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Analyst upgrades:- Citigroup upgraded Lubrizol (NYSE: LZ) to Buy from Hold on valuation as they believe economic weakness is already priced into the stock. Despite upgrading, Citigroup lowered their target price to $32 from $36.
- UBS believes AT&T (NYSE: T) consensus estimates are beatable and that the 7.1% dividend yield is safe. Additionally, the firm said a strike is possible when the unionized wireline employee contract expires on April 4th but expects the company to succeed in lowering healthcare benefits. Shares were upgraded to Buy from Neutral.
- Friedman Billings upgraded Adobe (NASDAQ: ADBE) to Market Perform from Underperform as they believe guidance appropriately reset expectations and that the risk/reward is neutral at current levels. The firm lowered their target price to $16 from $17. Shares were also upgraded to Buy from Hold at Jefferies after the Q1 results to reflect better-than-expected cost cuts and an attractive risk/reward at current levels.
- Lousiana Pacific (NYSE: LPX) was raised to Sector Outperformer from Sector Performer at CIBC.
- OmniVision (NASDAQ: OVTI) was upgraded at Baird to Neutral from Underperform.
Analyst downgrades:
- Baird downgraded RSC Holdings (NYSE: RRR) to Neutral from Outperform and lowered their target to $5 from $9 as they believe expectations for a recovery in 2H09 are unrealistic.
- Goldman downgraded Cox Radio (NYSE: CXR) to Sell from Neutral and lowered their target to $3 from $7. The firm cites weakening ad revenues for the downgrade.
- Morgan Stanley downgraded Gap (NYSE: GPS) to Equal Weight from Overweight citing expectations for reduced margins.
- Rio (NYSE: RIO) was cut to Neutral from Buy at Banc of America/Merrill.
- Gymboree (NASDAQ: GYMB) was lowered to Neutral from Overweight at JP Morgan.
- AU Optronics (NYSE: AUO) was downgraded at Nomura to Reduce from Neutral.
- Citigroup initiated Invesco (NYSE: IVZ) with a Hold rating and $11 target. The firm believes the company's assets under management are holding up better than most, but feels a market recovery is needed to see a material improvement in net flows.
- Baird initiated Research in Motion (NASDAQ: RIMM) with a Neutral rating and $44 target citing concerns ahead of Q1 guidance given growing gross margin and economic impact uncertainties.
- Jefferies believes McDonald's (NYSE: MCD) will have difficulty beating EPS estimates in 2009 given a dwindling margin benefit from its re-franchising activity, commodity cost pressure, and currency headwinds. Shares were assumed with a Hold rating and $57 target.
- Pfizer (NYSE: PFE) was reinstated with a Conviction Buy rating and $17 target at Goldman.
- Knight Capital (NASDAQ: NITE) was started with an Outperform rating and $20 target at JMP Securities.
- Resources Connection (NASDAQ: RECN) was initiated at Banc of America/Merrill with an Underperform rating and $12 target.
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