Analyst upgrades:
- Citigroup upgraded Capital One (NYSE: COF) to Buy from Hold as it believes the credit cycle is starting to recover for U.S. credit cards and an improving economy will support bank credit stabilization. The firm raised its target on shares to $44 from $28.
- JPMorgan upgraded Morgan Stanley (NYSE: MS) to Overweight from Neutral on valuation and believes the stock market recovery will serve as a catalyst.
- Deutsche Bank upgraded F5 Networks (NASDAQ: FFIV) to Buy from Hold after its channel checks indicated a sooner-than-expected order ramp and stabilizing pricing trends. The firm raised its target on shares to $46 from $39.
- COTT Corp. (NYSE: COT) was upgraded to Buy from Neutral at UBS.
- Blackstone Group (NYSE: BX) was upgraded to Equal Weight from Underweight at Barclays.
- Illinois Tool Works (NYSE: ITW) was upgraded to Conviction Buy from Neutral at Goldman.
Analyst downgrades:
- Piper Jaffray downgraded MedAssets (NASDAQ: MDAS) to Neutral from Overweight on concerns the Senate inquiry into hospital group purchasing organizations poses headline risk and competition could bring pricing pressure. The firm keeps a $22 target on shares.
- JMP Securities believes eHealth's (NASDAQ: EHTH) core business is deteriorating while customer acquisition costs are rising. The firm downgraded shares to Underperform from Market Perform.
- Wunderlich downgraded Waste Management (NYSE: WM) to Hold from Buy on concerns falling electricity rates are overshadowing the company's solid waste performance. The firm has a $30 target on the stock.
- DuPont (NYSE: DD) was downgraded to Neutral from Buy at Goldman.
- Check Point (NASDAQ: CHKP) was downgraded to Market Perform from Outperform at FBR Capital.
- Popular (NASDAQ: BPOP) was downgraded to Neutral from Buy at B. Riley.
Analyst initiations:
- Jefferies believes Life Time Fitness's (NYSE: LTM) business environment has improved, and sees upside to 2009 consensus estimates. The firm started shares with a Buy rating and $35 target.
- FBR Capital initiated Southern Copper (NYSE: PCU) with a Market Perform rating and $25 target. The firm recommends investors wait for a more attractive entry point into Southern Copper shares.
- Soleil believes elevated credit costs and portfolio marks could make Zions Bancorp (NASDAQ: ZION) need additional capital. Shares were assumed with a Hold rating and $17.50 target.
- Vulcan Materials (NYSE: VMC) was initiated with a Market Perform rating at Morgan Keegan.
- CareFusion (NYSE: CFN) was initiated with an Overweight rating and $23 target at Morgan Stanley.
- Franklin Resources (NYSE: BEN) was started at Barclays with an Overweight rating and $104 target.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
