Calyon upgraded major network carriers based on falling oil prices and capacity cuts. The analyst is positive over the next 12 months but cautious short-term given the uncertain economy, and volatile markets and oil prices. AMR Corp (NYSE: AMR) and Delta Air (NYSE: DAL) were upgraded to Add from Neutral and UAL Corp (NASDAQ: UAUA) was raised to Neutral from Reduce.
Ryanair (NASDAQ: RYAAY) was upgraded at Citigroup to Buy from Hold.
Cowen lifted Biogen Idec (NASDAQ: BIIB) to Outperform from Neutral.
JP Morgan upgraded Choice Hotels (NYSE: CHH) to Neutral from Underweight following the better-than-expected Q3 report.
Oppenheimer upgraded shares of Integra LifeSciences (NASDAQ: IART) to Outperform from Perform on valuation, the company's minimal exposure to economic conditions, and expectations for margin improvement and a rebound in organic growth.
Baird upgraded Adtran (NASDAQ: ADTN) to Outperform from Neutral based on valuation, new product cycles, and confidence in 2H08 results.
Morgan Stanley upgraded shares of Repsol (NYSE: REP) to Overweight from Equal Weight as they believe the potential sale to Sacyr Vallehermoso SA could lead to a restructuring.
Stanford lifted National Oilwell Varco (NYSE: NOV) to Buy from Hold citing valuation. In addition, the firm, which set a target of $70, thinks most of the drop in commodity prices is now over.
Ryanair (NASDAQ: RYAAY) was raised to Hold from Sell at Societe Generale.
Ann Taylor (NYSE: ANN) was upgraded at Piper to Neutral from Sell.
Argus downgraded shares of Constellation Energy (NYSE: CEG) to Hold from Buy post-close given the volatility in the stock as they can no longer recommend CEG until concerns over its capital and liquidity are resolved. Shares were also downgraded to Hold from Buy at Citigroup.
Collins Stewart downgraded Lloyds TSB Group (NYSE: LYG) to Hold from Buy following the acquisition of HBOS (OTC: HBOOY) as they expect short-term weakness in the stock.
Rodman & Renshaw upgraded shares of Amgen (NASDAQ: AMGN) to Outperform from Market Perform following the positive top line results from the FREEDOM study. The firm established an $80 target. Jefferies upgraded shares to Buy from Hold following the positive top-line efficacy and safety results for Denosumab in PMO as they view it as a "big win." The firm raised their target to $71 from $47.
Best Buy (NYSE: BBY) was upgraded to Buy from Neutral at Banc of America.
Rowan Companies (NYSE: RDC) was lifted at JP Morgan to Neutral from Underweight.
Analyst downgrades:
Jesup & Lamont downgraded shares of Moog (NYSE: MOG.A) to Neutral from Buy on concerns of the company's high rate of R&D and its relative valuation. Keefe Bruyette downgraded shares of Federated Investors to Market Perform from Outperform following the company's lower than expected Q2 results and cut their target to $35.
Ryanair (NASDAQ: RYAAY) was cut to Hold from Buy at Citigroup.
Analyst initiations:
Morgan Joseph believes Amgen (NASDAQ: AMGN)'s positive FREEDOM trial results will have a profound and lasting impact on the company's growth but also on its scientific credibility. The firm initiated coverage with a Buy rating and $77 target.
Piper assumed Ctrip.com (NASDAQ: CTRP) with a Neutral rating and Epicor Software (NASDAQ: EPIC) with a Buy rating and $8 target.
Banc of America initiated Britannia Bulk (NYSE: DWT) with a Buy rating and $19 target.
U.S. stock futures were lower early Monday as investors concerns over the banking sector grew. Federal regulator seized two more banks, 1st National Bank of Nevada and First Heritage Bank, which were scheduled to reopen on Monday as Mutual of Omaha Bank branches. The Senate also passed a major housing bill over the weekend, and this could actually give a boost to mortgage lenders like Fannie (NYSE: FNM). Meanwhile, oil prices rebounded as European markets declined. As of 8:00 a.m., it seems Wall Street would start weak.
Reporting earnings today are Kraft Foods (NYSE: KFT) - Kraft reported 58 cents earnings per share excluding items, beating estimates of 50 cents; Verizon Communications (NYSE: VZ) - Verizon reported earnings of 67 cents per share, excluding items, beating estimates by 2 cents; and after the close of trading, Amgen (NASDAQ: AMGN).
Amgen (NASDAQ: AMGN) stock is jumping over 17% in premarket trading after announcing late Friday its experimental osteoporosis drug, denosumab, significantly reduced the risk of bone fracture in post-menopausal women in a large trial. Rodman & Renshaw and Jefferies & Co both upgraded Amgen to Market Outperform and to Buy respectively.
