StreetNotes: A Daily Roundup of Street Research
CHANGE IN RATINGS
Aeropostale
downgraded at Suntrust:ARO was downgraded from Buy to Neutral, Suntrust Robinson said. Higher inventory levels could lead to higher markdowns for apparel in the second half of the year.
F5 Networks
upgraded at Janney Montgomery: FFIV was upgraded from Neutral to Buy, Janney Montgomery said. Stock has sold off hard since reporting the June quarter, and can reach $45-$46 a share. Win rate should remain competitive, along with end-market demand.
Hewlett-Packard
upgraded at First Albany: HPQ was upgraded from Neutral to Buy, First Albany said. New CEO is conservative, and should be able to execute his turnaround strategy. $28 price target.
Hewlett-Packard
upgraded at Bear:Bear said it is upgrading HPQ to an Outperform rating with a target price of $35. Reflects history of turnarounds and CEO Hurd's legacy at NCR, expected to unlock value at HPQ.
Hewlett-Packard
estimates raised at CSFB: CSFB said it is raising its 2005 estimates on HPQ by 9 cents to $1.55 a share after the company delivered a solid quarter. Maintained Neutral rating.
Hewlett-Packard
estimates upped at Morgan Stanley:Morgan Stanley said it is increasing its estimates on HPQ for the full year to $1.52 a share from $1.49 a share. Revenue and EPS beat expectations and guidance didn't disappoint.
LabOne
downgraded at BofA:BofA said it is lowering its rating on LABS to Neutral in the aftermath of the Quest merger announcement.
Scotts Miracle-Gro
upgraded at Suntrust:SMG was upgraded from Neutral to Buy, Suntrust Robinson Humphrey said. $95 price target. Cost-cutting should improve earnings, especially for the Smith & Hawken division.
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Transmeta
downgraded at AG Edwards: TMTA was downgraded from Hold to Sell, AG Edwards said. Valuation call, as the stock has doubled in the past week.
VF Corp.
upgraded at UBS:UBS said it is increasing its rating on VFC to Buy from Neutral. Target raised to $71 a share on renewed confidence in Jeanswear division and its prospects after meeting with management.
STOCK COMMENTS / EPS CHANGES
American Eagle
estimates lowered at Goldman: Goldman said it is lowering its estimates on AEOS for 2005 to $1.98 a share from $2 a share. Maintained Inline rating.
Applied Materials
numbers lowered at Smith Barney: Smith Barney said it is lowering its estimates on AMAT for the full year 2006 to $1.11 a share from $1.16 a share. Maintained Buy rating.
Applied Materials
estimates raised at CSFB: CSFB said it is raising its 2005 estimates on AMAT by 2 cents to 63 cents a share. Maintained Neutral rating.
Abercrombie & Fitch
estimates cut at Prudential: Prudential said it is cutting its 2006 estimates on ANF by 21 cents to $3.15 a share due to weak margins and EPS numbers. Maintained Underweight rating.
Abercrombie & Fitch
estimates lowered at UBS: UBS said it is lowering its estimates on ANF for the full year to $3.20 a share from $3.33 a share. Second quarter raises more questions than answers.
Borders
estimates lowered at J.P. Morgan: BGP 2005 estimate cut to $1.60 a share, J.P. Morgan said. Company has been too aggressive with second-half guidance, and should see flat comp sales growth in the coming quarters. Underweight rating.
BJ's Wholesale Club
estimates raised at CSFB: CSFB said it is raising its 2006 estimates on BJS by 5 cents to $1.84 a share. Maintained Underperform rating.
Bisys Group
estimates cut at Jefferies: Jefferies said it is cutting its 2006 estimates on BSG by 3 cents to 78 cents a share to account for slower growth expectations.
CACI International
estimates cut at Jefferies: Jefferies said it is cutting its 2006 estimates on 25 cents to $2.91 a share. Maintained Hold rating.
Celanese
estimates increased at Morgan Stanley: Morgan Stanley said it is increasing its estimates on CE for 2005 to $2.02 a share from $1.89 a share. Maintained Overweight rating.
Chicago Merc.
target cut at Jefferies: Jefferies said it is cutting its target price on CME to $300 after CBOT announced it wouldn't merge with CME.
Deere
estimates cut at Bear: Bear said it is cutting its 2005 estimates on DE by 64 cents to $5.70 share after earnings miss. Maintained Outperform rating.
Deere
numbers cut at Goldman: Goldman said it is lowering its estimates on DE for the full year to $5.69 a share from $6.06 a share.
Dick's Sporting Goods
estimates cut at Piper: Piper said it is cutting its 2005 estimates on DKS by 13 cents to $1.72 a share to reflect lower guidance. Maintained Market Perform rating.
Estee Lauder
estimates lowered at Smith Barney: Smith Barney said it is lowering its estimates on EL for the full year 2006 o $2.26 a share from $2.48 a share. Target cut to $49 a share from $50 a share. Big price appreciation today reflected investors letting out a huge sigh of relief on the quarter.
Home Depot
estimates raised at Morgan Stanley: Morgan Stanley said it is increasing its estimates on HD for 2005 from $2.48 a share to $2.53 a share. Second quarter results reinforce view that home improvement remains a good space to play within its coverage universe.
J.C. Penney
estimates raised at Bear: Bear said it is raising its 2005 estimates on JCP by 2 cents to $3.28 a share to reflect strong Q2 numbers. Maintained Outperform rating.
Nordstrom
estimates cut at BofA: BofA said it is raising its estimates on JWN for 2005 to $1.86 a share from $1.80 a share. Company raised guidance.
Nordstrom
estimates lowered at Goldman: Goldman said it is lowering its estimates on JWN for the full year to $1.79 a share from $1.89 a share. Upside was driven by better than expected gross margin.
Nordstrom
estimates raised at CSFB: CSFB said it is raising its 2006 estimates on JWN by 7 cents to $1.82 a share due to strong sales trends. Maintained Neutral rating.
Regal Entertainment
estimates cut at CSFB: CSFB said it is cutting its 2005 estimates on RGC by 8 cents to 78 cents a share due to weak box office results. Maintained Outperform rating.
TJX
estimates lowered at UBS: UBS said it is cutting its TJX estimates for 2006 to $1.43 a share from $1.49 a share. Company lowered guidance though. Maintained Neutral rating.
