NEW YORK (TheStreet) -- RATINGS CHANGES
Abercrombie & Fitch (ANF) was downgraded at Janney to sell from neutral. Company may continue to post negative comps and may fall short of earnings expectations, Janney said.
Darden Restaurants (DRI) was initiated with a buy rating at Deutsche Bank. Twelve-month price target is $72. Darden is in the process of re-establishing its casual dining leadership position by leveraging its scale, improving its food (taste, quality, etc.) and operations, after a number of years of underperformance, Deutsche Bank said. The company's willingness to evaluate all aspects of its business model, along with a fresh perspective from the top, can help return this storied restaurant company to its prominent position across the industry, Deutsche Bank also said.
Kate Spade (KATE) was initiated with a perform rating at Oppenheimer. Valuation call, as the company has relatively low margins, Oppenheimer said.
McDonald's (MCD) was initiated with a buy rating at Deutsche Bank. Twelve-month price target is $120. A new CEO and organization structure/ownership mix changes are among moves aimed at reversing MCD's fortunes after another year of lackluster EPS and stock performances, Deutsche Bank said. The willingness to question once-off-limits strategies and sacrifice "sacred cows" philosophies while investing in menu and technology may begin to drive results in the not-too-distant future, Deutsche Bank also said.