CHANGE IN RATINGSAdobe Systems ( ADBE) upgraded at UBS from Sell to Neutral. $18 price target. Valuation call, even as estimates were also cut, based on channel checks. Aeropostale ( ARO) upgraded at Goldman Sachs to Buy from Neutral based on valuation and stabilization in mall traffic trends. Believe company's reputation for value, which is a major plus with budget-focused shoppers. Price target raised to $25 from $22.
J.P. Morgan ( JPM) upgraded to Outperform at Keefe, Bruyette & Woods. $30 price target. Valuation call, as earnings could outperform its peers in the coming quarters. Kohl's ( KSS) upgraded at Goldman Sachs to Neutral from Sell sue to passing of negative catalysts. Consensus estimates for 2009 have declined significantly, and valuation appears less stretched. Price target unchanged at $32. Steel Dynamics ( STLD) upgraded at Morgan Stanley to Overweight. $15 price target. Company is a low-cost producer, and trades at a 40% discount to NUE. State Street ( STT) downgraded at Goldman Sachs to Neutral from Buy based on further potential for securities write-downs. Note that company has not been aggressive in recognizing securities losses. Expect earnings to suffer by about $1 per year in both 2009 and 2010. Price target at $25. Tyco ( TYC) upgraded at Citigroup from Hold to Buy. $25 price target. Valuation call, as organic growth remains resilient.
STOCK COMMENTS / EPS CHANGESCitigroup ( C) estimates, target cut at Barclays to reach $3. Estimates also reduced, because of share dilution. Overweight rating. Calpine ( CPN) 2009 estimate cut because of the weak economy and tight credit markets, at Barclays Capital. Equal-weight rating and new $4 price target. CSX ( CSX) estimates, targets cut at UBS through 2010. Company hurting from the weak economy, and the current quarter should be the worst. Buy rating and new $46 price target. Eaton ( ETN) estimates, target cut at Jefferies. Shares of ETN now seen reaching $32. Estimates also reduced, following the company's somber analyst meeting. Hold rating.
Interpublic ( IPG) estimates upped at UBS through 2010. Company has turned business around, despite macro trends. Management looking to cut costs in the new year. Neutral rating and $4.25 price target.
Mirant ( MIR) estimates, target reduced at Barclays to $14. Estimates also cut, to reflect weak commodity prices. Equal-weight rating. SBA Communications ( SBAC) numbers raised at RBC Capital. Shares now seen reaching $25. Estimates also increased, to reflect more site acquisitions and higher leasing activity. Outperform rating. Southwestern Energy ( SWN) 2009 numbers upped at Barclays because of lower costs. Overweight rating and new $42 price target. Wellpoint ( WLP) estimates raised at UBS through 2010. Company held an upbeat investor day, and is cutting costs to meet it earnings guidance. Buy rating and $53 price target. Weight Watchers ( WTW) numbers lowered at UBS to $19. Estimates also cut, to reflect weaker consumer spending and currency headwinds. Neutral rating.