Gap downgraded at Prudential: Prudential said it is downgrading GPS to a Neutral Weight rating as Gap and Old Navy brands continue to struggle. Gap downgraded at Jefferies: Jefferies said it is downgrading GPS from Buy to Hold due to poor fall assortment and lack of near term catalyst. Management lowered 2006 guidance to $1.08 to $1.12 from $1.23 to $1.27. Price target cut to $16.25 from $23. Jones Apparel coverage reinstated at Goldman: Goldman said it is resuming coverage of JNY with a sell rating due to additional downside in stock after failed auction. See poor management credibility, earnings declines, challenging operating environment, and inferior brands adding to downside. Price target at $25. Keycorp downgraded at AG Edwards: KEY was downgraded from Hold to Sell, AG Edwards said. Growth is slowing down, as loan growth diminishes and credit costs are rising. L-3 Communications upgraded at BofA: LLL was upgraded from Neutral to Buy, Banc of America said. Stock had sold off since the passing of Frank Lanza, and the current price appears to offer an attractive entry point. Allscripts downgraded at UBS: UBS said it is downgrading MDRX to Reduce form Neutral based on valuation. Believes now is a good time to take profits following run-up in share price. Maintained $18 target price. MedImmune upgraded at Goldman Sachs: MEDI upgraded to Buy from Neutral, Goldman said. See low investor expectations, a number of possible catalysts, and attractive valuation propelling shares. Target price at $37.
Nektar Thera. upgraded at Morgan Stanley: NKTR was upgraded to Equal-weight, Morgan Stanley said. $18 price target. Stock has underperformed its peers since the approval of Exubera, and the stock is already factoring in a lower sales outlook. Nvidia upgraded at Bear: NVDA was upgraded from Peer Perform to Outperform, Bear Stearns said. $33 price target. Estimates also raised for the third time in a month, and would use any weakness to buy the stock. STMicroelectronics upgraded at Prudential: Prudential said it is upgrading STM to an Overweight rating due to product cycles, shareholder value creation, and margin expansion potential.
Brocade target raised at Goldman Sachs: Goldman said it is upping its price target on BRCD to $6.40 from $6.00 due to better fundamental momentum. See modest price declines for hardware likely resulting in better than expected gross margins. Maintain Neutral rating. Dolby Labs estimates increased at Goldman Sachs: 2007 estimates on DLB increased by 5 cents to $0.74 due to a decrease in effective tax rate, Goldman said. Rate shares Neutral - in spite of above-average growth and returns - due to near-term earnings volatility and limited visibility. Nordstrom estimates raised at Goldman Sachs: 2006 estimates on JWN increased to $2.37 to reflect lower share count from resulting from buybacks. Target price at $36 and stock remains on Americas Sell list. Nordstrom estimates raised at Piper: Piper said it is raising its estimates on JWN by 3 cents to $2.35 a share following solid Q2 report. Maintained Market Perform rating. Limited Brands estimates increased at Goldman Sachs: Goldman said it is upping its 2006 estimates by 2 cents to $1.65 due to updated guidance. Earnings upside driven by improvements at Bath & Body Works. Price target at $28 and Neutral rating. Lyondell target price raised at UBS: UBS said it is raising its target price on LYO to $38 from $34. Believes refinery acquisition provides value. Maintained Buy rating. Marvell estimates cut at Goldman Sachs: Goldman said it is cutting its 2006 estimates on MRVL by 7 cents to $0.53 and reducing price target to $28 from $31. See weaker near-term market conditions and outlook and risk in acquisitions. Maintain Buy rating. Marvell price target cut at Jefferies: Jefferies said it is lowering its target on MRVL by $5 to $25 after disappointing Q2 revenue and reduced guidance. See strength due to multiple product cycles across broad-based product portfolio. Reiterated Buy rating. NRG Energy estimates raised at Goldman: Goldman said it is increasing its 2006 estimates on NRG by 4 cents to $2.76 due to new hedges, lower operating expenses, and share buybacks. Maintain Buy rating and $63 price target.