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Analyst downgrades: CSCO, KEX and FED

MOST NOTEWORTHY: Cisco Systems, Kirby and First Fed Financial were today's noteworthy downgrades:
  • UBS downgraded Cisco (NASDAQ: CSCO) to Neutral from Buy after channel checks indicated orders are slowing, which gives them concern over the July quarter.
  • Stephens cut Kirby (NYSE: KEX) to Equal Weight from Overweight as they believe a good 2008 is already priced into shares and that the liquid barge industry cycle may be nearing a top.
  • First Fed Financial (NYSE: FED) was lowered to Neutral from Outperform at Credit Suisse, citing credit quality deterioration.
OTHER DOWNGRADES:

Analyst downgrades: HBC, AZN, ELOS, TLB, BKUNA and FED

MOST NOTEWORTHY: HSBC Holdings, AstraZeneca, Syneron Medical, Talbots, BankUnited and First Fed Financial were today's noteworthy downgrades:
  • UBS downgraded shares of HSBC Holdings(NYSE: HBC) to Neutral from Buy on valuation, rising customer defaults and slower growth at the company's the U.S. consumer-finance unit.
  • UBS also downgraded AstraZeneca (NYSE: AZN) to Sell from Neutral, as they believe the company faces major risks from drug approvals, competition and lawsuits.
  • Merriman downgraded shares of Syneron Medical (NASDAQ: ELOS) to Neutral from Buy following the company's Q3 earnings preannouncement due to near-term margin erosion and growth drivers that remain four quarters away.
  • CIBC downgraded shares of Talbots (NYSE: TLB) to Sector Performer from Outperformer as they believe 2H07 expectations are too high given the current weakness in the Missy space.
  • Friedman Billings downgraded BankUnited (NASDAQ: BKUNA) to Market Perform from Outperform and FirstFed Financial (NYSE: FED) to Underperform from Market Perform based on credit trends that are eroding faster than anticipated.
OTHER DOWNGRADES:

Analyst initiations: HLF, LVLT and SNDK

MOST NOTEWORTHY: SanDisk (SNDK), Indevus Pharmaceuticals (IDEV), Integra LifeSciences (IART) and Level 3 Communications (LVLT) were today's noteworthy initiations:
  • SanDisk (NASDAQ: SNDK) was initiated with a Neutral rating at Cowen, as the firm believes it could face challenges in Q4 NAND flash memory demand given supply.
  • Shares of Level 3 Communications (NASDAQ: LVLT) were initiated at Raymond James with an Underperform rating, as the firm believes estimates will be difficult to achieve given high debt levels and free cash flow.
OTHER INITIATIONS:
  • Goldman Sachs started shares of Herbalife (NYSE: HLF) with a Buy rating and $50 target.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 07:08 AM

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