MOST NOTEWORTHY: Viacom, Agilent, AudioCodes and Microsoft were today's noteworthy upgrades:
JP Morgan upgraded shares of Viacom (NYSE: VIA) to Overweight from Neutral as they believe contractual rate increases and distribution of the company's newer networks will drive higher earnings growth in 2008. The firm does not believe this growth is priced into shares.
JP Morgan also upgraded Agilent Technologies (NYSE: A) to Overweight from Neutral and added shares to its Focus List. Shares were upgraded based on its sum-of-the-parts valuation and sees further upside given that strategic buyers are back in the marketplace.
AudioCodes (NASDAQ: AUDC) was raised to Buy from Accumulate at Think Equities, as they expect the company to benefit from the newly acquired CTI squared business, the security gateway business, and traction in the SBC business, with Microsoft's OCS launch of a new driver today.
Goldman added Microsoft Corporation (NASDAQ: MSFT) to its Conviction Buy List, citing valuation and overwhelmingly negative sentiment, and expects shares to trade higher on a better Q1 report.
OTHER UPGRADES:
RBC Capital Markets upgraded Citrix Systems (NASDAQ: CTXS) to Outperform from Sector Perform.
Eaton Corporation (NYSE: ETN) was upgraded to Outperform from Market Perform at Friedman Billings.
MOST NOTEWORTHY: Motorola, Nokia, General Mills, AudioCodes and OceanFreight were today's noteworthy upgrades:
Cowen upgraded shares of Motorola Inc (NYSE: MOT) and Nokia Corporation (NYSE: NOK) to Outperform from Neutral. The firm expects Motorola to benefit as the mobile phone market in North America improves as market supply tightens in Q4 and results in better unit pricing, while Nokia's new phones put it in a position to realize higher unit sales.
Credit Suisse upgraded shares of General Mills Inc (NYSE: GIS) to Outperform from Neutral citing management's improved execution and openness, and well as valuation.
Cantor raised shares of AudioCodes (NASDAQ: AUDC) to Buy from Hold after channel checks suggested that Q3 business is tracking well.
OceanFreight Inc (NASDAQ: OCNF) was upgraded to Buy from Neutral at Oppenheimer on valuation and strong dry-bulk fundamentals.
OTHER UPGRADES:
Lehman upgraded shares of Roche Holding (OTC: RHHBY) to Overweight from Equal Weight.
MOST NOTEWORTHY: GlobalSantaFe Corp, Transocean, Frontier Oil, Tesoro and Audio Codes were today's noteworthy upgrades:
JP Morgan upgraded shares of GlobalSantaFe Corporation (NYSE: GSF) and Transocean Inc (NYSE: RIG) to Neutral from Underweight based on valuation and improving deepwater rig fundamentals.
Frontier Oil Corporation (NYSE: FTO) was upgraded at Banc of America to Buy from Neutral as they believe the company's assets are ideally located to access cheap Canadian oil sands production. They feel the stock should trade closer to its replacement value, which they estimate at $55/share.
The firm also raised Tesora Corporation (NYSE: TSO) to Buy from Neutral, as the firm believes Terero is the best play on the extended refining cycle given its exposure to California.
CIBC upgraded shares of AudioCodes (NASDAQ: AUDC) to Sector Outperformer from Sector Performer on valuation after their checks suggested the company's business is stabilizing and cost cutting is tracking ahead of plan, which could bring upside EPS estimates.
OTHER UPGRADES:
GSI Commerce (NASDAQ: GSIC) was upgraded to Buy from Hold at Jefferies.
MOST NOTEWOTHY: ConocoPhillips (COP), InfoSpace, Inc (INSP), Verizon Communications (VZ) and Advanced Micro Devices (AMD) were some of today's more notable downgrades:
Goldman Sachs downgraded ConocoPhillips (NYSE: COP) to Neutral from Buy.
Stanford cut InfoSpace Inc (NASDAQ: INSP) to Sell from Hold as the firm believes shares are overvalued since the company has no clear plans to reignite growth.
Buckingham downgraded Verizon Communications (NYSE: VZ) to Neutral from Accumulate.
Advanced Micro Devices (NYSE: AMD) was cut to Hold from Strong Buy at Matrix as the firm believes growing competition is driving down selling prices and narrowing margins.
OTHER DOWNGRADES:
Goldman downgraded Anadarko Petroleum Corp (NYSE: APC) to Sell from Neutral.
Merriman cut Fiberstars, Inc (NASDAQ: FBST) to Neutral from Buy.
Bank of America downgraded Dollar General (NYSE: DG) to Neutral from Buy.
Cantor cut AudioCodes Ltd (NASDAQ: AUDC) to Hold from Buy following the company's lowered Q1 outlook.
MOST NOTEWORTHY: Cadbury Schweppes ADS (CSG) and Buckeye Partners (BPL) were today's most notable rating changes.
Wachovia started Cadbury Schweppes ADS (NYSE: CSG) with an Outperform rating. They said Cadbury's long-term global confectionery opportunities are among the best in the industry and the recent buyout of its U.S. Dr. Pepper/Seven-Up bottling unit provides high-leverage cash flow.
Buckeye Partners Ltd (NYSE: BPL) was initiated with an Underperform rating and a $48 target at RBC based on valuation.
OTHER INITIATIONS:
Stanford initiated AudioCodes Ltd (NASDAQ: AUDC) with a Buy rating and $15 target. The firm believes AudioCodes is an inexpensive play on the migration to packet networks.
Stifel initiated William Partners LP (NYSE: WPZ) with a Buy rating and $46.50 target.
AG Edwards started BioMarin Pharmaceutical inc (NASDAQ: BMRN) with a Buy rating and $25 target.
Pacer International Inc (NASDAQ: PACR) was initiated with a Hold rating at Stifel.
Morgan Stanley started Lyondell Chemical Company (NYSE: LYO) with an Overweight rating and $38 target.
Buckingham initiated Chattem Inc (NASDAQ: CHTT) with an Accumulate rating and $64 target, citing high margins, cash flow and reduced debt.
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MOST NOTEWORTHY: Viacom, Agilent, AudioCodes and Microsoft were today's noteworthy upgrades:.gif){kind=logo}
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