Analysts' Upgrades, Downgrades: Valero
Change in Ratings
Analog Devices
(ADI) - Get Analog Devices Inc. Report
upgraded to a Buy from a Neutral at Merrill. Price target reduced to $27 from $30. Merrill believes firm is the best positioned analog company to weather the current downturn and views the recent selloff as an opportunity to add to positions.
Automatic Data Processing
(ADP) - Get Automatic Data Processing Inc. Report
target cut at Credit Suisse to $36 from $40 due to concerns about impact of weakening economy. Maintained Neutral rating.
Buckeye Partners
(BPL) - Get Buckeye Partners, L.P. Report
downgraded at Deutsche Bank to Hold from Buy due to increased cost of capital. See limited potential for growth-generating acquisitions in current tight credit markets. Price target cut to $43 from $55.
Diageo
downgraded from a Buy to a Neutral at Merrill based on valuation. Merrill believes company has limited operating and financial leverage, with less than 30% of group EBIT generated in emerging markets
Granite Construction
(GVA) - Get Granite Construction Incorporated Report
upgraded at Goldman Sachs to Neutral from Sell based on valuation and leverage to domestic highway spending, which could provide solid defensive play in 2009. Note improved execution, particularly in Granite East segment. Price target raised to $35 from $22.
TheStreet Recommends
T. Rowe Price
(TROW) - Get T. Rowe Price Group Inc. Report
downgraded at Wachovia to Market Perform due to less attractive valuation. Believe that risk/reward is less compelling with shares trading at 21 times 2009 earnings estimates. Note strong balance sheet and cash position. Valuation range at $35 to $36.
Valero
(VLO) - Get Valero Energy Corporation Report
downgraded at Goldman Sachs to Neutral from Buy based on weaker earnings outlook for 2009-2011. Note lower assumed heavy product prices and lower capture rates. Believe that consensus estimates will be lowered. Price target cut to $21 from $25.
Stock Comments/EPS Changes
Herbalife
(HLF) - Get Herbalife Nutrition Ltd. Report
price target trimmed at Goldman to $31 from $36 based on weaker Q4 and 2009 outlooks. Currency swings remain biggest issue for earnings uncertainty, but there is also decelerating volume growth in several key markets. Maintained Buy rating.
MasterCard
(MA) - Get Mastercard Incorporated Report
target cut at Credit Suisse to $200 from $285 following Q3 earnings. Expects expense control to drive margin expansion but sets target at 18x 2009 EPS estimates, which is a slight discount to
Visa
. Maintained Neutral rating.
This article was written by a staff member of TheStreet.com.
