Forest Labs ( FRX) upgraded at Goldman Sachs to Neutral from Sell following 27% decline over past 11 months. Fundamental challenges are now priced into shares, including looming patent expirations and uncertain pipeline catalysts. Price target lowered to $42 from $45. Heidrick & Struggles ( HSII) downgraded at Merrill Lynch from Buy to Sell. Earnings also cut, because of lower expected business growth in the US. Iron Mountain ( IRM) upgraded at Merrill from Neutral to Buy. Company would be one of the least affected by a US recession, which is already priced into the stock. Kaydon ( KDN) downgraded at Deutsche Bank from Buy to Hold. Valuation call, based on a $58 price target. Macro environment could also become more challenging in the coming quarters. Kelly Services ( KELYA) upgraded at Merrill Lynch from Sell to Neutral. Valuation call, even though considerable earnings risk remains. Korn/Ferry ( KFY) downgraded at Merrill from Neutral to Sell. Estimates also cut, to reflect the threat of a US recession. Koppers Holdings ( KOP) downgraded at Jefferies to Hold rating from Buy. Price target and 2008 EPS estimates hold at $37 and $2.45, respectively. Kansas City Southern ( KSU) upgraded at UBS to Buy rating from Neutral. However, price target and FY 2008 EPS estimates lowered to $1.81 from $1.86 and $41 from $40, respectively. Manpower ( MAN) downgraded at Merrill from Buy to Neutral. Estimates also cut, because of lower expected US business growth.
Markel ( MKL) upgraded at Goldman Sachs to Neutral from Sell based on book value growth. Shares have traded at a premium to the Non-Life Insurance sector for years now, and Goldman believes this premium will remain. Price target at $530. Marsh & McLennan ( MMC) coverage reinstated at Goldman with a Sell rating. Remain concerned over struggles within brokerage operations and potential for future earnings disappointments. Expect stock to at best trade sideways over next 12 months. Price target at $25. Research in Motion ( RIMM) downgraded at Bear Stearns downgraded from Outperform to Peer Perform. Valuation call, based on the new $81 price target. Macro risks are also rising. Thornburg Mortgage ( TMA) upgraded at Friedman, Billings Ramsey from Underperform to Outperform. Recent capital injection solidified liquidity, and net interest margin should move back over 1% by the end of the year. $14 price target. Tyco ( TYC) upgraded at Deutsche Bank from Hold to Buy. $52 price target. Stock has 20% upside potential, as its revenue is not tied to the overall economy and the company should be able to deliver consistent earnings growth.
Forest Labs ( FRX) numbers lowered at Jefferies. Price target drops to $43 from $51.50 and FY 2008 EPS estimates dips to $3.11 from $3.14. Reiterates Hold rating. Kohl's ( KSS) numbers lowered at UBS. Price target slashed to $69 from $87, while FY 2008 EPS estimates hold at $3.90. Reiterates Buy rating. Perini ( PCR) numbers lowered at UBS. Price target drops to $65 from $71 and FY 2008 EPS estimates dips to $3.00 from $3.25. Reiterates Neutral rating. Yahoo! ( YHOO) called Top Pick at Bear Stearn. $30 price target. Stock has several potential catalysts, and will operate a more conservative model over the next couple of years.