Analyst upgrades:
- Jefferies upgraded Starbucks (SBUX) to buy from hold, citing EPS and revenue momentum heading into 2010. The firm raised its target to $25 from $22.
- Soleil upgraded Zions Bancorp (ZION) to buy from hold on valuation as it believes the recent pullback provides an attractive entry point. The firm has a $17.50 price target on shares.
- RBC Capital expects Rigel Pharmaceuticals (RIGL) to sign a partnership for R788 in the next four months to run its global Phase III program. Shares were upgraded to outperform from sector perform and its target was raised to $11 from $9.
- Deere (DE) was upgraded to overweight from equal weight at Morgan Stanley.
- Shire (SHPGY) was raised to outperform from market perform at Bernstein.
- Ann Taylor (ANN) was upgraded to overweight from market weight at Thomas Weisel.
- J.M. Smucker (SJM) was upgraded to overweight from neutral at JPMorgan.
Analyst downgrades:
- JPMorgan downgraded Hibbett Sports (HIBB) to neutral from overweight on valuation and a lack of store growth reacceleration. The firm has a $22 price target on shares.
- Jefferies (JEF) was downgraded to sell from neutral at Goldman. The firm cut its target to $25 from $29.
- Ciena (CIEN) was downgraded to market perform from outperform at Morgan Keegan.
- TC Pipelines (TCLP) was downgraded to neutral from buy at BofA/Merrill.
- Knight Capital (NITE) was lowered to neutral from buy at Goldman.
- J. Sainsbury (JSAIY) was downgraded to neutral from overweight at JPMorgan.
Analyst initiations:
- Morgan Stanley expects American Express (AXP) to be one of the first card companies to emerge from the credit downturn. The firm initiated shares with an overweight rating and $51 target.
- Citigroup started RailAmerica (RA) with a buy rating and $16 target. The firm sees potential upside from RailAmerica's acquisition strategy and cost cuts. RailAmerica was also initiated with an overweight rating and $18 target at JPMorgan and with an overweight rating and $17 target at Morgan Stanley.
- Pali Capital believes Vitamin Shoppe (VSI) possesses above-average unit growth and a strong strategic positioning. Shares were assumed with a buy rating and $22 target.
- Lear (LEA) coverage was resumed with a buy rating and $85 target at BofA/Merrill.
- Oshkosh (OSK) was initiated with a neutral rating and $42 target at JPMorgan.
- Wonder Auto (WATG) was started at Jefferies with a buy rating and $15 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
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