Macy's Buyout Rumors Resurface

The retailer's buyout premium dried up with the private-equity market amid the credit crunch.
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Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts, are experiencing activist situations or some other market moving events.

Rumors of the Day

: A Bernstein analyst suggested that

Yahoo!

(YHOO)

should outsource paid search, cut staff and restructure display advertising, according to

StreetInsider.com

. The firm said the moves, while unlikely, could boost Yahoo!'s income by $1.6 billion and the stock's price to $45. Yahoo! shares jumped $1 to $24.72.

Takeover rumors boosted

Macy's

(M) - Get Report

shares in early action Friday. The retailer, whose shares carried a premium during the buyout boom, have tumbled more recently as credit woes have put a damper on deals, according to

StreetInsider.com

. Private equity's prospects may have been lifted Friday, however, when

Cadbury Schweppes

(CSG)

rejected a bid to acquire its drink business, it added. Macy's shares added $1.21 to $30.47, while Schweppes lost 96 cents at $46.74.

Today's Hot List

:

Lattice Semiconductor

(LSCC) - Get Report

offered a more pessimistic view for the third quarter. The chipmaker sees revenue ranging from flat to down 2% vs. the year-ago period. It earlier predicted revenue would be flat to up 4%. Lattice attributed the decline to a quicker-than-expected decline of "mature" products and said new products will continue to grow in the quarter. Shares plunged 71 cents, or 12.8%, to $4.85.

Analyst Downgrades

: Robert Baird downgraded paper product maker

Avery Dennison

(AVY) - Get Report

to neutral from outperform and dropped its price target to $64. The firm expressed near-term concerns about lower high-end clear film sales and surprise weakness in Europe. The stock dropped 75 cents to $55.

Analyst Upgrades

: Credit Suisse upgraded

Calamos Asset Management

(CLMS)

to outperform from neutral, based on improved fund performance and net flow expectations. The firm raised its price target to $29 from $27. Calamos spiked $1.44 to $24.95.

Latest Activist Situations

: In a regulatory filing, Riley Investment Management disclosed a 4.9% stake in

Silicon Storage Technology

(SSTI) - Get Report

, noting it believes the shares are "significantly undervalued." The firm said it hopes management shares its "sense of urgency" about the stock's underwhelming performance, warning that it could seek changes on the chipmaker's board if the company did not. Silicon Storage Technology shares sank 11 cents to $3.21.

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