Change in Ratings

AK Steel ( AKS) downgraded at Goldman Sachs to Sell from Neutral based on significant ownership by hedge funds, fixed cost structure and high sensitivity to steel prices. Note high exposure to auto markets and to contract business and believe hedge-fund selloff may add pressure. Price target cut to $15 from $53.

CACI International ( CAI) downgraded at JP Morgan from Overweight to Neutral. Valuation call. Stock has been the best performer in the group, and is subject to changing political winds.

Commercial Metals ( CMC) upgraded at Goldman Sachs to Buy from Neutral based on valuation. Note company's diversified business model, vertical integration and geographic diversification. Price target cut to $13 from $36.

Dynegy ( DYN) downgraded at UBS to Neutral from Buy. Fiscal 2009 EPS estimates lowered to 19 cents from 28 cents. Price target lowered to $2.50 from $8.

Harris ( HRS) upgraded at JP Morgan from Underweight to Neutral. Stock has underperformed and is already pricing in a slowdown in the RF business.

Eli Lilly ( LLY) downgraded at Credit Suisse to Neutral from Outperform. Says ImClone deal increases risk profile and sees challenges ahead. Lowered target price to $42 from $56.

Pactiv ( PTV) upgraded at JP Morgan from Neutral to Overweight. Estimates also raised, to reflect the drop in resin prices. Company can grow earnings and gain market share despite the current environment.

Ruby Tuesday ( RT) downgraded at Credit Suisse to Neutral from Outperform. Believes macro risks have increased markedly and balance sheet offers little room for error vs. guidance. Lowered target price to $9 from $11.

Steel Dynamics ( STLD) downgraded at Goldman Sachs to Neutral from Buy based on potential downside to near-term earnings. Company's FIFO accounting makes it unlikely that it will benefit from lower scrap costs. Also note company's high leverage. Target cut to $11 from $34.

U.S. Steel ( X) downgraded at Goldman Sachs to Neutral from Buy based on high sensitivity to steel prices. See near-term earnings pressure resulting from plummeting spot prices around the world, with 2009 contracts also potentially below expectations. Price target cut to $56 from $182.

Stock Comments/EPS Changes

Affiliated Managers Group ( AMG) numbers lowered at Jefferies. 2008 EPS estimates lowered to $6.15 from $6.75. Price target lowered to $90 from $110. Maintains Buy rating.

IBM ( IBM) numbers lowered at Merrill. IBM estimates cut through 2010. Company is being hurt by its currency exposure. Neutral rating and new $118 price target.

Invesco ( IVZ) numbers lowered at Jefferies. 2008 EPS estimates lowered to $1.45 from $1.57. Price target lowered to $24 from $29. Maintains Buy rating.

Microsoft ( MSFT) numbers cut at Morgan Stanley. Shares now seen reaching $29. Estimates also cut, to reflect lower PC forecasts. Equal-weight rating.

Priceline.com ( PCLN) target slashed at Goldman to $100 from $145 based on stronger dollar and weaker outlook for global travel spending. Believe shares already discount near-term earnings weakness. Maintained Buy rating.

T. Rowe Price ( TROW) numbers lowered at Jefferies. 2008 EPS estimates lowered to $2.24 from $2.35. Price target lowered to $52 from $60. Maintains Hold rating.

This article was written by a staff member of TheStreet.com.

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