Analysts' Upgrades, Downgrades: Cat - TheStreet

CHANGE IN RATINGS

Agilent

(A) - Get Report

downgraded at Barclays from Overweight to Equal-weight. $20 price target. Becoming more constructive on the group, as capital spending budgets will likely be cut in 2009.

Caterpillar

(CAT) - Get Report

downgraded at Goldman Sachs to Sell from Neutral based on continued declines in earnings through 2010. View recent gains on economic stimulus news as optimistic, and believe cuts in mining and lower energy-related capital expenditures will be a significant negative. Note that economic stimulus package is more likely to mitigate downside than generate upside. Also note higher funding costs and credit losses for financial segment. Price target cut to $32 from $38.

CNH Global

(CNH)

downgraded at Goldman to Sell from Neutral. Prefer diversified industrials as cycle nears bottom, and expect that earnings will deteriorate into 2010. Weak commodity prices and higher credit losses and funding costs will remain headwinds. Price target lowered to $14 from $16.

DryShips

(DRYS) - Get Report

downgraded at Credit Suisse to Underperform from Outperform citing management's move to cancel the acquisition of four vessels. Lowered target price to $9 from $30.

Federated Investors

(FII) - Get Report

downgraded at JPMorgan from Neutral to Underweight. Zero interest rate environment will hurt the company's fees and sales. $16 price target.

Kinetic Concepts

( KCI) downgraded at Wachovia to Market Perform. Estimates also cut to reflect new competition in the foam dressing market.

Life Technologies

(LIFE) - Get Report

rated new Equal-weight at Morgan Stanley. Company's sales growth guidance is likely too optimistic, and the financial leverage is still high.

Patterson-UTI Energy

(PTEN) - Get Report

downgraded at Goldman Sachs to Sell from Neutral based on expectations for lower oil prices and a sharp reduction in drilling, rig count and dayrates. Believe weak forecast is not fully reflected in shares. Price target reduced to $8 from $11.

Varian

( VARI) downgraded at Barclays from Equal-weight to Underweight. $32 price target. Company has large exposure to capital expenditure.

Waters

(WAT) - Get Report

downgraded at Morgan Stanley to Equal-weight from Overweight. Company warned of lower orders, and the company has lower visibility. Waters downgraded at Deutsche Bank from Buy to Hold. $36.50 price target. Estimates also cut, to match the company's new guidance. Visibility remains poor heading into 2009.

STOCK COMMENTS / EPS CHANGES

Disney

(DIS) - Get Report

2009 estimates cut at Barclays to $1.80 a share. Numbers cut because of Studio Entertainment. Stock trades at a 50% premium to its peers. Underweight rating and $18 price target.

EnCana

(ECA) - Get Report

target cut at Credit Suisse to $63 from $70 on revised natural gas forecast. Maintained Outperform rating.

Eli Lilly

(LLY) - Get Report

numbers cut at Barclays. Shares now seen reaching $39. Estimates also lowered, to reflect funding needs for the

ImClone

(IMCL)

pipeline. Equal-weight rating.

United Technologies

numbers cut at Barclays through 2009. Estimates also lowered to match the company's new guidance. Overweight rating.

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