Analyst upgrades:
- Barclays upgraded Exxon (XOM) to overweight from equal weight based on a higher production growth outlook. The firm, which raised its target to $92 from $90, expects Exxon to have organic growth of more than 3% in 2010 and an average growth rate of 2.6% between 2009 and 2013.
- Kaufman Bros. upgraded Palm (PALM) to buy from hold citing the recent pullback in shares and indications that Verizon (VZ) will carry webOS phones as early as 1H10. The firm has a $16 target on the stock.
- Piper Jaffray raised Medicis (MRX) to neutral from underweight and raised its target to $20 from $16. Following a management meeting, Piper said they have increased confidence in Soldyn risk and LipoSonix's safety profile.
- Illinois Tool Works (ITW) was upgraded to buy from neutral at UBS.
- Devon Energy (DVN) was upgraded to outperform from market perform at Wells Fargo.
- Carmike Cinemas (CKEC) was upgraded to buy from neutral at Merriman.
Analyst downgrades:
- FBR Capital downgraded Sunpower (SPWRA) to market perform from outperform due to the company's announcement that it may restate some of its past quarterly financial reports. The firm set a $30 target on the stock.
- Piper Jaffray downgraded Sunpower to neutral from overweight and lowered its target to $31 from $38 on the company's potential accounting errors.
- B. Riley downgraded Zumiez (ZUMZ) to neutral from buy and lowered its target to $13 from $19. The firm expects Pacific Sunwear (PSUN) to increased holiday promotions, which will pressure Zumiez.
- Credit Suisse downgraded Smith International (SII) to neutral from outperform and lowered its target to $27 from $30. The firm cites the company's dilutive equity offering for the downgrade.
- Joy Global (JOYG) was downgraded to neutral from buy at UBS.
- EnergySolutions (ES) was downgraded to neutral from overweight at JPMorgan.
- TIB Financial (TIBB) was downgraded to underperform from market perform at Raymond James.
Analyst initiations:
- Collins Stewart believes that Netflix (NFLX) has an unmatched competitive advantage in DVD rentals. The firm thinks that the fundamentals of Netflix's DVD rental are rebounding and underappreciated, and it set a buy rating and $73 target on the stock.
- Morgan Joseph believes Volcano's (VOLC) growing body of clinical data provides a compelling value proposition for investors. The firm initiated shares with a buy rating and $20 target.
- JPMorgan views Lear's (LEA) valuation as attractive. Shares were started with an overweight rating and $83 target.
- Dell (DELL) coverage was resumed with an equal weight rating at Morgan Stanley.
- W.R. Grace (GRA) was initiated with a hold rating and $27 target at Jefferies.
- Tim Hortons (THI) was initiated with a buy rating and $38 target at Jesup & Lamont.
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