MOST NOTEWORTHY:

• Hershey (NYSE: HSY) was downgraded to Underperform from Peer Perform at Bear Stearns. Bear believes the new CEO will be under intense pressure to improve operating performance, which will likely lead to higher R&D and marketing spending.
  
• Cognos (NASDAQ: COGN) was downgraded to Equal Weight from Overweight at Morgan Stanley following the acquisition by IBM (NYSE: IBM).
  
• ABN Amro lowered its rating on Resmed (NYSE: RMD) to Hold from Buy on valuation following the recent rally.
  
• Cowen downgraded Artes Medical (NASDAQ: ARTE) to Neutral from Buy following the company's disappointing Q3 report.

• Merrill downgraded Target (NYSE: TGT) to Neutral from Buy.
  
• Goldman downgraded Gatehouse Media (NYSE: GHS) and NewStar Financial (NASDAQ: NEWS) to Neutral from Buy.
  
• Bernstein downgraded Rio Tinto (NYSE: RTP) to Market Perform from Outperform.

Analyst downgrades: HSY, COGN, RMD and ARTE originally appeared on BloggingStocks on Wed, 14 Nov 2007 11:20:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Cognos (NASDAQ: COGN) was downgraded to Neutral from Buy at Goldman and at Broadpoint following the acquisition by IBM (NYSE: IBM).
  
• Baird downgraded MSC Industrial Direct (NYSE: MSM) and Fastenal Company (NASDAQ: FAST) to Neutral from Outperform, as they expect the difficult U.S. manufacturing environment to constrain shares.
  
• Credit Suisse lowered its rating on Royal Kpn (NYSE: KPN) to Neutral from Outperform based on Getronics integration risk and slowing mobile earnings momentum.
  
• Koppers Holdings (NYSE: KOP) was downgraded to Buy from Aggressive Buy at KeyBanc based on valuation and concerns on 1H08 comps.

• Goldman removed Foster Wheeler (NASDAQ: FWLT) from its Conviction Buy List.
  
• Gabelli downgraded shares of Constellation Brands (NYSE: STZ) to Sell from Buy.
  
• Stifel lowered its rating on Amerigroup (NYSE: AGP) to Hold from Buy.

Analyst downgrades: COGN, MSM, FAST, KPN and KOP originally appeared on BloggingStocks on Tue, 13 Nov 2007 11:50:00 EST. Please see our terms for use of feeds.

Continue reading IBM rises on Cognos (COGN) acquisition

IBM rises on Cognos (COGN) acquisition originally appeared on BloggingStocks on Mon, 12 Nov 2007 11:40:00 EST. Please see our terms for use of feeds.

IBM (NYSE: IBM) announced that it will buy business intelligence firm Cognos (NASDAQ: COGN) for about $5 billion in cash, or $58 a share. The company currently trades at about $52.

In its press release, IBM said, "The acquisition of Cognos supports IBM's Information on Demand strategy, a cross-company initiative announced on February 16, 2006 that combines IBM's strength in information integration, content and data management and business consulting services to unlock the business value of information."

As hardware fades as IBM's big revenue platform, software and consulting services must replace it. The market may see more of these deals.

Douglas A. McIntyre is an editor at 247wallst.com.

IBM to buy Cognos for $5 billion originally appeared on BloggingStocks on Mon, 12 Nov 2007 07:37:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Credit Suisse downgraded shares of Royal Dutch Shell (NYSE: RDS.A) to Neutral from Outperform based on valuation as analyst estimates now look about right, removing a potential catalyst.
  
• Banc of America downgraded shares of Citigroup (NYSE: C) to Neutral from Buy and lowered their target to $39 from $45 given the eroding confidence in the company's earnings and book value.
  
• American Financial (NYSE: AFR) was downgraded to Neutral from Buy at UBS and to Market Perform from Outperform at Friedman Billings following its acquisition by Gramercy Capital Corp (NYSE: GKK).
  
• CIBC downgraded Cognos (NASDAQ: COGN) to Sector Performer from Outperformer based on takeover valuation premium and FX headwinds.

