CHANGE IN RATINGSAbbott Laboratories ( ABT) downgraded at Wachovia to Market Perform. Cholesterol franchise faces challenges, and arthritis prescription growth rates are slowing. American Electric ( AEP) upgraded at Keybanc from Hold to Buy. Estimates cut because of the recent equity offering, though it will help pay down debt. Stock is trading at a significant discount to its peers.
DR Horton ( DHI) downgraded at Pali from Buy to Neutral. Stock has traded back up toward book value, and tripled since its November lows. Dreamworks ( DWA) downgraded at Pali from Buy to Neutral. Box office for Monsters vs. Aliens is not enough to offset lower DVD sales. Novell ( NOVL) downgraded at Jefferies from Buy to Hold. Stock is trading just 30% above net cash, but business trends are weak. Sonic ( SONC) downgraded at Credit Suisse to Underperform from Neutral. Believes near-term expectations are too optimistic and share price has gotten ahead of fundamentals. Maintained $9 target. Sybase ( SY) downgraded at Keybanc from Buy to Hold. Valuation call, as the stock is up 28% year-to-date. Company should be able to meet or beat near-term guidance. Viacom ( VIA.B) downgraded at Barclays from Overweight to Equal-weight. $20 price target. Valuation call, as the stock is up 35% since Feb. 3, while the market and industry were largely flat. Wynn Resorts ( WYNN) upgraded at UBS 8:14 AM EDT Wynn Resorts upgraded to buy from neutral and price target increased to $33 from $28. Upgrade on the back of raising Macau estimates due to better than expected Q1 results. Price target based on ~7x LV EBITDA, ~9x Macau EBITDA, and PV of future projects, land value and cash per share. Upgrade is not based on any perception of improvement in Las Vegas in the near term. Cimarex Energy ( XEC) upgraded at Merrill/BofA from Underperform to Buy. $30 price target. Stock has lagged its peers, but the company has a core position in a new top shale discovery.
STOCK COMMENTS / EPS CHANGESApple ( AAPL) estimates, target raised at Barclays to $143. Estimates also increased, because of higher iPhone estimates. Overweight rating.
American Express ( AXP) numbers cut at Barclays because of higher expected credit card charge-offs. Equal-weight rating and new $17 price target. Capital One ( COF) numbers reduced at Barclays to $20. Estimates also cut, as higher unemployment could lead to more credit card charge offs. Equal-weight rating. Intel ( INTC) target raised at Barclays to $17. March quarter will likely come in ahead of expectations. Equal-weight rating. Kohl's ( KSS) target raised at Barclays to $50. Company will likely outperform the competition over the coming months. Overweight rating. Qualcomm ( QCOM) target raised at Deutsche to $42. Hearing positive data points about Qualcomm's unit shipments. Buy rating.