Skip to main content

Tuesday's Analysts' Upgrades and Downgrades

Who made what calls.
  • Author:
  • Publish date:

CHANGE IN RATINGS

Big 5 Sporting Goods

(BGFV) - Get Big 5 Sporting Goods Corporation Report

downgraded at Credit Suisse to Underperform from Neutral. Sees exposure to California market as a drag short-term. Raised target price to $24 from $20.50.

Burlington Northern

(BNI)

downgraded at UBS to Neutral rating from Buy at UBS. FY 2007 EPS estimates lowered to $5.58 from $5.65 and price target holds at $97.

Coverage of

Clearwire

(CLWR)

was started with an Overweight rating at Morgan Stanley. $28 price target. Company is an attractive pure-play in the expanding wireless broadband market.

Clearwire was initiated with a Peer Perform rating and $19 price target at Bear Stearns. New market launches should drive growth, though the company still faces tough competition in spite of its higher wireless speeds.

Costco

(COST) - Get Costco Wholesale Corporation Report

was upgraded from Market Perform to Outperform at Piper Jaffray. $65 price target. Stock has hidden value in its real estate and membership fees. 2008 estimates also raised, to reflect the prospect of higher margins.

Cott

(COT) - Get Cott Corporation Report

TheStreet Recommends

upgraded at Deutsche Bank from Sell to Hold. $16 price target. Potential combination with Cadbury would create significant value. Fundamental outlook otherwise remains weak.

Endo Pharma

(ENDP) - Get Endo International Plc Report

downgraded to Market Perform at Friedman, Billings Ramsey. Stock is within 10% of the $34 price target, and the prospect of generic competition for Lidoderm is still hanging over the company.

Eaton

(ETN) - Get Eaton Corp. Plc Report

was downgraded from Outperform to Market Perform at Friedman, Billings Ramsey. Estimates raised to reflect the company's strong quarter, but the stock already reflect the growth potential. $93 price target.

Magna

(MGA) - Get Magna International Inc. Report

was downgraded from Buy to Neutral at Merrill Lynch. Risk/reward has become less attractive if the company goes along with the Chrysler acquisition.

PetSmart

(PETM)

was downgraded from Outperform to Neutral at Robert Baird. $36 price target. Stock is up 20% on the year, and poor weather and the pet food recall could put a damper on first quarter results.

Zoran

(ZRAN)

upgraded to Buy rating from Hold at Jefferies. Price target jumps to $24 from $14 and 2007 EPS estimates rise to $1.00 from $0.70.

STOCK COMMENTS / EPS CHANGES

Citigroup

(C) - Get Citigroup Inc. Report

numbers upped at Morgan Stanley. Shares of C now seen reaching $60. Estimates also raised, to reflect cost cuts. Overweight rating.

Goldman is increasing its 2007 estimates on Citigroup by 10 cents to $4.50, based on solid Q1 results showing modest credit deterioration and positive investment banking results. Maintained Neutral rating and $59 target.

CBS

(CBS) - Get CBS Corporation Class B Report

estimates trimmed for 2008 and 2009 at Morgan Stanley. Broadcast ratings remain weak. Equal-weight rating and $35 price target.

Credit Suisse is raising its target price on

Express Scripts

(ESRX)

to $102 from $95 based on better-than-expected growth this year and an accelerated share repurchase. Maintained Outperform rating.

WW Grainger

(GWW) - Get W.W. Grainger, Inc. Report

numbers boosted at Morgan Stanley through 2008. Industrial activity remains strong, and the company is realizing improved operating leverage. Underweight rating and new $81 price target.

Eli Lilly

(LLY) - Get Eli Lilly and Company Report

price target increased at Goldman to $64 from $62, based on better than expected volume growth trends and operating leverage. Q1 results showed 7% volume growth in U.S. and guidance indicates expectation for improved operating margin this year vs. last. Maintained Buy rating.

Wachovia

(WB) - Get Weibo Corp. Report

numbers boosted at Morgan Stanley through 2008 because of a lower tax rate. Equal-weight rating and new $61 price target.

Credit Suisse is reducing its 2007 EPS estimates on

Werner Enterprises

(WERN) - Get Werner Enterprises, Inc. Report

to $1.15 from $1.20 following disappointing Q1 results. Maintained Underperform rating.

STRATEGY CALLS / MARKET CALLS

3 Stent companies upgraded at Bernstein:

BSX

,

MDT

and

STJ

were upgraded from Market Perform to Outperform at Bernstein. ICD market should accelerate from negative growth to double-digit expansion by the end of the year.

2 Satellite TV stocks upgraded at Cowen:

DTV

and

DISH

were upgraded from Underperform to Neutral at Cowen. Competitive threats from telecom giants remain, though the companies continue to throw off lots of free cash flow.