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Analyst downgrades 1-26-07: Continental Airlines left on the tarmac, downgraded to Sell

MOST NOTEWORTHY: Cisco Systems Inc (CSCO), Continental (CAL) and Caterpillar inc (CAT) complete the list of notable downgrades:
  • Citing peak employee productivity and margin expansion difficulties, Citigroup downgraded Cisco Systems Inc (NASDAQ: CSCO) from its previous Buy rating and assumed the company with a Hold rating.
  • Goldman Sachs downgraded Continental Airlines Inc (NYSE: CAL) to Sell from Neutral on valuation.
  • JP Morgan assumed coverage of Caterpillar Inc (NYSE: CAT) with an Underweight rating, downgraded from its previous Neutral rating.

OTHER DOWNGRADES:

  • Following CIBC's outlook for the Paper & Forest sector through 2008, the firm downgraded Bowater Inc (NYSE: BOW) to Sector Underperformer from Sector Performer. The broker believes pulp, paper and packaging prices are near cyclical highs.
  • Goldman Sachs expects a slowdown in revenue growth and margins in 2007 for TRW Automotive Holdings Corp (NYSE: TRW) and added the company to its America's Conviction Sell List.
  • USA Truck Inc (NASDAQ: USAK) was downgraded to Market Perform from Outperform at Morgan Keegan following the trucking company's disappointing Q4, guidance and lack of near-term catalysts.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 1-19-07: Fortune Brands lowered to Neutral

MOST NOTEWORTHY: Fortune Brands (FO) and Altria Group (MO) were today's more notable downgrades:
  • JP Morgan downgraded Fortune Brands (NYSE: FO) to Neutral from Overweight on valuation and the weak outlook for home and hardware sales.
  • Altria Group (NYSE: MO) was downgraded by Deutsche Bank to Hold from Buy with a $95 target, citing its valuation, ex-Kraft, is more in line with its tobacco peers.

OTHER DOWNGRADES:

  • CheckPoint Software Tech (NASDAQ: CHKP) was downgraded to Underperform from Market Perform with a $19 target at Freedman Billings, with expectations that 2007 will be a difficult transition year.
  • Matrix USA downgraded shares of Boyd Gaming (NYSE: BYD) to Hold from Buy on valuation.
  • Goldman Sachs downgraded TRW Automotive Hldg (NYSE: TRW) to Sell from Neutral and was added to the America's Sell List; they believe rising costs, a less favorable product mix and commercial steering business headwinds will weigh on revenue growth and margins in 2007.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
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DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 02:26 AM

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