CHANGE IN RATINGSBroadcom ( BRCM) upgraded at UBS: BRCM upgraded to Buy rating from Neutral at UBS. Maintains current price target and 2007 EPS estimates at $38 and $1.02, respectively. eBay ( EBAY) upgraded at Piper: eBay upgraded from Underperform to Market Perform at Piper Jaffray. $30 price target. Last quarter beat because of forex gains, which are not sustainable. Even so, near-term earnings will be stronger for multiple reasons. eBay price target raised at Goldman: Goldman is increasing its target on EBAY to $40 from $38 due to accelerating year-over-year revenue growth. Q4 results showed accelerating trends, 29% total revenue growth and 32% incremental margin. Reiterated Buy rating. eBay numbers raised at Jefferies: EBAY numbers raised at Jefferies following strong Q4 results. Price target rises to $51 from $45. 2007 EPS estimates bump up to $1.29 from $1.24. Reiterates Buy rating. Emmis Communications ( EMMS) initiated at Morgan Stanley: Morgan Stanley initiates coverage of Emmis Communications at equalweight with a $10 price target. General Dynamics ( GD) downgraded at AG Edwards: GD was downgraded from Buy to Hold at AG Edwards. Stock has run up toward $80, and long lead times in the combat vehicle unit could push some results out toward 2008. Louisiana-Pacific ( LPX) downgraded at Prudential: LPX was downgraded from Overweight to Neutral at Prudential. $25 price target. Estimates also cut, to reflect new lows in OSB prices. Norfolk Southern ( NSC) downgraded at Credit Suisse Credit Suisse is downgrading NSC to Neutral from Outperform following weaker-than-expected Q4 results. Lowered target price from $57 to $53. Trident Microsystems ( TRID) upgraded at Prudential: Prudential is upgrading TRID to an Overweight rating as issues such as inventories, gross margins, and options are being resolved. Varian ( VARI) upgraded at Baird: VARI was upgraded from Neutral to Outperform at Robert Baird. $55 price target. Stronger sales growth has led to leverage gains in two key areas. Company also using its free cash flow to buy back stock.
STOCK COMMENTS / EPS CHANGESAmerisourceBergen ( ABC) numbers raised at UBS: ABC numbers raised at UBS. 2007 EPS estimates rise to $2.58 from $2.53. Price target jumps to $50 from $44. Reiterates Reduce rating. Allegheny Technologies ( ATI) estimates raised at Prudential: Prudential is raising its 2007 estimates on ATI by $1 to $8 a share due to pricing rising more than expected. Maintained Neutral Weight rating. Check Point Software ( CHKP) numbers raised at Jefferies: CHKP numbers raised at Jefferies. Price target upped to $30 from $25. 2007 EPS estimates rise to $1.53 from $1.45. Reiterates Buy rating. Ethan Allen ( ETH) estimates raised at Goldman: 2007 estimates on ETH upped to $2.51 from $2.42 at Goldman. Q2 results came in better than Goldman estimates due to expense control. Maintained Neutral rating and $38 target. Corning ( GLW) added to Focus List at JP Morgan: GLW was added to the Focus List at JP Morgan. $26 price target. Glass price pressure and supply issues have largely been eliminated. Hershey's ( HSY) estimates lowered at Goldman: Goldman is cutting its 2007 estimates on HSY to $2.54 from $2.62 based on disappointing Q4 earnings. See weak top-line trends, higher-than-anticipated obsolescence costs, and slower new product contributions. Price target at $54. Maintained Neutral rating. Intersil ( ISIL) numbers lowered at Jefferies: ISIL numbers lowered at Jefferies. 2007 EPS estimates fall to $1.26 from $1.39 and price target drifts to $28 from $30. Reiterates Buy rating. Intersil estimates lowered at Credit Suisse: Credit Suisse is lowering its 2007 EPS estimates on ISIL to $1.02 from $1.09 following Q4 miss. Lowered target price to $26 from $30. LSI Logic ( LSI) estimates reduced at Goldman: Goldman is slashing its 2007 estimates on LSI to $0.42 from $0.51 after management provided disappointing forward guidance. Company expects seasonal softness to impact all segments. Pending merger of LSI and Agere is progressing towards a close, likely at end of this quarter. Shares not rated by Goldman.
McKesson ( MCK) target price raised at Credit Suisse: Credit Suisse is raising its target price on MCK to $65 from $61. Believes Q3 results will beat estimates and valuation is compelling compared to peers. Maintained Outperform rating.Microsoft ( MSFT) target price raised at Prudential: Prudential is raising its target price on MSFT from $34 to $36 as new products are meeting strong demand. Maintained Overweight rating. OSI Systems ( OSIS) numbers raised at Jefferies: OSIS numbers raised at Jefferies. FY 2008 EPS numbers rise by nearly 40% to $0.90 from $0.65. Price target jumps to $30 from $24. Reiterates Buy rating. Steel Dynamics ( STLD) price target increased at Goldman: Target on STLD raised to $47 from $44 at Goldman. Stronger outlook for second half of 2007 and 2008 based on growth in shipping volumes and product-mix improvement. Expect multiple expansion as investors recognize sustainability of strong steel cycle. Maintained Buy rating. Steel Dynamics numbers raised at UBS: STLD numbers raised at UBS. Price target lifts to $40 from $37. FY 2007 EPS estimates upped to $3.95 from $3.75 and FY 2008 estimates rise to $4.15 from $3.80. Reiterates Neutral rating. Textron ( TXT) price target cut at Goldman: Goldman is cutting its target on TXT to $100 from $105 due to additional costs relating to redesign of Armed Reconnaissance Helicopter. Earnings results showed higher costs in Bell's commercial business. Maintained Neutral rating. Unisys ( UIS) estimates lowered at Goldman: Goldman is cutting its 2008 estimates on UIS to $0.55 from $0.60 due to lower revenue expectations and higher tax rate. Reiterated Sell rating.