Ingersoll-Rand ( IR) upgraded at Wells Fargo from Market Perform to Outperform. Expect earnings to improve, driven by deleveraging. Kinross Gold ( KGC) initiated at Barclays with an Underweight rating and $14 price target. KGC is the world's sixth largest gold producer. Analysts mentioned the significant rise in gold prices is fully discounted into shares. 2009 and 2010 EPS estimates set at $0.55 and $0.60, respectively. Lennar ( LEN) downgraded at Citigroup from Buy to Hold. $12 price target. Valuation call, as the stock is up 35% since mid-May. Plum Creek Timber ( PCL) target raised at Goldman to $38 from $36. The increase in the co.'s target reflects an earlier return to normalized profitability in wood products due to cost cutting initiatives. Maintained Neutral rating. Plum Creek Timber ( PCL) downgraded at Credit Suisse to Underperform from Neutral. The co.'s earnings quality has fallen after lying off 15% of its salaried staff and not buying back stock in Q2. Timber and acreage owned is also set to decline sequentially. Lowered price target to $30 from $31. Philip Morris International ( PM) downgraded at UBS. Rating lowered to Neutral from Buy. Price target raised to $47.00 from $45.50. 2009 EPS estimates raised to $3.22 from $3.09. Perrigo ( PRGO) downgraded at Credit Suisse to Neutral from Outperform based on valuation as the firm looks for potential catalysts to drive future growth. Maintained $29 price target. Scripps Networks ( SNI) initiated at Deutsche Bank. Initiated with a Buy rating and $38 price target. Introduces 2009 EPS estimates of $1.64.
Varian ( VARI) upgraded at Barclays to Equal Weight from Underperform to reflect their view that VARI will be acquired by Agilent at the price of $52 per share. 2009 and 2010 EPS estimates set at $2.33 and $2.53. Price target lifted to $52 from $32. US Steel ( X) upgraded at Goldman to Buy from Neutral. The co. should benefit from its high leverage to rising flat rolled prices, its high exposure to a recovering auto and appliance market, rising energy prices that should benefit its OCTG business, and a more favorable cost in its European operations. Target price increased to $22 from $21.
American Express ( AXP) target increased to $25 at Friedman, Billings Ramsey. Improvement in credit trends is likely seasonal. Underperform rating. Health Management ( HMA) target raised at Credit Suisse to $7 from $6. After the co. recently beat earnings they raised their guidance for FY09 to $0.45-$0.50 from $0.37-$0.45. The co. beat their EPS by three cents ($0.13 vs. $0.10) primarily due to a 5.1% same-facility admissions increase and 4.7% adjusted admissions increase. Maintained Neutral rating. Honeywell ( HON) target raised at Goldman to $38 from $36. The co. reached higher trough margins and a rebound in free cash flow performance increased its confidence in their mid-cycle EPS estimates of $3. Solid cost cutting initiatives also offset weaker markets. Maintained Neutral rating. Honeywell ( HON) price target raised at Barclays to $40 from $38 as cost execution is enabling strong margins. Maintain 2009 EPS estimate of $2.85 and Overweight rating. Honeywell ( HON) estimates reduced at FBR through 2010. Company lowered guidance, but the stock has held up well. Market Perform rating and $32 price target. Hewlett-Packard ( HPQ) target raised at Kaufman to $50. Checks indicate better hardware sales trends, though currency and weakness in services remain concerns. Buy rating. Hertz ( HTZ) price target, estimates increased at Barclays. HTZ's price target to $9 from $7 as they expect strong 2Q earnings. 2009 and 2010 EPS estimates raised to $0.12 from -$0.08 and to $0.30 from $0.15. Maintain Equal Weight rating.
Meritage ( MTH) target raised at Credit Suisse to $17 from $14. The firm believes that the co. is well positioned from a liquidity standpoint, but expects weaker than expected sales and further impairments will narrow its premium valuation. However, total orders for Q2 fell only 22% compared to an estimate of 38% YOY. Maintained Underperform rating Owens & Minor ( OMI) numbers raised at Goldman to $37 from $36. The company reported a solid Q2 and guided its revenues estimates to come in at the top end of the range. Management also guided for a better outlook. Maintained Sell rating. Owens & Minor ( OMI) price target, estimates raised at Barclays. OMI's price target to $48 from $45 on stronger than expected top-line results. 2009 and 2010 EPS estimates increased to $2.70 from $2.65 and to $2.98 from $2.93, respectively. Maintain Equal Weight rating. RadioShack ( RSH) estimates raised at Goldman to $1.65 from $1.58 to reflect its 2Q beat, as well as some expense declines, partially offset by a more conservative gross margin outlook. Maintained Neutral rating. Radio Shack ( RSH) numbers boosted at FBR. Shares now seen reaching $18. Estimates also raised, to reflect the addition of T-Mobile to its wireless base. Outperform rating. Charles Schwab ( SCHW) target lowered at Goldman to $0.73 from $0.79. Net interest margin contraction and lower activity rates led to the decline of numbers. Maintained Neutral rating. SuccessFactors ( SFSF) target raised at Goldman to $13 from $11. The co. stabilized its bookings with its strong improvement in operating margins suggesting long-term profitability. Maintained Buy rating. Sohu ( SOHU) estimates, target lowered at Bernstein. Shares now seen reaching $72. Estimates also cut, to reflect game delays. Outperform rating. Torchmark ( TMK) price target, estimates inflated at Barclays. Target to $38 from $30 on a more favorable liquidity position. 2009 and 2010 EPS estimates lifted to $6.04 from $6.03 and to $6.45 from $6.35, respectively. Reiterate Underweight rating. Virtual Radiologic ( VRAD) target raised at Goldman to $7.75 from $6.75 based on valuation and stabilizing volume trends. Maintained Neutral rating.