• Goldman removed Microsoft (NASDAQ: MSFT) from its Conviction Buy List.
  
• Merrill downgraded AMBAC Financial (NYSE: ABK) to Neutral from Buy.
  
• Morgan Stanley downgraded the hardlines and softlines retail sectors to Cautious from In Line; the firm also downgraded Bed Bath & Beyond (NASDAQ: BBBY) to Equal Weight from Overweight and Nordstrom (NYSE: JWN) to Underweight from Equal Weight.

Analyst downgrades: RDS.A, C, AFR and COGN originally appeared on BloggingStocks on Tue, 06 Nov 2007 11:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank downgraded Coca-Cola Company (NYSE: KO) and PepsiCo (NYSE: PEP) to Hold from Buy on valuation, as they believe shares reflect prospects for growth.
  
• Business Objects (NASDAQ: BOBJ) was downgraded to Neutral from Buy at UBS following the acquisition by SAP AG (NYSE: SAP) and to Hold from Buy at Jefferies, as the firm finds the acquisition price fair and does not expect a counter-bid. Soleil believes the SAP offer is reflected in the stock price, and downgraded Business Objects to Hold from Buy.
  
• Roth Capital downgraded shares of Cognos (NASDAQ: COGN) to Hold from Buy based on recent share appreciation as shares capture a vast majority of a potential takeover bid; Goldman downgraded shares to Neutral from Buy and Jefferies downgraded shares to Hold from Buy on valuation.
  
• JP Morgan lowered shares of Cooper Companies (NYSE: COO) to Underweight from Neutral. The firm believes Street estimates are too high given a negative mix shift in the company's contact lens business, which could lead to a FY08 EPS shortfall.

• Goldman downgraded JetBlue Airways (NASDAQ: JBLU) to Neutral from Buy.
  
• Elizabeth Arden (NASDAQ: RDEN) was downgraded to Neutral from Buy at SunTrust.
  
• UBS downgraded Healthcare REITs to Market Weight from Overweight. UBS downgraded Health Care REIT (NYSE: HCN) and Ventas (NYSE: VTR) to Neutral from Buy and Omega Healthcare (NYSE: OHI) to Sell from Neutral.

Analyst downgrades: KO, PEP, BOBJ, COGN and COO originally appeared on BloggingStocks on Tue, 09 Oct 2007 10:45:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• ING Group upgraded shares of BT Group (NYSE: BT) to Hold from Sell to reflect the company's more stable revenue trend and improving cash flow generation.
  
• Deutsche Bank upgraded shares of Luminent Mortgage Capital (NYSE: LUM) to Hold from Sell, as they believe the company's portfolio is beginning to stabilize and its liquidity has improved.
  
• Goldman upgraded Cognos Inc (NASDAQ: COGN) to Buy from Neutral following its Q2 report.
  
• Thor Industries (NYSE: THO) was raised to Sector Perform from Underperform at RBC Capital Markets. The firm's checks indicate strengthening backlog and lower promotional spending.
  
• Roth Capital believes Watson Pharmaceuticals (NYSE: WPI) is about to enter a growth phase with Paul Bisaro at the helm and is positive on Silodosin potential. The firm upgraded shares to Buy from Hold.

• Bank of the Ozarks (NASDAQ: OZRK) was upgraded to Buy from Neutral at B. Riley.
  
• Bear upgraded Harman International (NYSE: HAR) to Outperform from Market Perform.
  
• Goldman upgraded Packagaing Corporation (NYSE: PKG) and Smurfit-Stone Container (NASDAQ: SSCC) to Buy from Neutral.
  
• Friedman Billings raised Conseco Inc (NYSE: CNO) to Outperform from Market Perform.

