CHANGE IN RATINGS
upgraded at Morgan Stanley: Morgan Stanley upgrades Arch Coal from equalweight to overweight and introduces a $42 price target.
( AW) rated new Buy at UBS: UBS is initiating coverage on AW with a Buy rating. Believes company is defensive with solid prospects for deleveraging. Sets $15 target price.
downgraded at UBS: UBS is downgrading BUD to Reduce from Neutral based on increased discounting and weak volume trends heading into 4Q. Lowered target price to $46 from $50.
downgraded at Suntrust: CECO was downgraded to Reduce at Suntrust Robinson Humphrey. Recent research suggests that the third quarter was a difficult period for the education business. Internet lead costs also accelerating.
Canadian Natural Resources
downgraded at Goldman: Goldman is downgrading CNQ to Neutral from Buy due to updated view that 2007 is a transition year for company. See better opportunities elsewhere. Price target lowered to $55 from $61.
downgraded at Merrill: ETR was downgraded from Buy to Neutral at Merrill Lynch. $85 price target. Stock has already made a run, plus the company has commodity risks and exposure to the higher-priced commodity markets.
estimates lowered at Credit Suisse: Credit Suisse is lowering its 2006 EPS estimates on F to a loss of $1.50 from a loss of $0.95 following disappointing guidance. Maintained Underpeform rating and $6 target price.
upgraded by Goldman Sachs: Goldman is upgrading F to Neutral from Sell following weak Q3 results. See restructuring theme as main focus in coming quarters, as opposed to poor fundamentals. See few catalysts as products look weak for 2007. Price target increased to $8 from $7.
upgraded at UBS: UBS is upgrading GNTX to Neutral from Reduce. Believes shares are approaching a bottom. Raised target price to $15 from $12.
downgraded at UBS: UBS is downgrading PFE to Neutral from Buy based on increasing long-term risks. Lowered target price to $30 from $31.
downgraded at Jefferies: PNM downgraded to Underperform from Hold at Jefferies. See shares as expensive based on DCF valuation. Price target lowered to $23 from $30.
downgraded at Deutsche: ROK was downgraded to Hold at Deutsche Bank. Valuation call, as the company will likely not produce material earnings upside to 2007 estimates. Earnings quality was poor last quarter, because of a lower tax rate.
( WWY) downgraded at Merrill:WWY was downgraded from Buy to Neutral at Merrill Lynch. Valuation call, with the stock trading at 25 times expected forward earnings. Estimates raised, as the company should be able to build upon its recent sales growth.
STOCK COMMENTS / EPS CHANGES
estimates increased at Goldman: 2006 estimates on AMGN raised to $3.75 from $3.64 at Goldman. Strong sales of Epogen, Neupogen and Neulasta fueled better than expected Q3. Management increased both earnings and revenue guidance for 2007. Maintain Buy rating and $79 target.
price target raised at Jefferies: Jefferies is increasing its target on AMGN to $76 from $73 after company reported better than expected Q3 earnings. Low inventories of key drugs suggest strong Q4 coming, but legal issues surrounding Mircera should weigh on shares. Reiterated Hold rating.
price target raised at Goldman: Goldman is increasing its target on DVN to $85 from $80 due to favorable leverage to possible rebound in commodity prices. Key catalysts include sanctioning of Cascaded and Jack projects in Gulf of Mexico. Reiterated Buy rating.
estimates raised at Goldman: Goldman is upping its 2006 estimates on HAL to $2.20 from $2.08 after strong Q3 results. See benefits from KBR sale, solid US market, and excessive current discount to peers. Maintain Buy rating and $46 target.
estimates raised at Jefferies: Jefferies is increasing its 2006 estimates on HAL to $2.09 from $1.94 after solid Q3 results fueled by broad geographic strength. Reiterated Buy rating and $50 target.
price target raised at Goldman: Target on Kraft raised to $35 from $32 at Goldman. Slowing operating momentum effects eased by lower than expected interest rate expenses and lower tax rates. Maintained Sell rating.
estimates raised at Piper: Piper is raising its 2007 estimates on NFLX by 13 cents to 91 cents a share following a strong quarter on all metrics. Maintained Outperform rating.
price target increased at Jefferies: Jefferies is upping its target on NFLX to $32 from $30 after company reported solid Q3. See subscriber growth, good execution in competitive environment, and increased guidance. 2006 estimates raised to $0.77 from $0.63 and reiterated Buy rating.
price target raised at Goldman: Goldman is raising its target on TWX to $21 from $17.50 based on 15% EBITDA growth in 2007 and updated outlook on AOL. Maintain Neutral rating.
estimates raised at Credit Suisse: Credit Suisse is raising its 2007 EPS estimates on TXN from $1.89 to $1.92 following in-line 3Q results. Sees favorable outlook based on strong product cycles and high barriers. Maintained $42 target price.
estimates cut at Prudential: Prudential is cutting its 2006 estimates on TXN by a penny to $1.67 a share after quarterly report. Maintained Overweight rating, target price cut to $36.
estimates raised at Jefferies:2006 estimates on WFT increased 6 cents to $2.51 at Jefferies. Middle East and Latin America likely to drive growth for years. Price target lowered to $64 from $65. Reiterated Buy rating.
target increased at Goldman: Price target on XRX upped to $17 from $15 at Goldman. Weak gross margin results negated by cost controls. See increased visibility on margins and continuing stock repurchases. Maintained Neutral rating.