NEW YORK (TheStreet) -- RATINGS CHANGES
AT&T (T - Get Report) was upgraded to buy by Bank of America/Merrill Lynch, which set a $40 price target, saying AT&T should see a more stable wireless climate and benefits from the DirecTV (DTV - Get Report) merger.
Laclede (LG) was downgraded to underweight from neutral by J.P. Morgan, which cited valuation, based on a $52 price target.
Netflix (NFLX - Get Report) was downgraded to sell from buy by Societe Generale, which set a $585 price target. Netflix is highly sensitive to changes in investor "perceptions," as was dramatically demonstrated this year (+95% YTD), Societe Generale said. Analysts now estimate the current valuation discounts "very rosy" assumptions to 2025: 16.6% revenue CAGR to $29.7 billion, $8.9 billion EBIT (22x the 2014 level) and 140/170 million International subscriber additions, the firm said. Despite a raised target price, analysts consequently believe the shares' risk/reward has considerably deteriorated.
Office Depot (ODP - Get Report) was upgraded to outperform from market perform by Telsey Advisory, which set an $11 price target, saying it expects a higher ultimate takeover price from the Staples (SPLS) deal.
Zimmer (ZMH) was downgraded to hold from buy by Brean Capital, which said the company lacks near-term catalysts.