Analyst upgrades: BT, LUM, COGN, THO and WPI originally appeared on BloggingStocks on Fri, 28 Sep 2007 11:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Applix Inc (NASDAQ: APLX) was downgraded to Neutral from Buy at First Albany and SunTrust Robinson Humphrey following the acquisition by Cognos Inc (NASDAQ: COGN).
• Time Warner Inc (NYSE: TWX) was downgrade to Neutral from Buy at Pali Capital. The firm has lost faith in Time Warner's executive management team and Board of Directors and feels the outlook for AOL is concerning.
• Gabelli downgraded Apple Inc (NASDAQ: AAPL) shares to Hold from Buy on iPhone concerns and valuation as they view the iPhone price cut as an indication that sales are not living up to management's expectations.
• Buckingham Research downgraded shares of Level 3 Communications Inc (NASDAQ: LVLT) to Underperform from Neutral citing deterioration in demand for some key products.

• SL Green Realty (NYSE: SLG) was downgraded to Equal Weight from Overweight at Lehman Brothers.
• Citigroup downgraded shares of Volkswagen AG (OTC: VLKAY) to Sell from Hold.
• Zumiez Inc (NASDAQ: ZUMZ) was downgraded to Market Perform from Outperform at Morgan Keegan.
  
• JP Morgan downgraded Northeast Utilities (NYSE: NU) to Neutral from Overweight.
• Goldman Sachs downgraded Radiation Therapy Services Inc (NASDAQ: RTSX) to Neutral from Buy.

Analyst downgrades 9-6-07: APLX, TWX, AAPL and LVLT originally appeared on BloggingStocks on Thu, 06 Sep 2007 11:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bernstein upgraded shares of Marathon Oil Corporation (NYSE: MRO), Tesoro Corporation (NYSE: TSO), Sunoco Incorporated (NYSE: SUN) and Valero Energy Corporation (NYSE: VLO) to Market Perform from Underperform.
• MasTec Incorporated (NYSE: MTZ) was upgraded to Buy from Accumulate at Think Equity and to Buy from Hold at SMH Capital on valuation following yesterday's sell-off.
• JP Morgan upgraded shares of Cognos Incorporated (NASDAQ: COGN) to Overweight from Neutral citing solid end demand, expanded sales capacity, indications that C8 adoption should see an uptick, and the Applix Inc (NASDAQ: APLX) acquisition.
• Forest Laboratories Inc (NYSE: FRX) was upgraded to Buy from Hold at Jefferies, as the firm believes Forest's victory in the Lexapro patent case eliminates a major overhang and returns the focus to the company's pipeline.
• Lehman upgraded shares of Reuters Group (NASDAQ: RTRSY) to Overweight from Equal Weight to reflect benefits from the company's merger with Thomson Corporation (NYSE: TOC).

• UBS upgraded shares of General Mills Inc (NYSE: GIS) to Buy from Neutral.
• Thornburg Mortgage (NYSE: TMA) was upgraded to Sector Perform from Underperform at RBC Capital Markets.
• CIBC World Markets upgraded EDO Corporation (NYSE: EDO) to Sector Outperformer from Sector Performer.
• Bernstein upgraded shares of Rio Tinto (NYSE: RTP) to Outperform from Market Perform and shares of Anglo American (NASDAQ: AAUK) to Market Perform from Underperform.

Analyst upgrades 9-6-07: Refiners, MTZ, COGN, FRX and RTRSY originally appeared on BloggingStocks on Thu, 06 Sep 2007 10:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Friedman Billings upgraded shares of Wilshire Bancorp (NASDAQ: WIBC) to Market Perform from Underperform based on valuation.

• Goldman Sachs upgraded shares of American Express (NYSE: AXP) to Buy from Neutral as they believe American's network business is undervalued.

• UBS upgraded AMR Corp (NYSE: AMR), Delta Air Lines (NYSE: DAL) and UAL Corp (NASDAQ: UAUA) to Neutral from Reduce saying the capacity cuts bode well for industry pricing...

• Wachovia raised Orbital Sciences (NYSE: ORB) to Outperform from Market Perform.

• Cognos Inc (NASDAQ: COGN) was raised to Strong Buy from Outperform at JMP Securities.

• Deutsche Bank upgraded PetroChina Co Ltd (NYSE: PTR) to Buy from Hold.

• JP Morgan upgraded Lear Corp (NYSE: LEA) to Overweight from Neutral.

• Matrix USA raised Marriot International (NYSE: MAR) to Buy from Hold.

