Price target jumps to $66 from $56 and fiscal year 2008 EPS estimates upped to $2.68 from $2.65. Reiterates buy rating.
DST Systems
(DST)
numbers lowered at Morgan Stanley. Shares of DST now seen reaching $76. Estimates also cut, as move toward subaccounting could cut into margins. Overweight rating.
Performance Food Group
(PFGC) - Get Report
target raised at UBS to $34.50 from $33 while fiscal year 2008 EPS estimates hold at $1.42. Reiterates neutral rating.
Scotts Miracle-Gro
(SMG) - Get Report
numbers lowered at Jefferies. Price target dips to $41 from $47.50 and fiscal year 2008 EPS estimates cut to $2.20 from $2.40. Reiterates buy rating.
Whiting Petroleum
(WLL) - Get Report
numbers raised at Jefferies. Price target jumps to $90 from $83 and fiscal year 2008 EPS estimates upped to $5.30 from $5.20. Reiterates buy rating.
This article was written by a staff member of TheStreet.com Ratings.