Analysts' Actions: A Daily Roundup of Street Research

Who made what calls.
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CHANGE IN RATINGS

Arrow Electronics

rated new Equal-weight at Merrill: ARW was initiated with an Equal-weight rating, Merrill Lynch said. $37 price target. Company performing well, but AVT offers better potential margin expansion in the near term.

Avnet

rated new Overweight at Lehman: Coverage of AVT was started with an Overweight rating, Lehman Bros. said. $30 price target. Concerns over the Memec purchase are largely priced in, and the company should be able to realize higher margins going forward.

Citigroup

downgraded at UBS: UBS said it was downgrading C from Buy 2 to Neutral 2 on forecast of weak earnings growth and multiple expansion. FY 2006 and 2007 EPS estimates lowered from $4.30 and $4.80 to $4.20 and $4.70 respectively and target lowered by $7 to $50.

Cypress Semiconductor

upgraded at Merrill: Merrill said it is increasing its rating on CY to Buy from Neutral. Stock has underperformed its solar cell subsidiary SPWR and the broader semi market significantly since SPWR IPO.

Freeport McMoran

downgraded at Merrill: FCX was downgraded from Buy to Neutral, Merrill Lynch said. Production and sales likely peaked in 2005. Look for continued special dividends in the near term.

Hub Group

upgraded at Baird: Baird said it was upgrading HUBG from Underperform to Neutral and raising the target from $32 to $37 on positive acquisition and improving external trends. FY 2006 EPS estimate raised from $1.70 to $1.82.

Internet Security Sys.

rated new Neutral at Merrill: ISSX was initiated with a Neutral rating, Merrill Lynch said. While the company lacks near-term catalysts, there is clear evidence that fundamentals are improving.

Leap Wireless

rated new Overweight at Lehman: LEAP was initiated with an Overweight rating, Lehman Bros. said. $45 price target. Company is positioned well to take market share in the sub-prime market.

Mercury Interactive

upgraded at JP Morgan: JP Morgan said it was upgrading MERQ from Underweight to Overweight and 2006 EPS estimate raised by $0.03 to $0.63 citing expected bookings growth and inexpensive valuation.

OSI Pharmaceuticals

coverage initiated at Goldman: Goldman said it is initiating coverage on OSIP with an Inline rating. Attractive valuation offset by decelerating sales and early pipeline.

Secure Computing

rated new Neutral at Merrill: Coverage of SCUR was started with a Neutral rating, Merrill Lynch said. Company is a diversified play on three fast-growing businesses, though recent merger creates some uncertainty.

WebSense

coverage initiated at Merrill: Merrill said it is initiating coverage on WBSN with a Neutral rating. Stock is fully valued.

STOCK COMMENTS / EPS CHANGES

Applied Materials

target boosted at Lehman: AMAT target boosted to $25 a share, Lehman Bros. said. New business model should create sustainable earnings growth. Overweight rating.

Alltel

numbers reduced at Merrill: Shares of AT now seen reaching $74, according to Merrill Lynch. Estimates also cut, as the company is realizing lower wireless revenue. Buy rating.

Alltel

outlook cut at Morgan Stanley: Morgan Stanley said it is lowering its estimates on AT for the full year to $3.44 a share from $3.68 a share. Maintained Overweight rating.

Boeing

outlook lowered at Morgan Stanley: BA now seen earnings $2.55 a share in 2006, up from $4.25 a share, Morgan Stanley said. Now we are at the commercial aerospace midcycle.

Comerica

outlook lowered at Morgan Stanley: Morgan Stanley said it is lowering its estimates on CMA for the full year to $57 a share from $58 a share. Maintained Equalweight rating.

Corinthian Colleges

estimates lowered at UBS: UBS said it was lowering FY 2006 ESP estimates on COCO from $0.57 to $0.50 on wean enrolls and guidance. Maintained Neutral 2 rating and $14 target.

Choicepoint

target increased at Lehman: Shares of CPS now seen reaching $51, Lehman Bros. said. Company is positioned well to deliver solid sales and earnings growth over the next couple of quarters. Overweight rating.

Entergy

estimates, target lowered at Jefferies: Jefferies said it was lowering FY 2006 EPS estimates on ETR from $4.85 to $4.75 and lowering the target from $86.50 to $83 on pre-released 4Q earnings. Maintained Buy rating.

Exelon

estimates cut at Prudential: Prudential said it is cutting its 2006 estimates on EXC by 38 cents to $3.12 a share.

GE

estimates raised at Jefferies: Jefferies said it was raising FY 2006 EPS estimates on GE by $0.03 to $1.96 on 4Q results. Maintained Hold rating and $37 target.

Harrah's

target raised at Deutsche Bank: Deutsche Bank said it was raising the target on HET from $82 to $90 on earnings momentum, Caesars merger synergies and new project pipeline. FY 2006 EPS estimate lowered by $0.04 to $3.79.

Isle of Capri Casinos

target raised at Deutsche Bank: Deutsche Bank said it was raising the target on ISLE by $2 to $29 on the prospect of management success in turn around execution. Maintained Hold rating.

Johnson Control

estimates cut at Prudential: Prudential said it is cutting its 2006 estimates on JCI by 24 cents to $5.12 a share to account for FX changes. Maintained Overweight rating.

Johnson Controls

outlook lowered at Morgan Stanley: Morgan Stanley said it is lowering its estimates on JCI for the full year to $5.90 a share from $5.95 a share. Maintained Equalweight rating.

North Fork

outlook lowered at Morgan Stanley: Morgan Stanley said it is lowering its estimates on NFB for the full year to $2 a share from $2.13 a share. Maintained Overweight rating.

PPG Industries

outlook raised at Morgan Stanley: Morgan Stanley said it is raising its estimates on PPG for the full year to $5.07 a share from $4.92 a share. Maintained Equalweight rating.

Regions Financial

estimates cut at Lehman: RF 2006 estimate lowered to $2.62 a share, Lehman Bros. said. Mortgage results are higher costs weighing on earnings. Underweight rating.

Schlumberger

target, estimates raised at Deutsche Bank: Deutsche Bank said it was raising FY 2006 EPS estimates on SLB from $4.35 to $5.10 and raising the target from $100 to $140 citing an inflection point for oilfield service and pricing. Maintained Buy rating.

Wells Fargo

outlook cut at Morgan Stanley: Morgan Stanley said it is lowering its estimates on WFC for the full year to $4.85 a share from $4.91 a share. Strong fourth quarter, but outlook down on NIM and mortgage.