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AK Steel: Analysts' Upgrades, Downgrades

AK Steel is upgraded to Buy at Citigroup and to Neutral at Bank of America/Merrill Lynch.
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NEW YORK (

TheStreet

) --

CHANGE IN RATINGS

Arkansas Best

(ABFS)

was downgraded to Underperform from Neutral by Bank of America/Merrill Lynch, which said that the Teamsters' rejection of wage cuts leaves Arkansas Best with the highest cost structure in the industry. Price target lowered to $24 from $35.

Barrick Gold

(ABX)

was upgraded to Buy by Deutsche Bank, which said Barrick should benefit from rising gold prices.

Adtran

(ADTN)

was upgraded by Barclays to Overweight from Equal Weight. Barclays said solid demand driven by U.S. investment initiatives supports growth outlook. Barclays raised 2010 and 2011 EPS estimates to $1.37 and $1.53, respectively. It also lifted the price target to $31 from $28.

AK Steel

(AKS)

upgraded to Buy at Citigroup. $19 price target. Stock is down 46% and pricing in lower earnings estimates, Citigroup said.

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AK Steel

upgraded to Neutral from Underperform by Bank of America/Merrill Lynch, which said margin concerns are already priced into the stock. Bank of America/Merrill Lynch is maintaining a $16 price target.

Bank of New York Mellon

(BK)

was initiated with a Buy rating at Jefferies, which said the bank is most leveraged to higher interest rates and a recovery in the global markets. $35 price target.

CGG-Veritas

(CGV)

was downgraded to Neutral from Buy on high expectations in an uncertain market, Bank of America/Merrill Lynch said. Price target lowered to $29.15 from 32.50.

Comerica

(CMA)

was upgraded from Hold to Buy by Soleil Securities. $44 price target. Comerica has balance sheet leverage and should benefit from increased loan demand, Soleil said.

EMC

(EMC)

downgraded at JP Morgan to Neutral from Overweight. Price target lowered to $21 from $22. JP Morgan maintains 2010 EPS estimates of 93 cents.

General Dynamics

(GD)

was upgraded from Sell to Hold by Citigroup. $67 price target. Stock looks attractive, following a recent pullback, Citigroup said.

Gilead Sciences

(GILD)

was upgraded from Sell to Hold by Morgan Joseph. Risks are priced into the stock at current levels, Morgan Joseph said.

US Airways

(LCC)

was upgraded at JP Morgan to Overweight from Neutral. Price target was raised to $11.50 from $8.50. 2010 EPS estimates were raised to $1.16 from $1.01.

Mirant

(MIR)

was upgraded at UBS from Sell to Neutral. Stock looks attractive following the recent pullback, UBS said.

NetApp

(NTAP)

was upgraded at JP Morgan to Overweight from Neutral. Price target raised to $41.00 from $36.50. 2010 EPS estimates were raised to $1.30 from $1.27.

News Corp

(NWS)

was upgraded from Hold to Buy at Soleil Securities. Valuation call, as the stock appears oversold, Soleil said. $17.50 price target.

Oceaneering International

(OII)

was initiated with a Buy rating at Deutsche Bank. $70 price target. Company has exposure to a strong secular growth story, Deutsche Bank said.

Public Service

(PEG)

was upgraded from Neutral to Buy, UBS said. $34 price target. Company has a strong balance sheet, and earnings should hold up relatively well, UBS said.

Progress Energy

(PGN)

was upgraded to Buy from Neutral at Bank of America/Merrill Lynch on a high dividend yield and earnings growth. Price target raised by $1 to $42.

PNC Financial

(PNC)

was upgraded to Outperform from Market Perform by Keefe, Bruyette & Woods. $72 price target. Company deserves a premium valuation and looks attractive following a recent pullback, Keefe, Bruyette & Woods said.

Pepco

(POM)

was upgraded from Market Perform to Outperform by Wells Fargo. Stock is not yet pricing in the company's long-term growth prospects, Wells Fargo said.

PPL

(PPL)

was upgraded at Morgan Stanley from Equal-Weight to Overweight by Morgan Stanley. Stock is down 22% year to date and offers investors an attractive dividend, Morgan Stanley said.

RRI Energy

(RRI)

was upgraded from Sell to Neutral by UBS. Recent capacity auction should boost future earnings, UBS said.

RTI International Metals

(RTI)

was upgraded to Neutral by Bank of America/Merrill Lynch on valuation and industry supply concerns. Bank of America/Merrill Lynch is maintaining its $27 price target.

Werner Enterprises

(WERN)

was upgraded at Keybancfrom Hold to Buy. $27 price target. Checks show that truckload rates are recovering ahead of expectations, Keybanc said.

STOCK COMMENTS / EPS CHANGES

Air Products

(APD)

estimates were increased through 2012 at Morgan Stanley. The company can grow independent of an economic recovery, Morgan Stanley said. Overweight rating and $92 price target.

Avnet

(AVT)

price target reduced to $34 at Goldman Sachs. Company likely to receive a lower multiple, given the market pullback, Goldman said. Neutral rating.

Campbell Soup

(CPB)

target, estimates raised at Barclays. The price target was raised to $38 from $26 on improving volume growth, Barclays said. Meanwhile, 2010 and 2011 EPS estimates were set at $2.45 and $2.65, respectively. Overweight rating.

Campbell Soup estimates were cut, but its target was boosted at Goldman Sachs. Shares now seen reaching $37. On the other hand, estimates were reduced, to reflect lower volumes and higher marketing costs, Goldman said. Neutral rating.

Medicis

(MRX)

estimates, target lowered at Goldman Sachs. Estimates were cut through 2013. Liposonix approval will likely be pushed out, Goldman said. Neutral rating and new $27 price target.

Oracle

(ORCL)

estimates were cut through 2011 at Citigroup. Company has currency exposure in Europe, Citigroup said. Buy rating and new $28 price target.

Seagate Technology

(STX)

price target trimmed at Barclays to $26 from $30 on seasonally weak June numbers. Overweight rating.

Vale

(VALE)

estimates were boosted through 2011 at Goldman Sachs said. Company is benefiting from higher metals prices, Goldman said. On the other hand, the target was cut to $43, given rising economic uncertainty. Buy rating.

Western Digital

(WDC)

price target lowered at Barclays to $44 from $50 on a seasonally weak June quarter. Equal Weight rating.

Weatherford

(WFT)

price target, estimates cut at Bank of America/Merrill Lynch. The price target was cut to $20 from $24 after another disappointing quarter, Bank of America/Merrill Lynch said. 2010 and 2011 EPS estimates trimmed to 55 cents and $1.22, respectively. Bank of America/Merrill Lynch is maintaining a Buy rating.

Yingli Green Energy

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price target cut to $11 from $14 on euro headwinds, Barclays said. 2010 and 2011 EPS estimates lowered to 80 cents and 85 cents, respectively. Equal Weight rating.

This article was written by a staff member of TheStreet.com.