Change in Ratings Caterpillar ( CAT) downgraded at Merrill Lynch to Neutral from Buy. Price target lowered to $41 from $76. Fiscal 2009 EPS estimates lowered to $4.10 from $6.80. Coca-Cola Enterprises ( CCE) upgraded at Goldman Sachs to Neutral from Sell based on easing comparisons, more benign commodity outlook and improved take-home profitability. Note attractive valuation on 2009 earnings estimates and solid free cash flow yield. Price target at $11. Fortress Investment Group ( FIG) upgraded at Citigroup to Hold from Sell. Price target lowered to $4.75 from $9.00. 2008 EPS estimates lowered to $0.45 from $0.47. Juniper Networks ( JNPR) upgraded at Oppenheimer to Outperform from Perform. Introduces $22 price target. 2008 EPS estimates are $1.19. Pepsi Bottling Group ( PBG) upgraded at Goldman Sachs to Neutral from Sell following recent selloff. See attractive valuation of 8 times 2009 earnings and note attractive free cash flow yields. Price target lowered to $27 from $31 Boston Beer ( SAM) downgraded at Goldman Sachs to Sell from Neutral due to slowing demand trends and potential earnings misses. Slower traffic in bars and restaurants could result in decelerating volume, making premium valuation of 18x-19x times 2009 earnings estimates difficult to maintain. Price target cut to $35 from $41. T. Rowe Price ( TROW) upgraded at Wachovia to Outperform. 2008 EPS estimates raised to $2.30 from $2.17. Stock Comments/EPS Changes ITT ( ITT) numbers cut at Morgan Stanley. Shares now seen reaching $48. Estimates also cut to reflect the company's new guidance. Equal-weight rating.
L-3 Communications ( LLL) target cut at Credit Suisse to $95 from $113 due to market weakness. Maintained Neutral rating after in-line Q3 results. Xerox ( XRX) price estimates cut at Goldman. 2009 estimates cut to $1.04 from $1.32. Expect weakening industry demand and negative effects of strengthening dollar to remain headwinds. Maintained Neutral rating based on strong free cash flow generation. Price target lowered to $9 from $15. Strategy Calls/Market Calls Morgan Stanley cuts numbers on three wireless tower stocks. Estimates and price targets were cut across the board for American Tower ( AMT), Crown Castle ( CCI) and SBA Communications ( SBAC). Debt costs are rising, and the weak macro environment will weigh on results. Maintain Attractive industry rating. Four biotech stocks downgraded at Morgan Stanley. Onyx ( ONXX), Medicines ( MDCO) and Affymax ( AFFY) were downgraded to Underweight. Companies will need significant capital over the next year or two, which will be hard to come by. Rating on Amylin ( AMLN) was also cut from Overweight to Equal-weight. Aerospace/defense sector downgraded at Morgan Stanley from Attractive to In-Line. Raytheon ( RTN) and Rockwell Collins ( COL) were also downgraded. Stocks should be flat to down in the fourth quarter.