Analysts' Actions: A Daily Roundup of Street Research

Who made what calls.
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CHANGE IN RATINGS

Benchmark Electronics

coverage initiated at Jefferies: Jefferies said it is initiating coverage of BHE with a Buy rating. Leading EMS provider shows good organic growth and has inexpensive current valuation. Earnings estimate for 2007 is $1.62. Price target of $29.50.

Brightpoint

downgraded at Deutsche Bank: Deutsche Bank said it is downgrading CELL to Hold from Buy. Sees modest growth due to seasonality. Lowered target price to $20 from $27.50.

Celestica

coverage initiated at Jefferies: Jefferies said it is initiating coverage of CLS with a Hold rating. EMS provider focuses on high-end infrastructure programs with exposure to computing and communications markets. Price target of $10.50 and 2007 estimate of $0.88.

Dollar General

downgraded at Deutsche: DG was downgraded from Hold to Sell, Deutsche Bank said. $12 price target. Second half recovery will likely not materialize, and low-income consumers are facing multiple cost pressures. Estimates also cut.

Dollar Tree

downgraded at Deutsche: DLTR was downgraded from Hold to Sell, Deutsche Bank said. Becoming more cautious on consumer spending, and the company's expected second half recovery may not materialize. Estimates also lowered. $22 price target.

Endo Pharma

downgraded at Oppenheimer: ENDP was downgraded from Buy to Neutral Oppenheimer said. Company facing multiple binary events in the coming months, and the stock is not discounting the potential risk.

Flextronics

coverage initiated at Jefferies: Jefferies said it is initiating coverage of FLEX with a Hold rating. Second largest EMS provider in world has unique ODM and component capabilities. Cautious rating due to recent challenges and competition in Asia that have cut into growth rate. Price target of $12.15 and 2007 estimate of $0.74.

Imclone

downgraded at Friedman, Billings: IMCL was downgraded to Market Perform from Outperform at FBR due to data from the CALGB first-line colorectal cancer trial. Lowered price target to $38 from $44 based on higher risk and resulting higher discount rate. 2006 earnings estimate of $2.58 remains unchanged.

International Paper

upgraded at Prudential: Prudential said it is upgrading IP to a Neutral Weight rating as asset sale program is generating good proceeds.

Jabil Circuit

coverage initiated at Jefferies: Jefferies said it is initiating coverage of JBL with a Buy rating. Consistent results with above-average growth trends make the company a standout. 2007 estimate is $2.01. Price target of $42.

Kinder Morgan

downgraded at Wachovia:Wachovia said it is lowering its rating on KMI to Market Perform from Outperform. Sees limited upside potential based on sum-of-the-parts estimate.

Monster Worldwide

upgraded at Piper: Piper said it is upgrading MNST to an Outperform rating based upon valuation and channel checks into first two months of Q2.

National Financial Partners

upgraded at UBS: UBS upgraded shares of NFP to Buy from Neutral based on valuation. Shares appear undervalued in spite of new top- and bottom-line pressures. Lowered 2006 estimate to $2.61 from $3.00 and cut price target to $57 from $61.

Plexus

coverage initiated at Jefferies: Jefferies said it is initiating coverage of PLXS with a Hold rating. Caution due to valuation. Price target of $43 based on 2007 estimate of $1.97.

PPG

upgraded at Prudential: Prudential said it is upgrading PPG to an Overweight rating as 2007 estimates are likely too low. Margin expansion, M&A, and lower natural gas prices should compensate for any economic slowdown.

Resources Connection

downgraded at Merrill Lynch: Merrill said it is downgrading RECN to Neutral from Buy after noting option grants that were priced on somewhat favorable dates. While no indication of backdating is suggested, potential scrutiny could impact stock.

Sanmina

coverage initiated at Jefferies: Jefferies said it is initiating coverage of SANM with a Hold rating based on unproven leverage in the company's vertically integrated model. Price target of $5.40 and 2007 estimate of $0.42.

STOCK COMMENTS / EPS CHANGES

Constellation Energy Group

target price lowered at CSFB: CSFB said it is lowering its target price on CEG to $59 from $68. Sees short-term risks on horizon. Maintained Outperform rating.

Fastenal

target cut at Piper: Piper said it is cutting its target price on FAST from $51 to $48 to reflect a slightly lower target multiple given this stage in industrial economic cycle.

Freeport

estimates cut at Morgan Stanley: Morgan Stanley said it is lowering its estimates on FCX for the full year to $7.23 a share from $7.60 a share. Maintained Equalweight rating.

Freeport

estimates lowered at Goldman Sachs: Goldman said it is lowering its 2006 estimates on FCX by 3 cents to $6.19 after the company guided Q2 copper production down by 16%. Reiterated Outperform rating.

Freddie Mac

estimates cut at UBS: UBS said it is lowering its 2006 estimates on FRE to $5.95 from $6.41 after UBS reconciled from GAAP to operating EPS. Lowered price target to $86 from $89. Maintained Buy rating.

Linear Technology

estimates raised at Goldman: Goldman said it is upping its 2007 estimates on LLTC by two cents to $1.58 after meeting with management. Expects stock to outperform peers due to safer estimates and better CQ4'06 seasonality in consumer electronics and handset sales. Maintain Outperform rating and see fair value around $42.

Mercury General

target price raised at CSFB: CSFB said it is raising its target price on MCY to $58 from $56. Maintained Neutral rating.

Inco

price target raised at UBS: UBS said it is raising its price target on N to $79 from $70 due to revised forecasts of forex, rhodium prices, and deferred taxes.

Sara Lee

estimates lowered at CSFB: CSFB said it is lowering its 2007 EPS estimates on SLE to 80 cents from 93 cents. Sees more downside risk. Lowered target price to $17.50 from $19.

XM Satellite

estimates raised at Morgan Stanley: Morgan Stanley said it is raising its estimates on XMSR for the full year to a loss of $2.37 a share from $2.56 a share.

STRATEGY CALLS / MARKET CALLS

Homebuilding sector downgraded at Wachovia:The rating on the Homebuilding sector was cut from Overweight to Market-weight, Wachovia said. Recent data suggests weaker supply/demand outlook. Individual ratings on DHI, KBH, LEN and PHM were also reduced to Market Perform. On the other hand, MDC was upgraded to Market Perform, because of valuation.