Jabil ( JBL) downgraded at Morgan Stanley: Morgan Stanley downgrades Jabil to equalweight as it believes Jabil will struggle to make consensus numbers for this year due to declining margins. Move ( MOVE) upgraded at JP Morgan: JP Morgan is upgrading MOVE to Neutral from Underweight. Believes new structure and upcoming product enhancements will drive revenue and operating leverage. Nymex ( NMX) rated new Sell at Merrill: NMX was initiated with a Sell rating at Merrill Lynch. Stock has already doubled since its IPO, and trades at a premium valuation to its peers. Company can earn $2.05 a share in 2007. Sovereign Bancorp ( SOV) downgraded at Bear: SOV was downgraded from Peer Perform to Underperform at Bear Stearns. Stock is already pricing in a sale of the company, which will likely not materialize. Recent initiatives will also dilute earnings. Smurfit-Stone ( SSCC) downgraded at Prudential: Prudential downgrades Smurfit-Stone to underweight as it believes cost inflation should offset cost initiatives more than previously thought. Wachovia ( WB) upgraded at Credit Suisse: Credit Suisse is upgrading WB to Outperform from Neutral based on valuation. Raised target price to $64 from $61. Zimmer ( ZMH) upgraded at Wachovia: ZMH was upgraded to Outperform at Wachovia. 2007 guidance could prove conservative, and the company could gain market share from BMET in the near term.
Con-Way ( CNW) estimates lowered at Credit Suisse: Credit Suisse is lowering its 2007 EPS estimates on CNW by 5 cents to $4.00 after company reduced 4Q guidance. Maintained Outperform rating. Home Depot ( HD) target raised at Goldman: Goldman is upping its price target on HD by a dollar to $42 following the resignation of CEO Nardelli. Increase reflects increased likelihood of LBO. Otherwise see minimal impact, with slight negative as management disruption drives execution risk. Maintained Neutral rating. Marvell Technology ( MRVL) numbers lowered at UBS: MRVL numbers lowered at UBS. 2008 EPS estimate drops to $0.55 from $0.57. Price target lowered to $28 from $30. Reiterates Buy rating. Micron ( MU) numbers lowered at UBS: MU numbers lowered at UBS. 2008 EPS estimates drop to $1.35 from $1.45. Price target lowered to $20 from $22. Reiterates Buy rating. Pepsi ( PEP) added to Focus List at JP Morgan: PEP was added to the Focus List at JP Morgan. $75 price target. Recent pullback in the stock has been overdone, as raw materials cost increases have already been priced in. Overweight rating. Tetra Tech ( TTI) numbers lowered at Jefferies: TTI numbers lowered at Jefferies. 2007 EPS estimates drop to $2.15 from $2.25. Price target lowered to $37 from $40. Reiterates Buy rating.