Analysts' Upgrades and Downgrades
Thursday's Analysts' Upgrades and Downgrades
By TSC Staff
11/2/2006 10:19 AM EST
URL: http://www.thestreet.com/markets/analystsactions/10319534.html

CHANGE IN RATINGS

Caremark Rx (CMX) downgraded at Wachovia: CMX was downgraded to Market Perform at Wachovia. Company reported strong quarter, but performance now tied to CVS. See better value in MHS, at current levels. Dominion (D) downgraded at Jefferies: Jefferies is downgrading D to Underperform from Hold based on valuation. Estimate $7 per share of cash dilution from sale of company's E&P business. Price target cut to $68 from $74. Dell (DELL) upgraded at Goldman Sachs: Goldman is upgrading DELL to Neutral from Sell as more disciplined pricing and attention to sales mix will enable company to beat estimates. Price target raised to $26.50 from $21. Intermec (IN) upgraded at Baird: IN was upgraded from Neutral to Outperform at Robert Baird. $27 price target. Despite product transition issues, the end-market demand picture looks strong. Company is also cutting costs and buying back stock. Intel (INTC) downgraded at Merrill Lynch: Merrill Lynch downgrades Intel from buy to neutral, and lowers 2007 earnings estimates. Merrill sees weak demand and persistent excess capacity keeping a lid on the stock. Lockheed Martin (LMT) upgraded at UBS: UBS is upgrading LMT to Neutral from Reduce. Believes company is at fair value after recent pullback. Maintained $91 target price. Landstar (LSTR) downgraded at Bear: LSTR was downgraded from Outperform to Peer Perform at Bear Stearns. Stock is with 7% of its all-time high, and trucking fundamentals appear to be deteriorating. MasterCard (MA) downgraded at Morgan Stanley: Morgan Stanley downgrades MasterCard from overweight to equalweight, but raises 2006 and 2007 EPS estimates and moves price target from $77 to $88. MasterCard (MA) price target increased at Goldman: Goldman is upping its target on MA to $76 from $63 due to stronger than expected revenue growth from currency conversion pricing change. Maintain Sell rating due to extended valuation. MasterCard (MA) estimates raised at Prudential: Prudential is raising its 2006 estimates on MA by 53 cents to $3.51 a share due to benign trend in rebate. Target price raised to $100. MedcoHealth Solutions (MHS) downgraded at Credit Suisse: Credit Suisse is downgrading MHS to Neutral from Outperform. Believes stock is more likely to trade on sentiment related industry issues. Maintained $55 target price. Millipore (MIL) upgraded at UBS: UBS is upgrading MIL to Buy from Neutral. Sees compelling opportunity despite near-term challenges. Raised target price to $78 from $73. Outdoor Channel (OUTD) downgraded at Bear: OUTD was downgraded to Peer Perform at Bear Stearns. Stock is up more than 50% from the August lows, and has reached the $14 price target. SPX (SPW) downgraded at Friedman, Billings: SPW was downgraded from Outperform to Market Perform, Friedman, Billings Ramsey said. $64 price target. Stock has limited upside potential, even as estimates are moving higher to match the company's new guidance. SRA International (SRX) downgraded at Baird: SRX was downgraded from Outperform to Neutral at Robert Baird. $32 price target. Expect to see lower organic sales growth contribution in the coming quarters. UTStarcom (UTSI) downgraded at Merrill Lynch: Merrill Lynch downgrades UTStarcom from neutral to sell, as it sees little evidence that the company's business model has improved.

STOCK COMMENTS / EPS CHANGES

Conseco (CNO) target price lowered at UBS: UBS is lowering its target price on CNO to $26 from $30 following disappointing 3Q results. Maintained Buy rating. Electronic Data (EDS) estimates slashed at Jefferies: 2006 estimates on EDS cut to $0.89 from $1.06 at Jefferies. Mid-single digit revenue growth and spending should be net positives for 2007 operating margins. Reiterated Buy rating and $32 target. Electronic Data (EDS) estimates raised at Prudential: Prudential is raising its 2006 estimates on EDS by 4 cents to 88 cents a share to reflect operating margin expansion. Maintained Overweight rating. Cedar Fair (FUN) estimates cut at Jefferies: Jefferies is cutting its 2007 estimates on FUN to $0.56 from $0.94 as company integrates Paramount. Reiterated Hold and $28.50 target. GFI Group (GFIG) estimates raised at Jefferies: Jefferies is upping its 2007 estimates on GFIG to $2.94 from $2.75 following the company's strong Q3 results. Price target raised to $64 from $62 and reiterated Buy rating. Maxim Integrated (MXIM) estimates cut at Prudential: Prudential is cutting its 2007 estimates on MXIM by 13 cents to $1.33 a share due to expected December quarter revenue decline. Maintained Neutral Weight rating. Procter & Gamble (PG) price target raised at Goldman: Goldman is increasing its target on PG to $66 from $64 due to higher expectations for company's "Go To Market" strategy beginning in 2007. Strong potential efficiency gains and other positives offset by high valuation. Maintain neutral rating. Patterson Energy (PTEN) target cut at Jefferies: Price target on PTEN lowered to $25 from $27 at Jefferies. See continues uncertainty in natural gas prices and additional rig capacity entering fleet. Reiterated Hold rating.