Stephens upgraded shares of Ann Taylor (NYSE: ANN) to Overweight from Equal Weight to reflect the company's restructuring program, reductions in inventory and share repurchase program.
AIMCO (NYSE: AIV) was upgraded to Buy from Hold at Deutsche Bank.
UBS upgraded D.R. Horton (NYSE: DHI) to Neutral from Sell.
Argus believes BigBand Networks (NASDAQ: BBND) is succeeding by adding new customers and driving new business with existing customers. Shares were upgraded to Buy from Hold.
ThinkPanmure expects Capella Education (NASDAQ: CPLA) to attract students at a faster rate in the coming quarters and to improve operating margins. The firm raised shares to Buy from Accumulate and raised its target to $60 from $62.
Advanced Medical (NYSE:EYE) was lifted to Hold from Underperform at Jefferies.
MOST NOTEWORTHY: Best Buy, Circuit City and FTI Consulting were today's noteworthy initiations:
Best Buy (NYSE:BBY) and Circuit City (NYSE:CC) were initiated with Hold ratings and a $45-$47 and $3.50-$4.50 target, respectively, at Jefferies. The firm expects shares to be range bound as the company struggles with its turnaround and investor concerns about pressure on big ticket consumer purchases persists.
FTI Consulting (NYSE:FCN) was initiated with an Outperform at William Blair. The firm believes the company is well-positioned in the high-growth derivatives market and has attractive financial characteristics.
OTHER INITIATIONS:
Thomas Weisel started Micrel (NASDAQ:MCRL) with an Overweight rating and $9 target.
Ceva (NASDAQ:CEVA) was started with an Outperform rating and $13 target at RBC Capital.
Verisign (NASDAQ:VRSN) was initiated with a Hold rating and $35 target at Stifel.
MOST NOTEWORTHY: ProAssurance, Sonic Automotive and Interstate Hotels & Resorts were today's noteworthy initiations:
Suntrust initiated ProAssurance (NYSE:PRA) with a Buy rating and $66 target and said the company has a strong position in the Midwest and Southeastern markets where it targets solo practitioners and small groups, where competition is less intense.
Sonic Automotive (NYSE:SAH) was assumed with a Buy rating and $20 target at UBS, as they are positive on the company's diversified business mix.
Baird is believes Interstate Hotels & Resorts (NYSE:IHR) will leverage its operating experience through its growing ownership portfolio and views valuation as attractive. The firm started shares with an Outperform rating.
OTHER INITIATIONS:
Merrill initiated Allscripts (NASDAQ:MDRX) with a Neutral rating.
JMP Securities initiated Chimera Investment (NYSE:CIM) with a Market Perform rating.
MOST NOTEWORTHY: On Semiconductor, 8x8 Inc and Exide were today's noteworthy initiations:
On Semiconductor (NASDAQ:ONNN) was initiated with a Buy rating and $10 target at Kaufman Bros, as they believe the company is positioned to drive continued growth across its diversified end markets and benefit from a benign pricing environment.
B. Riley assumed coverage of 8x8 Inc (NASDAQ:EGHT) with a Buy rating and $3 target and expects accelerating top-line growth and improving profits and cash flows as Virtual Office increases as a percentage of revenues.
Merriman believes Exide's (NASDAQ:XIDE) significant smelting assets could become more valuable given recent changes in international environmental regulation and feels current levels provide an attractive entry point. The firm started shares with a Buy rating.
OTHER INITIATIONS:
Deutsche Bank started HealthSpring (HS) with a Hold rating and $23 target.
Sigma Designs (SIGM) was initiated with a Neutral rating and $47 target at Piper Jaffray.
Jefferies initiated ARYx Therapeutics (ARYX) with a Buy rating and $17 target.
MOST NOTEWORTHY: Greenfield Online, Simpson Manufacturing and Cooper Industries were today's noteworthy initiations:
Merriman assumed coverage of Greenfield Online (NASDAQ:SRVY) with a Buy rating. The firm's sum-of-parts valuation implies 50% upside to the stock and they believe the current valuation does not reflect the fast growing, high margin Comparison Shopping segment.
