Analyst upgrades:
- Target (NYSE: TGT) was upgraded two ratings to Buy from Sell at Citigroup, and it raised its price estimate on shares to $61 from $44. The firm sees significant earnings upside as the company's same-store sales improve and finds the valuation attractive at current levels.
- Motorola (NYSE: MOT) was upgraded to Outperform from Sector Perform at RBC Capital citing valuation, new product launches, and expectations that the Mobile Devices division will be profitable. The price target is $11.
- AK Steel (NYSE: AKS) was upgraded to Buy from Hold at Citigroup as it believes the company's Q3 results were solid and the China steel market is stabilizing. The firm raised its target to $21 from $17.
- Ceradyne (NASDAQ: CRDN) was upgraded at Wells Fargo to Market Perform from Underperform. The firm thinks that earnings expectations for the company have now reached more reasonable levels, limiting risk.
- FormFactor (NASDAQ: FORM) was upgraded to Outperform from Market Perform at FBR Capital ahead of the company's Q3 results due to valuation as it views the risk/reward on shares compelling. The firm raised its price target to $25 from $19.
- Texas Instruments (NYSE: TXN) was upgraded at Goldman to Buy from Neutral, citing 2H10 margin expansion and analog share gains. Target was raised to $29 from $27.
- Barrett Business Services (NASDAQ: BBSI) was upgraded to Buy from Hold at Roth Capital as the firm thinks the company will benefit from a labor market recovery next year. Roth notes that the stock's valuation has lagged behind most of its peers in recent months and it set an $18 target.
Analyst downgrades:
- Winn-Dixie (NASDAQ: WINN) was downgraded to Neutral from Buy at Janney Montgomery following the company's weaker-than-expected Q1 results, and it lowered its target on shares to $12 from $18.
- Intel (NASDAQ: INTC) was downgraded to Hold from Buy at Roth Capital citing seasonality and inventory concerns. Target is $20.
- Apollo Group (NASDAQ: APOL) was downgraded to Equal Weight from Overweight at Morgan Stanley following the SEC inquiry announcement.
- Nvidia (NASDAQ: NVDA) was downgraded to Hold from Buy at Roth Capital, which expects Nvidia to have a transitional 2010 as the chipset business declines while Tesla and Tegra grow to become significant drivers. Target is $12.
- PacWest Bancorp (NASDAQ: PACW) was downgraded to Hold from Buy at Soleil on expectations that credit losses will rise in Q4 and 2010. The firm has a $19 price target on shares.
- Under Armour (NYSE: UA) was downgraded to Underperform from Hold at Needham, citing management comments that indicate 2010 may have slower growth than expected.
Analyst initiations:
- Ciena (NASDAQ: CIEN) was initiated with a Buy at Citigroup, which expects the company to benefit from its converged optical and Ethernet focus. Target is $17.50.
- Infinera (NASDAQ: INFN) was initiated with a Hold at Citigroup, citing increased competition and the pending management transition. Target is $9.50.
- Archer Daniels (NYSE: ADM) was reinstated with a Buy at BofA/Merrill. Target is $36.
- Tyson Foods (NYSE: TSN) was reinstated with a Buy at BofA/Merrill. Target is $15.
- DiamondRock Hospitality (NYSE: DRH) was initiated with a Market Perform at Raymond James.
- SORL Auto Parts (NASDAQ: SORL) was initiated with an Outperform at Rodman & Renshaw. Target is $11.
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