Stock Upgrades, Downgrades from Ratings

Standard Motor and Adtran are both upgraded.
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Each weekday, Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Auto-parts manufacturer

Standard Motor Products

(SMP) - Get Report

has been upgraded to buy from hold. The company has demonstrated a pattern of growth in earnings per share over the past two years, including a 14.3% increase in the first quarter of fiscal 2007 over the year-earlier period. Ratings expects this trend to continue. The company's return on equity also rose during that period. Investors seem to have picked up on these positive developments. Standard Motor Products' stock price has more than doubled in the past 12 months. Standard Motor had been rated hold since May 2005.


(ADTN) - Get Report

has also been boosted to buy from hold. The company develops and sells networking and communications equipment. Adtran's earnings per share were up 14.3% in the first quarter of fiscal 2007 compared with the same quarter a year earlier. The company's gross profit margin is rather high, currently at 59.6%. Although the stock price shot up 17.5% in the past three months, Adtran still trades at a slight discount to its peers, suggesting there is still some upside left. Adtran had had a hold rating since July 2006.