Ericsson (NASDAQ: ERIC) was upgraded to Add from Hold at WestLB.
JP Morgan upgraded Shire Plc (NASDAQ: SHPGY) to overweight from Neutral to reflect Vyvanse share gains and valuation.
Wachovia upgraded Jefferies (NYSE: JEF) to Market Perform from Underperform because they believe that the recent collapse of the large cap bank sector, Jefferies' cash equity business, and the company's partial privatization as a result of its Leucadia investment will shield shares.
ADC Telecomm (NASDAQ: ADCT) was upgraded to Buy from Hold at Kaufman Bros. on valuation following the recent weakness.
STEC Inc (NASDAQ: STEC) and Popular (NASDAQ: BPOP) were raised to Buy from Neutral at B. Riley.
Analyst downgrades:
Merrill downgraded Disney (NYSE: DIS) to Underperform from Neutral and cut its target to $27 from $34 citing the impact from the current economic climate on earnings.
Barclays downgraded IBM (NYSE: IBM) to Equal Weight from Overweight citing the impact from the weakening economy and the company's large exposure to the financial services industry. IBM's target was cut to $108 from $130.
Jefferies downgraded Salesforce.com (NYSE: CRM) to Underperform from Buy on increased risks of deteriorating payment terms and price pressure on renewals. The company's target was lowered to $36 from $75.
Goldman downgraded First Solar (NASDAQ: FSLR) and added shares to the Conviction Sell List.
MOST NOTEWORTHY: Shire Plc, J.C. Penney and VisionChina Media were today's noteworthy upgrades:
Goldman upgraded shares of Shire Plc (NASDAQ: SHPGY) to Buy from Neutral on expectations for share gains in the second half of 2008 following the launch of Vyvanse in adults. Goldman also added the stock to the Conviction Buy List.
Deutsche Bank raised J.C. Penney (NYSE: JCP) to Buy from Hold after channel checks indicated recent sales trends have improved. The firm finds the risk/reward compelling at current levels with a $46 target.
Oppenheimer upgraded shares of VisionChina Media (NASDAQ: VISN) to Outperform from Perform following the recent pullback, after channel checks indicated the company is seeing greater traction with larger advertising clients.
PDUFA date for Genentech, Inc. (NYSE: DNA) and Roche Holding Ltd. (OTC: RHHBY)'s supplemental Biologics License Application for Herceptin for label expansion to include AC followed by docetaxel in treatment of adjuvant HER2+ breast cancer.
PDUFA date for Shire plc (NASDAQ: SHPGY) and New River Pharma's supplemental New Drug Application for Vyvanse (NRP-104) treatment of Attention Deficit Hyperactivity Disordre, or ADHD, in adult patients 18-55 years old; the drug is already approved for pediatric ADHD ages 6-12.
Verizon Communications Inc. (NYSE: VZ) to report Q earnings; conference call at 8:30am.
Tyson Foods, Inc. (NYSE: TSN) to report Q2 earnings; conference call at 9:00am.
Tuesday, April 29
Two-day FOMC meeting beginning at 8:30am.
PDUFA date for Merck & Co., Inc. (NYSE: MRK)'s New Drug Application for Cordaptive (MK-0524A) adjunctive therapy to diet for treating elevated LDL Cholesterol, low HDL Cholesterol and elevated triglycerides levels.
PDUFA date for Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP)'s supplemental New Drug Application for dose of 8mg treatment of Irritable Bowel Syndrome with Constipation; already approved for Chronic Idiopathic Constipation at 24ug dosage.
BP plc (NYSE: BP) to report Q1 earnings; conference call at 10:15am.
United States Steel Company (NYSE: X) to report Q1 earnings; conference call at 2:00pm.
With regulators, politicians and rating firms biting at their heels, Countrywide Financial Corporation (NYSE: CFC) believed that it had no choice but to approach Bank of America Corporation (NYSE: BAC) last month about a merger, reported the Wall Street Journal. That fear led to BAC's $4B takeover of Countrywide, the Wall Street Journal reported.
According to the Financial Times, European public health specialists have found "significant resistance" to Roche Holding Ltd's (OTC: RHHBY) widely purchased influenza antiviral medicine Tamiflu.
