Apria ( AHG) downgraded at Deutsche Bank to a sell rating due to concerns that Medicare reimbursement rates will be lower on competitive bidding. Aeropostale ( ARO) downgraded at Citigroup from hold to sell, with a $24 price target. Inventory levels are building, especially women's, which could hurt near-term margins. Lincare ( LNCR) downgraded at Deutsche from hold to sell, with a $24 price target. Company facing increased competition, and Medicare reimbursement rates may be reset lower. Medco Health Solutions ( MHS) upgraded at Goldman to buy from neutral based on valuation. Believes shares are attractive following 23% decline from early January highs. Maintained $59 target price. Sonic Automotive ( SAH) upgraded at Goldman to buy from neutral based on valuation. Cites stock is priced at a discount to peers despite delivering strong operating results last quarter. Sets $23 target price. Staples ( SPLS) removed from Buy List at Goldman and now rates the stock neutral. Believes prospects are still bright but outlook is largely reflected in price. Maintained $25 target price. Vishay ( VSH) upgraded at Merrill from sell to neutral. Estimates cut, to reflect slower demand, but the company still has considerable opportunities to cut costs.
Stock Comments/EPS Changes
Corning ( GLW) 2008 estimates raised at Deutsche Bank by 4 cents to $1.82 a share due to healthy global LCD demand and declining dollar.