Analyst downgrades 6-1-07: Dell, Cintas, RadioShack

MOST NOTEWORTHY: Labopharm (DDSS), Dell (DELL) and Nasdaq (NDAQ) were today's noteworthy downgrades:

Labopharm Inc. (NASDAQ: DDSS) was downgraded to Neutral from Buy at Merrill Lynch and to Market Perform from Outperform at Leerink Swann after the 2nd approval letter from the FDA said Tramadol did not show efficacy. CIBC World Markets downgraded shares of Labopharm to Sector Performer from Outperformer and at Canaccord Adams to Sell from Hold.
Dell Inc. (NASDAQ: DELL) was downgraded to Neutral from Buy at Merrill Lynch, which recommended investors take profits following the strong earnings reports. The firm does not believe the drivers behind the earnings upside are sustainable. Dell was also downgraded at Morgan Stanley, to Equal Weight from Overweight, based on valuation.
The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) was downgraded to Equal Weight from Overweight at Lehman, as the firm believes the stock is range-bound for the next several months following the OMX acquisition announcement.

OTHER DOWNGRADES:

Robert W Baird downgraded shares of DiamondRock Co. (NYSE: DRH) and Chesapeake Utilities Corp. (NYSE: CPK) to Neutral from Outperform on valuation.
Bear Stearns downgraded shares of Emmis Communications Corp. (NASDAQ: EMMS) to Underperform from Peer Perform, as the firm does not believe the CEO will make another bid to take the company private.
Matrix USA downgraded shares of Jabil Circuit Inc. (NYSE: JBL) to Hold from Buy.
Morgan Stanley downgraded shares of Cintas Corp. (NASDAQ: CTAS) Underweight from Equal Weight, citing growth concerns, and downgraded shares of Virgin Media Inc. (NASDAQ: VMED) to Equal Weight from Overweight, citing higher customer churn and weaker pricing power.
Goldman Sachs downgraded shares of RadioShack Corp. (NYSE: RSH) to Neutral from Buy.