OTHER PAPERS:
Shares of Britain's third-largest drug maker, Shire Plc (NASDAQ: SHPGY) plummeted yesterday to a two-year low on concerns about demand for its attention deficit hyperactivity disorder treatment for children, Vyvanse, the Telegraph reported.
MOST NOTEWORTHY: Shire Plc, Bank of Ireland and Walgreen were today's noteworthy downgrades:
Bernstein downgraded shares of Shire Plc (NASDAQ: SHPGY) to Underperform from Market Perform as they believe sales of hyperactivity drug Vyvanse will be lower than expected.
Bank of Ireland (NYSE: IRE) was downgraded to Neutral from Buy at UBS on the slowing economy and commercial property market.
Citigroup downgraded Walgreen (NYSE: WAG) to Sell from Hold as they believe the weaker consumer environment should magnify company-specific challenges and that earnings pressure will continue over the next few quarters.
OTHER DOWNGRADES:
Raven (NASDAQ: RAVN) Industries was lowered to Sell from Neutral at Piper.
Goldman downgraded Brown-Forman (NYSE: BF.A) to Sell from Neutral.
JP Morgan downgraded Noble (NYSE: NE) to Neutral from Overweight.
MOST NOTEWORTHY: Sears Holding, Reuters Group and Shire Plc were today's noteworthy downgrades:
Goldman downgraded shares of Sears Holding (NASDAQ: SHLD) to Sell from Neutral as they expect continued share loss and profit pressures in this macro environment.
ABN Amro lowered its rating on Reuters Group (NASDAQ: RTRSY) to Sell from Hold as they believe the credit crisis will impact the company's banking profitability.
Shire Plc (NASDAQ: SHPGY) was downgraded to Neutral from Buy at Merrill. The firm sees limited upside to 2008 earnings.
MOST NOTEWORTHY: Airline stocks, LDK Solar and AU Optronics were today's noteworthy upgrades:
UBS upgraded legacy airline stocks based on the recent pullback in the group. The firm upgraded Continental Airlines (NYSE: CAL) and Delta (NYSE: DAL) to Buy from Neutral and AMR Corp. (NYSE: AMR) to Neutral from Sell.
CIBC upgraded shares of LDK Solar (NYSE: LDK) to Sector Performer from Sector Underperformer following a meeting with management as they have greater visibility on polysilicon supply for 2008 as well as comfort that average sales price declines will be lower than previously expected in 2009.
Lehman upgraded shares of AU Optronics (NYSE: AUO) to Overweight from Equal Weight after raising the Asia Display industry to Positive from Neutral.
OTHER UPGRADES:
Repsol SA (NYSE: REP) was upgraded to Equal Weight from Underweight.
Jefferies raised its rating on Shutterfly (NASDAQ: SFLY) to Buy from Hold.
Baird upgraded Shire Plc (NASDAQ: SHPGY) to Outperform from Neutral.
MOST NOTEWORTHY: National Grid, Shire Plc, On Semiconductor and Enbridge were today's noteworthy upgrades:
Deutsche Bank upgraded shares of National Grid (NYSE: NGG) to Buy from Hold as they believe the Keyspan deal will be positive for shareholders.
Goldman upgraded shares of Shire Plc (NASDAQ: SHPGY) to Buy from Neutral and added the stock to their Conviction Buy List on valuation and expected gains in the ADHD market.
On Semiconductor (NASDAQ: ONNN) was upgraded to Outperform from Market Perform at Wachovia on valuation.
Enbridge Inc (NYSE: ENB) was raised to Sector Outperformer from Sector Performer at CIBC World Markets, as the firm sees an attractive 3-year return potential as new projects come into service and expects the stock's relative underperformance to come to an end.
MOST NOTEWORTHY: Shire Plc (SHPGY), Cablevision Systems Corp (CVC), Yahoo! (YHOO), Ensco International (ESV) and Clear Channel Outdoor Holdings (CCO) were today's noteworthy downgrades:
JP Morgan downgraded shares of Shire Plc (NASDAQ: SHPGY) to Neutral from Overweight to reflect risk of Adderall XR patients switching to Vyvanse.
Deutsche Bank cut Cablevision (NYSE: CVC) to Hold from Buy, saying shares reflect a likely higher bid from the Dolan family.
ThinkEquity downgraded shares of Yahoo! (NASDAQ: YHOO) to Accumulate from Buy following checks that indicate marginal Panama upside, poor execution in premium display and an incomplete/vulnerable non-premium display strategy.
