upgraded at Wachovia to Outperform based on valuation. Note that shares trade at 13 times forward estimates and lowest premium to

S&P 500

in five years. Believe 3.2% dividend yield is relatively safe. Valuation range of $105 to $110.

Cabot Oil & Gas

(COG) - Get Report

downgraded at Morgan Stanley to Equal-weight. Stock has outperformed its peers, but execution risk rises as the company increases development in Appalachia and East Texas.

Limited Brands


downgraded at Citigroup from Buy to Hold. $9.50 price target. Stock up 31% since Nov. 20, and near-term consensus estimates remain too high.


(OXY) - Get Report

rated new Equal-weight at Morgan Stanley. Company has a good balance sheet and is positioned well for the cycle.


(PRU) - Get Report

upgraded at Citigroup from Hold to Buy. $30 price target. Valuation call, as the stock is already pricing in lower earnings expectations.

Toll Brothers

(TOL) - Get Report

upgraded at Credit Suisse from Underperform to Neutral. $20 price target. Expect lower price impairments, as lower interest rates could help boost traffic.

XL Capital


downgraded at Merrill from Buy to Neutral. Pretax marks could wipe away the company's capital cushion, leading to potential downgrades and the need for more capital.



(MSFT) - Get Report

target cut at Morgan Stanley. Shares now seen reaching $26.50. Visit with CFO suggests that business has deteriorated since the company last gave guidance in October. Equal-weight rating.

This article was written by a staff member of