UBS upgraded McDonald's (NYSE:MCD) to Buy from Neutral based on expectations the it can deliver on 2009 EPS expectations and potential for accelerating share gains.
Bernstein upgraded Nokia (NYSE:NOK) to Outperform from Underperform on valuation following the company's profit warning. Merrill upgraded shares to Buy from Neutral to reflect valuation and Nokia's new product portfolio. Shares were also upgraded to Hold from Sell at WestLB.
B. Riley raised UCBH Holdings (NASDAQ:UCBH) to Buy from Neutral to reflect the improved valuation and the company's stronger capital position provided by the US Treasury investment.
Parexel (NASDAQ:PRXL) was upgraded to Buy from Hold at Jefferies.
CTS Corp (NYSE:CTS) was lifted to Neutral from Underweight at JP Morgan.
Soleil downgraded Disney (NYSE:DIS) to Hold from Buy to reflect the weakening macro-economic outlook and their belief consensus estimates may be too high. The firm lowered their target to $23 from $40.
Merrill downgraded Dell (NASDAQ:DELL) to Neutral from Buy on expectations PC sales will decline next year amid the slowing economy. The firm lowered Dell's target price to $13 from $22.
Jefferies cut MDS Inc (NASDAQ:MDZ) to Hold from Buy to reflect slowing demand and a lack of catalysts to unlock the company's assets. The firm lowered their target to $10.50 from $15.
Alcoa (NYSE:AA) was lowered to Neutral from Buy at UBS.
Tesco PLC (Other OTC:TSCDY) was downgraded at JP Morgan to Underweight from Neutral.
Merrill downgraded SAP AG (NYSE:SAP) to Neutral from Buy.
Goldman added Altera (NASDAQ:ALTR) to the Conviction Sell List.
Analyst initiations:
Citigroup thinks AutoZone (NYSE:AZO) will benefit from the slowdown in car sales and thinks the recent pullback is overdone. Shares were initiated with a Buy rating and $146 target.
Citigroup also believes Advance Auto Parts (NYSE:AAP) will benefit from the slowdown in car sales and started shares with a Buy rating and $35 target.
After Sunway (OTCBB:SUWG) reported higher than expected revenue, Roth Capital thinks the company is poised for substantial growth, but the firm thinks its remaining warrants may keep the shares trading at a modest valuation for a significant amount of time. The firm started shares with a Hold rating and $3.60 target.
Mechel Steel (NYSE:MTL) was initiated with a Neutral rating at Merrill Lynch.
Merriman upgraded Smith & Wesson (NASDAQ:SWHC) to Buy from Neutral on valuation after channel checks indicated an increase in gun sales in October after an Obama win became apparent. The firm believes shares can trade up into the $4 to $5 range.
Credit Suisse upgraded Wells Fargo (NYSE:WFC) to Outperform from Neutral citing the company's improved balance and potential earnings power following its $11B equity offering.
JP Morgan upgraded Coca-Cola Enerprises (NYSE:CCE) to Overweight from Neutral on valuation and easing commodity and labor costs.
Manulife (NYSE:MFC) was raised to Outperform from Sector Perform at RBC Capital.
Molina Healthcare (NYSE:MOH) was upgraded to Equal Weight from Underweight at Barclays.
Analyst downgrades:
Barclays downgraded General Motors (NYSE:GM) to Underweight from Equal Weight on cash concerns and believes any assistance from the government would substantially dilute equity holders. Barclays set a $1 target on GM shares.
Stephens cut LandAmerica (NYSE:LFG) to Underweight from Equal Weight following the Fidelity National (NYSE:FNF) takeover as they expect no other bidders to emerge and believe shares could go back to under $5 if Fidelity National walks away.
Deutsche Bank downgraded solar companies to reflect deteriorating fundamentals in the sector, an adequate supply of c-Si modules, the strengthening dollar and restricted access to capital. First Solar (NASDAQ:FSLR), Canadian Solar (NASDAQ:CSIQ), Energy Conversion (NASDAQ:ENER) and Sunpower (NASDAQ:SPWRA) were downgraded to Hold from Buy.
