CHANGE IN RATINGSAmerican Oriental ( AOB) initiated at Jefferies with Buy rating. Price target starts at $20 with FY 2008 eps estimates set at $0.81. Aon ( AOC) upgraded at Goldman Sachs to Buy from Neutral based on earnings growth and lack of exposure to mortgage crisis. See 13% earnings growth in 2008, with modest topline growth as company benefits from MMC's problems. Price target at $56. Credicorp ( BAP) initiated at Morgan Stanley with an overweight rating and $97 price target. BB&T ( BBT) upgraded at Oppenheimer from Sell to Neutral. Remain cautious on the group, but the company has an attractive balance sheet and sports an attractive dividend yield. Circuit City ( CC) downgraded at JP Morgan from Overweight to Neutral. The company will likely struggle for the next couple of quarters and a turnaround would require deep pockets, potentially from a strategic partner. Dick's Sporting Goods ( DKS) upgraded at Citigroup from Hold to Buy. Valuation call, as private label initiatives should help boost margins. $37 price target. Dick's Sporting Goods target raised at Goldman to $32 from $31. Q3 earnings came in above expectations, showing market share momentum, unique product offerings, and better inventory control. Maintained Neutral rating. Gorman-Rupp ( GRC) downgraded at Friedman, Billings Ramsey from Market Perform to Underperform. There is downside risk potential to 2008 earnings. $32 price target.
Hibbett Sports ( HIBB) downgraded at CIBC from Outperform to Sector Perform. Estimates also cut, as same-store sales and the EBIT margin are expected to shrink over the coming quarters. Nova Chemicals ( NCX) upgraded at UBS to Buy rating from Neutral. Price target holds at $41 and FY 2008 eps estimates dip to $3.20 from $3.75. Office Depot ( ODP) downgraded at Bear to Peer Perform. Turnaround initiatives could disrupt near-term sales. Stock is not at a trough valuation, and the company lacks potential catalysts. Office Depot numbers slashed at Jefferies. Price target drops to $18.50 from $23 and FY 2008 eps estimates lowered to $1.53 from $2.10. Reiterates Hold rating. Orient-Express ( OEH) upgraded at UBS to Buy rating from Neutral. Price target and FY 2008 eps estimates hold at $61.50 and $1.67, respectively. Pinnacle Entertainment ( PNK) coverage initiated at Goldman with a Buy rating. See solid returns from casino business that is less capital-intensive. Note December St. Louis opening and February referendum on Baton Rouge opportunity. Price target at $35. Wyndham Worldwide ( WYN) upgraded at Weisel from Market-weight to Overweight. Company has a strong balance sheet and decent growth prospects. Timeshare business also not yet priced into the stock.