Parker Hannifin ( PH) upgraded at CIBC from Underperform to Sector Perform. Company is realizing higher margins in the International Industrial segment. SunTrust ( STI) upgraded at Bernstein from Underperform to Market Perform. $80 price target. Stock is down 18% over the past 6 months, and is beginning to look attractive as a potential takeover target. Teradyne ( TER) upgraded at JP Morgan from Neutral to Overweight. Fourth quarter should mark a business trough, and the stock is down 25% from its July highs. Talbots ( TLB) downgraded at CIBC from Outperform to Sector Perform. Current weakness in the Missy space suggest that second half expectations are too high. Torchmark ( TMK) upgraded at Merrill from Neutral to Buy. $76 price target. Valuation does not reflect highly predictable earnings and cash flow. Terra Industries ( TRA) downgraded at Merrill from Buy to Neutral. Valuation call, though 2008 estimates are being raised to reflect higher cornbelt nitrogen prices. UnitedHealth ( UNH) downgraded at JP Morgan from Overweight to Neutral. Earnings growth is slowing, and integration and service issues persist. Vertex ( VRTX) downgraded at Cowen from Outperform to Neutral. Lack of conviction that telaprevir will retain its best in class profile. Wesco International ( WCC) downgraded at CIBC from Outperform to Sector Perform. $51 price target. Company posted a good quarter, but poor sales visibility leads to an uncertain margin outlook.
Baxter ( BAX) 2007 numbers boosted at Morgan Stanley to $2.77 a share. Company delivered a solid quarter, and margins remain robust. Overweight rating and new $64 price target. Continental Airlines ( CAL) estimates, target cut at Morgan Stanley through 2009. Loads are flat, and the company is having trouble keeping a lid on costs. Equal-weight rating and new $42 price target. JP Morgan ( JPM) 2008 estimates cut at Morgan Stanley to $4.95 a share. M&A and leveraged loans will cut into earnings. Still, the stock should outperform its peers. Overweight rating and $59 price target. PMC Sierra ( PMCS) estimates, target upped at Morgan Stanley. PMCS now seen reaching $12 a share. Estimates also raised, as the component vendors continue to see positive order trends. Overweight rating. Sunpower ( SPWR) estimates raised at Morgan Stanley through 2009. Large projects driving earnings. Spanish tariff structure may also become more favorable. Overweight rating. Time Warner ( TWX) target lowered at Morgan Stanley to $24 a share. AOL and cable expected to post lower earnings. Overweight rating. Xilinx ( XLNX) 2009 numbers increased at Morgan Stanley. September quarter sales were weak, but the company is keeping a lid on costs. Equal-weight rating and new $30 price target.