MOST NOTEWORTHY: FBR Capital Markets, Altus Pharmaceuticals and Energias de Portugal were today's noteworthy downgrades:
Jefferies downgraded shares of FBR Capital Markets (NASDAQ: FBCM) to Hold from Buy and lowered their target to $9 from $14 as they believe the company's investment banking activity will continue to be limited due to the current market conditions for capital raising.
Wachovia downgraded shares of Altus Pharmaceuticals (NASDAQ: ALTU) to Market Perform from Outperform following Genentech's (NYSE: DNA) return of all North American marketing rights to ALTU-238.
Energias de Portugal (OTC: EDPFY) was lowered to Hold from Buy at Citigroup, as they see no valuation catalysts in the near-term.
OTHER DOWNGRADES:
JP Morgan removed Teekay LNG (NYSE: TGP) from its Focus List.
Goldman downgraded ORIX Corp. (NYSE: IX) to Neutral from Buy.
Friedman Billings downgraded VeraSun Energy (NYSE: VSE) to Market Perform from Outperform.
MOST NOTEWORTHY: FreeSeas, Nektar, Altus Pharmaceuticals and AbitibiBowater were today's noteworthy initiations:
Cantor initiated shares of FreeSeas (NASDAQ: FREE) with a Buy rating and $10 target, as they expect the company to benefit from the continued strength in the dry bulk market.
JP Morgan resumed coverage of Nektar (NASDAQ: NKTR) with an Overweight rating, as they view weakness from the discontinuation of Exubera as a buying opportunity given the company's base royalty business and pipeline opportunities.
Altus Pharmaceuticals (NASDAQ: ALTU) was initiated with a Buy rating and $19 target at Jefferies. The firm expects news flow from the company's two lead products over the next 6-12 months that should act as catalysts.
AbitibiBowater (NYSE: ABH) was initiated with a Sell rating and $18 target at Banc of America, as they are cautious on newsprint trends; the firm recommends reducing existing positions.
OTHER INITIATIONS:
Caris initiated Collective Brands (NYSE: PSS) with an Average rating and $18 target and Under Armour (NYSE: UA) with an Above Average rating.
Stifel started shares of Patriot Coal (NYSE: PCX) with a Hold rating.
PetroChina (NYSE: PTR) was initiated with a Sell rating at Goldman.
MOST NOTEWORTHY: Today's more noteworthy initiations included International Game Technology (IGT), Big 5 Sporting Goods Corp (BGFV), CVS/Caremark Corp (CVS) and IHOP Corp (IHOP):
Jefferies assumed coverage of International Game Tech (NYSE: IGT) with a Buy rating and $47 target citing an attractive risk/reward.
Big 5 Sporting Goods (NASDAQ: BGFV) was started with a Sector Performer rating and $33 target at CIBC, expecting shares to be driven by an operating margin recover and improving cash flows.
CVS/Caremark Corp (NYSE: CVS) was reinstated with an Overweight rating at Lehman Brothers and resumed with an Overweight rating at Morgan Stanley.
JP Morgan believes the rough environment, growing competition and valuation warrants IHOP Corp (NYSE: IHP) to start with a Neutral rating.
OTHER INITIATIONS:
B. Riley initiated shares of United Online, Inc (NASDAQ: UNTD) with a Buy rating and $18 target.
CIBC started Chemtura Corp (NYSE: CEM) with a Sector Underperformer rating and $11 target on valuation.
C.E. Unterberg started Altus Pharmaceuticals Inc (NASDAQ: ALTU) with a Buy rating and $12 target, believing the company's efforts to develop the first juvenile formulation of a pancreatic enzyme will be a key growth driver.
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MOST NOTEWORTHY: FBR Capital Markets, Altus Pharmaceuticals and Energias de Portugal were today's noteworthy downgrades:.gif){kind=logo}
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