CIBC initiated Simpson Manufacturing (NYSE:SSD) with a Sector Performer rating and sees near-term earnings risk given the company's exposure to the U.S. housing market.
Cooper Industries (NYSE:CBE) was initiated at UBS with a Buy rating and $58 target. The firm expects Cooper to benefit from positive secular trends in energy efficiency and infrastructure investment.
OTHER INITIATIONS:
Baird initiated Large/Mid-Cap Banks with an Evenweight view, starting Comerica (NYSE:CMA) and PNCFinancial (NYSE:PNC) with Outperform ratings and a $50 target and $75 target, respectively.
Bear Stearns downgraded MSC Industrial (NYSE:MSM) shares to Peer Perform from Outperform following yesterday's durable goods data as they believe the U.S. maintenance, repair and overhaul market could modestly slow in the near-term.
Citigroup downgraded shares of Golden Telecom (NASDAQ:GLDN) to Hold from Buy and lowered their target to $105, equal to the takeout offer from VimpelCom.
MOST NOTEWORTHY: Ariad Pharma, FNB Corp. and Fortune Brands were today's noteworthy initiations:
Jefferies finds Ariad Pharma (NASDAQ:ARIA) compelling as they believe the market potential for deforolimus in cancer is being underappreciated. Jeffieries initiated Ariad with a Buy rating and $8 target.
B. Riley assumed coverage of FNB Corp. NYSE:FNB) with a Neutral rating and $15 target and sees limited viable lending opportunities in the current economic environment.
Wachovia initiated Fortune Brands (NYSE:FO) with an Outperform rating and is positive on the company's position in Spirits. The firm believes its Home business is weighted towards the less cyclical remodels business.
OTHER INITIATIONS:
William Blair initiated Smart Balance (NASDAQ:SMBL) with a Market Perform rating.
MOST NOTEWORTHY: Danaher, United Parcel Service and Atmel were today's noteworthy initiations:
Danaher (NYSE:DHR) was initiated with a Buy rating and $100 target at Banc of America. The firm believes the stock's premium valuation is warranted given the company's free cash flow performance and feels DHR's Emerging Medical platform is likely underappreciated by the Street.
United Parcel Service (NYSE:UPS) was assumed with a Market Perform rating at William Blair, as they believe the company is positioned favorably for long-term price appreciation.
Friedman Billings expects Atmel (NASDAQ:ATML) to pursue various actions to unlock shareholder value that include mix shift towards high-margin microcontroller products, reduced exposure to expensive manufacturing sites, and rationalizing its most profitable opportunities. The firm started shares with an Outperform rating and $6 target.
OTHER INITIATIONS:
Morgan Stanley assumed coverage of AutoZone (NYSE:AZO) with an Equal Weight rating.
Credit Suisse initiated Deltek (NASDAQ:PROJ) with an Overweight rating and $22 target.
Lehman started CME Group (NYSE:CME) with an Equal Weight rating.
MOST NOTEWORTHY: RadNet, ArthroCare and E.W. Scripps were today's noteworthy initiations:
Stanford initiated RadNet (NASDAQ:RDNT) with a Hold rating and $10.40 target and believes shares are fairly valued at current levels and that it will take time for the company's strategy of consolidating market share in select geographic areas to generate meaningful benefits.
Oppenheimer said ArthroCare's (NASDAQ:ARTC) technologies improve surgical precision and control, reduce operative time, create less painful and more rapid recoveries, and aid in making more surgeries minimally invasive. The firm started shares with a Buy rating and $70 target.
E.W. Scripps (NYSE:SSP) was initiated with a Hold rating and $45-$47 target at Jefferies. Jefferies believes the company's traditional media assets will weigh on operating results and are cautious ahead of company split in Q208.
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Analyst upgrades:
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