Unilever NV (NYSE: UL) will sell its North American laundry detergents business to private equity investor Vestar Capital Partners for $1.45 billion (euro924 million). Unilever said the sale consistent with its strategy of divesting non-core businesses and concentrating on a few core ones.
MOST NOTEWORTHY: Verizon, AT&T, Invitrogen and General Electric were today's noteworthy downgrades:
UBS downgraded Verizon (NYSE: VZ) and AT&T (NYSE: T) to Neutral from Buy citing the weak economy and increased wireless competition.
Banc of America downgraded shares of Invitrogen (NASDAQ: IVGN) to Neutral from Buy as the company's acquisition of Applied Biosystems (NYSE: ABI) alters their investment thesis. The company's target was cut to $38 from $50.
JP Morgan downgraded General Electric (NYSE: GE) to Neutral from Overweight citing further risk to earnings and dislocation from necessary portfolio management in 2009.
OTHER DOWNGRADES:
Office Max (NYSE: OMX) was cut to Neutral from Outperform at Credit Suisse.
Goldman lowered Ryanair (NASDAQ: RYAAY) to Sell from Buy.
WebMD Health (NASDAQ: WBMD) was downgraded to Sell from Source of Funds at ThinkPanmure.
MOST NOTEWORTHY: J Crew, Ryanair and Sigma Designs were today's noteworthy downgrades:
Citigroup downgraded shares of J Crew (NYSE:JCG) to Sell from Hold following the company's lowered guidance as they expect slowing sales to push shares lower. The firm cut their target to $34 from $42. Wachovia downgraded J Crew to Market Perform from Outperform based on lower growth rate forecast, sourcing costs, and competitive pressures.
Ryanair (NASDAQ:RYAAY) was cut to Neutral from Buy at UBS to reflect the rise in fuel costs and lower face prices.
RBC Capital downgraded Sigma Designs (NASDAQ:SIGM) to Sector Perform from Outperform following the Q1 report and cited pricing pressure.
OTHER DOWNGRADES:
Piper downgraded Costco (NASDAQ:COST) to Neutral from Buy.
Ashland (NYSE:ASH) was cut at JP Morgan to Underweight from Neutral.
Friedman Billings cut Southwestern Energy (NYSE:SWN) to Market Perform from Outperform and removed the stock from the Top Picks list.
MOST NOTEWORTHY: Sunoco, Ryanair and HSBC Holdings were today's noteworthy downgrades:
JP Morgan downgraded Sunoco (NYSE: SUN) to Underweight from Neutral citing expected margin pressure due to high leverage to sweet crude. Goldman also downgraded shares of Sunoco to Neutral from Buy.
Deutsche Bank downgraded shares of Ryanair (NASDAQ: RYAAY) to Sell from Hold as they believe the European airlines sector will trade well below book value until the companies deal with higher oil prices.
UBS cut HSBC (NYSE: HBC) to Neutral from Buy to reflect the potential for higher losses at the company's household unit and weak performance at its U.S. bank.
OTHER DOWNGRADES:
Broadpoint lowered MTS Medication (NYSE: MPP) to Neutral from Strong Buy.
HSBC cut Southern Peru Copper (NYSE: PCU) to Neutral from Overweight.
Goldman downgraded CNH Global (NYSE: CNH) to Neutral from Buy and PetroChina (PTR) to Sell from Buy.
MOST NOTEWORTHY: Wilmington Trust, DiamondRock Hospitality and Omrix Biopharm were today's noteworthy initiations:
B. Riley initiated Wilmington Trust (NYSE: WL) with a Neutral rating and $33 target and points out the company has greater exposure to construction and development loans than most small- and mid-cap banks.
DiamondRock Hospitality (NYSE: DRH) was assumed with a Market perform rating and $13.50 target at Keefe Bruyette. The firm sees limited upside given expectations for continued moderation in RevPAR trends, limited operating margin expansion and an uncertain economic outlook.
Rodman & Renshaw believes that the issues that have plagued Omrix Biopharm (NASDAQ: OMRI) are now largely reflected in shares and that the company has improved visibility on business fundamentals with solid execution. The firm assumed coverage with an Outperform rating and $18 target.
OTHER INITIATIONS:
UBS initiated Millennium Pharma (NASDAQ: MLNM) with a Neutral rating and $16 target.
Credit Suisse initiated Ryanair (NASDAQ: RYAAY) with a Neutral rating.
Morgan Stanley started Brasken (NYSE: BAK) with an Underweight rating.
MOST NOTEWORTHY: Schering-Plough, Vodafone and Tibco were today's noteworthy downgrades:
Goldman downgraded Schering-Plough (NYSE: SGP) to Neutral from Buy following the panel discussion suggestion that doctors cut use of Vytrorin, Zetia. Shares were also cut at Lehman to Equal Weight from Overweight and at Cowen to Neutral from Outperform.
