Change in Ratings Apple ( AAPL) downgraded at UBS to Neutral from Buy. Price target lowered to $115 from $125. Fiscal 2009 EPS estimates lowered to $5.20 from $5.60. AmerisourceBergen ( ABC) initiated at Jefferies with a Buy rating and $39 price target. Introduces 2008 EPS estimates of $2.85. AK Steel ( AKS) upgraded at Goldman Sachs to Neutral from Sell. Note that shares have rebounded sharply as markets recovered, and shares have historically outperformed peers during extreme volatility. Price target raised to $16 from $15. CF Industries ( CF) downgraded at JP Morgan from Overweight to Neutral. Stock has come down a lot, but the slower economy and tight credit market could continue to weigh on valuation. Estimates also cut. Coventry Health ( CVH) downgraded at JP Morgan from Neutral to Underweight. Estimates also slashed, to reflect higher medical costs. Coventry Health target cut at Credit Suisse to $27 from $42 following weak Q3 results. Sees further margin pressure. Maintained Outperform rating. GATX ( GMT) downgraded at Piper from Buy to Neutral. $35 price target. Estimates also cut, to reflect an accelerated slowdown in the domestic economy. Lexmark ( LXK) upgraded at Citigroup from Hold to Buy. $37 price target. Estimates also raised, as management will follow Hewlett-Packard ( HPQ) by raising ink prices 5%. Scripps Networks ( SNI) downgraded at UBS to Sell from Neutral. 2008 EPS estimates lowered to $1.68 from $1.74. Price target lowered to $26 from $43. Steel Dynamics ( STLD) upgraded at Goldman Sachs to Buy from Neutral based on attractive valuation. Despite high debt level, see no reason for liquidity concerns based on strong cash flow. Price target raised to $15 from $11.
Tellabs ( TLAB) upgraded at UBS to Buy from Neutral. 2008 EPS estimates raised to $0.19 from $0.18. Maintains $4.50 price target. Torchmark ( TMK) upgraded at Merrill to Buy. Company has less leverage than its peers, and no toxic paper on its sheets. $71 price tagret. U.S. Steel ( X) downgraded at Goldman Sachs to Sell from Neutral based on fixed cost structure, high sensitivity to steel prices and deteriorating markets in the U.S. and Europe. Price target cut to $42 from $56. Stock Comments/EPS Changes Amylin ( AMLN) price target cut at Goldman to $30 from $35 based on higher discount rate to reflect higher market risk premium. Note that Q3 results included solid Byetta sales and a global LAR supply agreement with Eli Lilly ( LLY). Maintained Buy rating. Illumina ( ILMN) price target lowered at Goldman following Q3 earnings that were slightly below expectations due to lower gross and operating margins. Maintained Neutral rating. Lockheed Martin ( LMT) target lowered at Credit Suisse to $100 from $125. Cites low 2009 guidance overshadowed solid Q3 results. Maintained Neutral rating. Sherwin-Williams ( SHW) numbers raised at Morgan Stanley. Shares now seen reaching $62. Estimates also raised, to reflect lower oil costs and tight expense controls. Overweight rating.