CHANGE IN RATINGSAkamai ( AKAM) downgraded at Citigroup from Buy to Hold. Valuation call, based on a $22 price target, as the stock is up 43% year-to-date. Big Lots ( BIG) rated new Overweight at Barclays Capital. $28 price target. Near-term sales could decline, but the company is working on further lowering its cost structure.
IntercontinentalExchange ( ICE) upgraded at Goldman Sachs to Buy from Neutral based on stable earnings trends and potential benefits from regulatory changes. Believe additional OTC clearing opportunities, cap and trade-related developments and price increases in commodities could generate additional catalysts. Note stable pricing trends, especially relative to recent pressures in equities. Price target raised to $90 from $60. Illinois Tool Works ( ITW) downgraded at Goldman Sachs to Neutral from Buy based on valuation, slower growth and potential dividend risk. See potential for below-trend growth coming out of recession due to structural changes in housing and consumer markets. Price target cut to $26 from $36. Jack in the Box ( JACK) coverage initiated at Goldman Sachs with a Neutral rating based on valuation and competition. Note that same store sales growth will be difficult due to lack of value positioning and regional exposure, although it could benefit from falling commodity costs. Expect just 1%-2% in unit growth and note that financial position is adequate but not compelling. Price target at $25. Carmax ( KMX) downgraded at Wachovia to Underperform. Stock is already pricing in good news, and more negative potential catalysts lie down the road. Monsanto ( MON) numbers cut at Morgan Stanley to $115. Estimates also lowered through 2010. Overweight rating. Monsanto ( MON) downgraded at JPMorgan. Rating lowered to Neutral from Overweight. Price target reduced to $82 from $100. 2009 EPS estimates lowered to $4.80 from $5.00. Navistar International ( NAV) downgraded at Goldman Sachs to Neutral from Buy due to likely defense contract loss. Company's protest on MRAP All-Terrain Vehicle competition suggests it will probably lose the $3 billion contract. Note attractive early-cycle exposure to U.S. truck market, but expect uncertainty in defense business to remain an overhang on the stock. Price target cut to $26 from $38.
Panera Bread ( PNRA) coverage initiated at Goldman Sachs with a Neutral rating. Company is in transitional growth stage marked by declining revenue growth but improving margins. See continued risk created by heavy reliance on product mix benefits to drive sale store sales results. Price target at $60. Research in Motion ( RIMM) upgraded at Deutsche Bank from Sell to Hold. $56 price target. Sales momentum has been strong and margins stabilized during the quarter. Research in Motion ( RIMM) upgraded at Credit Suisse from Underperform to Neutral. $61 price target. Estimates also raised to reflect the company's new guidance and market share gains. Research in Motion ( RIMM) numbers increased at Barclays through 2010. Company guided to higher margins and channel inventory remains low. Overweight rating. Schnitzer Steel ( SCHN) downgraded at UBS from Neutral to Sell. Stock is up 56% since mid-March. Estimates also cut, as scrap prices will likely fall through April/May. Whole Foods Market ( WFMI) downgraded at Jefferies from Buy to Hold. $18 price target. Comp sales remain negative, and the company may struggle to lower its lease expenses.