FMC Technologies (NYSE:FTI) was lowered to Underweight from Neutral at JP Morgan.
Analyst initiations:
Freeport McMoRan, HLS Systems, and Kimberly Clark were today's noteworthy initiations:
Banc of America expects Freeport McMoRan's (NYSE:FCX) earnings will decline sharply in 2009 and thinks the dividend could be at risk. Shares were initiated with a Neutral rating and $29 target.
Roth Capital initiated HLS Systems (NASDAQ:HOLI) with a Buy rating and $5 target. The firm is positive on the company's management team and the company's outlook for EPS growth.
Citigroup thinks Kimberly Clark's (NYSE:KMB) margins have bottomed and that the current valuation is too low. Shares were assumed with a Buy rating and $65 target.
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.
Keefe Bruyette upgraded MetLife (NYSE: MET) to Outperform from Market Perform as they believe the company's capital and liquidity profile are very solid relative to this week's sell-off.
The firm also upgraded shares of MSCI (NYSE: MXB) to Outperform from Market Perform on valuation as they believe near-term challenges are already priced into shares.
Burlington Northern (NYSE: BNI) was raised to Overweight from Neutral at JP Morgan based on valuation and strong pricing outlook.
Costco (NASDAQ: COST) was upgraded to Buy from Neutral at Goldman.
Pali Capital lifted Virgin Mobile (NYSE: VM) to Neutral from Sell.
Oppenheimer downgraded shares of Trimble Navigation (NASDAQ: TRMB) to Perform from Outperform as they believe the company's Engineering and Construction division is facing a challenging period due to the credit market strain.
Stephens downgraded Seacoast Banking (NASDAQ:SBCF) to Underweight from Equal Weight as they believe a dilutive capital raise is possible given future losses from real estate credits in coastal Florida.
Oppenheimer upgraded shares of National City (NYSE: NCC) to Outperform from Perform on valuation as they believe the bank is not seeing a mass exodus of depositors.
Wachovia upgraded Brookfield Infrastructure (NYSE: BIP) to Outperform from Market Perform due to what the firm sees as the company's solid cash flow growth outlook, strong balance sheet, and discounted valuation.
Baird upgraded Tellabs (NASDAQ: TLAB) to Outperform from Neutral citing valuation and improving 2009 prospects from 8800, 8600, and 7100 products and better Opex management..
Take-Two (NASDAQ: TTWO) was upgraded to Outperform from Neutral at Cowen.
Borg-Warner (NYSE: BWA) was raised to Buy from Hold at Keybanc.
Analyst downgrades:
Merriman downgraded shares of TheStreet.com (NASDAQ: TSCM) and Bankrate (NASDAQ: RATE) to Neutral from Buy to reflect concerns about display advertising trends and the company's above average exposure to the financial vertical.
Baird downgraded Monaco Coach (NYSE: MNC) to Neutral from Outperform and Thor Industries (NYSE: THO) and Winnebago Industries (NYSE: WGO) to Underperform from Neutral citing valuations and checks that indicate "dreadful" fundamentals.
RBC Capital downgraded Apple (NASDAQ: AAPL) to Sector Perform from Outperform citing weakening consumer spending, reduced visibility, and risks to valuation. The company's target was lowered to $140 from $200.
Morgan Keegan upgraded Marvell Tech (NASDAQ: MRVL) to Outperform from Market Perform based on valuation and sustainable growth.
Merrill upgraded Lehman (NYSE: LEH) to Neutral from Underperform and said the government bailout of the GSE's removes "considerable uncertainty" in the residential mortgage markets and that the housing market is now closer to a bottom. The analyst believes the environment has improved for Lehman to attract equity capital needed and that loss expectations are reflected in valuation.
Lehman downgraded shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to Equal Weight from Overweight after the U.S. government said it will place Fannie and Freddie into a conservatorship. Citigroup also downgraded shares to Sell from Buy following the federal government's plan to place the GSEs into conservatorship as they believe both Fannie and Freddie will no longer be managed to maximize common shareholder returns.
