MOST NOTEWORTHY: PetSmart, Plantronics and First Cash Financial were today's noteworthy downgrades:
Wachovia downgraded PetSmart (NASDAQ: PETM) to Market Perform from Outperform, citing margin concerns following the company's lowered Q4 SSS guidance.
Baird downgraded Plantronics (NYSE: PLT) to Neutral from Outperform citing weaker core business outlook.
Jefferies downgraded shares of First Cash Financial (NASDAQ: FCFS) to Hold from Buy following the disappointing results, as they believe the company's auto lending business will create an earnings drag in 2008, limiting potential share price appreciation. Shares were also lowered to Market Perform from Outperform at JMP Securities.
MOST NOTEWORTHY: Celera Genomics, Plantronics and Nymex were today's noteworthy upgrades:
JMP Securities upgraded Celera Group, Applera Corp. (NYSE: CRA) to Outperform from Market Perform, as they believe an announcement on the company's evaluation of its tracking stock could come as early as 1Q08, a split of Celera/Applied Biosystems could occur by FY08, and a new finding in a peer-review journal that predicts risk of coronary heart disease and statin benefit within the next six weeks.
Baird raised Plantronics (NYSE: PLT) to Outperform from Neutral based on valuation, strength in the Center and Office segment, and negative sentiment on Mobile revenues unwarranted.
Deutsche Bank upgraded shares of NYMEX (NYSE: NMX) to Buy from Hold and raised their target to $160 from $145 to reflect stabilized floor volumes, increased trading of commodities and acquisition potential consensus estimates that are too low. Deutsche named NMX their top exchange idea for 2008.
OTHER UPGRADES:
Citigroup upgraded Blue Nile (NASDAQ: NILE) to Buy from Hold.
Goldman upgraded Schlumberger (NYSE: SLB) to Buy from Neutral.
MOST NOTEWORTHY: Red Hat, Capital One and Novo Nordisk were today's noteworthy downgrades:
Banc of America downgraded shares of Red Hat (NYSE: RHT) to Neutral from Buy, despite expectations for solid Q3 results, due to a lack of billings catalysts and their belief that JBoss continues to have trouble gaining momentum.
Capital One (NYSE: COF) was lowered to Hold from Buy at Jefferies, as they expect limited upside until investors have improved visibility on the extent and timing of credit losses.
Merrill downgraded Novo Nordisk (NYSE: NVO) to Neutral from Buy on a lack of near-term catalysts with the company's diabetes and obesity drug-trial data being already presented.
OTHER DOWNGRADES:
Goldman removed CME Group (NYSE: CME) from its Conviction Buy List.
JP Morgan lowered Plantronics (NYSE: PLT) to Underweight from Neutral.
Thomas Weisel downgraded SLM Corp (NYSE: SLM) to Market Weight from Overweight.
MOST NOTEWORTHY: Air France, BHP Billiton, AstraZeneca, Broadcom and Savvis were today's noteworthy downgrades:
Goldman removed shares of Air France (NYSE: AKH) from its Conviction Buy List due to the increase in the price of fuel and the possibility of an economic slowdown.
Goldman downgraded BHP Billiton (NYSE: BHP) to Neutral from Buy and removed the stock from its Pan-Europe Buy List due to valuation.
Merrill Lynch downgraded shares of AstraZeneca (NYSE: AZN) to Sell from Neutral to reflect increased competition from generic-drug makers, a poor pipeline and slow earnings growth.
Wachovia downgraded shares of Broadcom Corporation (NASDAQ: BRCM) to Hold from Buy to reflect valuation and the company's lower than expected Q3 results. Shares were also lowered to Hold from Buy at Deutsche Bank.
Stanford lowered Savvis (NASDAQ: SVVS) to Hold from Buy and notes that the company's Q3 results and Q4 revenue guidance brings the company's 2007 revenue outlook $15M below the consensus, and advises investors to remain on the sidelines. The firm believes the company's strategy is sound, but that its execution has been slow.
MOST NOTEWORTHY: Crocs, Inc (CROX), Plantronics, Inc (PLT), MasterCard Inc (MA) and American Express Co (AXP) top Wednesday's noteworthy list:
JP Morgan started Crocs Inc (NASDAQ: CROX) with an Overweight rating based on the company's strong growth model.
JMP Securities upgraded Plantronics Inc (NYSE: PLT) with a Market Perform citing price competition and visibility in the speaker market.
MasterCard Inc (NYSE: MA) was started with an Underweight rating at Thomas Weisel citing concerns regarding increased pressure from bank issuing partners regarding fees and reduced cross border pricing benefits. Additionally,
Thomas Weisel started American Express Co (NYSE: AXP) with an Overweight rating, expecting increased card issuance migration and merchant migration due to increased pressure on bank fees and increasing consumer demand for rewards...
