Analyst upgrades:
- JPMorgan upgraded Franklin Resources (NYSE: BEN) to Overweight from Underweight to reflect performance and sales improvements, as well as benefits from the weakening U.S. dollar. The firm has a $94 target on the stock.
- Oppenheimer upgraded FormFactor (NASDAQ: FORM) to Outperform from Perform after channel checks indicated orders are recovering. The firm raised its target on shares to $30 from $22.
- KeyBanc upgraded Oshkosh (NYSE: OSK) to Buy from Hold citing the company's MRAP-ATV contract win, which they view as a "game changer." The firm has a $30 target on the stock.
- Novellus (NASDAQ: NVLS) was upgraded to Neutral from Underperform at Credit Suisse.
- Ternium (NYSE: TX) was upgraded to Buy from Neutral at Goldman.
- Cathay General (NASDAQ: CATY) was upgraded to Buy from Neutral at B. Riley.
Analyst downgrades:
- Jefferies downgraded Blackbaud (NASDAQ: BLKB) to Hold from Buy after channel checks indicated ongoing weakness in Edge license sales. The firm lowered its target price on shares to $17 from $18.
- JPMorgan downgraded Federated Investors (NYSE: FII) to Underweight from Neutral to reflect the company's higher exposure to fixed income and money markets.
- JPMorgan also downgraded Opnext (NASDAQ: OPXT) to Underweight from Neutral. The firm expects cash burn for the next eight quarters given the company's struggling legacy business, and thinks the current cash balance provides little support for shares.
- Royal Dutch Shell (NYSE: RDS.A) was downgraded to Neutral from Overweight at HSBC.
- Rackspace (NYSE: RAX) was downgraded to Neutral from Buy at Goldman.
- FPL Group (NYSE: FPL) was downgraded to Neutral from Outperform at Credit Suisse.
Analyst initiations:
- BofA/Merrill reinstated coverage on Eli Lilly (NYSE: LLY) with an Underperform rating and $36 target and believes shares are "susceptible to underperformance" vs. the group.
- Qualcomm (NASDAQ: QCOM) coverage was assumed with a Buy rating and $55 target at ThinkEquity.
- Rio Tinto (NYSE: RTP) coverage was resumed with an Outperform rating at Credit Suisse.
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