Brown-Forman ( BF.B) downgraded at UBS from Neutral to Sell. Fundamentals remain weak, and the company is likely not a near-term takeover target. $41 price target. Forest Oil ( FST)downgraded at Jefferies from Buy to Hold. $16 price target. Valuation call, as the company lacks near-term catalysts. NetApp ( NTAP) downgraded at Merrill/BofA from Buy to Neutral. Channel checks suggest that near-term pricing and margin pressure will offset cost-cutting. $19 price target. Omnicom ( OMC) upgraded to Hold at Deutsche Bank from sell and price target increased from $21 to $31. While it is possible to over-react to one quarter, OMC's margins are appearing more resilient than thought. It is clearly still early in the operating downturn, and the risk remains that full year margins could disappoint if 2Q is not the organic growth trough, but increased confidence about the thing management can control -- costs. Timken ( TKR) upgraded at Merrill/BofA to a buy from underweight and price target increased to $20 from $12. BofA believes that TKR delivered solid 1Q09 operating performance, beating estimates on execution. While the company's '09 EPS outlook was disappointing, thinks TKR is being prudently conservative due to limited end market visibility. TKR's high exposure to autos (currently at ~25%), as well as shorter-cycle products, position the company to benefit particularly well through the initial stages of US economic recovery. Weyerhaeuser ( WY) downgraded at Deutsche from Buy to Hold. $38 price target. Valuation call, especially given further deterioration in the timber and wood products markets.
STOCK COMMENTS / EPS CHANGES
Bank of New York ( BK) estimates raised at Morgan Stanley through 2011. Recent meetings with management confirm that margins could improve, aided by the net interest margin. Overweight rating and $31 price target.