Credit Suisse cut Ensco International (NYSE: ESV) to Underperform from Neutral on valuation.
SMH Capital downgraded Clear Channel Outdoors (NYSE: CCO) to Sell from Neutral and recommended investors to swap into Lamar Advertising Co (NASDAQ: LAMR), based on the company's higher-quality name in the outdoor advertising sub-space...
OTHER DOWNGRADES:
Baidu.com (NASDAQ: BIDU) was cut to Hold from Buy at Citigroup.
Brinker International (NYSE: EAT) was downgraded to Underweight from Equal Weight at Morgan Stanley.
Hilliard Lyons downgraded Nike Inc (NYSE: NKE) to Neutral from Long-Term Buy.
Lowe's Companies Inc (NYSE: LOW) to report Q1 earnings; conference call at 9am. Lowe's is expected to post sub-par revenue results and an EPS decline, given the continued sluggishness in U.S. housing sector.
PDUFA date for Shire plc's (NASDAQ: SHPGY) SPD-465 for ADHD in adults.
Tuesday May 22
Staples Inc (NASDAQ: SPLS) to report Q2 earnings; conference call at 8am.
Men's Wearhouse Inc (NYSE: MW) to hold conference to at 5pm discuss Q1 earnings, detail its acquisition of After Hours and discuss the impact on 2007 guidance.
MOST NOTEWORTHY: Specialty pharmaceutical companies make up today's most noteworthy list:
The Bank of America initiated Shire plc (NASDAQ: SHPGY), Mentor Corp (NYSE: MNT), Alcon, Inc (NYSE: ACL) and Allergan, Inc (NYSE: AGN) with Buy ratings and initiated Cephalon, Inc (NASDAQ: CEPH), Forest Laboratories, Inc (NYSE: FRX), Sepracor Inc (NASDAQ: SEPR) with Neutral ratings. Bank of America's top pick is Shire plc as the firm expects the company to launch six products or product extensions by mid-2008, followed by Mentor Corp, as the conversion to silicone breast implants should drive a period of stronger-than-expected sales and earnings.
OTHER INITIATIONS:
Ford Motor Co (NYSE: F) was initiated at Buckingham with an Underperform rating and General Motors (GM) was started with a Neutral rating.
Nollenberger believes Under Armour, Inc (NYSE: UA), started with a Buy rating, is positioned to outperform the market based on the strength of its brand name and demand through the continued introduction of new products along with European growth.
Barr Pharmaceuticals, Inc (NYSE: BRL) was initiated with an Equal Weight rating and $53 target at Morgan Stanley.
XM Satellite Radio Holdings Inc (NASDAQ: XMSR) to report Q4 earnings; conference call at 10am. Analysts will review XM's overall subscribers, new subscribers, retention rates, average monthly fees, pricing plans, new broadcast content agreements, marketing strategy, operating costs, sector position, and margins. Equally significant, Wall Street will also pay very close attention to management's operational posture moving forward, in light of its proposed merger agreement with Sirius Satellite Radio Inc (NASDAQ: SIRI).
Tuesday February 27
Sirius Satellite Radio to report Q4 earnings; conference call at 8am. The concerns for Sirius mirror the previously mentioned concerns for XM.
Wednesday February 28
PDUFA Date for Novartis AG ADS's (NYSE: NVS) Galvus, an innovative oral therapy for people with type 2 diabetes.
Thursday March 1
Echostar Communications Corporation (NASDAQ: DISH) to report Q4 earnings; conference call at 12pm. Analysts will focus on Echostar's success at adding value to its offerings, amid intensifying competition from digital cable and communications companies offering TV services.
PDUFA date for New River Pharmaceuticals Inc (NASDAQ: NRPH) and Shire plc ADS's (NASDAQ: SHPGY) Vyvanse, for the treatment of Attention Deficit Hyperactivity Disorder [ADHD].
PDUFA date for Merck Serono SA ADS's (NYSE: SRA) Serostim, a treatment for AIDs wasting.
Friday March 2
THQ Inc (NASDAQ: THQI) to hold analyst meeting in San Fransisco, CA.
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Closing Bell: Dow down 7.7%; GE, YHOO, MS fall, PGI, MNT soar
Bet on T&A with J&J (JNJ)
Chasing Value: Apple may be one again
