CHANGE IN RATINGS
American Electric Power
upgraded at Goldman Sachs: Goldman said it is upgrading AEP to Hold from Sell due to increased bullishness on long-term rate increases for Ohio subsidiaries. Target price raised to $35 from $31.
downgraded at Citigroup: ARO was downgraded from Buy to Hold, Citigroup said. Strong third quarter results appear to be already factored into the stock, and the company is facing difficult comps in the fourth quarter.
coverage initiated at Prudential: Prudential said it is initiating coverage on AT with an Overweight rating and $66 target price. Alltel is a near wireless pure-play and the only large cap U.S. telecom services company showing meaningful top-line growth prospects.
coverage initiated at Jefferies: AVX coverage initiated with a Hold rating, Jefferies said. Shares appear fairly valued for component manufacturer and supplier. Well positioned to capitalize on growth trends in electronics market. Price target at $18.
downgraded at Jefferies: Jefferies said it is downgrading CNP to Hold from Buy based on valuation. Believe low business risk profile offset by high consolidated debt leverage. Price target at $15.50.
downgraded at Baird:CPRT was downgraded from Outperform to Neutral, Robert Baird said. $31 price target. Company posted a strong quarter, though revenue growth could decelerate as the company works down the remainder of its hurricane-related backlog.
downgraded at UBS: UBS said it is downgrading CVG to Neutral from Buy based on more balanced risk/reward. Lowered target price to $23 from $24.
upgraded at Jefferies: DGX upgraded to Buy from Hold, Jefferies said. Believe company will capitalize on LabCorp's limited PSC infrastructure in NY-region to support United Healthcare members, resulting in ongoing referrals and reduced earnings hit. Price target increased to $60 from $55.
coverage initiated at Goldman: ISIL coverage initiated with a Neutral rating, Goldman said. Believe gross margins will plateau at low end of 58%-62% range due to increased manufacturing outsourcing. Expect softness due to ongoing supply-chain inventory correction. Target price at $25.
( JCG) downgraded at Citigroup: JCG was downgraded from Buy to Hold, Citigroup said. Valuation call, as the stock is up 24% since August. $32 price target.
coverage initiated at Jefferies: Jefferies said it is initiating coverage on KEM with a Hold rating. See fair value for leading capacitor producer in spite of improved utilization rates and favorable profit trends. Price target at $8.50.
( WYE) downgraded at AG Edwards: NTAP was downgraded to Hold, AG Edwards said. Valuation call, though recent management meeting confirms the business has solid momentum.
Pharmaceutical Product Development
( PPDI) rated new Buy at UBS: UBS said it is initiating PPDI with a Buy rating. Sees development segment driving growth and EPS upside. Sets $45 target price.
( WYE) upgraded at Merrill: WYE was upgraded from Neutral to Buy, Merrill Lynch said. $58 price target. Earnings growth should ramp in the coming years, based on a slate of expected 2007 FDA approvals.
STOCK COMMENTS / EPS CHANGES
estimates raised at Piper: Piper said it is raising its 2007 estimates on ANF by 8 cents to $4.60 a share following strong September and forward guidance. Maintained Outperform rating.
estimates raised at Piper: Piper said it is raising its 2007 estimates on JWN by 8 cents to $2.43 a share following very strong September comp number. Maintained Market Perform rating.
price target raised at Goldman: Price target on TGT increased to $66 from $60, Goldman said. Expect continuing momentum and outperformance versus easy year-over-year comparisons. Maintained Buy rating.
price target increased at Goldman: Goldman said it is increasing its target on WMT to $57 from $56 and adding company to Americas Conviction Buy List. See turnaround strategy in effect and continuing stream of positive news flow. Maintained Buy rating.
( WYE) price target higher at Goldman: Goldman said it is upping its target on WYE to $56 from $52 based on increased confidence in management initiatives. See strong second half organic growth and achievement of 15% operating margin goal. Maintain Neutral rating.