CHANGE IN RATINGS
upgraded at Goldman Sachs to Conviction Buy based on expectations that paid search will rise from around 2 basis points of Chinese GDP, closer to developed markets' 9bp to 12bp range. Believe search spending will rise around 30% per year for several years, and expect Baidu to maintain market share. Also note $10 in cash per share. Price target at $145.
upgraded at Merrill from Neutral to Buy. $55 price target. Estimates also raised, based on higher expected sales of HIV products.
downgraded at Oppenheimer from Outperform to Perform. End-market demand likely to deteriorate heading into 2009. Stock is also trading at a premium to its peers.
downgraded at Deutsche Bank from Hold to Sell. $7.50 price target. Commercial aerospace sector will likely struggle until the new Boeing and Airbus planes hit the market in 2010.
downgraded at Merrill from Neutral to Underperform. $44 price target. Estimates also cut, as volumes are falling, offsetting expected share gains from DHL exit.
STOCK COMMENTS / EPS CHANGES
target lowered at Credit Suisse to $31 from $40 based on deteriorating South America and Eastern European markets and lingering financing issues. Maintained Outperform rating.
target cut at Credit Suisse to $55 from $60 to account for production cuts at several facilities and also weaker demand. Maintained Neutral rating.
numbers cut at Barclays. Shares now seen reaching $35. Estimates also lowered, to reflect slower expected organic sales growth. Equal-weight rating.
numbers raised at Morgan Stanley. Shares now seen reaching $41. Estimates also increased, to match the company's new guidance, based on cost-cutting. Overweight rating.
price target cut at Goldman to $7 from $14. Expect lower sales across automotive sector, and note exposure to eroding consumer credit. See continued increases in delinquencies and charge-offs. Maintained Neutral rating.
STRATEGY CALLS / MARKET CALLS
were upgraded to Buy at Merrill Lynch. Rating on
was also raised to Neutral. Stock is pricing in lower near-term purchases, and the industry fundamentals appear to be near a bottom.
This article was written by a staff member of TheStreet.com.