MOST NOTEWORTHY: Siemens, Con-Way, Old Dominion Freight and Yahoo! were today's noteworthy upgrades:
Goldman added Siemens (NYSE: SI) to their Conviction Buy List on valuation, as they believe investors are overlooking potential catalysts for the stock, such as the company's buyback and margin expansion opportunities. Shares remain Buy rated.
Baird upgraded LTLs Con-Way (NYSE: CNW) and Old Dominion Freight (NASDAQ: ODFL) to Outperform from Neutral based on valuations, less fuel exposure, and better business models than TLs.
Soleil upgraded Yahoo! (NASDAQ: YHOO) to Hold from Sell on valuation, as the stock is near their $22 target.
Deutsche Bank cut Anheuser-Busch Companies Inc (NYSE: BUD) to Hold from Buy on valuation following the recent rally spurred by takeover speculation. The firm believes the reported $65/share cash takeover offer by Inbev requires aggressive cost reduction and could harm the brands.
Morgan Stanley downgraded shares of GlaxoSmithKline Plc (NYSE: GSK) to Underweight from Equal Weight as they see risk to Street expectations for a U.S. Cervarix approval in 2009.
Old Dominion Freight Line (NASDAQ: ODFL) is a less-than-truckload multi-regional motor carrier, providing direct service to 47 states within the South, Northeast, Midwest and West regions of the U.S.A. and to parts of Canada. Through marketing and carrier relationships, it provides service to and from the remaining states, as well as international services around the globe. The company operates a fleet of some 4,600 tractors and 17,900 trailers from nearly 200 service centers. YRC Worldwide (NASDAQ: YRCW) is a major competitor.
Old Dominion surprised the Street last week, with Q4 EPS of 42 cents and revenues of $358.7 million. Analysts had been expecting 42 cents and $345.3 million. Management also guided FY08 EPS to $2.00-$2.05 ($1.93 consensus).
MOST NOTEWORTHY: Old Dominion Freight (ODFL), Jamba (JMBA), AMD (AMD), Orbitz Worldwide (OWW) and Quest Diagnostics (DGX) were today's notable initiations:
Baird is positive on Old Dominion's (NASDAQ: ODFL) growth opportunities, valuation, 2008 improving truck fundamentals, and a potentially seasonally stronger Q4, starting shares with an Overweight rating and $36 target.
Merriman initiated Jamba (NASDAQ: JMBA) with a Buy rating, as the company aggressively expands its store base beyond California.
BMO Capital believes AMD (NYSE: AMD) may lose the Intel platform integrated graphics market, and sizeable Intel platform discrete graphics market share. The firm initiated AMD shares with an Underperform rating and $10 target.
Soleil has concerns regarding Orbitz Worldwide's (NYSE: OWW) decelerating growth and poorer business mix vs. competitors and started shares with a Hold rating and $13 target.
Credit Suisse initiated Quest Diagnostics (NYSE: DGX) with a Neutral rating and $61 target, citing the recent UnitedHealth (UNH) contract loss, slowing growth, and valuation for its Neutral rating...
MOST NOTEWORTHY: AU Optronics (AUO), RightNow Tech (RNOW), Alaska Air (ALK), Nordstrom (JWN), Gap (GPS) and Old Dominion Freight Line (ODFL) were today's noteworthy upgrades:
HSBC upgraded AU Optronics (NYSE: AUO) to Overweight from Neutral following the company's Q2 results.
Jefferies raised RightNow Technology (NASDAQ: RNOW) to Buy from Hold, believing low expectations have created a buying opportunity and that fundamentals remain intact.
JP Morgan upgraded shares of Alaska Air (NYSE: ALK) to Overweight from Netural on valuation.
Citigroup upgraded Nordstrom (NYSE: JWN) to Buy from Hold on valuation; they consider the recent pullback a buying opportunity.
Citigroup upgraded Gap (NYSE: GPS) to Buy from Hold from valuation and expects for better execution and cost savings in 2008 under the new CEO.
Most of the major long-haul trucking companies have reported quarterly earnings by now, and the news has been about as welcome as a state trooper with a ticket quota to meet. All trucking companies were affected by the same negative factors for the winter quarter:
1. Slowing economy, with particular weakness in the housing and auto sales sectors, resulting in weakening demand for the past eight months.
2. Excess capacity, though not necessarily excess drivers, as many companies bought new truck engines prior to the deadline for more fuel efficient (and expensive) and less polluting engines.
3. Soaring fuel costs, up 17 cents per gallon in March alone, with no end in sight for the next several quarters.
4. Wretched weather for days on end in many parts of the country.
Despite what might initially appear to be a uniformly negative scenario, the long-haul trucking sector is more fragmented than investors may realize, so results were NOT NEGATIVE across the board. In many cases, revenues were up, but then again, so were operating expenses. The degree to which senior management can control costs and utilize existing equipment effectively often made the difference.
MOST NOTEWORTHY: Dell Inc (DELL) and United Parcel Service Inc (UPS) were today's notable upgrades:
Merrill Lynch upgraded Dell Inc (NASDAQ: DELL) to Buy from Neutral as they see Michael Dell's return to CEO signaling a new level of commitment by the Board for a serious change and sentiment is unlikely to get worse. JP Morgan upgraded Dell to Neutral from Underweight as they see limited downside risk with Michael Dell at the helm.
Merrill Lynch also upgraded United Parcel Service (NASDAQ: UPS) to Neutral from Sell, citing valuation.
OTHER UPGRADES:
Prudential upgraded Eli Lilly & Co (NYSE: LLY) to Overweight from Neural citing valuation and expectations for 10% earnings growth over the next four years.
Lehman Brothers upgraded Siemens AG ADS (NYSE: SI) to Overweight from Underweight.
Old Dominion Freight Line Inc (NASDAQ: ODFL) was upgraded to Overweight from Equal Weight at Stephens. The firm expects earnings momentum to accelerate in the second-half of 2007.
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MOST NOTEWORTHY: Siemens, Con-Way, Old Dominion Freight and Yahoo! were today's noteworthy upgrades:.gif){kind=logo}
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