Analysts' Actions: A Daily Roundup of Street Research

CHANGE IN RATINGS

Airtran downgraded at Raymond James:AAI was downgraded to Market Perform, Raymond James said. Company has benefited greatly from capacity reductions, especially in Atlanta, though record-high fuel costs will continue to cut into profits.

Franklin Resources upgraded at AG Edwards:BEN was upgraded from Hold to Buy, AG Edwards said. Organic growth should begin to improve by early 2007. Management has also been aggressive in buying back stock.

Bristol-Myers downgraded at JP Morgan:BMY was downgraded from Overweight to Neutral, JP Morgan said. Uncertainties around the ongoing investigation could hang over the stock for some time.

Celestica upgraded at Credit Suisse:Credit Suisse said it is upgrading CLS to Neutral from Underperform following solid 2Q results and guidance. Maintained $10 target price.

Conexant Systems downgraded at Credit Suisse:Credit Suisse said it is downgrading CNXT to Underperform from Neutral based on muted revenue growth and limited margin expansion. Lowered target price to $1.75 from $3.50.

Embarq Corp upgraded at Morgan Stanley:Morgan Stanley said it is upgrading EQ to Overweight from Equal-weight following strong 1Q results. Believes company trades at a discount to peers. Maintained $53 target price.

Equinix upgraded at Citigroup:EQIX was upgraded from Hold to Buy, Citigroup said. $67 price target. New centers are now online, and the company is entering a positive sales cycle.

Expedia downgraded at Weisel:EXPE was downgraded from Outperform to Peer Perform, Thomas Weisel said. Estimates also lower, as the core hotel business continues to deteriorate.

Harrah's downgraded at Merrill:HET was downgraded to Neutral, Merrill Lynch said. Future growth will be more expensive than previously though, and the company has aggressive spending plans over the next three years. Estimates also cut.

Lubrizol upgraded at Jefferies:Jefferies said it is upgrading LZ to Buy from Hold due to margin expansion, 15% estimated earnings growth and free cash flow yield. Price target increased to $50 from $45.

Massey Energy downgraded at Credit Suisse:Credit Suisse said it is downgrading MEE to Neutral from Outperform following extremely disappointing 2Q results. Lowered target price to $30 from $45.

NCR downgraded at Merrill:NCR was downgraded to Neutral, Merrill Lynch said. Estimates also cut, as ATM margins are not likely to recover as quickly as expected.

Penn Gaming upgraded at Jefferies:Jefferies said it is upgrading PENN to Buy from Hold based on valuation. Target lowered to $40 from $43.75.

Rockwell Automation downgraded at Merrill:ROK was downgraded from Neutral to Sell, Merrill Lynch said. Estimates also lowered, because of cyclical risks. Sale of the Power Systems business will also dilute earnings.

Tidewater downgraded at Jefferies:TDW downgraded to Hold from Buy, Jefferies said. See plateauing OSV dayrates in 2007 limiting growth potential. Price target cut to $52 from $65.

Tellabs downgraded at Baird:TLAB was downgraded from Outperform to Neutral, Robert Baird said. $12 price target. Company cut guidance, as its book-to-bill fell below 1.0 in the quarter.

Tellabs estimates reduced at UBS:UBS lowered its 2006 estimates on TLAB a penny to $0.57 and 2007 estimates to $0.57 from $0.68 on disappointing guidance. Maintained Neutral rating and $15 price target.

Western Digital downgraded at Bear:WDC was downgraded from Outperform to Peer Perform, Bear Stearns said. Company reported mixed second quarter results, and near-term market share gains no longer appear as likely.

XM Satellite downgraded at CIBC:XMSR was downgraded to Sector Perform, CIBC said. Company cut subscriber guidance, and there's little visibility regarding the FCC resolution.

STOCK COMMENTS / EPS CHANGES

AirTran estimates raised at UBS:UBS raised its 2006 estimates on AAI to $0.77 from $0.65 and 2007 estimates to $1.21 from $1.10. Maintained Buy rating and $19 price target.

Applied Biosystems estimates reduced at UBS:UBS lowered its 2007 estimates on ABI to $1.31 from $1.33 after the company's lackluster EPS guidance. Maintained Reduce rating and $28 price target.

American Electric Power estimates raised at Jefferies:Jefferies said it is increasing its 2006 estimates on AEP by 7 cents to $2.80 after the company increased guidance. Price target raised to $42.50 from $42 and reiterated Buy rating.

Aetna outlook revised at UBS:UBS raised its 2006 estimates on AET six cents to $2.77 but lowered its price target to $45 from $50. Maintained Buy rating.

Apache outlook cut at Morgan Stanley:Morgan Stanley said it is lowering its 2006 EPS estimates on APA to $7.18 from $7.92 after company revised production guidance. Lowered target price to $88 from $90.

Airgas estimates raised at Goldman:Goldman said it is raising its 2006 EPS estimates on ARG by 2 cents to 47 cents following solid F1Q results and positive outlook. Maintained Neutral rating.

Airgas estimates raised at UBS:UBS raised 2007 estimates on ARG to $1.85 from $1.81 and 2008 estimates to a nickel to $2.10. Maintained Neutral rating and $40 price target.

Cameron Int'l target increased at Jefferies:Jefferies said it is upping its price target on CAM to $70 from $60 based on continuing secular subseas trends and rising demand for drilling equipment. Reiterated Buy rating.