Nokia (NYSE: NOK) was cut to Hold from Buy at Deutsche Bank. The firm downgraded shares following the company's guidance reduction and believes the forecast could still be optimistic.
Merrill upgraded Schering-Plough (NYSE: SGP) to Buy from Neutral citing the company's better near-term pipeline outlook with two potential blockbusters to be approved over the next year. Schering-Plough's target was raised to $23 from $20.
Jefferies downgraded shares of Hologic (NASDAQ: HOLX) to Hold from Buy as they see limited near-term catalysts after the company reported a Q3 miss and lowered top-line guidance for FY08. The firm lowered their target to $24 from $28.
Baird downgraded California Pizza (NASDAQ: CPKI) to Neutral from Outperform as they see limited near-term upside given the uncertain 2H08/2009 outlook. The company's target was lowered to $15 from $17.
JP Morgan downgraded Jones Lang LaSalle (NYSE: JLL) and CB Richard Ellis (NYSE: CBG) to Neutral from Overweight due to the continued challenging economic environment.
Analyst initiations:
BC Capital initiated Dollar Financial(NYSE: DLLR) with an Outperform rating and $24 target. The firm likes Dollar's geographically diversified business and valuation.
MOST NOTEWORTHY: Memc Electronic, Citigroup and Sanmina were today's noteworthy upgrades:
Citigroup upgraded shares of Memc Electronic (NYSE:WFR) to Buy from Hold on valuation as they believe the bad news is priced in following the company's quarter. The firm raised Memc's target to $65 from $64. JP Morgan upgraded shares to Overweight from Neutral on valuation.
Morgan Stanley upgraded Citigroup (NYSE:C) to Equal Weight from Underweight based on asset sales, improved top-line, and dividend.
Credit Suisse upgraded Sanmina (NASDAQ:SANM) to Outperform from Neutral citing valuation and margin traction. The firm raised Sanmina's target to $2.50 from $1.60. Cowen upgraded Sanmina to Outperform from Neutral following the Q3 report and guidance.
OTHER UPGRADES:
Pharm Product (NASDAQ:PPDI) was upgraded at Baird to Outperform from Neutral.
Sunoco Logistics (NYSE:SXL) was raised to Outperform from Market Perform at Wachovia.
JP Morgan lifted Air Products (NYSE:APD) to Overweight from Neutral.
MOST NOTEWORTHY: Blackboard, Starwood Hotels and ACE Ltd were today's noteworthy upgrades:
Baird upgraded Blackboard (NASDAQ:BBBB) to Outperform from Neutral based on two new state-wide deals with New Mexico and North Carolina, K-12 growth, and up-selling and cross-selling opportunities. The firm raised Blackboard's target to $45 from $38.
Wachovia raised Starwood Hotels (NYSE:HOT) to Outperform from Market Perform citing valuation, high international exposure, and secure capital structure and dividend.
Citigroup upgraded shares of ACE Ltd (NYSE:ACE) to Buy from Neutral on valuation, as they believe additional selling from the company's redomestication to Switzerland will be offset by short covering. They view the recent weakness as an attractive buying opportunity and raised their target to $63 from $58.
MOST NOTEWORTHY: Norfolk Southern, OfficeMax and PetroQuest Energy were today's noteworthy upgrades:
JP Morgan upgraded Norfolk Southern (NYSE:NSC) to Overweight from Neutral based on leverage to export coal and the tighter truckload market.
Credit Suisse upgraded OfficeMax (NYSE:OMX) to Outperform from Neutral citing the company's clean balance sheet, positive cash flow, and limited downside.
UBS upgraded PetroQuest Energy (NYSE:PQ) to Buy from Neutral citing valuation and production catalysts. The company's target was raised to $30 from $25.
OTHER UPGRADES:
Piper Jaffray (NYSE:PJC) was upgraded to Market Weight from Underweight at Thomas Weisel.
Corning(NYSE:GLW) was upgraded at Merrill to Buy from Neutral.
