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Analyst Actions: Delta, PG&E, Heinz, Exelixis



(DAL) - Get Delta Air Lines, Inc. Report

had its share of problems lately, fighting a bitter contract battle with its pilots that cost it a healthy chunk of change when the pilots cut their overtime flying, and thus the number of flights Delta can offer. Meanwhile, competitors have been merging, with




American Airlines'

parent, announcing intentions to pick up

Trans World Airlines




(UAL) - Get United Airlines Holdings, Inc. Report


United Airlines'

parent, snapping up most of

U.S. Airways



And over the last few weeks, Delta's stock has dropped 15% as investors reacted to the state of the industry, feeling that maybe Delta will be hurt by labor woes and the lack of a merger partner.

Well, don't tell that to

Merrill Lynch

analyst Michael Linenburg. In a note to investors this morning, the analyst wrote that Delta was in pretty good shape with labor, assuming no strike occurs, and the problem fully priced into its low

price-to-earnings ratio. He is "cautiously optimistic" that Delta can resolve its pilot problem by the end of spring, with no real labor problems in sight after that, since the rest of its workers are not heavily unionized.

Linenburg was very "glass half full" on Delta, even saying that its lack of a merger partner was a benefit, not a detriment.

"Contrary to popular belief, this could be the best situation for Delta to be in," he wrote. "Especially given the massive disruption associated with airline mergers and acquisitions. Therefore, at under $46, we think Delta is an attractive contrarian investment, and would be Buyers of the stock."

The skies just got a little friendlier.




: UP to buy from market perform at

Lehman Brothers


Capital One

(COF) - Get Capital One Financial Corporation Report

: UP to long-term buy from long-term attractive at

Robertson Stephens


Federated Investors

(FII) - Get Federated Investors, Inc. Class B Report

: UP to outperform from neutral at

Salomon Smith Barney


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(PCG) - Get PG&E Corporation Report

: UP to hold from sell at

Prudential Securities


Waddell & Reed

(WDR) - Get Waddell & Reed Financial, Inc. Class A Report

: UP to outperform from neutral at Salomon Smith Barney.


American Eagle


: DOWN to long-term attractive from long-term buy at Robertson Stephens.

Bausch & Lomb


: DOWN to market perform from buy at Lehman Brothers.



: DOWN to hold from accumulate at Prudential Securities.

H.J. Heinz


: DOWN to neutral from outperform at

Salomon Smith Barney



Argosy Gaming


: NEW buy at

Deutsche Bank Alex. Brown

; price target: $25.



: NEW buy at Deutsche Bank Alex. Brown; price target: $15.


(EXEL) - Get Exelixis, Inc. Report

: NEW buy at J.P. Morgan; price target: $23.

Proton Energy


: NEW strong buy at Lehman Brothers.

Research In Motion


: NEW long-term buy at J.P. Morgan; price target: $85.

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