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business newsUpgrades and Downgrades: Analyst Advises Investors To Pick Up AT&T
By
Justin Sharon
Dec 14, 2010 8:50 am
Wall Street ratings agencies set the tone for today's stock market.
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Clearly money talks in the Keystone State, unless you are an All-Star pitcher who takes a potential $50 million pay cut to rejoin the Phillies. Switching sports, Brett Favre’s run of 297 consecutive regular-season starts came to an end at last, having begun on September 27th, 1992 with a 17-3 win over Pittsburgh. 18 unimaginably long years ago, back when Bill won the White House by saying “it’s the economy, stupid.” (He’s still there and it still is; the more things change…) And exactly three decades to the day after Americans awoke to headlines about an obscure Cupertino company, one which would be basically bankrupt 17 years later, going public at $22 per share, Goldman Sachs said Apple (AAPL) could go to $430. Today in 10:00AM Eastern economics October business inventories are expected to increase slightly, and FOMC is anticipated to issue a stand-pat statement on interest rates at 2:15PM. On the earnings front Best Buy (BBY), FactSet Research (FDS), and Sanderson Farms (SAFM) are all due to report results.
Initiations
Internet and Cable Providers: Dow component AT&T (T) is a new Buy at Nomura, which assigns it a price objective of $34. The broker also begins Buys on Time Warner Cable (TWC) with an $80 price target, Comcast (CMCSA) -- $25 -- and Cablevision (CVC) -- $40. Its new Neutrals include Verizon (VZ ), also in the Dow Average, Sprint (S), Qwest (Q), DISH Network (DISH), and DirecTV (DTV). For more, see AT&T Living in Fantasy World.
Housing Stocks: JP Morgan has new Neutrals on Clean Harbors (CLH) and Meritage Homes (MTH) and sets respective price objectives of $82 and $26.50.
Oil Stocks: European oil giant Total SA (TOT) is begun with a Buy at Jefferies, which has a new Hold on BP Plc (BP).
Blue Coat Systems (BCSI): UBS assigns a Buy and $33 target on Blue Coat Systems.
Fastenal (FAST): FAST is a new Neutral, also at UBS.
Walgreen (WAG): WAG gets begun at Buy by Hapoalim Securities.
Tech Stocks: EMC Corp (EMC) is a new Buy with a $26 target price at Janney Montgomery Scott, which has new Neutrals on NetApp (NTAP) and VMware(VMW).
Fluor (FLR): The stock is a fresh Buy at KeyBanc Capital.
Gas Stocks: ConocoPhillips (COP) is begun with a Buy and $75 target at Jefferies, which has a Hold on Dow member Exxon Mobil(XOM). Royal Dutch Shell (RDS.A) is resumed with a bullish Buy, also at Jefferies.
Upgrades
Amgen (AMGN): The stock is up sharply ahead of the opening bell after being upgraded to Overweight from Neutral at Piper Jaffray, which has a $74 target price. Also read ETFs for Biotech M&A Mania.
Sara Lee (SLE): SLE gets moved to Outperform from Market Perform by Sanford Bernstein.
Comcast (CMCSA): Bernstein also boosts Comcast to Outperform from Market Perform.
Veolia Environment (VE): Deutsche Bank raises Veolia Environment to Buy from Hold.
Warner Chilcott (WCRX): The stock is added to the Top Picks Live list at Citigroup.
Goodrich Petroleum (GDP): GDP is lifted to Outperform from Market Perform with Wells Fargo.
Covidien (COV): Goldman gives Covidien a Buy-from-Neutral boost.
Gammon Gold (GRS): GRS gets upgraded to Buy from Neutral at UBS, which has a $9 target. For more on the sector, see Gold Makes Record Run.
Downgrades
Progressive (PGR): PGR is now Neutral from Buy by Janney Montgomery Scott.
A.O. Smith (AOS): AOS is downgraded to Neutral from Buy at Sterne Agee.
Veeco Instruments (VECO): The stock is cut to Hold from Buy at Citigroup.
Masco (MAS): MAS is moved to Sell from Neutral at Ticonderoga, which believes valuation is too rich given the constrained recovery in the company’s core businesses.
Acorda Therapeutics (ACOR): ACOR is now Neutral from Outperform by brokers Robert W. Baird due to BioTrends’ latest Ampyra survey indicating lower current and projected patient market share.
Kaiser Aluminum (KALU): UBS cuts Kaiser Aluminum to Neutral from Buy with a $54 objective.
Prosperity Bancshares (PRSP): The stock is downgraded to Neutral from Buy at Howe Barnes Hoefer & Arnett.
No positions in stocks mentioned.
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