Analyst upgrades:
- Merriman upgraded Sunpower (NASDAQ: SPWRA) two levels to Buy from Sell after transitioning coverage. The firm believes Sunpower is emerging from the current recession as the CleanTech leader and has a $38-$48 price range on shares.
- Citigroup upgraded Varian Medical (NYSE: VAR) to Buy from hold as it believes capex pressure and health care reform uncertainty is priced into shares, and demand will return as hospital budgets stabilize. Citi raised its target on shares to $45 from $36.
- FBR Capital upgraded Gap (NYSE: GPS) to Outperform from Market Perform following the Q2 results to reflect product improvement and ongoing inventory control. The firm raised its target on shares to $24 from $18.
- Schnitzer Steel (NASDAQ: SCHN) was upgraded to Neutral from Sell at UBS.
- UDR Inc. (NYSE: UDR) was upgraded to Market Perform from Underperform at Wells Fargo.
- The Buckle (NYSE: BKE) was upgraded to Buy from Hold at Roth Capital.
Analyst downgrades:
- Jefferies downgraded Solarfun Power (NASDAQ: SOLF), Sunpower (NASDAQ: SPWRA) and First Solar (NASDAQ: FSLR) to Hold from Buy and Ascent Solar (NASDAQ: ASTI) and China Sunergy (NASDAQ: CSUN) to Underperform from Hold after cutting its rating on the solar sector. The firm believes weakening pricing may lead to weaker-than-expected 2010 estimates and concerns about value destruction in the sector.
- Keefe Bruyette downgraded Validus Holdings (VR) to Market Perform from Outperform on valuation following the recent rally. The firm has a $26.50 target on the stock.
- Goldman downgraded Dick's Sporting Goods (NYSE: DKS) to Neutral from Buy based on valuation.
- Baldor Electric (NYSE: BEZ) was downgraded to Sell from Neutral at UBS.
- Lubrizol (NYSE: LZ) was downgraded to Neutral from Overweight at JPMorgan.
- Redwood Trust (NYSE: RWT) was downgraded to Market Perform from Outperform at JMP Securities.
Analyst initiations:
- Oppenheimer believes A-Power Energy's (NASDAQ: APWR) valuation is cheap is current levels and the company's new wind business represents upside potential. The firm started shares with an Outperform rating and $17 target.
- Oppenheimer also initiated Tiffany (NYSE: TIF) with an Outperform rating and $38 target. The firm believes the worst is behind Tiffany and that sales should steadily improve.
- Netflix (NASDAQ: NFLX) was initiated with an Overweight rating and $56 target at Morgan Stanley.
- Penn West (NYSE: PWE) was initiated with a Neutral rating at Credit Suisse.
- BancorpSouth (NYSE: BXS) was initiated with a Hold rating and $25 target at Wunderlich.
- Territorial Bancorp (NASDAQ: TBNK) was initiated with a Market Perform rating and $17 target at Keefe Bruyette.
Struggling Playboy outsources business ops
J. Crew earnings preview: A strong Q3 all buttoned up?
Twitter to make acquisitions, generate revenue in 2010