Chesapeake Energy estimates raised at UBS:UBS raised its 2006 estimates on CHK to $8.25 from $8 and 2007 estimates to $9.15 from $9 after the company reported strong second quarter results. Maintained Buy rating and $39 price target.

Comcast target price raised at Goldman:Goldman said it is raising its target price on CMCSA to $36 from $32 based on strong performance at the core systems. Maintained Neutral rating.

Dow Chemical estimates lowered at Goldman:Goldman said it is lowering its 2006 EPS estimates on DOW to $4.30 from $4.65 following uninspiring 2Q results and guidance. Lowered target price to $37 from $40.

Dow Chemical price target lowered at UBS:UBS lowered its price target on DOW to $50 from $60, 2006 estimates to $4.25 from $5.15 and 2007 estimates to $5 from $6. The company reported second quarter earnings eight cents below the Street's estimates. Maintained Buy rating.

Digital River estimates raised at Credit Suisse:Credit Suisse said it is raising its 2006 EPS estimates on DRIV by 2 cents to $1.75 following better than expected 2Q results. Also raised target price to $59 from $56. Maintained Outperform rating.

Goodrich estimates raised at UBS:UBS raised 2006 estimates on GR to $3.57 from $3.53 and 2007 estimates to $3 from $2.85. Maintained Buy target and $54 price target.

Harrah's Entertainment estimates cut at Morgan Stanley:Morgan Stanley said it is lowering its 2006 EPS estimates on HET to $3.62 from $3.88 after 2Q results fell short of estimates. Lowered target price to $88 from $91.

US Airways outlook revised at UBS:UBS raised its price target on LCC to $67 from $62. 2006 estimates were reduced to $6.93 from $7.97 but 2007 estimates were upped to $6.98 from $5.72. Maintained Buy rating.

McAfee target lowered at Jefferies:Jefferies said it is cutting its price target on MFE by $1 to $21 due to operating margin weakness and downward guidance. Reiterated Underperform rating.

McAfee outlook cut at Credit Suisse:Credit Suisse said it is lowering its 2006 EPS estimates on MFE by 7 cents to $1.37 due to ongoing operating expenses. Lowered target price to $35 from $38.50.

Mohawk Industries price target raised at UBS:UBS upped its price target on MHK to $90 from $87 and 2006 estimates to $6.30 from $5.83. Second quarter earnings were better than expected. Maintained Buy rating.

Northrup Grumman estimates raised at UBS:UBS upped its 2006 estimates on NOC to $4.55 from $4.40. Second quarter earnings beat estimates but guidance looks conservative. Maintained Neutral rating and $70 price target.

Northnup Grumman target raised at Jefferies:Jefferies said it is increasing its price target on NOC to $68 from $60 due to upward guidance, share repurchase program, and focus on operating performance. Reiterated Hold rating.

Omnicare target cut at Jefferies:Jefferies lowered its price target on OCR by $10 to $60 after company lowered guidance. See strategic initiatives reducing costs and improving efficiency. Reiterated Buy rating.

Freightcar America price target raised at UBS:UBS raised its price target on RAIL to $80 from $78. 2006 estimates were upped to $9.70 from $6.75 and 2007 estimates raised to $8 from $7.10. Maintained Buy rating.

Royal Caribbean estimates reduced at UBS:UBS lowered its 2006 estimates on RCL a penny to $2.77 and 2007 estimates to $2.93 from $2.94. Profitability could be hurt by interest rates, fuel costs and wage fluctuations. Maintained Neutral rating and $43 price target.

Gibraltar Industries outlook raised at Goldman:Goldman said it is raising its 2006 EPS on ROCK to $2.32 from $2.15 on the back of strong steel prices and demand environment. Raised target price to $29 from $27.

Raytheon estimates raised at UBS:UBS upped its 2006 estimates on RTN five cents to $2.75. Maintained Neutral rating and $53 price target.

Raytheon target increased at Jefferies:Jefferies said it is raising its price target on RTN to $48 from $42 due to continued growth and improvement in RTN's operations. Reiterated Hold rating.

Southern Company estimates lowered at UBS:UBS lowered its 2006 estimates on SO to $2.07 and 2007 estimates to $2.20 from $2.22. The estimates exclude synfuel earnings. Maintained Neutral rating and $34 price target.

Western Digital estimates raised at Credit Suisse:Credit Suisse said it is raising its 2007 EPS estimates on WDC by 4 cents to $1.78 following solid 4Q results. Maintained Outperform rating.

Wendy's estimates raised at UBS:UBS raised its 2006 estimates on WEN to $2.41 from $2.37. Maintained Buy rating ant $75 price target.

XM Satellite outlook revised at UBS:UBS lowered its 2006 estimates on XMSR to -$2.61 from -$2.30 but raised 2007 estimates a penny to $1.78. Price target was lowered o $12.50 from $13 and reiterated Neutral rating.

ExxonMobil estimates raised at Morgan Stanley:Morgan Stanley said it is raising its 2006 EPS estimates on XOM by 5 cents to $6.05 following better than expected 2Q results. Maintained Outperform rating.

ExxonMobil estimates lowered at UBS:UBS lowered its 2006 estimates on XOM to $6.32 from $6.44 and 2007 estimates to $6.93 from $7 on more moderate downstream assumptions. Maintained Neutral rating and $69 price target.

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