Early Stocks in Motion - TheStreet

Updated from 6:59 a.m. EST

UBS upgraded shares of

Kmart

( KMRT) and raised its price target by $60 to $160, saying the discount chain is poised to thrive following its merger with

Sears

. UBS cited three reasons to be optimistic about the stock, which is already up fivefold from its bankruptcy reorganization in May 2003. The brokerage cited the likelihood of more asset sales under controlling shareholder Ed Lampert; the possibility for cross selling of brands with Sears; and the big potential for cost savings. Kmart has been rallying all month, going from the high-$90s to a Thursday close of $112.11.

Visteon

(VC) - Get Report

rose after striking a deal with former parent

Ford

(F) - Get Report

to reduce wage subsidies the auto parts maker currently shoulders. Visteon will save $25 million a month from a reduction in the amount of salary it currently pays Ford workers who are assigned to its projects. In return, Ford cements its supply pacts with the unit it spun off in 2000.

Halliburton

(HAL) - Get Report

said a trust set up to fund asbestos claims plans to sell 54.5 million of its shares into the open market next week. DII Industries LLC Asbestos PI Trust, which received the shares as part of an asbestos settlement earlier this year, will sell its Halliburton stake in a public offering managed by Goldman Sachs, J.P. Morgan and Citigroup. Halliburton said it will amend its agreement with the trust to allow for the divestiture. There's a 5 million share over-allotment option.

Integrated Alarm

( IASG) warned after the bell Thursday that it won't file its annual report for 2004 with the

Securities and Exchange Commission

on time. The company, which supplies independent alarm dealers, said it is still working to complete the report mandated by Sarbanes-Oxley, and expects to identify material weaknesses to its financial controls. When Integrated Alarm does report, it expects its fourth quarter to show a substantially wider loss than was posted in the year-ago quarter. It cited acquisition-related costs, prepayment of outstanding debt and facility closure costs.

J. Jill Group

(JILL) - Get Report

reported net income of $2.6 million, or 13 cents a share, for the fourth quarter ended Dec. 25. Sales for the quarter rose 4% from a year ago to $119.4 million. Analysts were expecting earnings of 11 cents a share on sales of $119 million. Looking ahead, the company said it expects a loss of 25 cents to 28 cents on sales of $91 million to $93 million in the first quarter. Analysts polled by Thomson First Call had expected a loss of 10 cents a share on $108 million in sales. The company blamed disappointing trends, colors, and marketing campaigns.

Sports Authority

( TSA) reported a stronger-than-expected rise in fourth-quarter earnings, but issued first-quarter guidance that is well below estimates. The retailer earned $25.5 million, or 97 cents a share, in the fourth quarter, compared with $14.6 million, or 55 cents a share, a year ago. Sales were virtually unchanged from a year ago at $713.8 million. Analysts had been forecasting earnings of 93 cents a share on sales of $712.4 million. For the first quarter, the company expects to earn 25 cents to 27 cents a share before items, well short of the 37 cents a share Wall Street had forecast. For all of 2005, the company expects to earn $1.90 to $1.95 a share, compared with analysts' consensus estimate of $2.17 a share.