Analyst Upgrades

• Citigroup upgraded Deutsche Bank (NYSE: DB) to Hold from Sell citing reduced legacy risks and strength in the fixed income franchise.
• Janney Montgomery upgraded Fuel Systems (NASDAQ: FSYS) to Buy from Neutral based on valuation, the OEM market in Europe for alternative transportation is growing faster than expected, and the $30M equity raise was smaller than expected.
• Freeport McMoRan (NYSE: FCX) was upgraded to Outperform from Market Perform by FBR Capital. The firm believes that the company will benefit from copper supply issues over the long term, and it thinks the stock has reached an attractive entry point.
• Black & Decker (NYSE: BDK) was upgraded to Neutral from Underperform at Credit Suisse.
• American Tower (NYSE: AMT) was raised to Overweight from Neutral at JPMorgan.
• EMC Corp. (NYSE: EMC) was upgraded at Barclays to Overweight from Equal Weight.

Wright Express Corporation (NYSE: WXS) offers payment processing and information management services to vehicle fleets operated by commercial and government clients. The firm's network tracks purchases made on fleet charge cards, allowing users to subsequently analyze the data and apply purchase controls. Information collected includes expenditure totals, lists of items purchased, odometer readings, and driver/vehicle/vendor identifications. Wright Express also issues corporate credit cards. The company serves clients in the U.S., Canada and Puerto Rico.

The firm pleased investors last week, when it announced Q2 EPS of 50 cents and revenues of $86 million. Analysts had been expecting 42 cents and $84.1 million. Management also guided Q3 revenues to $83-$88 million ($87.12M consensus), FY07 EPS to $1.82-$1.88 ($1.75 consensus) and FY07 revenues to $320-$330 million ($323.55M consensus). WXS shares popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys" and three "buys." Analysts see a 17% growth rate, through the next year. The WXS P/E ratio (18.69), PEG ratio (1.34), EPS Growth rate (47.06%), Operating Margin (44.01%), Net Profit Margin (25.98%) and Return on Equity (50.09%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $25.00 and $37.49. A stop-loss of $32.00 looks good here.

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