Change in Ratings
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
target cut at Credit Suisse to $36 from $40 due to concerns about impact of weakening economy. Maintained Neutral rating.
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.
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
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.
T. Rowe Price
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.
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
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.
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
. Maintained Neutral rating.
This article was written by a staff member of TheStreet.com.