CHANGE IN RATINGS
downgraded at Merrill from Buy to Neutral. Stock is up 84% since its May IPO. Company has strong organic growth prospects, but less operating leverage than other E&C names.
Clear Channel Outdoor
downgraded at Bear from Outperform to Peer Perform. Expect in-line third quarter, but the poor housing market could hurt local advertising heading into 2008.
Carrizo Oil & Gas
downgraded at Suntrust to Neutral. $50 price target. Valuation call.
downgraded at Friedman, Billings Ramsey from Market Perform to Underperform. $40 price target. Credit trends are eroding much faster than expected. Estimates also cut.
downgraded at Deutsche from Hold to Sell. $33 price target. Company is facing volume and margins pressures. Estimates also cut.
eBay price target higher at Goldman to $51 from $43 based on continuing business momentum and stable growth in revenues, GMV, and operating income. See potential for multiple expansion due to greater visibility into long-term growth profile. Maintained Buy rating.
downgraded at Deutsche from Buy to Hold. $14 price target. Estimates also cut, to reflect asset write-downs are more expected home equity losses. Stock lacks near-term catalysts.
( GKK) initiated at UBS with Buy rating. Price target starts at $29 with 2008 eps estimates set at $3.25.
initiated at UBS with Neutral rating. Price target starts at $38 with 2008 eps estimates set at $2.65.
downgraded at Goldman Sachs to Neutral from Buy based on weak near-term prospects stemming from unseasonably warm weather and a breakdown in inventory discipline since Q2. See difficult macro backdrop and further downside potential if warm weather persists. Price target cut to $46 from $54.
downgraded at Wachovia from Outperform to Market Perform. Company lacks visibility, and the 2008 estimates appear too high. Stock lacks near-term catalysts.
downgraded at Bear Stearns from Outperform to Peer Perform. Little visibility for the fourth quarter, and the weak housing market may spill over.
upgraded at Credit Suisse to Outperform from Neutral. Believes risk/reward appears compelling heading into holiday season. Maintained $28 target price.
( NLC) downgraded at UBS to Sell rating from Neutral. Price target dips to $26 from $27 and FY 2008 eps estimates drop to $1.35 from $1.40.
( PALM) upgraded at Merrill from Neutral to Buy. Near-term fundamentals are sluggish, but the stock is a cheap call option on the surging smartphone market.
( RX) downgraded at Baird from Outperform to Underperform. $24 price tagret. Business has deteriorated since June, with selling cycles extending and pricing pressure mounting across the globe.
downgraded at Bear from Outperform to Peer Perform. Only 7% upside remains to $49 price target, following word of a split of the two businesses. Company has 40% newspaper ad concentration in California and Florida.
Texas Capital Banc
upgraded at Merrill from Sell to Neutral. Current price already factors in slower lending growth in the Fed easing cycle.
( TMA) upgraded at Keefe Bruyette & Woods to Market Perform. Stock looks more attractive on sell-off, despite dividend cut.
initiated at UBS with Neutral rating. Price target starts at $25 with 2008 eps estimates set at $1.89.
downgraded at Friedman, Billings Ramsey from Market Perform to Underperform. $23 price target. Housing credit trends are eroding much faster than expected.
upgraded at Goldman Sachs to Buy from Neutral. See shares as inexpensive and "good place to hide" as department store fundamentals are likely to remain unchanged over the next several quarters. See potential upside if management further reduced square footage and believe Q4 earnings could top estimates. Price target at $51.
STOCK COMMENTS / EPS CHANGES
( AMLN) 2007 estimates raised at Goldman to ($1.66) from ($1.84), Goldman said. Q3 results showed slightly better margins and lower operating costs. Do not believe pancreatitis precaution on label will change prescribing patterns for Byetta. Target price lowered to $58 from $59 and maintained Buy rating.
target increased at Goldman to $48 from $42 following strong Q3 results. See strong growth across all business lines and view company as early favorite to become No. 2 to VMware in server and desktop virtualization. Maintained Buy rating.