Analyst Upgrades
- Citigroup upgraded Reynolds American (RAI) to buy from hold to reflect its improved outlook for the company's market share and pricing. Citi also sees a greater chance of British American Tobacco (BTI) bidding for the rest of Reynolds American it doesn't already own. The firm raised its target price on Reynolds to $59 from $52.
- Stephens upgraded Simmons First National (SFNC) to overweight from equal weight to reflect the company's balance sheet and potential for accretive FDIC-assisted acquisitions. The firm raised its target on shares to $32 from $29.
- FBR Capital upgraded Astoria Financial (AF) to market perform from underperform on expectations the company's net charge-offs will peak in the fourth quarter, limiting downside risk. The firm raised its target on shares to $11 from $10.
- First Solar (FSLR) was upgraded to buy from hold at Collins Stewart.
- Brown-Forman (BF.B) was upgraded to neutral from underweight at JPMorgan.
- Juniper (JNPR) was upgraded to conviction buy from buy at Goldman.
Analyst Downgrades
- Kaufman Bros. downgraded Take-Two (TTWO) to sell from buy after the company lowered its outlook for Q4 and FY10. The firm lowered its target on shares to $7 from $14 and also removed the stock from its Focus List. Piper Jaffray downgraded the stock to neutral from overweight and lowered its target to $10 from $15 on the lower earnings outlook. Wells Fargo downgraded Take-Two to market perform from outperform and thinks the company is unlikely to outperform in the near term.
- Wells Fargo downgraded Endo Pharmaceuticals (ENDP) to market perform from outperform and has a $21 to $24 valuation range on the stock following the FDA's disappointing complete response letter for Aveed.
- Jefferies downgraded FirstEnergy (FE) to underperform from hold, citing high leverage and potential pressure on its credit ratings. The firm cut its target to $38 from $45.
- Comcast (CMCSA) was downgraded to neutral from outperform at Credit Suisse.
- Marvell Technology (MRVL) was downgraded to buy from conviction buy at Goldman.
- Netflix (NFLX) was downgraded to hold from buy at Citigroup.
Analyst Initiations
- Oppenheimer initiated Visa (V) with an outperform rating and $95 target. The firm believes the company will be boosted by a long-term switch to electronic payment methods, as well as increased global consumption and its overseas operations.
- BofA/Merrill believes McGraw-Hill's (MHP) discounted valuation reflects legal and regulatory risks and that the company is well-positioned to benefit from the global development of global debt markets. Shares were started with a buy rating and $38 target.
- Needham believes that Cantel (CMN) is a direct play on the large, growing infection prevention and control market. The firm, which initiated shares with a buy rating and $25 target, thinks this segment will perform well regardless of the outcome of health care reform.
- Air Products (APD) was initiated with an outperform rating at William Blair.
- SanDisk (SNDK) was initiated with an outperform rating and $30 target at JMP Securities.
- Pacific Sunwear (PSUN) coverage was assumed with a neutral at JPMorgan.
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