Analyst upgrades:
- Goldman upgraded SanDisk (NASDAQ: SNDK) to Buy from Neutral and raised their target to $22 from $16 citing the renegotiated royalty agreement with Samsung.
- Goldman also upgraded Starwood Hotels (NYSE: HOT) to Buy from Sell and raised their target to $27 from $11 citing strong operating leverage as RevPAR recovers.
- KeyBanc upgraded Werner Enterprises (NASDAQ: WERN) to Hold from Underweight citing a recent improvement in freight demand.
- J.C. Penney (NYSE: JCP) was upgraded to buy from Underperform at Banc of America/Merrill.
- Savvis (NASDAQ: SVVS) was raised to Outperform from Perform at Oppenheimer.
- Sanofi-Aventis (NYSE: SNY) was upgraded at Citigroup to Buy from Hold.
Analyst downgrades:
- Jefferies downgraded China Sunergy (NASDAQ: CSUN) to Hold from Buy following the company's Q1 results to reflect a weaker ASP outlook. The firm keeps a $4 price target on shares.
- UBS downgraded Caterpillar (NYSE: CAT), Parker Hannifin (NYSE: PH) and Eaton (NYSE: ETN) to Sell form Neutral and Illinois Tool Works (NYSE: ITW) to Neutral from Buy. The analyst cites further risk of deterioration in key end markets, valuations, unfavorable seasonality, among other reasons, for the downgrades. Joy Global (NASDAQ: JOYG) remains the firm's top pick.
- Auriga downgraded Switch & Data (NASDAQ: SDXC) on valuation as it finds the risk/reward on shares balanced following the recent rally. The firm keeps a $13.50 target.
- Nordstrom (NYSE: JWN) was downgraded to Underperform from Neutral at Banc of America/Merrill.
- Mylan (NASDAQ: MYL) was cut to Buy from Conviction Buy at Goldman.
- Carrizo Oil & Gas (NASDAQ: CRZO) was downgraded to Neutral from Buy at SunTrust.
Analyst initiations:
- Deutsche Bank believes conditions at Harley-Davidson's (NYSE: HOG) Financial Services are improving and that the motorcycle business will continue to generate strong cash flow. The firm started shares with a Buy rating and $21 target.
- FBR Capital finds Discover Financial's (NYSE: DFS) current valuation attractive and believes the company's capital reserves can withstand the tough environment. Shares were initiated with an Outperform rating and $11 target.
- Wunderlich assumed Key Energy (NYSE: KEG) with a Buy rating and $10 target. The firm believes Key's workover rigs should benefit from any sustained upturn in oil or natural gas activity.
- Estee Lauder (NYSE: EL) was initiated with a Perform rating at Oppenheimer.
- Abercrombie & Fitch (NYSE: ANF) was initiated with a Market Perform rating and $28 target at BMO Capital.
- Electronic Arts (NASDAQ: ERTS) was started at ThinkEquity with an Accumulate rating and $25 target.
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
MEMC CEO Forgoes Bonus; Money Will Go to Retrain Workers
