CHANGE IN RATINGS
coverage initiated at Prudential: Prudential is initiating coverage on ALA with an Overweight rating and $23 target price. Company has leading positions in multiple key markets.
rated new Neutral at Credit Suisse: Credit Suisse is initiating coverage on DNA with a Neutral rating. Cites positive bias based on Avastin sales but sees long-term challenges. Sets $82 target price.
downgraded at Morgan Stanley: Morgan Stanley is downgrading Amdocs to equal-weight on valuation, as it believe the stock is close to fairly valued for now.
Dollar Thrifty Auto Group
initiated at Morgan Stanley:Morgan Stanley is initiating coverage of Dollar Thrifty Auto Group with an equal-weight rating and a $46 price target.
downgraded at JP Morgan: FUL was downgraded from Overweight to Neutral, JP Morgan said. Stock gained 23% yesterday, and is already pricing in higher potential 2007 earnings.
downgraded at Goldman Sachs: Goldman is downgrading JBL to Neutral from Buy due to valuation. Believe risk/reward is balanced at current levels. Shares now trade above $28 target price, which was unchanged.
downgraded at Credit Suisse: Credit Suisse is downgrading LNC to Neutral from Outperform based on valuation. Stock has essentially reached its target price of $64.
downgraded at Bernstein: LXK was downgraded to Market Perform, Bernstein said. $60 price target. Stock is already pricing in recent margin improvement, and uncertainty remains about the ability to successfully growth hardware unit sales.
downgraded at Merrill: MKC was downgraded from Buy to Neutral, Merrill Lynch said. Stock is reaching its $40 price target, and is likely already pricing in a business turnaround.
downgraded at Piper: Piper is downgrading PETM to a Market Perform rating based on valuation as stock is approaching $30 target price.
upgraded at Baird: RECN was upgraded from Neutral to Outperform, Robert Baird said. Options expenses are running higher than expected, though sales are very strong. $31 price target.
downgraded at Piper: Piper is downgrading SNV to a Market Perform rating as residential construction growth could slow and cost of deposits could continue to increase.
downgraded at JP Morgan: TWX was downgraded from Overweight to Neutral, JP Morgan said. New analyst believes that AOL will continue to face long-term challenges. Filmed entertainment sales growth also slowing.
upgraded at Merrill: VRTX was upgraded to Buy, Merrill Lynch said. Strong Phase II data should be coming from the PROVE 1 trial soon, and the stock has digested the recent equity offering. $40 price target.
STOCK COMMENTS / EPS CHANGES
price target raised at Jefferies: Jefferies is uping its target on ARG to $46 from $45 due to strong fundamental trends and debt refinancing. 2007 estimates increased by 5 cents to $1.95. Reiterated Buy rating.
target cut at Jefferies: Jefferies is cutting its price target on BSX to $22 from $25 after company preannounced weak Q3 results. See long term outlook intact. Reiterated Buy rating.
numbers changed at Morgan Stanley: Morgan Stanley is raising numbers for 2006 EPS estimates but cutting 2007-2008 estimates. Morgan Stanley says there appears to be 10%-15% upside potential to Disney's share price if there is no recession next year.
estimates lowered at Jefferies: Home Depot 2007 estimates cut by 5 cents to $3.27 at Jefferies. Taking conservative stance due to softening macro environment, especially uncertain rate of deterioration of housing market. Reiterated Buy rating.
target price lowered at Credit Suisse:Credit Suisse is lowering its target price on NEM to $48 from $65 after the company revised 2006 and 2007 operating targets lower. Maintained Outperform rating.
target price lowered at Jefferies: PAYX target lowered to $42 from $44, Jefferies said. Adjustment to discounted cash flow model, based on 1.8x PEG. Reiterated Hold rating.
target price raised at UBS: UBS said it is raising its target price on VZ to $41 from $40 based on expected double-digit earnings growth in 2008. Maintained Buy rating.