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MOST NOTEWORTHY: Apple Inc (AAPL) and Lam Research (LRCX) were today's most notable downgrades: - Apple Inc (NASDAQ: AAPL) was downgraded by two firms today:
- JP Morgan downgraded Apple Inc to Neutral from Overweight as they believe outperformance will be difficult given the Mac shipment miss in the first quarter; the broker also noted they have had an Overweight rating since October 2004 and the stock has appreciated strongly in that time.
- JMP Securities also downgraded shares of Apple to Outperform from Strong Buy, citing valuation.
- Lam Research (NASDAQ: LRCX) was downgraded by both Bear Stearns and CIBC:
- Bear Stearns downgraded Lam Research to Peer Perform from Outperform to reflect shipment delays in the quarter, as they believe delays typically serve as a good leading indicator for deteriorating environments.
- CIBC downgraded Lam Research to Sector Performer from Outperformer, with a $46 target. CIBC said management's 2007 outlook confirmed their 2007 thesis for a 10%-20% stock correction based on a retrenchment in DRAM orders.
OTHER DOWNGRADES:
- Merrill Lynch downgraded shares of Sovereign Bancorp (NYSE: SOV) to Sell from Neutral, with a$21 target, after the company named Joe Campanelli its permanent CEO. Merrill believes Sovereign now has a reduced chance of a takeover to go along with deteriorating fundamentals.
- Goldman Sachs downgraded Progressive Corp (NYSE: PGR) to Sell from Neutral.
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