CHANGE IN RATINGSApple ( AAPL) upgraded at RBC to outperform from underperform and price target increased to $165 from $95. RBC believes there is improved margin visability, stronger resiliency, sustainable outperformance and the belief that Steve Jobs will likely return to Apple. Apple ( AAPL) target raised at Credit Suisse to $140 from $133 following solid second-quarter results. Maintained Outperform rating. Brocade ( BRCD) upgraded at Jefferies to buy from hold at Jefferies and price target increased to $6 from $3.50. Jefferies believes opportunities will materialize as risk abates: channel checks indicate that first phase of IBM deal will be announced next week, phase II to start in June/July, new products enabling entry into adjacent markets and debt balance manageable.
Torchmark ( TMK) downgraded at Credit Suisse to Underperform from Neutral based on deterioration of its investment portfolio. Lowered target price to $24 from $35. VMWare ( VMW) downgraded at Jefferies from Hold to Underperform. $20 price target. Company posted weaker sales, led by lower ELAs. Estimates also cut.
STOCK COMMENTS / EPS CHANGESChipotle ( CMG) numbers increased at RBC Capital because of lower food and marketing costs. Sector Perform rating and new $85 price target. eBay ( EBAY) estimates through 2010, target increased at Barclays Capital. Business showing near-term stabilization and the company has implemented tighter cost controls. Equal-weight rating. Ingersoll-Rand ( IR) estimates, target raised at Citigroup. Shares of IR now seen reaching $20. Estimates also increased, based on improved visibility and cost savings. Hold rating. Intersil ( ISIL) estimates through 2010, target raised at Barclays Capital. Company is seeing better sales, though computing will remain a drag. Equal-weight rating and new $12 price target. McDonald's ( MCD) numbers reduced at RBC to $65. Estimates also lowered, because of foreign exchange headwinds. Sector Perform rating. Novellus Systems ( NVLS) numbers increased at Citigroup to $17.25. Estimates also raised, because of cost-cutting. Hold rating. Pepsi Bottling ( PBG) numbers raised at Citigroup. Shares of PBG now seen reaching $34. Estimates also increased, to match the company's new guidance. Buy rating. PPD ( PPDI) estimates, target lowered at Barclays to $25. Company lowered guidance, because of lower industry R&D spending. Overweight rating. AT&T ( T) estimates, target raised at RBC. Shares now seen reaching $29. Estimates increased because of higher realized margins. Sector Perform rating.
Wellpoint ( WLP) estimates through 2010, target raised at Barclays Capital. Company guided to higher profits. Overweight rating and new $57 price target. Xilinx ( XLNX) estimates raised at UBS through 2011. Company seeing higher demand for 3G infrastructure in China. Buy rating and $23 price target. Yum Brands ( YUM) numbers increased at Barclays Capital to $34. Estimates also raised, to reflect higher realized margins. Equal-weight rating.