CHANGE IN RATINGS
initiated with Sector Perform at CIBC. Believes the company is leveraged to several positive secular trends but competition and pricing pressures remain headwinds.
upgraded at Bear Stearns to Outperfrom from Peer Perform based on improved operational outlook and attractive valuation. Sets $95 target price.
downgraded at Baird to a Neutral rating as stock is trading near Phillips' tender offer price.
coverage initiated at BoA with a Neutral rating as restructuring is baked in and catalyst is needed.
upgraded at Goldman Sachs to Buy from Neutral based on international exposure and favorable position in current economic backdrop. Note recent multiple increases in stocks of international and U.S. tobacco company peers. See volume declines offset by price increases and cost savings. Price target raised to $85 from $79.
upgraded at Bear Stearns to Peer Perform from Underperform. Believes shares are more attractively valued relative to peer group.
upgraded at Goldman Sachs to Buy from Neutral. See bottom in shares, which are down 39% since announcement of Merck generics acquisition. Drivers include passing of overhang associated with acquisition, improved global positioning and competitive advantages coming from Merck generics, attractive three-year growth outlook, and defensive characteritics relative to slowing economic backdrop and election uncertainty. Pruice target at $19.
downgraded at Bear to a Peer Perform rating due to startling construction cost and schedule disclosure at Galore Creek.