CHANGE IN RATINGSAdobe Systems ( ADBE) upgraded at Jefferies from Hold to Buy. $21 price target. Costs are coming down along with demand, which should help stabilize earnings. Adobe Systems ( ADBE) upgraded at UBS from Neutral to Buy. $21 price target. Company warned of lower sales, but margins and earnings came in ahead of expectations. Management is cutting costs, while demand remains uncertain. Baidu.com ( BIDU) upgraded at Citigroup from Sell to Buy. $181 price target. Business is tracking ahead of expectations, though long-term concerns remain. Gymboree ( GYMB) downgraded at J.P. Morgan to Neutral from Overweight. New product safety regulation caused comps to decline 20% and earnings guidance down 70%. See too much uncertainty in sales and inventory levels. Price target cut to $15 from $31. Lincoln Electric ( LECO) upgraded at Keybanc from Underweight to Hold. Estimates have come down in recent months, and the stock is down 38% since December. Pfizer ( PFE) coverage reinstated at Goldman Sachs with a Buy rating, based on dividend and free cash flow yield. Shares have been punished following Wyeth deal announcement, mainly due to dividend cut. Note that patent hole is filled and future earnings appear stable. Price target at $17. Robert Half ( RHI) upgraded at Deutsche from Sell to Hold. $14 price target. Valuation call, as the stock has materially underperformed MAN of late. AT&T ( T) upgraded at UBS from Neutral to Buy. $31 price target. Company could beat estimates, with labor costs coming down. 7.1% dividend yield also appears secure.
Verizon ( VZ) upgraded at UBS from Neutral to Buy. Wireless growth should drive earnings in 2009. 6.6% dividend yield also looks safe. $34 price target.