Analyst upgrades:
- FBR Capital upgraded CapitalSource (NYSE: CSE) to Outperform from Market Perform on valuation as it sees an attractive risk/reward at current levels. The firm raised its target on shares to $5 from $3.
- Kaufman Bros. upgraded The Knot (NASDAQ: KNOT) to Buy from Hold following the company's Q2 results to reflect stable national advertising and a better bottom-line outlook. The firm raised its target on shares to $11 from $8.50.
- Baird upgraded Obagi Medical (NASDAQ: OMPI) to Outperform from Neutral and raised its target to $10 from $7 following the strong Q2 report. The firm believes business bottomed in Q1 and the outlook is improving.
- IPC The Hospitalist Co. (NASDAQ: IPCM) was upgraded to Overweight from Equal Weight at Stephens.
- King Pharma (NYSE: KG) was upgraded at BofA/Merrill to Buy from Hold.
- Infinera (NASDAQ: INFN) was upgraded to Hold from Underperform at Jefferies.
Analyst downgrades:
- FBR Capital downgraded Tesco (NASDAQ: TESO) to Market Perform from Outperform on concerns the company's sales will rebound later in the cycle than peers. The firm lowered its target on shares to $10 from $13.
- Soleil downgraded Comcast (NASDAQ: CMCSA) to Hold from Buy following the company's Q2 results on concerns revenue and EBITDA growth will slow in 2010. Soleil lowered its target on shares to $16 from $18.
- Piper Jaffray downgraded Energy Recovery (NASDAQ: ERII) to Neutral from Overweight and removed the stock from its Alpha List following the company's Q2 results and guidance. The firm has a $6 target on the stock.
- Universal Electronics (NASDAQ: UEIC) was downgraded to Neutral from Buy at B. Riley.
- Zale (NYSE: ZLC) was downgraded to Neutral from Buy at BofA/Merrill.
- Leap Wireless (NASDAQ: LEAP) was downgraded to Market Weight from Overweight at Thomas Weisel.
Analyst initiations:
- Dean Foods (NYSE: DF) was initiated with a Market Perform rating at Wells Fargo.
- Arch Coal (NYSE: ACI) was reinstated with a Neutral rating and $21 target at BofA/Merrill.
- Volcano (NASDAQ: VOLC) was assumed with a Neutral rating and $17 target at Baird.
- Hewlett-Packard (NYSE: HPQ) was initiated with a Buy rating and $52 target at Stifel Nicolaus.
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