HSBC lifted BP Plc (NYSE:BP) to Overweight from Neutral.
Calgon Carbon (NYSE:CCC) was raised to Hold from Sell at Morgan Joseph.
MOST NOTEWORTHY: Tower sector stocks, Tesco Plc and Alcoa were today's noteworthy upgrades:
RBC Capital upgraded American Tower (NYSE:AMT), Crown Castle( NYSE::CCI), SBAComm (NASDAQ:SBAC) to Outperform from Sector Perform citing recent weakness in the tower sector group and a continued favorable outlook.
Merrill upgraded shares of Tesco (Other OTC:TSCDY) to Buy from Neutral as they believe it is the only proven growth stock in the sector.
Soleil upgraded shares of Alcoa (NYSE:AA) to Hold from Sell on valuation following the recent weakness.
MOST NOTEWORTHY: Lam Research, Deutsche Telekom and France Telecom were today's noteworthy upgrades:
Credit Suisse upgraded Lam Research (NASDAQ:LRCX) to Outperform from Neutral citing margin expansion and valuation. Lam was named the firm's top pick in SCE names for 2H08.
JP Morgan upgraded shares of Deutsche Telekom (NYSE:DT) to Overweight from Neutral as they expect a stronger second half of the year for the industry.
France Telecom (NYSE:FTE) was upgraded to Buy from Neutral at Merrill and to Buy from Hold at Societe Generale after the company walked away without bidding for Sweden's TeliaSonera.
MOST NOTEWORTHY: Barclays, City National and BAE Systems were today's noteworthy upgrades:
Morgan Stanley upgraded shares of Barclays (NYSE:BCS) to Overweight from Equal Weight after the company announced plans to raise capital and disclosed no further write-downs.
Keefe Bruyette lifted City National (NYSE:CYN) to Outperform from Market Perform on valuation, as they believe the company should outperform peers in terms in credit quality.
Societe Generale upgraded shares of BAE Systems (Other OTC:BAESY) to Buy from Hold to reflect the company's earnings visibility.
OTHER UPGRADES:
Baird upgraded Host Hotels (NYSE:HST) to Outperform from Neutral.
Goldman added Monsanto (NYSE:MON) to its Conviction Buy List.
MOST NOTEWORTHY: American International Group, Energy East and BG Group Plc were today's noteworthy upgrades:
Citigroup upgraded shares of American International Group (NYSE:AIG) to Buy from Hold on valuation as they see limited downside at current levels. They believe the stock is "poised for over 35% upside in the next twelve months" and raised their target price to $42 from $41.
Jefferies raised Energy East (NYSE:EAS) to Hold from Underperform to reflect the growing pressure from politicians to influence the final NYPSC order in the merger approval proceeding. The firm raised their target price to $25.50 from $16.50.
Bernstein upgraded shares of BG Group (NASDAQ:BRGYY) to Outperform from Market Perform as they believe the company should benefit from the tightness in the global liquefied natural gas market.
OTHER UPGRADES:
Total SA (NYSE:TOT) was upgraded to Buy from Neutral at Goldman and added to the Conviction Buy List.
Wachovia lifted CarMax (NYSE:KMX) to Market Perform from Underperform.
Pike Electric (NYSE:PEC) was raised to Outperform from Market Perform at Friedman Billings.
MOST NOTEWORTHY: BP Plc, Tenet Healthcare Franklin Resources were today's noteworthy upgrades:
Lehman upgraded shares of BP Plc (NYSE:BP) to Equal Weight from Underweight on valuation and positive benefits from the company's TNK joint venture in Russia.
Lehman also upgraded Tenet Healthcare (NYSE:THC) to Overweight from Equal Weight, citing increased confidence the company can meet guidance following the company's analyst day.
Keefe Bruyette upgraded shares of Franklin Resources (NYSE:BEN) to Outperform from Market Perform as they believe flow trends have improved.
OTHER UPGRADES:
Goldman added Allied Waste (NYSE:AW) to its Conviction Buy List.
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Analyst upgrades:
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