ADC Telecom ( ADCT) upgraded at UBS to buy from neutral on cheap valuation metrics. Price target and fiscal-year 2008 EPS estimates hold at $19.50 and $1.08, respectively. Albermarle ( ALB) downgraded at Oppenheimer from outperform to perform. Oppenheimer cut 2008 estimates 15% to reflect surprise lower polymer additives and fine chemicals results. Arris Group ( ARRS) upgraded at UBS to buy from neutral. Price target and fiscal-year 2008 EPS estimates hold at $11.50 and 81 cents, respectively. Con-way ( CNW) upgraded at JPMorgan from neutral to overweight. JPMorgan said the stock should outperform in a cycle of heavy interest rate easing by the Fed. 2008 guidance also looks conservative. Disney ( DIS) downgraded at Citigroup from hold to sell, with a $26 price target. Estimates were also cut, as parks spending will likely fall in 2008. Estee Lauder ( EL) upgraded at UBS to buy from neutral. Price target lifts to $52 from $41, and fiscal-year 2008 EPS estimates upped to $2.40 from $2.36. Leap Wireless ( LEAP) downgraded at Wachovia to underperform. Wachovia said a distribution survey shows that customer trends remain challenging. Estimates also cut. McDonald's ( MCD) target price cut at Deutsche Bank from $66 to $60 due to lower market multiples and weakness in U.S. comps. Maintained buy rating. McDonald's also downgraded at Bear from outperform to peer perform. Bear Stearns said slower U.S. sales could hurt earnings, though the stock may be cushioned by its dividend yield. McDonald's price target lowered at Goldman to $65 from $68, based on fourth-quarter results that showed U.S. slowdown and sales below trend. View selloff as attractive entry point. Maintained buy rating. Nymex ( NMX) downgraded at Citigroup from buy to hold. Citigroup has a $119 price target. Not likely that anyone will come in and outbid CME ( CME) for the company. Novell ( NOVL) upgraded at Oppenheimer from perform to outperform. Oppenheimer has an $8 price target. Company has been successful with its restructuring, and can double its operating margin in 2008. Novell upgraded at Jefferies to buy from hold. Price target lifts to $7.50 from $7, and fiscal-year 2008 EPS estimates upped to 23 cents from 22 cents. New York Times ( NYT) downgraded at Wachovia from market perform to underperform. Wachovia estimates were also cut, as checks showed that advertising continued to fall in January. Potash ( POT) upgraded at Morgan Stanley from underweight to equal-weight. Morgan Stanley has a $120 price target. Company is seeing much higher fertilizer prices, and management has pledged to buy back 5% of the shares outstanding. Virgin Media ( VMED) upgraded at Citigroup from hold to buy. Citigroup has a $20 price target. Stock is down 50% since the summer, and is already pricing in fundamental challenges.
Stock Comments/EPS Changes
Halliburton ( HAL) estimates trimmed at Goldman to $2.81 from $3.00 based on more conservative outlook on North America stimulation pricing and higher corporate expenses. Note limited visibility into stabilization of North American prices. Maintained neutral rating, and lowered target to $38 from $40. Mosaic ( MOS) numbers raised at Morgan Stanley to $85. Estimates also raised, as the company is realizing higher fertilizer prices. Equal-weight rating. Sandisk estimates cut at Deutsche Bank by 12 cents to $1.46 a share as prior growth estimates were too aggressive. Maintained hold rating. Tyson ( TSN) estimates cut at Morgan Stanley. TSN now seen earning 14 cents a share in 2008, according to Morgan Stanley. Company is looking to pass along higher grain costs, but will not likely be able to do it quickly enough. Underweight rating and $12 price target. VMWare ( VMW) estimates cut at Deutsche Bank by 4 cents to $1.11 a share to reflect soft license revenue growth guidance. Maintained hold rating. Zoran ( ZRAN) estimates cut at Deutsche Bank by 82 cents to 53 cents a share to reflect weakening industry fundamentals.