OTHER INITIATIONS:
Stifel started Microsemi Corp (NASDAQ: MSCC) with a Buy rating and $28 target.
MOST NOTEWORTHY: Schering-Plough Corp (SGP), Jones Soda Co (JSDA), RealNetworks, Inc (RNWK), Westwood One, Inc (WON), and Darden Restaurants, Inc (DRI) were today's noteworthy upgrades:
Prudential raised shares of Schering-Plough Corp (NYSE: SGP) to Overweight from Neutral to reflect management's activity on the deal front and recent data on the drug TRA.
ThinkEquity upgraded shares of Jones Soda Co (NASDAQ: JSDA) to Accumulate from Source of Funds after disappointing Q1 results. The firm believes results will get better in FY07 as the canned soda roll-out continues and high fructose corn syrup inventory is depleted.
RealNetworks Inc (NASDAQ: RNWK) was upgraded to Market Perform from Underperform at JP Morgan, citing valuation.
Bear Stearns upgraded shares of Westwood One Inc (NYSE: WON) following reports the company hired UBS AG (UBS) to help find potential buyers.
KeyBanc Capital markets raised Darden Restaurants (NYSE: DRI) to Buy from Hold based on accelerating same-store sales at Olive Garden.
OTHER UPGRADES:
Bear Stearns raised Plantronics, Inc (NYSE: PLT) to Peer Perform from Underperform.
MOST NOTEWORTHY: Baidu.com Inc ADS (BIDU), XM Satellite Radio Holdings Inc (XMSR) and Vonage Holdings Corp (VG) were today's most notable downgrades:
UBS downgraded shares of Baidu.com Inc ADS (NASDAQ: BIDU) to Reduce from Neutral with a $99 target following first quarter guidance calling for flat Q/Q revenue growth in the first quarter. The broker attributes the forth quarter upside to lower expenses and the booking of tax income.Citigroup downgraded Baidu.com to Sell from Neural with a $105 target while Brean Murray downgraded to company to Hold from Buy.
XM Satellite Radio Holdings Inc (NASDAQ: XMSR) was downgraded to Hold from Buy with a $15 target at Stanford based on the shift in retail share and a remote chance of a merger with Sirius Satellite Radio (NASDAQ: SIRI).
Buckingham downgraded Vonage Holdings Corp (NYSE: VG) to Underperform from Neutral following the disappointing fourth quarter results.
OTHER DOWNGRADES:
Schering-Plough Corp (NYSE: SGP) was downgraded to Neutral from Overweight at Prudential, citing valuation.
Matrix USA downgraded Plantronics Int (NYSE: PLT) to Strong Sell from Sell based on the softening demand for entertainment headsets.
DA Davidson downgraded Alcan Inc (NYSE: AL) to Buy from Hold.
Citigroup downgraded CSX Corp (NYSE: CSX) to Hold from Buy with a $42 target and removed the company from its Recommended List on valuation.
Deutsche Bank downgraded Radio One Inc (NASDAQ: ROIAK) to Hold from Buy telling clients that Q1 revenue trends could be weaker than expected.
MOST NOTEWORTHY: JetBlue Airways (JBLU), Plantronics (PLT) and Qwest (Q) top today's list of upgrades.
J.P. Morgan upgraded JetBlue Airways Corp. (NASDAQ:JBLU) to Neutral from Underweight, citing management's bullish outlook for the fourth quarter.
Robert W. Baird upgraded Plantronics, Inc. (NYSE:PLT) to Outperform from Neutral based on positive revenue and margin trends in call center & office segments, and its valuation.
UBS expects Qwest Communications International, Inc. (NYSE:Q) to report strong third-quarter margins and upgraded the company to Buy from Neutral.
OTHER UPGRADES:
Websense, Inc. (NASDAQ:WBSN) was upgraded to Strong Buy from Outperform at JMP Securities based on the company's stronger than expected third quarter.
CIBC upgraded Silicon Image, Inc. (NASDAQ:SIMG) to Sector Outperformer from Sector Performer. The firm believes current levels suggest a buying opportunity given Silicon Image's robust HDMI business, solid recent execution and storage diversification plan forming in 2007.
A stable outlook and improving operations at Applied Biosystems (NYSE:ABI) was enough for UBS to upgrade the company to Neutral from Reduce.
Finally, Western Union Co. (NYSE:WU) was added to Goldman Sachs Conviction Buy List. Goldman believes the December quarter will mark a trough for fundamentals and they advise building positions at these levels.
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MOST NOTEWORTHY: PetSmart, Plantronics and First Cash Financial were today's noteworthy downgrades:.gif){kind=logo}
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