Wachovia upgraded shares of The Goldman Sachs Group Inc (NYSE: GS) to Outperform from Market Perform on expectations for greater pricing power given Goldman's position as the largest remaining independent securities firm.
Keefe Bruyette upgraded Investment Technology Group Inc (NYSE: ITG) to Outperform from Market Perform as they believe the company will take market share with the reshaping of the large wire-house brokerage community. The company's target was raised to $37 from $33.
Broadpoint raised Hoku Scientific Inc (NASDAQ: HOKU) to Buy from Neutral as they believe the contract with Tianwei New Energy reduces financing risk.
Societe Generale upgraded shares of Credit Suisse (NYSE: CS) to Buy from Sell as they believe the company is the European investment bank investors should own as sentiment gradually improves.
Societe Generale also raised Deutsche Bank (NYSE: DB) to Hold from Sell as they believe it has managed the credit crisis well and that the government bailout of the GSEs will improve investor sentiment.
Citigroup upgraded shares of Kimberly Clark (NYSE: KMB) to Buy from Hold as they expect the company to benefit from falling materials and energy prices. The firm raised their target to $71 from $60.
UST Inc (NYSE: UST) was lifted at Morgan Stanley to Equal Weight from Underweight.
Corning (NYSE: GLW) was upgraded to Overweight from Market Weight at Thomas Weisel.
Analyst downgrades:
Credit Suisse downgraded the U.S. Homebuilders sector to Market Weight from Overweight to reflect deteriorating traffic trends and higher valuations. In addition, the firm cut Toll Brothers (NYSE: TOL), Pulte Homes (NYSE: PHM), D.R. Horton (NYSE: DHI) and KB Home (NYSE: KBH) to Neutral from Outperform.
MOST NOTEWORTHY: RadiSys, Diageo plc, Vitesse, Big 5 Sporting Goods and Coca-Cola Enterprises were today's noteworthy upgrades:
Jefferies upgraded shares of RadiSys (NASDAQ: RSYS) to Buy from Hold following the Q3 upside to reflect the large ramp of new business expected in 2008.
Lehman raised its rating on Diageo plc (NYSE: DEO) to Equal Weight from Underweight and has increased confidence that the group can increase margins.
CIBC upgraded shares of Vitesse (NASDAQ: VTSS) to Sector Performer from Sector Underperformer following the company's business update, as they believe progress is being made on numerous fronts.
Nollenberger upgraded shares of Big 5 Sporting Goods (NASDAQ: BGFV) to Buy from Neutral following the better-than-expected Q3 results and improved full-year outlook, as they believe visibility has improved significantly.
Citigroup upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Hold on valuation as they believe the stock is undervalued given Glaceau's expansion to European markets. The broker recommends taking profits in Pepsi Bottling Group (NYSE: PBG) and swapping into CCE.
Since advising readers to stay away from Big 5 Sporting Goods (NASDAQ: BGFV) about two weeks ago, the stock is down about 10%. After the bell today, the company is expected to report earnings. In my opinion, the stock is not a buy into earnings.
I expect Big 5 to earn 21-25 cents per share in EPS for the quarter, disappointing or coming in-line with the street., However, I think the company's guidance is going to scare investors. The continued crunch on the consumer in California (due to foreclosures) will probably remain an issue for the company, considering 54% of Big 5 stores are located in the state. I also believe that the comps for the previous quarter are going to force the company to remain very conservative in their comp growth guidance figures -- either reiterating the already-conservative figures or perhaps making further cuts.
All in all, while Big 5's stock is beginning to look very cheap at these levels, I don't think now is the time to buy because I don't expect sentiment to improve from here -- in fact, I think it could become even worse after a mediocre report today.
MOST NOTEWORTHY: Big 5 Sporting Goods (BGFV), Nutrition 21 (NXXI), Sonic Solutions (SNIC), AeroGrow (AERO) and Sequenom (SQNM) were today's noteworthy initiations:
Nollenberger believes Big 5 Sporting Goods' (NASDAQ: BGFV) shares are fairly valued and would likely get more constructive near the $20 level and initiated shares with a Neutral rating.
ThinkEquity said Nutrition 21 (NASDAQ: NXXI) has a number of clinically proven nutritional supplements that target the rapidly growing obesity and diabetes markets, and initiated shares with a Buy rating.
