Analyst downgrades: SWK, Generic drug sector, FISV and FIS
Posted Jul 21st 2008 11:11AM by Eric Buscemi
Filed under: Analyst upgrades and downgrades, Teva Pharm Indus ADR (TEVA)
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MOST NOTEWORTHY: Stanley Works, the Generic Drug sector, Fiserv and Fidelity National were today's noteworthy downgrades:
- Deutsche Bank downgraded shares of Stanley Works (NYSE: SWK) to Hold from Buy as they see risk to Q2 and FY08 earnings due to a slowdown in the European industrial and consumer categories. The firm lowered their target to $52 from $62.
- Wachovia cut the Generic Drug sector to Market Weight from Overweight Wachovia sees near-term challenges for Teva Pharmaceutical (NASDAQ: TEVA), Mylan (NYSE: MYL) and Watson Pharmaceuticals (NYSE: WPI). The firm thinks Teva will become a very strong company over the long-term, following its takeover of Barr (NYSE: BRL). However, the firm adds that Teva will need to integrate the acquisition nearly perfectly, and Mylan may feel compelled to make another acquisition, even as it is still integrating Merck Generics, while Watson's growth prospects are still uncertain.
- Oppenheimer downgraded Fiserv (NASDAQ: FISV) and Fidelity National (NYSE: FIS) to Perform from Outperform based on multiple pressure from the challenging banking environment and growth headwinds.
OTHER DOWNGRADES:
- Satyam (NYSE: SAY) was downgraded to Underperform from Outperform at Credit Suisse and Equal Weight from Overweight at Morgan Stanley.
- UBS downgraded Textron (NYSE: TXT) to Neutral from Buy.
- Constellation Energy (NYSE: CEG) was downgraded at Jefferies to Underperform from Hold.
Tags: brl, ceg, fis, fisv, myl, say, swk, teva, txt, wpi
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