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Analyst upgrades:- RBC Capital believes software stock fundamentals have bottomed and that the next several quarters should see reduced earnings risk, easier comps, stimulus spending benefits, and lower FX headwinds. The firm upgraded Microsoft (NASDAQ: MSFT), Taleo (NASDAQ: TLEO), Digital River (NASDAQ: DRIV) and Symantec (NASDAQ: SYMC) to Outperform from Sector Perform.
- Rodman & Renshaw upgraded Provectus (OTC: PVCT) to Outperform from Market Perform. The firm has increased conviction in the success of the company's ongoing trial of PV-10 in melanoma.
- Citigroup upgraded shares of American Express (NYSE: AXP) to Hold from Sell as it believes the risk/reward is balanced at current levels and that there are signs of potential credit market stabilization. The firm raised its price target on shares to $16 from $9.
- Brinker (NYSE: EAT) was upgraded to Outperform from Market Perform at Wachovia.
- PG&E (NYSE: PCG) was raised to Outperform from Neutral at Credit Suisse.
- Federal-Mogul (NASDAQ: FDML) was lifted to Conviction Buy from Buy at Goldman.
Analyst downgrades:
- Bernstein downgraded Royal Bank of Scotland (NYSE: RBS) to Market Perform from Outperform to reflect valuation and the dilution from the government asset protection plan.
- Oppenheimer downgraded shares of Cullen/Frost (CFR) to Underperform from Perform on signs the economy in Texas is beginning to deteriorate. The firm believes potential earnings disappointments create risk to the stock's "premium" valuation.
- Royal Bank of Scotland cut Fiat (FIATY) to Hold from Buy as they do not believe a deal with Chrysler will drive upside in shares.
- Cabot (CBT) was lowered to Underweight from Neutral at JP Morgan.
- General Growth (GGP) was downgraded at Wachovia to Market Perform from Outperform.
- Nokia (NOK) was downgraded to Sell from Neutral at WestLB.
- Deutsche Bank believes payroll stocks are late-cycle plays and does not recommend buying them during the early stages of recovery. The firm set a Hold rating and $23 target on Paychex (PAYX) and a Hold rating and $36 target on Automatic Data Processing (ADP).
- William Blair started Nektar (NKTR) with an Outperform rating and believes the company's fundamentals have improved under new management.
- Suntrust assumed Ntelos (NTLS) with a Buy rating and $24 target. The firm is positive on Ntelos' regional focus, healthy free cash flow, customer mix, and data revenue opportunities, among other reasons.
- Fiserv (FISV) was initiated with an Equal Weight rating at Barclays.
- Equinix (EQIX) was initiated at Goldman with a Neutral rating and $70 target.
- Netflix (NFLX) was started at Thomas Weisel with an Overweight rating and $51 target.
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