Borg Warner ( BWA) downgraded at Barclays from Overweight to Equal-weight. Valuation call, based on a $27 price target. Stock is trading at a record high premium to the S&P 500. Canadian National Railway ( CNI) upgraded at JPMorgan to Overweight from Neutral based on cost reductions and leverage to potential improvement in North American economy. Expect near-term earnings to hold up well and note limited exposure to coal and U.S. legislation risks. Price target raised to $50 from $43. Norfolk Southern ( NSC) downgraded at JPMorgan to Neutral from Overweight. Expect volume and earnings to lag the rest of the rail group due to weakening coal volumes. Also note potential rate structure declines linked to new rail legislation. Price target trimmed to $41 from $45. Research In Motion ( RIMM) upgraded at UBS. Rating raised to Buy from Neutral. Price target raised to $90 from $65. Fiscal 2010 EPS raised to $3.77 from $3.76. Sepracor ( SEPR) downgraded at Goldman Sachs to Sell from Neutral based on concerns over Lunesta trends. Physician survey indicates a greater Lunesta decline than anticipated. Price target at $15. Suncor Energy ( SU) upgraded at Goldman Sachs to Buy from Sell based on improving oil sands economics. Expect higher crude oil prices during the second half of 2009 and into 2010. Price target raised to $33 from $25.
STOCK COMMENTS / EPS CHANGES
Apache ( APA) estimates, target increased at UBS to $100. Estimates raised because of stronger production rates and lower costs. Buy rating. Celgene ( CELG) estimates, target cut at UBS to $64. Estimates reduced because of the weaker economy and reimbursement issues. Buy rating.
Thursday's early headlines include same-store sales data from retailers, the European Commission probing Oracle's acquisition of Sun Microsystems, and a report YouTube may stream movie rentals from several studios.