Below is a list of analyst upgrades, downgrades, and initiations in Wall Street research calls this Monday morning with roughly 30 minutes until the market opens.
Analyst Upgrades:
- RC2 (RCRC) upgraded to Outperform at Wells Fargo
- Juniper Networks (JNPR) upgraded to Buy at Ticonderoga Securities ; price target set at $31
- Broadpoint Amtech raise their price target on Google (GOOG) to $650 from $610 ; firm expects the search giant’s new paid search ad formats to create an increase in click-through rates
- Genzyme (GENZ) upgraded to Buy at Citigroup ; price target lowered to $63 from $64
- Goldman Sachs raise their price target on United States Steel (X) to $54 from $49
- AFLAC (AFL) upgraded to Outperform at Credit Suisse ; price target raised to $60 from $52
- U.S. Steel (X) upgraded to Conviction Buy from Buy at Goldman Sachs
- Deere (DE) upgraded to Neutral from Underweight at JP Morgan
- Electronics For Imaging, Inc. (EFII) upgraded to Buy at Brean Murray price target set at $16
- RBC Capital Markets raises its price target on Best Buy (BBY) to $49 from $44
- Safeway (SWY) upgraded to Equal Weight at Morgan Stanley
- Collins Stewart raise their price target on Time Warner (TWX) to $38 from $33.50
- Goldman Sachs raise their price target on AK Steel (AKS) to $23 from $22
- Abercrombie & Fitch (ANF) upgraded to Outperform FBR Capital ; price target raised to $46 from $39
- HSBC Holdings (HBC) upgraded to Buy at Bank of America/Merrill
- American Eagle (AEO) upgraded to Buy at Lazard Capital Markets ; price target set at $22
- Sonic (SONC) upgraded to Neutral from Underperform at Wedbush Morgan ; price target set at $10
- US Bancorp (USB) upgraded to Outperform Robert W. Baird ; price target raised to $29 from $25
- Stryker Corp. (SYK) upgraded to Outperform at RBC Capital Markets ; price target raised to $57 from $45
- Goldman Sachs raise their price target on Commercial Metals (CMC) to $17 from $16
- Education Realty Trust (EDR) upgraded to Outperform Robert W. Baird ; price target raised to $6 from $5
- Dreamworks Animation (DWA) upgraded to Average at Caris & Co ; price target raised to $31 from $27
- Goldman Sachs raise their price target on Gerdau AmeriSteel (GNA) to $9 from $8
Analyst Downgrades:
- Baidu.com (BIDU) downgraded to Market Perform at Bernstein ; price target lowered to $460 from $420
- Bernstein lower their price target on American International Group (AIG) to $12 from $20
- Wunderlich lower their price target on GeoResources (GEOI) to $16 from $18
- Franklin Resources (BEN) downgraded to Neutral from Buy at Pali Research
- Freeport-McMoRan (FCX) downgraded to Buy from Conviction Buy at Goldman Sachs
- Grupo Aeroportuario (OMAB) downgraded to Sector Perform at Scotia Capital
- Burger King (BKC) downgraded to Underperform at Wedbush Morgan ; price target lowered to $17 from $19
- Broadpoint AmTech lowers its target on Research In Motion (RIMM) to $73 from $85
- Collins Stewart reiterate their Sell rating on Sigma Design (SIGM) ; price target set at $9
- Supervalue (SVU) downgraded to Underweight at Morgan Stanley
Coverage Initiated:
- AGA Medical (AGAM) initiated with a Market Perform at Wells Fargo
- Liberty Global (LBTYA) initiated with a Neutral at JP Morgan
- Targa Resources (NGLS) initiated with a Hold at Stifel Nicolaus
- American Oriental (AOB) resumed with a Buy at Brean Murray ; price target set at $6
- HSBC Holdings (HBC) initiated with an Outperform at FBR Capital Markets
- AGA Medical (AGAM) initiated with a Buy and a $16 target at Deutsche Bank
On the news front this morning:
- Financial Times reports Todd Stitzer, Cadbury chief executive, has signaled support for a possible tie-up with Hershey (HSY), declaring the US confectioner a better cultural fit with the chocolate maker than Kraft (KFT), the food conglomerate that has launched a hostile bid. Hershey, which has owned the licence for the Cadbury brand in the US since 1988, is contemplating a bid for Cadbury after the decision by Kraft of the US this month to go hostile. If Hershey can finance the bid, it is likely to make a friendly offer. Stitzer told the Financial Times that the ethical values of the Cadbury brand were similar to those of Hershey.
- Reuters reports the Dubai government will not guarantee Dubai World’s debts, and creditors will be affected in “the short term” by the conglomerate’s restructuring, a top Dubai government official said on Monday. Abdulrahman al-Saleh, director general of Dubai’s department of finance, also said market reaction to Dubai World’s announcement last week was exaggerated and did not match the extent of the conglomerate’s woes. “I think banks are not at a stage where they need any extra liquidity from the central bank,” he said on Dubai TV. “Creditors need to take part of the responsibility for their decision to lend to the companies. They think Dubai World is part of the government, which is not correct.”