SMH Capital initiated shares of Sonic Solutions (NASDQ: SNIC) with a Buy rating, on the belief that shares have been oversold.
ThinkEquity is positive on AeroGrow's (NASDAQ: AERO) proprietary aeroponic technology and recurring revenue model and initiated shares with a Buy rating.
Leerink Swann started shares of Sequenom (NASDAQ: SQNM) with an Outperform rating as MEDACorp researchers are positive regarding the company's MassARRAY system for genetic analysis, which is well-positioned for growth in follow-on SNP fine-mapping studies; Leerink anticipates in 2008, the company will launch iPLEX 3, which is currently in development, and reduce the cost of acquiring fine-mapping SNP data...
OTHER INITIATIONS:
Dover (NYSE: DOV) was initiated at Morgan Stanley with an Overweight rating.
Merrill started Akamai (NASDAQ: AKAM) with a Neutral rating.
Pacific Crest started Wipro Ltd (NYSE: WIT) with a Sector perform.
Susquehanna initiated Herman Miller (NASDAQ: MLHR) with a Positive rating.
RBC Capital initiated Warren Resources (NASDAQ: WRES) with an Outperform rating.
Equity Inns (NYSE: ENN) was cut to Sell from Hold at AG Edwards after the Whitehall acquisition. JMP Securities and Friedman Billings cut shares to Market Perform from Outperform and KeyBanc downgraded Equity Inns to Hold from Buy.
Matrix USA downgraded Talbots (NYSE: TLB) to Sell from Hold based on the eroding return of capital because of the company using capital to acquire and open new stores. Friedman Billings downgraded shares of
Starbucks (NASDAQ: SBUX) to Market Perform from Outperform and removed the company from their FBR Top Picks list on expectations that 2H07 same-store sales will no longer improve, removing a catalyst...
MOST NOTEWORTHY: J.B. Hunt Transport Services, Inc (JBHT), QLogic Corp (QLGC), General Motors (GM), Big 5 Sporting Goods Corp (BGFV) and Biogen Idec Inc (BIIB) were today's more noteworthy downgrades:
Wachovia downgraded shares of J.B. Hunt Transport Services (NASDAQ: JBHT) to Market Perform from Outperform citing a more tempered outlook for the U.S. Intermodal market.
QLogic Corp's (NASDAQ: QLGC) downgrade to Market Perform from Outperform at Friedman Billings was based on weaker then planned HBA and switch revenue and low gross margins on new Infiniband products that spiked up in the mix.
Buckingham cut General Motors (NYSE: GM) to Underperform from Neutral.
Oppenheimer downgraded Big 5 Sporting Goods (NASDAQ: BGFV) to Neutral from Buy believing current trends suggest a lagging west coast customer.
RBC Capital Markets cut Biogen Idec Inc (NASDAQ: BIIB) to Sector Perform from Outperform citing mixed feedback at AAN that indicates longer-term safety data will be needed to drive adoption of Tysabri and lingering long-term concerns over Rituxan royalties and profit share.
OTHER DOWNGRADES:
Goldman downgraded Steelcase Inc (NYSE: SCS) to sell from Neutral.
MeadWestvaco Corp (NYSE: MWV) was downgraded to Underweight from Neutral at Prudential.
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.
MOST NOTEWORTHY: CheckFree Corp (CKFR), Sprint Nextel Corp (S) and the semiconductor capital equipment sector were some of today's more noteworthy downgrades:
Piper Jaffray downgraded Checkfree Corp (NASDAQ: CKFR) to Market Perform from Outperform after transferring coverage of the payment processor company.
Sprint Nextel Corp (NYSE: S) was cut to Outperform from Strong Buy at Raymond James.
ThinkEquity cut Jones Soda Co (NASDAQ: JSDA) to Source of Funds from Buy based on valuation.
Goldman is now cautious on the biofuel sector, downgrading the group to Cautious from Neutral.
William Blair downgraded shares of Medimmune, Inc (NASDAQ: MEDI) to Market Perform from Outperform.
Credit Suisse downgraded shares of Big 5 Sporting Goods Corp (NASDAQ: BGFV) to Underperform from Neutral citing valuation.
Wachovia dropped Inkeepers USA Trust (NYSE: KPA) to Underperform from Outperform based on the acquisition from Apollo Investment Corp (AINV). Citigroup cut Inkeepers to Hold from Buy.
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Analyst upgrades: 
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