Change in Ratings
upgraded at Jefferies to hold rating from underperform. Price target holds at $22 while fiscal year 2008 EPS estimates drift to 97 cents from 96 cents.
downgraded at Citigroup to sell. Stock trades at a substantial premium to fair value of $13. Business model also faces several operating and financial hurdles.
downgraded at Morgan Stanley to equal-weight. Valuation call, as the stock is up 65% since 2007, and already pricing in Appalachian growth potential.
Dr. Pepper Snapple
rated new equal-weight at Morgan Stanley. $30 price target. Company will struggle to grow in the U.S. carbonated drink market, but the stock would be attractive to buy in the low-$20s.
numbers raised at UBS. Price target lifts to $33 from $30 while fiscal year 2008 EPS estimates upped to $2.60 from $2.50.
upgraded at Goldman Sachs to buy from neutral based on healthy earnings growth and accelerating momentum in U.S. Believe structural improvements are happening, which will allow shares to trade at a multiple in-line with peer group. Price target at $70.
downgraded at Goldman Sachs to neutral from buy following disappointing first-quarter earnings. Believe business investment was primary driver of the earnings miss, and see potential to pressure margins going forward. Sales of Monster were up 36%, also disappointing compared to expectations in the 45%-50% range. Price target at $37.
downgraded at Goldman Sachs to sell from neutral. See continuing loss of market share in core brands, margin pressures and intense competition in premium chocolate. Price target at $32.
downgraded at Wachovia to underperform. Company still has a high fixed cost structure, focused on compensation.
transaction also has heavy dilution.
downgraded at Credit Suisse to neutral from outperform, based on weakness in non-transaction business. Management provided transaction guidance showing expectations for a decline next quarter. Follow up revenues continue to be weak. Price target cut to $27 from $35.
upgraded at Credit Suisse to neutral from underperform, based on balance sheet improvements and increasing of loan loss reserve. Believe recent actions have reduced downside risk in shares, but see continued visibility issues in credit markets. Price target raised to $30 from $23.
Stock Comments/EPS Changes
target raised at UBS. New price target lifts to $33 from $30 while fiscal year 2008 EPS estimates hold at $1.07.
numbers raised at Jefferies. Price target lifts to $115 from $112 and fiscal year 2008 EPS estimates upped to $9.05 from $8.70.
target jumps at Jefferies to $181 from $165 at Jefferies and new fiscal year 2009 EPS estimates start at $16.91.
numbers cut at Morgan Stanley. Shares of TSO now seen reaching $36. Estimates also cut, as the company continues to face higher operating costs and declining operating margins. Overweight rating.
This article was written by a staff member of TheStreet.com Ratings.