Analyst upgrades:
- Citigroup upgraded Kraft Foods (NYSE: KFT) to Buy from Hold as it believes the company's domestic retail business is improving while input cost inflation pressures are beginning to moderate. Citi raised its target on shares to $32 from $28.
- Jefferies upgraded Sybase (NYSE: SY) to Buy from Hold as it believes slowing core IPG licenses in the second half of 2009 are now reflected in guidance. The firm raised its target on shares to $41 from $34.
- Canaccord said Apple's (NASDAQ: AAPL) decision to ad video functionality into the iPod lineup is "very positive" as it expands its market into the low-end camcorder area. The firm, which upgraded shares to Buy from Hold and raised its target to $200 from $150, also views the launch of iPhone 3GS in all countries by the end of Q4 as another catalyst.
- Rio Tinto (NYSE: RTP) was upgraded to Buy from Hold at Societe Generale.
- Renasant Corp. (NASDAQ: RNST) was upgraded to Overweight from Equal Weight at Stephens.
- America Movil (NYSE: AMX) was upgraded to Neutral from Sell at Pali Capital.
Analyst downgrades:
- Citigroup downgraded Peabody Energy (NYSE: BTU) to Hold from Buy on concerns the company's coal operations in Australia are providing a lack of earnings support due to higher unit costs. The firm lowered its target on shares to $34 from $40.
- Bernstein downgraded Sepracor (NASDAQ: SEPR) to Underperform from Market Perform citing patent expiration concerns in the 2012-2014 time frame and a weak pipeline.
- Baird downgraded Pharmaceutical Product Development (NASDAQ: PPDI) to Neutral from Outperform citing poor bookings in the quarter. Despite the downgrade, PPDI's target was raised to $26 from $23.
- Dr. Reddy's Labs (AMEX: RDY) was downgraded to Equal Weight from Overweight at Morgan Stanley.
- Lockheed Martin (NYSE: LMT) was downgraded to Hold from Buy at Societe Generale.
- Hallmark (NASDAQ: HALL) was downgraded to Market Perform from Outperform at Raymond James.
Analyst initiations:
- Deutsche Bank believes Celgene (NASDAQ: CELG) should meet consensus in Q2 and that long-term upside outweighs downside in the stock. Shares were started with a Buy rating and $54 target.
- Merriman believes EMC (NYSE: EMC) is positioned well as storage budgets come back. The firm initiated shares with a Buy rating.
- On Semiconductor (NASDAQ: ONNN) was initiated with a Market Perform rating and $7 target at BMO Capital.
- BJ's Wholesale (NYSE: BJ) and Costco (NASDAQ: COST) were reinstated with Buy ratings at BofA/Merrill.
- Cypress Sharpridge (NYSE: CYS) was initiated with an Overweight rating at Barclays.
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