CHANGE IN RATINGS
downgraded at Oppenheimer to Neutral from Buy. The company has meaningfully scaled back branch expansion plans for 2007, and regulatory actions against the company are forthcoming.
upgraded at Credit Suisse to Outperform from Neutral. Cites shares offer compelling risk/reward for investors after recent pullback. Raised target price to $50 from $49.
initiated at Morgan Stanley with an overweight rating and $52 price target.
upgraded at Bernstein to Outperform. The company's competitive position remains strong with forecasted optical component growth resuming after the current inventory / lean manufacturing programs at systems houses reach maturity. $18 price target with above-consensus estimates unchanged.
Pier 1 Imports
upgraded at Goldman Sachs to Buy from Neutral based on new management team with a turnaround plan as well as increased shareholder vocalism. See potential for labor cost savings and clearing of excess inventory. Price target get raised to $10.50 from $7.50.
upgraded at JP Morgan from Neutral to Overweight. Company posted a solid quarter recently, and should be able to sustain higher margins. The balance sheet also remains steady.
downgraded at Bear Stearns from Outperform to Peer Perform. Stock is within 5% of the $122 price target, and demand in the key end markets continue to moderate.
STOCK COMMENTS / EPS CHANGES
2007 estimates cut at Goldman to $5.00 from $6.00 following lower than expected guidance. Management cautioned that lower shipment volume and high scrap costs will weigh on second half of this year. Believe volume will recover and see multiple expansion as earnings prove sustainable. Maintained Buy rating.
numbers lowered at Jefferies. Price target lowered to $116.25 from $117.25 and 2008 EPS drops to $2.65 from $2.75. Reiterates Buy rating.