Analyst upgrades:
- Citigroup upgraded Schlumberger (NYSE: SLB) to Buy from Hold on valuation and the company's exposure to a potential upturn in international drilling. The firm raised its target on shares to $80 from $56.
- UBS upgraded Allegheny Tech (NYSE: ATI) to Buy from Neutral and raised its target to $43 from $31 and believes the end of jet engine and other destocking will result in an initial recovery into 2010, even before an order ramp into 2011.
- Merriman upgraded Acorda Therapeutics (NASDAQ: ACOR) to Buy from Neutral based on the favorable FDA panel outcome and set a $30-$33 target range on the stock. Baird upgraded Acorda to Outperform from Neutral and raised its target to $28 from $24. Following the panel review, Baird expects Amaya to be approved in 1H10 and would be buyers into the mid/high $20s.
- Chicago Bridge & Iron (NYSE: CBI) was upgraded to Buy from Neutral at Goldman.
- PG&E (NYSE: PCG) was upgraded to Buy from Neutral at UBS.
- Newfield Exploration (NYSE: NFX) was upgraded to Outperform from Market Perform at Wells Fargo.
Analyst downgrades:
- Oppenheimer downgraded Lazard (NYSE: LAZ) to Perform from Outperform following the passing of CEO Bruce Wasserstein as it believes disruption could cap upside in the stock. The firm keeps a $45 price target on shares.
- Keefe Bruyette downgraded The Travelers Companies (NYSE: TRV) to Market Perform from Outperform on concerns regarding the industry's 2010 underwriting outlook. The firm has a $51 price target on shares.
- Pali Capital downgraded Invesco (NYSE: IVZ) to Neutral from Buy on valuation and believes an acquisition is needed for shares to move higher in the near-term.
- BJ Services (NYSE: BJS) and Baker Hughes (NYSE: BHI) were downgraded to Sell from Hold at Citigroup.
- Host Hotels (NYSE: HST) was downgraded to Underperform from Neutral at Baird.
- Allianz (NYSE: AZ) was cut to Neutral from Buy at BofA/Merrill.
Analyst initiations:
- Bernstein believes Petrobras (NYSE: PBR) is well positioned to benefit from Brazilian pre-salt exploration. The firm started shares with an Outperform rating and $56 target.
- Bernstein also initiated Hess (NYSE: HES) with a Market Perform rating and $62 target. The firm has concerns regarding Hess's long-term growth profile.
- BMO Capital believes that the natural gas rig market will remain competitive for an extended period, resulting in pressure on smaller companies in the sector such as Complete Production (NYSE: CPX). The firm set a Market Perform rating and $15 target on the stock.
- BMO Capital initiated Halliburton (NYSE: HAL) and Schlumberger (NYSE: SLB) with Outperform ratings and targets of $40 and $92, respecitvely, and Baker Hughes (NYSE: BHI) with a Market Perform rating and $54 target.
- Tesoro (NYSE: TSO) was initiated with an Equal Weight rating and $16 target at Morgan Stanley.
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
