Analyst Upgrades

• FBR Capital upgraded Adobe Systems (ADBE) to outperform from market perform to reflect valuation following the recent pullback in shares, as well as the upcoming release of the company's CS5 product. The firm raised its price target for the stock to $39 from $36.
• Keefe Bruyette upgraded Zenith National (ZNT) to market perform from underperform following the company's merger agreement with Fairfax Financial. The firm thinks the offer is a strong price to receive for Zenith National shareholders.
• Kaufman Bros. upgraded Infosys (INFY) to buy from hold as it believes the offshore applications outsourcing market is picking up. The firm raised its target price for shares to $67 from $58.
• Ventas (VTR) was upgraded to buy from neutral at BofA/Merrill.
• Liz Claiborne (LIZ) was upgraded to buy from hold at KeyBanc.
• iStar Financial (SFI) was upgraded to hold from sell at Citigroup.

Yesterday afternoon, Barnes Group Inc. (NYSE: B) announced that it is withdrawing its 2009 earnings guidance thanks to uncertainty in the transportation sector. In May, Barnes forecast earnings of $1.20 to $1.35 per share -- better than the consensus estimate of $1.19 per share. Barnes did not update its estimate when making the announcement.

The company stated that problems in transportation sectors (like the automotive industry, which comprises one third of the company's revenue) have made predicting the rest of the year very difficult. Barnes' CEO Gregory Milzcik noted, "Challenging industry conditions, evidenced by customer plant closures, reduced customer production schedules, and overall uncertainty in the automotive market driven by bankruptcies and the cascading effect on suppliers, have obscured our visibility for the coming months."

An era of greed that began with the election of Ronald Reagan has come to an abrupt end. That means that the seething emotions of greed and envy that come along with bonus time at investment banks will have fewer dollars attached to them. And talent will flow to government and academia rather than Wall Street. This could be good for the U.S.

Some of those masters of the universe in the investment banking industry have seen the value of their stock tumble (and many of them are going without bonuses this year). Here are some of the "casualties":

Analyst upgrades:

• Stephens upgraded shares of Ann Taylor (NYSE: ANN) to Overweight from Equal Weight to reflect the company's restructuring program, reductions in inventory and share repurchase program.
  
• AIMCO (NYSE: AIV) was upgraded to Buy from Hold at Deutsche Bank.
  
• UBS upgraded D.R. Horton (NYSE: DHI) to Neutral from Sell.
• Argus believes BigBand Networks (NASDAQ: BBND) is succeeding by adding new customers and driving new business with existing customers. Shares were upgraded to Buy from Hold.
  
• ThinkPanmure expects Capella Education (NASDAQ: CPLA) to attract students at a faster rate in the coming quarters and to improve operating margins. The firm raised shares to Buy from Accumulate and raised its target to $60 from $62.
• Advanced Medical (NYSE:EYE) was lifted to Hold from Underperform at Jefferies.

Barnes Group (NYSE: B) is an international aerospace and industrial components manufacturing and distribution company. The firm operates through three divisions. Barnes Aerospace is a highly specialized manufacturer of components and assemblies used in commercial, business and military jets and industrial gas turbines. Barnes Industrial is the largest manufacturer of precision springs in North America and one of the largest makers of nitrogen gas springs in the world. Barnes Distribution is a leading provider of maintenance, repair, operating and production supplies, such as fasteners, electrical components, abrasives, adhesives and tools. Customers include General Electric (NYSE: GE), Honeywell International (NYSE: HON) and United Technologies (NYSE: UTX).

The company surprised the Street last week, when it reported Q1 EPS of 60 cents and revenues of $388.6 million. Analysts had been looking for 53 cents and $381.2 million. The CEO attributed success to the firm's global reach. Management also guided FY08 EPS to $2.30-$2.39 ($2.24 consensus).

Although we usually do not think about them too often, springs are rather important devices. They are in all manner of equipment from consumer electronics to large engines. There is an outfit in Bristol, Connecticut that is one of the largest precision spring manufacturers in the world. It makes thousands of other necessary parts, too.

Barnes Group (NYSE: B) is an international aerospace and industrial components manufacturing and distribution company. The firm operates through three divisions. Barnes Aerospace is a highly specialized manufacturer of components and assemblies used in commercial, business and military jets and industrial gas turbines. Barnes Industrial manufactures springs, manifold systems, retaining rings, and injection-molded plastic components. Barnes Distribution is a leading distributor of maintenance, repair, operating and production supplies, such as fasteners, electrical components, abrasives, adhesives and tools. Customers include Boeing (NYSE: BA), General Electric (NYSE: GE), Honeywell International (NYSE: HON), Lockheed Martin (NYSE: LMT) and United Technologies (NYSE: UTX).

The company pleased investors last week, when it reported Q1 EPS of fifty cents and revenues of $360.7 million. Analysts had been expecting forty cents and $340.4 million. Management also guided FY07 EPS to $1.74-1.83 ($1.60 consensus). Banc of America Securities and Robert W. Baird declared the stock a "buy" and boosted their price targets to $33.