Analyst upgrades 7-17-07: AMR, AXP, DAL, MAR and UAUA originally appeared on BloggingStocks on Tue, 17 Jul 2007 10:40:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Banc of America said summer blockbusters have fallen off faster than they expected and there are fewer mid-tier films to support growth:

• The firm downgraded Carmike Cinemas (NASDAQ: CKEC), Cinemark Holdings (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) to Neutral from Buy.

• Equity Inns (NYSE: ENN) was cut to Sell from Hold at AG Edwards after the Whitehall acquisition. JMP Securities and Friedman Billings cut shares to Market Perform from Outperform and KeyBanc downgraded Equity Inns to Hold from Buy.

• Matrix USA downgraded Talbots (NYSE: TLB) to Sell from Hold based on the eroding return of capital because of the company using capital to acquire and open new stores. Friedman Billings downgraded shares of

• Starbucks (NASDAQ: SBUX) to Market Perform from Outperform and removed the company from their FBR Top Picks list on expectations that 2H07 same-store sales will no longer improve, removing a catalyst...

• Fairchild Semiconductor (NYSE: FCS) was cut to Market Perform from Outperform at Piper.

• Abercrombie & Fitch (NYSE: ANF) was downgraded to Equal Weight from Overweight at Lehman.

• UBS downgraded Big 5 Sporting Goods Corp (NASDAQ: BGFV) to Neutral from Buy.

• Banc of America downgraded Cognos (NASDAQ: COGN) to Neutral from Buy.

• Roth downgraded Fuel Tech Inc (NASDAQ: FTEK) to Hold from Buy.

Analyst downgrades 6-22-07: ANF, BGFV, COGN, TLB and SBUX originally appeared on BloggingStocks on Fri, 22 Jun 2007 11:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Prudential upgraded shares of MGM Mirage (NYSE: MGM) to Overweight from Neutral on valuation, as the firm believes the recent weakness presents a buying opportunity.

• USA Truck Inc (NASDAQ: USAK) was raised to Equal Weight from Underweight at Stephens based on valuation.

• Jefferies upgraded shares of Knightsbridge Tankers Ltd (NASDAQ: VLCCF) to Hold from Underperform to reflect the company's five vessels now operating on long-term time charter contracts and its recent entry into the dry bulk shipping sector.

• Monolithic Power (NASDAQ: MPWR) was upgraded to Buy from Hold at Deutsche Bank following its patent win case against O2Micro International Ltd (OIIM).

• Wachovia upgraded Stanley Inc (NYSE: SXE) to Outperform from Market Perform based on its strong Q4 report and guidance...

• Cognos Inc (NASDAQ: COGN) was upgraded to Outperform from Sector Perform at Pacific Crest.

• Riverbed Technology, Inc (NASDAQ: RVBD) was raised to Overweight from Market Weight at Thomas Weisel.

• Stifel upgraded Priceline.com Inc (NASDAQ: PCLN) to Buy from Hold.

• Barrington raised X-Rite, Inc (NASDAQ: XRIT) To Outperform from Market Perform.

• Morgan Stanley raised Principal Financial Group Inc (NYSE: PFG) to Equal Weight from Underweight.

Analyst upgrades 5-17-07: COGN, PCLN and MGM originally appeared on BloggingStocks on Thu, 17 May 2007 10:36:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• UBS upgraded Brinker International Inc (NYSE: EAT) to Buy from Neutral with a $38 target, citing valuation following the recent sell-off.

• National Semiconductor Corp (NYSE: NSM) was upgraded to Accumulate from Source of Funds with a $28 target at ThinkEquity, following the company's Q3 report and guidance.

• Three transportation companies were upgraded at Stifel: Con-Way Inc (NYSE: CNW), FedEx Corp (NYSE: FDX) and Universal Truckload Services Inc (NASDAQ: UACL) were upgraded to Buy from Hold to reflect attractive valuations.

• Credit Suisse upgraded Office Depot, Inc (NYSE: ODP) to Outperform from Neutral.

