MOST NOTEWORTHY: Amazon.com Inc (AMZN) and Vornado (VNO) were on today's list of most notable downgrades: - Bear Stearns downgraded Amazon.com Inc (NASDAQ: AMZN) to Underperform from Outperform to reflect the company's margin erosion, lack of near-term earnings leverage and valuation. They note that margins declined for the fourth consecutive quarter year-over-year in Q4.
- Wachovia downgraded Vornado Realty Trust (NYSE: VNO) to Market Perform from Outperform citing the higher bid of $56 for Equity Office Properties Trust (NYSE: EOP), which increases the company's risk profile.
OTHER DOWNGRADES:
- Citigroup downgraded shares of Apache Corp (NYSE: APA) to Hold from Buy on concerns that the company's poor 2006 reserve replacement cost in the Gulf of Mexico may suggest maturing project inventory.
- JP Morgan downgraded Avid Technology Inc (NASDAQ: AVID) to Underweight from Overweight to reflect the company's weak forecasting and execution after disappointing fourth-quarter results and guidance.
- Matrix USA downgraded J.B. Hunt Transport Services (NASDAQ: JBHT) to Buy from Strong Buy on valuation.
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