MOST NOTEWORTHY: Notable companies downgraded today include Tyco Int'l (TYC), 3M Co (MMM) and Yum! Brands (YUM):
- Prudential downgraded Tyco International Ltd. (NYSE:TYC) to Underweight from Neutral with a $26 target, expecting catch-up reinvestment to impact near-term value after the first-quarter break-up;
- 3M Company (NYSE:MMM) was downgraded to Neutral from Overweight with a $84 target at Prudential, as they believe it will take some time for the company to regain its premium valuation as economies in Europe and North America slow;
- additionally, Wachovia downgraded Yum! Brands Inc. (NYSE:YUM) to Market Perform from Outperform, citing slowing sales momentum in the U.S. as well as the sales impact from the E. coli/Taco Bell outbreak, which could affect sales significantly.
OTHER DOWNGRADES:
- YRC Worldwide Inc. (NASDAQ:YRCW) was downgraded to Hold from Buy at Stifel Nicolaus and BB&T, and to Neutral from Outperform at Robert Baird; the downgrades reflect the slowing freight-market demand.
- Integrated Device Technology Inc. (NASDAQ:IDTI) was downgraded to Sell from Source of Funds at ThinkEquity, citing near-term trends, the softer-than-expected outlook for March and expectations for increased competition in AMBs.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).
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