CHANGE IN RATINGSACCO Brands ( ABD) downgraded at Credit Suisse: Credit Suisse is downgrading ABD to Neutral from Outperform. Expects 2007 results to be lighter than expected. Lowered target price to $26 from $28. AmeriCredit ( ACF) initiated at Jefferies: ACF initiated with Hold rating at Jefferies. Price target starts at $28. FY 2007 EPS estimates set at $2.66 and FY 2008 EPS estimates at $2.87. Aflac ( AFL) upgraded at SunTrust: AFL was upgraded from Neutral to Buy, at Suntrust Robinson Humphrey. Japan sales should ramp back up in the second half of the year, and the company remains on track to generate 15% earnings growth in 2007. CH Robinson ( CHRW) upgraded at JP Morgan: CHRW was upgraded from Neutral to Overweight at JP Morgan. Company posted solid fourth quarter growth, and the non-asset model can still generate solid returns in a slow trucking market. EchoStar Communications ( DISH) upgraded at Morgan Stanley: Morgan Stanley upgrades EchoStar Communications from equalweight to overweight and raised its price target from $40 to $44. Dick's Sporting Goods ( DKS) downgraded at Credit Suisse: Credit Suisse is downgrading DKS to Neutral from Outperform based on valuation. Maintained $55 target price. Frontier Oil ( FTO) upgraded at Credit Suisse: Credit Suisse is upgrading FTO to Neutral from Underperform based on valuation. Raised target price to $31 from $28. Getty Images ( GYI) upgraded at Bear: GYI was upgraded from Peer Perform to Outperform at Bear Stearns. $60 price target. Current valuation is already pricing in potential market share erosion. In the meantime, the company continues to generate significant cash flow. Kellogg ( K) downgraded at JP Morgan: Rating on K was cut to Neutral at JP Morgan. See little room for P/E growth in 2007, given the company's conservative outlook. Kellogg price target cut at Goldman: Goldman is reducing its target on K to $54 from $56 due to reduced margin expectations following Q4 results. Better than expected revenues were offset by gross margin pressure related to input cost inflation and higher SG&A costs. Maintained Neutral rating. Kinetic Concepts ( KCI) upgraded at Deutsche: KCI was upgraded from Hold to Buy at Deutsche Bank. $58 price target. VAC business appears to be performing well, and the new CEO will likely help diversify the revenue stream. Current valuation also appears attractive. Manitowoc ( MTW) downgraded at Baird: MTW was downgraded from Outperform to Neutral at Robert Baird. $56 price target. Crane order growth slowed last quarter, and Foodservice once again came in short of expectations. Office Depot ( ODP) downgraded at Credit Suisse: Credit Suisse is downgrading ODP to Neutral from Outperform. Believes expectations are overly optimistic. Lowered target price to $41 from $48. O'Reilly Automotive ( ORLY) upgraded at Credit Suisse: Credit Suisse is upgrading ORLY to Outperform from Neutral based on improving sales trends, lower gas prices and rising minimum wage. Raised target price to $38 from $36.
E.W. Scripps ( SSP) downgraded at Goldman Sachs: Goldman is downgrading SSP to Neutral from Buy to reflect reduced near-term visibility and lower confidence that the company will take steps to reduce its exposure to the troubled newspaper industry. 2007 estimates cut to $2.41 from $2.53. Tekelec ( TKLC) downgraded at UBS: TKLC downgraded to Hold rating from Buy at Jefferies. Price target drops to $16.75 from $17.50 with expected 2007 EPS at $0.55.
STOCK COMMENTS / EPS CHANGESAlign Technologies ( ALGN) numbers raised at Jefferies: ALGN numbers raised at Jefferies. Price target lifts to $14 from $11. 2007 EPS estimates jump to $0.17 from $0.05. Reiterates Hold rating. Amylin Pharma ( AMLN) estimates lowered at Goldman: Goldman is cutting its 2007 estimates on AMLN to $(1.66) from $(1.02) due to higher operating expenses. Q4 results were inline with expectations. Maintained Buy rating and $59 target. Burger King ( BKC) price target increased at Goldman: BKC target raised to $23 from $20 at Goldman. Company reiterated 2007 guidance, unit development goals, and 2007 same-store-sales targets of 2% to 3%. Expect continuing solid top line momentum to drive margins, despite labor, utilities and rent pressures. Maintained Neutral rating. Countrywide ( CFC) estimates cut at Prudential: Prudential is cutting its 2007 estimates on CFC by 25 cents to $4.55 a share. Maintained Underweight rating. Colgate-Palmolive ( CL) target increased at Goldman: Target on CL upped to $77 from $75 at Goldman. Company reported healthy Q5 results, including strength in margins and volume. Maintained Buy rating. Walt Disney ( DIS) price target raised at Goldman: Goldman is increasing its target on DIS to $41 from $38 based on expectations for double-digit operating income growth through 2009. See increased syndication, stronger Studio performance, and an increase in Theme park attendance assumptions. Maintained Buy rating. Electronics for Imaging ( EFII) numbers lowered at UBS: EFII numbers lowered at UBS. Price target drops to $30 from $32. 2007 EPS estimates bump down to $1.15 from $1.17. Reiterates Buy rating.
Illinois Tool Works ( ITW) numbers raised at UBS: ITW numbers raised at UBS. Price target lifts to $52 from $49. 2007 EPS estimates raised to $3.30 from $3.25. Reiterates Neutral rating. Kinetic Concepts ( KCI) numbers raised at Jefferies: KCI numbers raised at Jefferies. Price target jumps to $51 from $39. 2007 EPS estimates upped to $3.27 from $2.90. Reiterates Hold rating. Lexmark ( LXK) numbers lowered at UBS: LXK numbers lowered at UBS. Price target drops to $67 from $76. 2007 EPS estimates fall to $3.90 from $3.85. Reiterates Neutral rating. 3M ( MMM) price target slashed at Goldman: Goldman is cutting its target on MMM following Q4 earnings miss. Largest shortfall was in display and graphics group which includes LCD film business. Reduced 2007 estimates to $4.60 from $4.90 due to operating factors and increased dilution expectations from sale of pharma group. Maintained Neutral rating. 3M numbers lowered at UBS: MMM numbers lowered at UBS. Price target drops to $90 from $100. 2007 EPS estimates fall to $4.80 from $5.20. Reiterates Buy rating. Paccar ( PCAR) numbers raised at UBS: PCAR numbers raised at UBS. Price target lifts to $62 from $58. 2007 EPS estimates raised to $4.20 from $4.00. Reiterates Reduce rating. SanDisk ( SNDK) estimates lowered at Goldman: 2007 estimates on SNDK cut to $1.80 from $2.15 at Goldman. Company reported solid Q4, but gave Q1 sales guidance below expectations. Estimates also negatively affected by integration of lower margin M Systems business. Maintained Neutral rating and $46 target. Websense ( WBSN) estimates cut at Credit Suisse: Credit Suisse is lowering its 2007 EPS estimates on WBSN to 57 cents from 69 cents after Q4 gross billing and revenues fell short of estimates. Lowered target price to $26 from $29. Wyeth ( WYE) estimates cut at Prudential: Prudential is cutting its 2007 estimates on WYE by 6 cents to $3.44 a share following disappointing Q4 earnings. Maintained Neutral Weight rating. U.S. Steel ( X) price target raised at Goldman: Goldman is upping its target on X to $113 from $104 due to benefits of lower pension costs. See improvement in steel demand and pricing by Q2 of this year. Maintained Buy rating.