TheStreet.com Ratings: Stock Upgrades, Downgrades

Perrigo and Xyratex upgraded; Syniverse downgraded and ratings initiated on Hughes.
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Each weekday, TheStreet.com Ratings updates its ratings on the stocks we cover. Our model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our buy, hold or sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.

While our model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Some recent rating changes are highlighted below.

TheStreet.com Ratings has initiated coverage of satellite broadband provider

Hughes Communications

(HUGH)

with a hold rating. The company's revenue has risen considerably over the past fiscal year and the stock price has jumped 53.7% over the past 12 months. On the other hand, earnings plummeted to 50 cents per share in the fourth quarter of fiscal 2006 compared with $6.23 the same quarter a year ago.

Syniverse

(SVR)

has been downgraded to a sell from a hold. The company provides wireless technology services to telecommunications companies, powering features such as data roaming and caller ID. The company's stock price has fallen 24.4% over the past year. Although earnings per share have shown a pattern of growth over the past two years, TheStreet.com Ratings does not expect this trend to continue. Syniverse had been rated a hold since November 2006.

Data storage and network technology provider

Xyratex

(XRTX)

has been upgraded to a buy from a hold. The company's net income grew 57.1% in the first quarter of fiscal 2007 compared to the same quarter a year ago. Revenue has also been on the rise and appear to have helped boost earnings per share. Xyratex had been rated a hold since March 2006.

Perrigo

(PRGO) - Get Report

has been upgraded to a buy from a hold. The company makes over-the-counter pharmaceutical and nutritional products. The company was able to achieve a positive return on equity of 10.27% in the second quarter of fiscal 2007. In the same quarter a year ago, Perrigo had a negative return of 57.5%. TheStreet.com Ratings feels the company is poised for earnings per share growth in the coming year. Perrigo had been rated a hold since July 2006.