CHANGE IN RATINGS
was upgraded from Neutral to Overweight at JP Morgan. Network storage spending should be higher in the coming year. Competitive fears about CSCO have been overdone.
downgraded at Wachovia from outperform to market perform to reflect tougher mortgage conditions and a lack of exposure to international equity issuance.
rated new Overweight at JP Morgan. Company has developed a diverse revenue stream, and should be able to deliver 30%-plus annual growth over the next several years.
coverage reinstated at Goldman Sachs.Goldman is removing its Not Rated designation from EK and now have a Neutral rating on the shares. Key long term issue is how quickly its digital portfolio increases profitability and at what point traditional portfolio stabilizes. Price target at $24.
downgraded at Wachovia to Market Perform from Outperform following announcement of sale of Express division. With this positive event priced in, see risk to second half 2007 estimates due to competitive pressure at Victoria's Secret as well as higher postage costs impacting the catalog business. Price target range of $25 to $27.
downgraded at Citigroup from Buy to Hold. Fundamentals are declining at Victoria Secret. Estimates also cut, to match the company's new guidance. $30 price target.
upgraded at Bear Stearns to peer perform from under perform.
upgraded to Outperform rating from Marketperform at Bear Stearns on a valuation basis. Price target holds at $50 and 2008 EPS estimates shade down to $1.60 from $1.61.
downgraded at CIBC to Sector performer from Sector Outperform based on achievement of CIBC's $37 target. Note that new margin targets set the bar very high going forward. No price target.
downgraded at Piper Jaffray to Marketperform from Outperform. Price target dips to $35 from $39 and 2008 EPS estimates drop to $1.78 from $1.82.
STOCK COMMENTS / EPS CHANGES
Goldman is cutting its 2008 estimates on
to $0.64 from $0.77, based on lower orders and weak guidance. Q1 results were better than expected, but DRAM segment remains weak. See cyclical downturn just beginning. Maintained Sell rating and $14.50 target.
numbers lowered at UBS. Price target dips to $54 from $56 and 2008 EPS estimates drop to $4.07 from $4.15. Reiterates Reduce rating.
cut from Focus List at JP Morgan. Stock is being cut because of the stop-out rule. Fundamentals remain strong, even though the shares have lagged the broader market. Overweight rating.
numbers lowered at Jefferies. Price target dips to $46 from $50 and 2007 EPS estimates drop to $2.58 from $2.70. Reiterates Buy rating.
Home Depot 2008 estimates reduced to $2.58 from $2.67 at Goldman. Q1 results show that turnaround is moving at gradual pace. Weakness due to poor weather, but also gross margins that were below expectations. Price target raised to $43 from $41 based on improving EBIT margin trends and share buyback. Maintained Neutral rating.
numbers raised at UBS. Price target lifts to $64 from $62 and 2008 EPS estimates increase to $2.93 from $2.88. Reiterates Buy rating.