CHANGE IN RATINGS
coverage initiated at Morgan Stanley with an equalweight rating and $39 rating.
downgraded at Goldman Sachs to Neutral from Buy following management's lowered guidance due to tougher macro conditions and competition. Note limited conviction in current estimates and deteriorating fundamental trends. Price target lowered to $22 from $25.
Fortress Investment Group
initiated at Jefferies with Hold rating. Price target starts at $18.50 and 2008 eps estimates set at $1.30.
( FNM) downgraded to at Credit Suisse to Underperform from Neutral after company announced $7 billion preferred stock offering and cut its dividend. Also believes as credit costs rise the potential for derivative and subprime writedowns exist. Lowered target price to $25 from $50.
downgraded at UBS to Neutral rating from Buy. However, price target lifts to $75 from $69 and FY 2008 eps estimates hold at $3.85
( FRE) downgraded at Credit Suisse to Underperform from Neutral. Believes lack of internal capital generation limits operational flexibility. Lowered target price to $22 from $25.
upgraded at Weisel to Overweight. $33 price target. 2008 PC demand could exceed expectations, driven primarily by emerging markets. Estimates also raised.
downgraded at Deutsche from Buy to Hold. $43.50 price target. All business lines are now facing a cyclical slowdown, which is worsened by the current credit crunch.
initiated at Jefferies with Hold rating. Price target starts at $79 and 2008 eps estimates set at $5.19.
downgraded at Merrill from Buy to Neutral. Valuation call, as the stock is up 33% for the year and trading at 20 times 2008 earnings.
Pepsi Bottling Group
( PBG) rating cut at Goldman to Sell from Neutral based on valuation and soft market share trends. See competitive pressure from Coke adding to current difficulties in U.S., with additional risk from commodity prices. Believe increased marketing spend may be required to improve performance. Target at $38.
initiated at Jefferies with Buy rating. Price target starts at $15 and 2008 eps estimates set at ($1.39).
initiated at Jefferies with Buy rating. Price target starts at $71 and 2008 eps estimates set at $2.83.
upgraded at JP Morgan to Neutral. Company has largely completed the Witness Systems acquisition, and the stock remains inexpensive.
STOCK COMMENTS / EPS CHANGES
price target raised at Goldman to $137 from $128 based on strong Q1 results that included accelerating sales growth and improving margin trends. See initiatives taking hold, most notably commercial per store increased for first time in six quarters. Maintained Neutral rating.
2008 estimates cut at Deutsche Bank to $2.48 a share to reflect lower outlook for Money unit. Maintained Buy rating.
2008 estimates trimmed at Goldman to $2.35 from $2.85. Recent guidance indicates land sales will contribute $0.30 to $0.45 less in EPS in 2008. Maintained Neutral rating and lowered target to $37 from $38.
target slashed at Credit Suisse to $50 from $75 after 2008 guidance was below consensus. Believes all the bad news is now priced in the stock. Maintained Outperform rating.