Analyst upgrades:- Bernstein upgraded Amgen (NASDAQ: AMGN) to Outperform from Market Perform on valuation as it believes threats to the core business are priced in at current levels and upside catalysts may come from pipeline news. The firm raised its target on shares to $65 from $57.
- Stephens upgraded CyberSource (NASDAQ: CYBS) to Overweight from Equal Weight on valuation as it believes the recent pullback creates a buying opportunity. The firm raised its target on shares to $16 from $14.
- JPMorgan upgraded Magna (NYSE: MGA) and Tenneco (NYSE: TEN) to Overweight from Neutral on expectations global auto production has sequentially bottomed with European light vehicle production rebounding in Q2. The firm also sees a short-term trading opportunity in TRW Automotive (NYSE: TRW), but keeps a Neutral rating on the stock.
- SINA Corp. (NASDAQ: SINA) was upgraded to Conviction Buy from Buy at Goldman.
- Cogent Communications (NASDAQ: CCOI) was raised to Buy from Hold at Citigroup.
Analyst downgrades:
- Barclays downgraded AT&T (NYSE: T) to Equal Weight from Overweight and the Telecom Services sector to Neutral from Positive. The analyst believes AT&T could lag the market given the "anemic employment outlook and their late stage cyclical nature" and lowered AT&T's price target to $28 from $34. Note that Barclays also downgraded tw telecom (NASDAQ: TWTC) to Equal Weight from Overweight.
- Baird downgraded Ashford Hospitality (AHT) to Underperform from Neutral based on valuation following Extended Stay America's bankruptcy filing, which affects Ashford's $164M note in ESA's mezzanine tranche six.
- Cowen downgraded Mohawk (NYSE: MHK) to Neutral from Outperform citing valuation and weak demand.
- Weyerhaeuser (NYSE: WY) was downgraded to Buy from Conviction Buy at Goldman.
- Cemex (NYSE: CX) was downgraded to Underperform from Neutral at Bank of America/Merrill.
- Aruba Networks (NASDAQ: ARUN) was downgraded to Hold from Buy at Needham.
- Merriman thinks Veeco's (NASDAQ: VECO) orders bottomed in Q1 while increasing factory utilization rates at LED and data storage customers will result in a recovery in Q2 orders. Shares were initiated with a Buy rating.
- KeyBanc said Hasbro (NYSE: HAS) has several near-term catalysts that include two major movies this summer and believes the Discovery (NASDAQ; DISCA) joint venture's ultimate earnings potential has been overlooked by investors. The firm started shares with a Buy rating and $32 target.
- Jefferies assumed Zumiez (NASDAQ: ZUMZ) with a Hold rating and $10 target, citing competition concerns and negative sales momentum.
- Roper Industries (NYSE: ROP) was initiated with an Outperform rating at Wachovia.
- Cisco (NASDAQ: CSCO) was initiated with a Buy rating and $23 target at Canaccord.
- Cummins (NYSE: CMI) was initiated with a Buy rating and $42 target at Goldman.
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Closing Bell: Bulls gutting bears (ATVI, EWBC, GE, JASO, ENZN, MCD)
Goldman Sachs CEO Lloyd Blankfein pulls a Jeff Skilling in an interview
