Changes in Ratings

Fannie Mae ( FNM) is downgraded to underweight at Morgan Stanley. Expect the company to boost guidance for credit losses, which could cause another leg down for the stock.

Goodrich Petroleum ( GDP) upgraded to buy at Suntrust Robinson Humphrey, which set a $26 price target. The company offers excellent exposure to the natural gas market, but the stock is trading at two-year lows.

Maxim Integrated Products ( MXIM) is downgraded at Goldman to neutral from buy following an announcement that its financial restatement, stemming from stock option backdating, would be pushed back from Q1 2008 to June. See increased uncertainty in estimates and note weakening analog fundamentals. The price target was trimmed to $27 from $29.

Research In Motion ( RIMM) is upgraded at Oppenheimer to outperform from perform on the basis of lowered expectations and attractive growth profile. Oppenheimer says it believes the company remains best positioned to benefit from global shift to smart phone/PDA devices. Price target at $115.

Sealed Air ( SEE) is upgraded at Wachovia to outperform from market perform based on valuation following recent underperformance. Although plastic resin costs have taken a toll on margins and investor expectations, Wachovia sees $2 a share in earnings power based on current assets. Based on a conservative 15 times multiple, it sees 50% upside.

St. Mary Land ( SM) upgraded at Suntrust Robinson Humphrey to a buy rating with a $49 price target. The stock is within 10% of its 52-week low, and the company offers above-average growth potential.

Under Armour ( UA) downgraded at Wachovia to market perform from outperform after the company lowered first-half 2008 guidance. Wachovia believes sell-throughs and brand momentum remain strong, but inventory increases and uncertainty around launch of cross-trainers have it on the sidelines. Wachovia set a valuation range between $29 and $32.

Wrigley ( WWY) was upgraded at JPMorgan from neutral to overweight. It's a valuation call, as the stock doesn't have the same cost inflation pressures that others in the food industry are feeling. The company also has a sizable overseas presence.

Stock Comments / EPS Changes

AMD ( AMD) price target cut at Goldman to $5 from $6. Fourth-quarter results came in essentially in line, but Goldman sees increasing cash burn driven by lower sales, higher operating expenses and significant capital expenditures. It maintained its sell rating.

Affiliated Managers Group ( AMG) numbers lowered at Jefferies. Price target slashed to $118 from $145, and FY 2008 EPS estimates lowered to $7.85 from $8.00. Jefferies reiterates its buy rating.

Bank of New York ( BK) numbers cut at UBS. Price target slashed to $54 from $57, and FY 2008 EPS estimates lowered to $3.45 from $3.57. UBS reiterates its buy rating.

Clorox ( CLX) estimates cut at Morgan Stanley by 8 cents a share. The company continues to face high commodity costs. Overweight rating and new $75 price target.

Coach ( COH) numbers lowered at UBS. Price target slashed to $48 from $58, and FY 2008 EPS estimates lowered to $2.30 from $2.50. UBS reiterates its buy rating.

Fiserv ( FISV) target raised at Morgan Stanley, which now sees it reaching $60 a share. The Checkfree acquisition should add to earnings over time, and downside appears limited at current levels. Morgan Stanley maintains its equal-weight rating on Fiserv.

Forest Oil ( FST) numbers lowered at Jefferies. Price target slashed to $50 from $55, and FY 2007 EPS estimates lowered to $2.88 from $3.73. Jefferies reiterates its hold rating.

IBM ( IBM) estimates for 2008 are raised at Deutsche Bank by 35 cents to $8.25 a share following strong guidance and earnings visibility. Deutsche maintained its buy rating.

Korn Ferry ( KFY) price target slashed at Goldman, to $8 from $17 based on the slowing economy and increasing unemployment. Goldman sees significant downside potential for current consensus estimates, and it maintained its sell rating.

LifePoint ( LPNT) estimates cut at Deutsche Bank by 17 cents to $2.45 a share to reflect light flu season trends and slower buyback activity. It maintained its hold rating.

Washington Mutual ( WM) price target cut at Goldman to $15 from $17 following major Q4 losses and projected loss in 2008 due to credit deteriorating. 2008 estimates are lowered to a $1-per-share loss from a 5-cent gain. Goldman maintained its neutral rating.

Xilinx ( XLNX) target lowered at Morgan Stanley, to $26. The company has low visibility and will be hurt by the slowing business environment. Equal-weight rating.

Xilinx ( XLNX) estimates raised at Goldman for 2008, following solid Q4 sales and guidance. Goldman recommends shares as a defensive holding in 2008, and it notes strong execution in a difficult macro environment. Goldman maintained its buy rating.
This article was written by a staff member of

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