CHANGE IN RATINGSAsset Acceptance ( AACC) initiated at Jefferies with Hold rating. Price target starts at $10 and 2008 EPS estimates begin at $0.90. Best Buy ( BBY) downgraded at Bear to Underperform. Slowdown in the product cycle will likely pressure margins. Company may also lose market share to discounters. Stocks is also not pricing in macro risks. Salesforce.com ( CRM) upgraded at UBS to Buy rating from Neutral. Price target jumps to $70 from $55 and 2008 EPS estimates hold at $0.14. Salesforce.com downgraded at Goldman to Sell from Neutral based on valuation in a somewhat slower macro environment for IT and software spending. Maintained $51 price target. El Paso ( EP) upgraded at Wachovia from Market Perform to Outperform. Company has a large backlog of organic growth projects. E&P portfolio should also help uncover value. Goodrich ( GR) downgraded at Deutsche Bank to a Hold rating due to growing caution on commercial auto. Target price cut to $73. Health Management Assoc. ( HMA) upgraded at Wachovia from Market Perform to Outperform. Accelerating growth, margin expansion and asset sales could drive multiple expansion. Estimates also raised. Eli Lilly ( LLY) upgraded at Morgan Stanley to Equal-weight. $52 price target. $52 price target. Company has solid near-term earnings visibility and a 3.5% dividend yield, though the late-stage pipeline remains soft. Landstar Systems ( LSTR) upgraded at Bear from Peer Perform to Outperform. $52 price target. Company is approaching an inflection point for accelerating growth.
Orbcomm ( ORBC) downgraded at UBS to Neutral rating. Price target cut to $6.25 from $14 and 2008 EPS estimates dip to $(0.15) from $(0.11). Portfolio Recovery ( PRAA) initiated at Jefferies with Hold rating. Price target starts at $41 and 2008 EPS estimates begin at $3.41. Shuffle Master ( SHFL) downgraded at Deutsche Bank to a Hold rating with a lowered target price of $10. Transition to new business model to take longer than expected which will depress EPS and growth. Tibco Software ( TIBX) downgraded at Goldman Sachs to Sell from Neutral due to limited upside in challenged IT spending environment. See buyers moving away from expensive, best-of-breed offerings and toward bundled packages from IBM, Oracle and others. Price target cut to $8 from $9. Vulcan Materials ( VMC) upgraded at UBS to Neutral rating from Sell. Price target cut to $74 from $85 and 2007 EPS estimates dip to $4.93 from $4.96. Verisign ( VRSN) downgraded at Morgan Stanley to Underweight. Company will struggle to restructure in an uncertain environment.
STOCK COMMENTS / EPS CHANGESFirst Solar ( FSLR) target boosted at Morgan Stanley, now seen reaching $275 a share. Company should benefit from the weaker dollar. Overweight rating. Altria ( MO) price target raised at Goldman to $89 from $85 based on recent increase in peer group multiples. Note that stock continues to look undervalued vs. peers, and expect upcoming PMI spinoff to bring valuations in line with rest of market. Maintained Buy rating.
Sovereign Bancorp ( SOV) target price cut at Deutsche Bank from $14 to $8 to reflect credit quality uncertainties, and commercial business.