F5 Networks ( FFIV) was upgraded from Market-weight to Overweight, Thomas Weisel said. Growth is accelerating in the core markets, and the BigIP product is also gaining momentum. Estimates also raised. Health Management ( HMA) was downgraded to Underperform, Raymond James said. Company warned of lower fourth quarter results, and the valuation appears lofty, despite the balance sheet recapitalization. J.C. Penney ( JCP) was upgraded to Overweight, JP Morgan said. Stock also added to the Focus List, with a $104 price target. Recent meeting with management suggests that margins could move higher on the back of the increased private label mix. Lam Research ( LRCX) was downgraded from Outperform to Peer Perform, Bear Stearns said. Company warned of a shipment delay, and would wait for a pullback to $45 before buying the stock. CIBC said it is downgrading Lam Research to Sector Performer based on valuation. Sees 10%-20% stock correction based on a retrenchment in DRAM orders. Morgan Stanley initiates coverage of McClatchy ( MNI) with an equalweight rating and a $40 price target. Goldman said it is downgrading Mylan Labs ( MYL) to Neutral from Buy based on greater opportunity seen in other names (Teva). See attractive valuation and support from oxybutynin ER and fentanyl. Target price at $25. Credit Suisse said it is upgrading Open Text ( OTEX) to Outperform from Neutral. Believes restructuring plan will improve margins near-term. Raised target price to $28 from $19.
Parker Hannifin ( PH) downgraded to Market Perform rating from Outperform, Wachovia said. However, 2007 EPS estimates raised to $6.80 from $6.50. 2008 EPS estimates also upped to $7.25 from $7. Pactiv ( PTV) was downgraded to Market Perform, Wachovia said. Stock is up 65% over the psat year, and is already pricing in strong 2007 results. Rare Hospitality ( RARE) was downgraded to Neutral, JP Morgan said. Company continues to face rising labor and beef costs, which could offset the recent restructuring efforts. Safeco ( SAF) was downgraded from Market Perform to Underperform, Friedman Billings Ramsey said. Stock is up 24% since April, and the company's fundamentals are relatively weaker than its peers. $55 price target. Sirius Satellite ( SIRI) was upgraded from Underperform to Peer Perform, Bear Stearns said. Stock appears oversold on Wednesday's comments out of the FCC. Even so, many hurdles remain ahead of a potential merger with XMSR. Wachovia said it is upgrading Silgan Holdings ( SLGN) to Outperform based on rising food can prices and lower resin costs. See 21% discount to packaging sector narrowing over time. Valuation range of $50 to $51. SRA International ( SRX) was downgraded from Overweight to Neutral, JP Morgan said. Offshore IT services companies should likely outperform the domestic Federal contractors over the next several quarters. Civilian agency budgets are down, and contract awards have been delayed. Goldman said it is upgrading Teva Pharmaceuticals ( TEVA) to Buy from Neutral based on valuation. See improving business mix and passing of key macro concerns of 2006 helping drive shares furing 2007. Target price raised to $41 from $40.
Tribune ( TRB) was downgraded from Overweight to Underweight, Prudential said. $30 price target. Auction to sell the entire company largely failed, and the newspaper industry fundamentals remain poor.