Analyst downgrades 4-27-07: AMR, BMY, CAL, JBLU, PEP and UAUA

Posted Apr 27th 2007 11:13AM by Kevin Shult
Filed under: Before the Bell, Analyst Upgrades and Downgrades, Bad News, PepsiCo (PEP), Bristol-Myers Squibb (BMY), Countrywide Financial (CFC), Dean Foods (DF), OfficeMax Inc (OMX), Nortel Networks (NT), US Airways Group (LCC), AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA), JetBlue Airways (JBLU)

MOST NOTEWORTHY: Nortel Networks Corp (NT), Bristol-Myers Squibb Co (BMY) and the select airliners were today's most noteworthy downgrades:

Goldman cut Nortel Networks (NYSE: NT) to Sell from Neutral as the firm believes shares fully discount a successful execution on the cost restructuring.

HSBC downgraded Bristol-Myers Squibb (NYSE: BMY) to Underweight from Neutral.

JP Morgan sees few catalysts to drive airline shares higher and has downgraded the following stocks:

AMR Corp (NYSE: AMR) and US Airways Group, Inc (NYSE: LCC) to Neutral from Overweight; Alaska Air Group, Inc (NYSE: ALK) and UAL Corp (NASDAQ: UAUA) to Underweight from Overweight; Continental Airlines, Inc (NYSE: CAL) and JetBlue Airways Corp (NADAQ: JBLU) to Underweight from Neutral.

OTHER DOWNGRADES:

Keefe Bruyette downgraded Countrywide Financial Corp (NYSE: CFC) to Underperform from Market Perform, citing the impact of tighter credit standards for the move.

OfficeMax Inc (NYSE: OMX) was cut to Underperform from Peer Perform at Bear Stearns.

Matrix USA downgraded PepsiCo, Inc (NYSE: PEP) to Hold from Buy on valuation.

Merrill Lynch downgraded Dean Foods Co (NYSE: DF) to Sell from Neutral.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Tags: airlines, alaska, alk, amr, analyst, bmy, bristol myers, BristolMyers, cal, cfc, continental, countrywide financial, CountrywideFinancial, dean foods, DeanFoods, df, downgrade, jblu, jetblue, lcc, nortel, nt, officemax, omx, pep, pepsi, pepsico, rating, theflyonthewall.com, ual, uaua, us air, UsAir

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Reader Comments (Page 1 of 1)

4-30-2007 @ 10:33PM

David Skilling said...

GOL--A NON US AIRLINE STOCK--
WHERE TO GO FOR GOL NEWS--http://finance.google.com/finance?q=GOL

MY POST RE 2006 crash-STILL REFFERED to as "the crash"--no explanation
-"GOL- non-fault-I remember this problem --the crash--as part of my
original due diligence--GOL was at assigned flight level per Brazils
military controlled air traffic (same authoritative policy and pilot
psychology leading to that crash is what caused a similar Russian
crash) and was hit by an executive jet (made in south america that was
being delivered for sale in the US). The executive jet (at the wrong
level) did not have a working collision avoidance system. It could be
most investors looked no further than "crash" and then no analyst and
few "news" writers posted articles correcting a perception GOL was at
fault."

More on GOL--not a US airline stock but stocks trade on our market--

Check out --http://transport.seekingalpha.com/article/31005

check out improvement in infrastructure for airlines in Brazil--
http://biz.yahoo.com/ap/070327/brazil_airports.html?.v=1

cRAMER mentioned it a few days ago--it spiked 6% in after hours trading and then opened lower---traders working the channel--it will go again and soon.

4-30-2007 @ 6:06AM

NPD ENTERPRISES said...

1 Merril Lynch OWNES 2,379,500 shares of DF. Why did their analust downgrade DF to sell? Did ML SELL its 2,379,500 shares and whwn? The SEC SHOULD INVESTIGATE NOW!!!
2 This is another case of an "analyst" wich should be reclassified as a "weiter" and of course paid accordingly as a writer.
3. DF products are flying off the grocery shelves. When was the last time this unidentified ML WRITER been in a grocery store instead of just behind the computer?
4. DF IS A "BUY" NOW!!!!!!!!! The stock will keep going up!

NPD ENTERPRISES