Hertz Global ( HTZ) upgraded at Morgan Stanley to Equal-weight. $16 price target. Stock is down 45% from its 2007 highs, and management will likely announce more cost cuts at the upcoming conference call. Mosaic Co. ( MOS) upgraded at Goldman Sachs to Buy from Neutral in light of recessionary environment in 2008. Believe agricultural/fertilizer stocks offer best opportunity in chemical sector. With global grain prices at record levels, expect fertilizer pricing momentum to remain strong this year. Price target at $120. Mylan ( MYL) upgraded at Morgan Stanley from Equal-weight to Overweight. $20 price target. Market is too pessimistic about growth, following the purchase of MRK's generic business. Pharmaceutical Product Dev. ( PPDI) 2008 estimates raised at FBR by 19 cents to $1.89 a share following issuance of guidance. Maintained Outperform rating. Pharmaceutical Product Dev. upgraded at UBS to Buy rating from Neutral. Price target upped to $55 from $45 and FY 2008 eps estimates lift to $1.83 from $1.70. PPG Industries ( PPG) downgraded at Goldman Sachs to Neutral from Buy in conjunction with lowered outlook for industrial names sensitive to petrochemical feedstock pricing. Target cut to $75 from $80. Praxair ( PX) upgraded at Goldman Sachs to Buy from Neutral. See favorable position in both chemicals and industrial gas spaces, with limited exposure to volatile petrochemical feedstock prices. Target raised to $102 from $96.
Reynolds American ( RAI) upgraded at UBS to Buy rating from Neutral. Price target jumps to $80 from $66 and FY 2008 eps estimates lift to $4.88 from $4.91. Freightcar America ( RAIL) downgraded at Keybanc from Buy to Hold. Company is likely to suffer from the recent weakness in the domestic coal market. Estimates also cut. Rohm & Haas ( ROH) downgraded at Goldman Sachs to Neutral from Buy, based on potential recession in U.S. and exposure to petrochemical feedstock prices. Believe economically-sensitive names will face continuing pressures on economic front as well as from oil prices. Price target reduced to $57 from $64. Shutterfly ( SFLY) downgraded at Jefferies to Hold rating from Buy. Price target and 2008 eps estimates hold at $30 and $0.50, respectively. Supervalue ( SVU) upgraded at UBS to Neutral rating from Sell. Price target cut to $30 from $35 and FY 2008 eps estimates upped to $2.74 from $2.70.
Dow Chemical ( DOW) price target lowered at Goldman to $45 from $52 based on weak economic outlook. See cyclical chemical companies facing difficulties in 2008 in challenging industrial environment. Family Dollar ( FDO) price target cut at Goldman to $21.25 from $25. Q1 earnings were solid but 2008 guidance was revised to the downside. Note competitive pricing at Wal-Mart and lower margins. Maintained Neutral rating. Fortress Investment Group ( FIG) target cut at Credit Suisse to $27 from $29. Cites that stock is down 40% over past three months and price under $15 represents solid long-term opportunity. Maintained Outperform rating. Genzyme ( GENZ) target price raised at Deutsche Bank to $90 after announcement of positive preliminary Q4 revenues. Maintained Buy rating. St. Jude Medical ( STJ) 2008 estimates raised at FBR by 3 cents to $2.20 a share based on increased confidence in clinician survey data. Maintained Outperform rating. Tenneco ( TEN) target trimmed at Goldman to $27 from $33 based on negative effects on automotive sector stemming from deteriorating economic forecasts. Maintained Buy rating.