Change in Ratings Aeropostale ( ARO) upgraded at Citigroup to Hold from Sell based on recent decline below target price of $27. Note strong relative September results and see potential for market share gains. Duke Energy ( DUK) upgraded at Goldman Sachs to Neutral from Sell based on expected resolution of Ohio ratemaking process, defensive positioning and high dividend yield. Price target at $18. DreamWorks ( DWA) upgraded at Jefferies to Buy from Hold. Maintains 2008 EPS estimates of $1.65 and price target of $33. Advanced Medical Optics ( EYE) downgraded at Jefferies to Underperform from Buy based on macroeconomic pressures that are likely to affect U.S. and overseas Lasik volumes. Cuts target price to $9 from $28. Huntsman ( HUN) upgraded at UBS to Buy from Neutral. Fiscal 2009 EPS estimates lowered to $0.85 from $0.95. Price target lowered to $13 from $13.50. Intel ( INTC) downgraded at ThinkPanmure to Sell from Buy. Sees prior growth drivers fading and multiple macro and company-specific headwinds which should slow growth. Lowered target to $12 from $24. MasterCard ( MA) downgraded at Deutsche Bank to Hold from Buy based on lowered outlook for global economy. See risk to guidance if conditions continue to deteriorate into recession. Note company's strong position in payment space and ability to protect earnings via pricing power, but prefer Visa ( V). Price target cut to $200 from $350. Public Storage ( PSA) upgraded at Wachovia to Outperform from Underperform. Believe strong balance sheet provides security in current credit environment. See further potential downside in real estate valuation, and PSA could become an acquirer.
Stock Comments/EPS Changes Apple ( AAPL) target cut at Oppenheimer to $145 from $213. However, sees considerable value at these levels. Maintained Outperform rating. Amazon.com ( AMZN) target trimmed at Goldman to $93 from $98 due to weakness in euro and sterling, along with some expectations for slower consumer spending. Expect company to take market share given low pricing and weakness at competitors. Maintained Buy rating. Chico's FAS ( CHS) target cut at Credit Suisse to $6 from $8 following weak Q2 results. Cites longer-term value in brands and strong balance sheet should help manage company through current challenges. Maintained Outperfrom rating. Brinker ( EAT) price target lowered at Goldman to $13 from $16 following preannouncement of weak Q1 earnings and 25% cut to earnings outlook for 2009. Expect bar and grill segment to see ongoing sales pressure due to oversupply and threat of nontraditional competitors. Maintained Sell rating.