Wednesday's Analysts' Upgrades and Downgrades - TheStreet

Wednesday's Analysts' Upgrades and Downgrades

Who said what on Wall Street.
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Change in Ratings

Credit Suisse said it is upgrading

Affiliated Computer Services

(ACS)

to Neutral from Underperform based on valuation and completion of options probe. Raised target price to $55 from $50.

Applebee's

(APPB)

upgraded to Hold rating from Underperform at Jefferies. Price target and 2007 EPS estimate hold at $18 and $1.15, respectively.

Credit Suisse said it is upgrading

Bear Stearns

(BSC)

to Outperform from Neutral based on strength in environment and belief that cycle is not over. Raised target price to $190 from $172.

Goldman said it is downgrading

1-800-Flowers

(FLWS) - Get Report

to Sell from Neutral based on valuation. Believe 2008-2011 revenue growth above 5% is unlikely and that current share price may reflect an overly optimistic outlook for Valentine's Day, Easter and Mother's Day. Maintained $6.50 target.

Harris

(HRS)

was downgraded from Overweight to Neutral, JP Morgan said. RF outlook is slowing into fiscal 2008, and the stock has already enjoyed a solid run.

King Pharma

(KG)

was upgraded from Underweight to Neutral, JP Morgan said. Stock appears fairly balanced at current levels, though investors should remain on the sidelines, until there's more clarity on the Altace and Skelaxin franchises.

Rating on

Nasdaq Stock Market

I:IXIC

was boosted from Underweight to Neutral, Prudential said. $30 price target. Company posted strong fourth-quarter results, and the failure of the LSE bid is largely already priced into the stock.

Goldman said it is cutting its target on NDAQ to $35 from $40 after management provided weaker-than-expected 2007 guidance. Reduced outlook indicates lower confidence in cash equities growth and concern about competition. See continuing risk to volumes and market share. Maintained Neutral rating.

NDAQ was downgraded from Outperform to Sector Perform, CIBC said. Failure of the LSE deal hurts two of the company's potential profits drivers. Estimates also cut through 2008.

Omnicom

(OMC) - Get Report

was downgraded from Buy to Hold, Deutsche Bank said. $105 price target. 2007 estimate raised, but for nonoperating reasons. Organic growth also expected to decelerate in the first half of 2007.

Goldman said it is downgrading

VeraSun

(VSE)

to Sell from Neutral based on relative valuation. Stock trades at premium to Goldman's Replacement Cost Value (RCV) while shares of

Aventine

appear more attractive trading lower than RCV. Target on VSE cut to $11 from $19.

Waste Connections

(WCN) - Get Report

was downgraded to Neutral, JP Morgan said. Estimates also cut for the higher expected tax rate and share count. Market is already pricing in a better pricing environment.

XTO Energy

(XTO)

was upgraded from Neutral to Overweight, JP Morgan said. Company has hedged the majority of its 2007 energy production at considerably higher levels. Even so, the stock trades at an 18% discount to its NAV.

Stock Comments/EPS Changes

2007 estimates on

Applied Materials

(AMAT) - Get Report

increased to $0.93 from $0.83 following solid fourth-quarter results. Earnings driven by higher-than-expected gross margins, lower expenses, lower taxes and a lower sharecount. Maintained Sell rating due to continuing view that the order environment will deteriorate significantly over coming quarters.

Campbell Soup

(CPB) - Get Report

target upped at UBS. New price target shades up to $41 from $40. Reiterates Neutral rating.

Allscripts Healthcare

(MDRX) - Get Report

target upped at Jefferies. New price target rises to $33 from $28. Reiterates Buy rating.

Morgan Stanley raises 2007 and 2008 EPS estimates for

Schering-Plough

(SGP)

. Maintains $29 price target.

SPSS

(SPSS)

target upped at Jefferies. New price target rises to $34 from $27. Reiterates Hold rating.