Analyst upgrades:- Jefferies upgraded Brocade (NASDAQ: BRCD) to Buy from Hold on expectations expanding OEM partnerships, new products and entry into new markets will drive long-term growth. The firm's channel checks indicate the first phase of an IBM (NYSE: IBM) deal for ethernet products will be announced next week. Jefferies raised its target price on the stock to $6 from $3.50.
- JMP Securities upgraded Broadcom (NASDAQ: BRCM) to Market Perform from Underperform citing the potential settlement with Qualcomm (NASDAQ: QCOM). The firm said Broadcom has far more to gain than Qualcomm has to lose.
- Citigroup upgraded Air Products (NYSE: APD) and Praxair (NYSE: PX) to Buy from Hold on expectations that an improvement in customer operating rates will benefit gas companies. The firm raised its target price on Air Products to $70 from $55 and on Praxair to $79 from $63.
- Royal Bank of Scotland upgraded BP Plc (NYSE: BP) to Buy from Hold to reflect its dividend yield at current levels.
- Apple (NASDAQ: AAPL) was raised to Outperform from Underperform at RBC Capital.
- T. Rowe Price (NYSE: TROW) was upgraded at Sandler O'Neill to Hold from Sell.
- Morgan Stanley (NYSE: MS) was lifted to Neutral from Underperform at Banc of America/Merrill.
Analyst downgrades:
- Jefferies downgraded VMware (NYSE: VMW) to Underperform from Hold on concerns the current multiple can not be supported in this economic environment. The firm expects double digit year-over-year license declines through December and keeps a $20 target on the stock.
- UBS downgraded Citrix Systems (NASDAQ: CTXS) to Sell to Neutral and lowered their target to $22.50 from $25 due to valuation, and competitive pressures that will impact margins.
- Oppenheimer downgraded Equinix (NASDAQ: EQIX) to Perform from Outperform on valuation as they see less potential for upside to estimates following the company's Q1 results.
- Pharmaceutical Product Development (NASDAQ: PPDI) was cut to Market Weight from overweight at Thomas Weisel.
- F5 Networks (NASDAQ: FFIV) was lowered to Sell from Neutral at UBS.
- Goldman downgraded the Asian Steel sector to Cautious from Neutral, and downgraded Posco (NYSE: PKX) to Sell from Neutral.
- Auriga believes Genoptix's (NASDAQ: GXDX) focus on community based hematologists/oncologists to diagnose hemato-malignancies is an under-appreciated story. The firm started shares with a Buy rating and $34 target.
- Jefferies initiated Teva Pharmaceutical (NASDAQ: TEVA) with a Buy rating and $52 target. The firm believes Teva is well positioned for growth given the global push towards cheaper pharmaceuticals. Teva was also initiated with an Outperform rating and $56 target at RBC Capital.
- BlackRock Kelso (NASDAQ: BKCC) was initiated with an In Line rating and $7.50 target at Fox-Pitt.
- NeuStar (NYSE: NSR) was started at Oppenheimer with a Perform rating and $20 target.
- American Superconductor (NASDAQ: AMSC) was assumed with a Neutral rating and $22 target at Piper Jaffray.
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