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MOST NOTEWORTHY: Concur Tech, Groupe Danone and General Motors were today's noteworthy downgrades:
- Piper downgraded shares of Concur Tech (NASDAQ: CNQR) to Neutral from Buy after transferring analyst coverage, as they believe potential upside to estimates is priced into shares while competitive concerns from American Express (NYSE: AXP) are not.
- Morgan Stanley downgraded shares of Groupe Danone (OTC: GDNNY) to Equal Weight from Overweight to reflect reduced visibility in the company's core business.
- Merrill downgraded General Motors (NYSE: GM) to Underperform from Buy citing the company's deteriorating US auto sales, resulting in a higher cash burn, which could result in a larger than expected capital raise. The firm believes GM capital raise could be in the range of $15 billion and notes that bankruptcy is "not impossible."
OTHER DOWNGRADES:
- Progenics Pharma (NASDAQ: PGNX) was lowered to Underperform from Market Perform at Friedman Billings.
- UAL Corp. (NASDAQ: UAUA) was cut to Neutral from Buy at Goldman.
- Lehman downgraded Apria Healthcare (NYSE: AHG) to Underweight from Equal Weight at Lincare Holdings (NASDAQ: LNCR) to Equal Weight from Overweight.
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Reader Comments (Page 1 of 1)
7-02-2008 @ 2:56PM
michealracks said...
Im still bearish for GM today while the price drops more (http://www.predictwallstreet.com/forecast.aspx?symbol=GM). Between the oil crisis, bankruptcy risk and declining sales, I’m feeling pretty bearish on GM and agree with community sentiment at PredictWallStreet. Gas price spikes has profoundly shifted consumer behavior across the board and people no longer want SUV’s and trucks. For a company who’s revenues have depended heavily on the sales on these automobiles, GM needs to look into further development of the Volt or even more fuel efficient cars. Consumer reactions to gas prices will not be changing any time soon. GM now needs to react to their consumers behavior. Management needs to figure out a way to implement a new plan in the next few years or even faster.