• JMP Securities upgraded Texas Instruments Inc (NYSE: TXN) to Market Outperform from Market Perform ahead of the mid-quarter upgrade. Texas Instruments was also upgraded to Buy from Hold at Stifel.

• Calyon Securities upgraded Halliburton Co (NASDAQ: HAL) to Add from Neutral on valuation.

• Bernstein upgraded Charles Schwab Corp (NASDAQ: SCHW) to Outperform from Market Perform.

• BMO Capital Markets upgraded Cognos Inc (NASDAQ: COGN) to Outperform from Market Perform. BMO believes Cognos will receive additional business due to Oracle Corp's (NASDAQ: ORCL) acquisition of Hyperion Solutions Corp (NASDAQ: HYSL) and also see a greater chance that Cognos itself could be acquired.

• Cowen upgraded King Pharmaceuticals (NYSE: KG) to Neutral from Underperform citing Skelaxin's new label approval, which likely delays a generic.

Analyst upgrades 3-09-07: National Semi, FedEx, Halliburton all upgraded today originally appeared on BloggingStocks on Fri, 09 Mar 2007 11:02:00 EST. Please see our terms for use of feeds.

As Tom Taulli wrote earlier, Oracle Corp. (NASDAQ:ORCL) announced its intention to buy Hyperion Solutions Corp. (NASDAQ:HYSL) for $3.3 billion this morning. This will of course trigger speculation that the other two key players in the business intelligence space will go the same route. The players are French-based Business Objects (NASDAQ:BOBJ) and Canada-based Cognos Inc. (NASDAQ:COGN). The bottom line is that all three companies have been in play and facing buy-out rumors for the last three years. The only problem was they could not capture an enhanced valuation until they demonstrated real growth -- top and bottom line.

But what does this signal for Oracle? Oracle is the undisputed worldwide leader in database products. All competitors in the database field are dwarfed by Oracle. The operating margins for Oracle in pure database sales is north of 40%.

However, two problems have emerged for the company these past 4-5 years: 1) Its internally developed applications software has been a disaster, forcing Oracle to purchase Seibel Systems and PeopleSoft. 2) Database margins are being scrutinized by the customer base.

Continue reading Oracle's deal with Hyperion - don't get excited just yet

Oracle's deal with Hyperion - don't get excited just yet originally appeared on BloggingStocks on Thu, 01 Mar 2007 13:45:00 EST. Please see our terms for use of feeds.

Cognos (NASDAQ:COGN) provides business intelligence and corporate performance management software. Its programs help corporations analyze data, compile reports, plan budgets and distribute information. The firm pleased investors last week, when it announced Q3 EPS of 48 cents (ex-items) and revenues of $247.8 million. Analysts had been expecting 43 cents and $241.2 million. Management also guided Q4 EPS to 61-67 cents (64 cent consensus), Q4 revenues to $270-$280 million ($276.05M consensus), FY07 EPS to $1.64-$1.70 ($1.61 consensus) and FY07 revenues to $965-$975 million ($964.27M consensus). The CEO cited a 24% improvement in license revenue growth as one of the factors responsible for success. Seven brokerages subsequently boosted their price targets on the issue to levels from $43 to $50.

The news helped to keep Congos shares cycling through a positive six-month trading channel. The price is currently rebounding from the base of that channel, where oversold CCI, Momentum and MACD technical parameters suggest the potential for a rise back toward the top. The correspondence of the stock's 50-day moving average to the base of the channel backs the rebound notion. Altogether, brokers recommend the issue with seven "strong buys", fifteen "buys", eighteen "holds" and three "sells". Analysts see a 20% growth rate through the next year. The COGN Price to Free Cash Flow ratio (20.00), Sales Growth rate (16.72%), EPS Growth rate (54.84%), Return on Assets (9.28%) and Return on Investment (13.30%) compare favorably with S&P 500 averages. Institutions own about 80 percent of the outstanding shares. Over the past twelve months, the stock has traded between $25.10 and $44.19. Should you decide to invest, consider a stop-loss of $36.50.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Cognos shares cycling higher originally appeared on BloggingStocks on Tue, 26 Dec 2006 12:32:00 EST. Please see our terms for use of feeds.