Morgan Stanley lowered Vodafone (NYSE: VOD) to Underweight from Overweight as they believe the European Commission will aggressively lower mobile termination rates to cost to improve competition. Jefferies downgraded shares of Tibco (NASDAQ: TIBX) to Underperform from Hold as they believe the economy will catch up with the company in the coming months.
OTHER DOWNGRADES:
Goldman removed Ryanair (NASDAQ: RYAAY) from its Conviction Buy List.
Thomson (NYSE: TOC) was cut to Hold from Buy at Deutsche Bank.
Broadpoint downgraded Omniture (NASDAQ: OMTR) to Buy from Strong Buy.
MOST NOTEWORTHY: ATP Oil & Gas, Foot Locker, DynCorp and Circuit City were today's noteworthy upgrades:
Calyon upgraded shares of ATP Oil & Gas (NASDAQ: ATPG) to Add from Neutral and raised their target to $52 from $50 as they believe the company is nearing its year-end production target and its balance sheet is positioned to improve.
Merrill upgraded Foot Locker (NYSE: FL) to Buy from Neutral citing easing comps and stabilization in premium product demand.
Wachovia upgraded DynCorp International Inc. (NYSE: DCP) to Outperform from Market Perform citing its re-compete award for the $4.6 billion Army Linguist contract.
Soleil upgraded shares of Circuit City Stores (NYSE: CC) to Buy from Hold, as they believe the company's real estate rationalization program and new "The City" store concept will drive earnings growth over the next few years.
OTHER UPGRADES:
StatoilHydro (NYSE: STO) was raised to Hold from Sell at Societe Generale.
MOST NOTEWORTHY: New York Times, Finlay Enterprises and AXA were today's noteworthy downgrades:
Banc of America downgraded shares of New York Times Co. (NYSE: NYT) to Sell from Neutral and lowered their target to $14 from $21, as they believe the luxury categories, which represent 28% of NYT's national ad revenue, are not recession proof and that the company is also vulnerable to a cyclical contraction in the financial services sector.
B. Riley lowered its rating on Finlay Enterprises (NASDAQ: FNLY) to Sell from Neutral to reflect the weak consumer environment, higher gold prices, and lower sales expectations for Bailey.
Goldman downgraded shares of AXA (NYSE: AXA) to Sell from Buy and added AXA to their Conviction Sell List on valuation and the company's exposure to the equity markets.
OTHER DOWNGRADES:
Volkswagen AG (OTC: VLKAY) was downgraded to Sell from Hold at Societe Generale.
Progenics Pharmaceuticals (NASDAQ: PGNX) was added to Friedman Billings' Top Picks list and its Outperform rating was maintained. The firm has a high degree of confidence in the success of the MNTX Ph III studies in post-operative ilieus, as well as the FDA approval of the subcutaneous injection in terminally ill patients with opiod-induced constipation around the 1/31/07 PDUFA date.
RBC believes margin expansion will drive long-term appreciation in Tyco Electronics Ltd (NYSE: TEL) and started shares with an Outperform rating and $41 target.
PharMerica Corporation (NYSE: PMC) was initiated with an Underperform rating at Bear Stearns. The firm believes PMC will be pressured by customer losses and generic reimbursement cuts and sees shares trading in $12-$13 range.
OTHER INITIATIONS:
Ryanair Holdings (NASDAQ: RYAAY) was initiated with a Market Outperform rating at Avondale.u
Sometimes an innovation that makes perfect sense economically will get blasted by consumers for emotional reasons that have more to do with perception than anything else. Take flying on airplanes for example, where consumers want low fares but also grumble about stuff like having to pay for the peanuts. Irish carrier Ryanair (NASDAQ: RYAAY) has ultra-low fares, but also little in the way of free amenities: Seat assignments, checked bags, early boarding, and food all cost extra.
SkyBus Airlines will be trying that approach here in the States, with fares starting at as little as $10. It's going to charge $5 per checked bag, and will even sell the right to have your company's logo on its planes (I nominate BloggingStocks).
SkyBus's Rules of Flying sound like they were written by the Soup Nazi from Seinfeld: Bring cash for food, bring a book, don't call us, and don't be late.
Here's what I like about this airline: You only pay for the services you want. People might like the idea of free peanuts and free baggage checking, but, Economics 101 folks: Nothing is really free. Instead of having every passenger absorb the cost of free peanuts, why not just charge the people who want them? It makes perfect sense to me.
We'll see how SkyBus does. It might take some getting used to, but I have to think this is the future of the airline industry.
According to the Daily Mail, Sir Richard Branson's Virgin is planning on taking on Ryanair Holdings plc (NASDAQ: RYAAY) in a air fare war for transatlantic routes.
Nestle SA ADS (OTC: NSRGY) has reportedly placed a bid to acquire India's Mount Everest Mineral Water, according to the Economic Times.
The U.K. Times reported that it has emerged that a key BP plc ADS (NYSE: BP) pipeline has been closed for over six months due to suspected corrosion.
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