- Bernstein upgraded Merck (NYSE: MRK) to Outperform from Market Perform and raised its target to $30 from $27 citing valuation and its decision to buy Schering-Plough, at what appears to be a reasonable price.
- RBC Capital upgraded Palm (NASDAQ: PALM) to Outperform from Sector Perform and raised its target to $12 from $5 as it believes webOS has increased its chances for Smartphone leadership and will increase its attractiveness as an acquisition target.
- RW Baird upgraded Alcatel-Lucent (NYSE: ALU) to Outperform from Neutral on valuation as it believes balance sheet risks are overly discounted in the stock, creating a buying opportunity. The firm has a $3 target on shares.
- Express Scripts (NASDAQ: ESRX) was raised to Buy from Hold at Argus.
- France Telecom (NYSE: FTE) was upgraded at Morgan Stanley to Equal Weight from Underweight.
- Foster Wheeler (NASDAQ: FWLT) was upgraded to Conviction Buy from Neutral at Goldman.
Analyst downgrades:
- Stephens downgraded Smithfield Foods (NYSE: SFD) to Equal Weight from Overweight following the company's Q3 results on concerns that hog producers are not cutting production as the demand environment is weakening. The firm lowered its target price to $12 from $20.
- Thomas Weisel cut EMC Corp (NYSE: EMC) to Market Weight from Overweight after channel checks indicated EMC's external networked storage market share peaked in 2008 and will decline through 2010. The firm lowered its target price on shares to $12 from $13.
- Oppenheimer downgraded Genentech (NYSE: DNA) to Perform from Outperform after the company agreed to be acquired by Roche (OTC: RHHBY).
- Wal-Mart (NYSE: WMT) and Macy's (NYSE: M) were lowered to Buy from Conviction Buy at Goldman.
- Mettler-Toledo (NYSE: MTD) was downgraded at Baird to Neutral from Outperform.
- Thomas Weisel is positive on Coherent's (NASDAQ: COHR) leading share, resilient end-markets, balance sheet, and improving operating margins. Shares were started with an Overweight rating and $18 target.
- Baird initiated PrivateBancorp (NASDAQ: PVTB) with a Neutral rating and $14 target. The firm has concerns regarding PrivateBancorp's higher credit costs, slowing revenue growth, the recessionary backdrop, and a potential capital raise.
- Citigroup believes AMAG Pharma's (NASDAQ: AMAG) Feraheme will be the leader in the IV iron market. The firm started shares with a Buy rating and $37 target.
- Watson Wyatt (NYSE: WW) was initiated with a Market Perform rating at William Blair.
- Mylan (NASDAQ: MYL) and Teva Pharmaceutical (NASDAQ: TEVA) were assumed with Buy ratings at UBS.
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