Nucor ( NUE) downgraded at Morgan Stanley from Overweight to Equal-weight. Valuation call, as the sector has already rallied ahead of improving fundamentals. Omniture ( OMTR) upgraded at Morgan Stanley to Overweight. $18 price target. Company is positioned well for growth, as channel checks show pent-up demand. SEI Investments ( SEIC - Get Report) upgraded at Oppenheimer. Rating raised to Outperform from Perform. Establishes $22 price target. 2009 EPS estimates raised to $0.93 from $0.86. Safeway ( SWY) upgraded to Buy at Jefferies from Hold and price target increased to $26 from $20. Stabilization of the macro climate could really add some sizzle to the Safeway story. SWY's home turf has been battered with cities like Portland and San Jose seeing unemployment spike by over 500 bps in the last year, much more than the national average of 390 bps. Jefferies believes that Safeway should see an outsized benefit if the economy improves. The valuation is compelling at 9x below-consensus FY10 estimate and a free-cash-flow-yield of 11%. DCF places the intrinsic value at roughly $36, using a relatively conservative long-term EBIT estimate of 4.0%. Valeant Pharmaceuticals ( VRX) downgraded at Wachovia. Rating lowered to Underperform from Market Perform. Valuation range lowered to $15-$17 from $15-$18. 2009 EPS estimates lowered to $1.16 from $1.26. US Steel ( X - Get Report) upgraded at Morgan Stanley from Equal-weight to Overweight. $45 price target. Fundamentals are improving and a pick-up in US demand could soon follow. Following a recent sector rally, thr company appears to have the most upside potential.
Best Buy ( BBY) 2009 estimates increased at Keybanc because of higher expected gross margins. Company is benefiting from the departure of Circuit City from the market. Buy rating and $45 price target. Franklin Resources ( BEN) target boosted at FBR to $70 a share. Company should be able to perform better than its peers in the current market environment. Market Perform rating. Disney ( DIS) estimates raised at Barclays through 2010. "Up" movie is performing above expectations at the box office. Overweight rating and $32 price target. Freeport-McMoran ( FCX) numbers raised at Merrill/BofA through 2011. Company likely to realize higher metals prices, though recent copper gains may not be sustainable. Underperform rating and new $47 price target. Fiserv ( FISV) target raised at Credit Suisse to $55 from $50. Management is confident with their business model forecasting long-term organic growth and strengthening margins. Maintained Outperform rating. Prudential ( PRU) estimates lowered at Barclays through 2010. New equity issuance will cut into earnings. Underweight rating and $33 price target. Texas Instruments ( TXN) numbers boosted at Morgan Stanley through 2010. Company is showing more leverage and should continue to grow gross margins. Overweight rating and new $24 price target. Texas Instruments ( TXN) numbers raised at Barclays to $22. Estimates also increased, to reflect higher mid-quarter guidance. Wireless continues to decline however, which could offset management's cost focus. Equal-weight rating.