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Analyst upgrades:- Citigroup upgraded Amazon.com (NASDAQ: AMZN) to Buy from Hold on expectations the company's top-line growth rate could be more sustainable than expected and its operating margins could recover given due to less retail discounting. The firm raised its price target on shares to $97 from $65.
- UBS upgraded King Pharmaceuticals (NYSE: KG) to Buy from Sell based on expectations that Sandoz will settle patent litigation regarding Skelaxin after last weeks settlement of Clarinex with Schering-Plough (SGP).
- Jefferies upgraded Reliance Steel (NYSE: RS) to Buy from Hold as it believes steel prices and demand are close to near-term bottoms. The firm raised its target on the stock to $44 from $25.
- Palm (NASDAQ: PALM) was raised to Buy from Neutral at Banc of America/Merrill.
- Nestle (OTC: NSRGY) was lifted to Neutral from Underweight at JP Morgan.
- Johnson & Johnson (NYSE: JNJ) was upgraded at Wachovia to Outperform from Market Perform.
Analyst downgrades:
- Keefe Bruyette downgraded AllianceBernstein (NYSE: AB) to Market Perform from Outperform reflect lower Institutional Research Services revenues and higher compensation expense assumptions. The firm keeps a $21 price target.
- Jefferies downgraded Transocean (NYSE: RIG) to Hold from Buy as it finds the risk/reward unfavorable at current levels due to potential declines in deepwater/ultra-deepwater dayrates by late-2010/2011 and relative valuation. The firm keeps a $70 price target on the stock.
- Deutsche Bank cut Blue Nile (NASDAQ: NILE) to Sell from Hold on valuation as it believes the stock has exceeded the company's fair value. The firm has an $18 price target on the stock.
- Heartland Express (NASDAQ: HTLD) was cut to Equal Weight from Overweight at Stephens.
- Siliconware Precision (NASDAQ: SPIL) and Taiwan Semi (NYSE: TSM) were downgraded at Goldman to Neutral from Buy.
- Energizer (NYSE: ENR) was lowered to Sell from Neutral at UBS.
- Citigroup believes Automatic Data Processing's (NASDAQ: ADP) buyback should help support shares and prefers the company to Paychex (NASDAQ: PAYX) given its lower exposure to small companies. The firm started shares with a Buy rating and $44 target.
- Merriman believes Netflix (NASDAQ: NFLX) is positioned to benefit from the market share shift within the home video rental to online subscription and rental kiosks. The firm, which initiated the stock with a Buy rating, sees potential upside in the stock to the $57-$60 range.
- Jefferies assumed coverage of MEMC Electronic (NYSE: WFR) with Buy rating and $20 target. The firm believes expectations have been reset to a low level and that MEMC will benefit from a market recovery.
- McAfee (NYSE: MFE) was initiated with a Buy rating and $44 target at Banc of America/Merrill.
- Coca-Cola Femsa (NYSE: KOF) was assumed with a Neutral rating at UBS.
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