Analyst upgrades, downgrades and initiations: ADTN, CAL, EXFO, JCI, LUV, VAR, CSCO, KMT, EZCH

Citigroup upgraded Adtran (NASDAQ: ADTN) to Buy from Hold on expectations the company will benefit from the broadband Stimulus funds.
Morgan Stanley upgraded Continental Airlines (NYSE: CAL) to Overweight from Equal Weight based on relative valuation and views the company as a "survivor." Additionally, the analyst lowered 2009 industry estimates but believes it is the last cut for the year and is incrementally more positive on the sector.
Morgan Stanley also upgraded EXFO Electro-Optical (NASDAQ: EXFO) to Overweight from Market Weight based on valuation.
Tata Motors (NYSE: TTM) was upgraded to Buy from Hold at Deutsche Bank.
Ascent Solar (NASDAQ: ASTI) was upgraded to Neutral from Underweight at JP Morgan.
Mechel Steel (NYSE: MTL) was upgraded to Neutral from Underperform at Credit Suisse.

Analyst downgrades:

Deutsche Bank downgraded Johnson Controls (NYSE: JCI) to Hold from Buy on valuation following the recent rise in shares. The firm raised its target on shares to $23 from $20.
Morgan Stanley downgraded Southwest Airlines (NYSE: LUV) to Underweight from Equal Weight based on relative valuation. Additionally, The analyst lowered 2009 industry estimates but believes it is the last cut for the year and is incrementally more positive on the sector.
Soleil downgraded Varian Medical (NYSE: VAR) to Hold from Buy on concerns reimbursement rates will decline. The firm lowered its target on shares to $35 from $41.
First Solar (NASDAQ: FSLR) was downgraded to Neutral from Overweight at JP Morgan.
Dynegy (NYSE: DYN) was downgraded to Sell from Neutral at UBS.

Analyst initiations:

Deutsche Bank expects Cisco (NASDAQ: CSCO) to maintain its market share in core product areas and for customer upgrades to accelerate growth. The firm finds shares attractively valued and set a Buy rating and $26 price target on the stock.
JP Morgan believes Kennametal (NYSE: KMT) faces cyclical headwinds and finds the valuation stretched at current levels. The firm started shares with an Underweight rating and $17 target.
Jefferies has near-term caution on EZchip (NASDAQ: EZCH) Semiconductor shares as it believes large customer Juniper (NASDAQ: JNPR) will be transitioning to an internal solution over the next couple of years. Shares were assumed with a Hold rating and $18 target.C
Adtran was initiated with a Neutral rating and $20 target at Baird.
Delta Air Lines (NYSE: DAL) was initiated with an Overweight rating and $9 target at Morgan Stanley.

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Reader Comments (Page 1 of 1)

7-02-2009 @ 9:49PM

Barry Lubin said...

Morgan Stanley (MS) gives LUV (Southwest Airlines) a downgrade from equal weight to underweight, "based on relative valuation"....Yet the analyst "believes it is the last cut for the year and is incrementally more positive on the sector." Sounds like MS is talking out of both sides of their mouth. Edward Jones has a buy rating and an $11.00 price target within 12 months. That sounds cheap at $6.50 now. LUV has consistently ourtperformed other airlines, remained profitable when others lost money, and has a proven track record even in recessions. They think outside the box and they usually trade in the $12 - $16 range. Even if it only pops to around $9 per share within 12 months, thats almost a 40% return! My money is on LUV that its stock price will fly significantly higher by the the first quarter of 2010! Morgan Stanley may be watching the likes of Citibank, while LUV flys into the sunset!