CHANGE IN RATINGS
downgraded at Citigroup from Buy to Hold. Valuation call, as the stock has doubled over the past three months. Still expect strong second quarter results. $218 price target.
downgraded at SunTrust Robinson Humphrey to Neutral from Buy. After a 15% run-up in the company's stock price since June 29, the company seems to be fairly valued at this time.
initiated at Morgan Stanley with an overweight rating and a $49 price target.
downgraded at Deutsche Bank from Buy to Hold. $37 price target. Stock is already pricing in a potentially higher bid from the Dolans.
downgraded at Morgan Stanley from equalweight to underweight and price target moved to $27.
upgraded at Robert Baird from Neutral to Outperform. $52 price target. Comparisons are easing, and long-term secular growth trends remain attractive. The stock is also trading at its lowest valuation in 4 years.
upgraded at Goldman Sachs to Buy from Neutral based on turnaround potential and modest valuation. See company boosting margins and return on capital by following model of "trading profits for sales". Note that macro environment remains very weak, with housing market being major drag on earnings. Price target at $45.
upgraded at Robert Baird from Neutral to Outperform. $75 price target. Even though demand and pricing remains soft, the stock trades at a 13% discount to the S&P 500.
downgraded at Deutsche Bank from Buy to Hold. $80 price target. Stock looks expensive based on peak earnings estimates. Peak of the order cycle has likely passed.
upgraded at Jefferies to Buy rating from Hold. Price target and FY 2008 eps estimates hold at $45 and $1.49, respectively.
upgraded at Baird from Neutral to Outperform. $107 price target. Estimates raised to reflect a weaker US dollar, and expectations for stronger organic growth and margins.
downgraded at Citigroup to Sell from Hold. The stock, currently selling at a 20% premium, has a recent track record of sub par sales growth and uneven execution. Possible LBO candidate. $47 price target.
upgraded at Robert Baird to Outperform from Neutral. Orders from certain networking and wireless OEMs are picking up and could reach normalized levels by the end of the third quarter. $37 price target.
STOCK COMMENTS / EPS CHANGES
price target raised at UBS to $30 from $27 based on solid PC industry trends, lower inventories and stable pricing. Believe AMD's slip in Barcelona should allow Intel to consolidate market share and expand margins. Maintained Buy rating.
2008 estimates lowered at Goldman to $2.15 from $2.20. Sluggish housing turnover expected to remain a drag on earnings well into the future, however see favorable long-term risk/reward. Maintained Buy rating, but lowered price target to $34 from $35.
STRATEGY CALLS / MARKET CALLS
Three truck stocks upgraded at Bear:PCAR, CMI and RUSHA were upgraded from Peer Perform to Outperform at Bear Stearns. Industry consolidation is coming, and valuations look attractive, even if Class 8 orders are on the decline.