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VIDEOUpgrades and Downgrades: Hewlett-Packard Finds a Friend
By
Justin Sharon
Sep 02, 2010 8:40 am
Wall Street ratings agencies set the tone for today's stock market.
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Emblematic of a turn from grief to joy in equities was the performance of Greif Inc (GEF) and Joy Global (JOYG), advancing a respective 2.15% and 6.39% on earnings. Elsewhere ironic economists at Bank of America (BAC) turned more bearish on the same day bulls bid its stock up 6.08% to top the Dow. That indices began what has historically been their worst month with the strongest showing in seven weeks may prove Henry Ford had it right when he said history is bunk. His heirs certainly better hope so, since sales of Ford’s (F) cars imploded 11% last month as overall US auto deliveries touched a 28 year trough in August. Today in 10:00AM Eastern economics, a flat figure is forecast for July pending home sales and a modest increase is expected in the month’s factory orders. On the corporate front Del Monte (DLM), H&R Block (HRB), Movado Group (MOV), Pernod Ricard, Take-Two Interactive (TTWO), and Toronto Dominion Bank (TD) are among companies expected to report results.
Initiations
Netflix (NFLX): NFLX is assigned a Hold at ThinkEquity Partners. Also read Live Television Is a Bloated, Dying Animal.
Camelot Information Systems (CIS): The stock is covered with a new Neutral at Goldman Sachs.
Oil Stocks: Global Hunter Securities starts Ensco (ESV) at Neutral and begins Buys on Hercules Offshore (HERO), Rowan Companies (RDC), and Seahawk Drilling (HAWK).
Vantage Drilling (VTG): Staying in the sector, small cap Vantage Drilling is initiated with a Buy at Jefferies and Global Hunter Securities.
Education Stocks: Saying both shares are appropriately valued, brokerage Hilliard Lyons initiates Neutrals on American Campus Communities (ACC) and Education Realty Trust (EDR).
SinoCoking (SCOK): The stock is picked up at Neutral by Madison Williams.
Allscripts-Misys Healthcare (MDRX): Deutsche Bank resumes Allscripts-Misys Healthcare with a a Hold.
Encore Bancshares (EBTX): The stock is initiated with a Neutral at Macquarie.
Moody’s (MCO): MCO is begun with a Market Perform by Keefe Bruyette.
Clearwire (CLWR): The stock is a fresh Buy at Kaufman Brothers, which sets it an $8.50 price target as they say the stock presents investors with a unique opportunity to invest in an early stage, pure-play, next-generation (4G) wireless services company.
QLT Inc (QLTI): QLTI is a new Buy with a $12 target at CK Cooper, as the broker believes it will continue to be a player in the growing ophthalmology market.
Medical Device Stocks: Stifel Nicolaus starts the medical devices sector with Buys on Zimmer (ZMH) and Holds on Boston Scientific (BSX), St. Jude Medical (STJ), Medtronic (MDT), and Stryker (SYK).
Upgrades
Hewlett-Packard (HPQ): HPQ is hoisted to Outperform from Market Perform at JMP Securities. Also read Hewlett-Packard: Small Chips, Big Deal.
FormFactor (FORM): FORM gets upgraded to Neutral from Sell at Goldman.
MCG Capital (MCGC): FBR Capital raises its rating on MCG Capital to Outperform, taking its target price to $7 from $5. The broker believes its price provides an attractive risk/reward proposition, trading at 70% of Net Asset Value with an estimated forward yield of 9%.
Rio Tinto (RTP): The stock gets an Outperform-from-Sector Perform boost by RBC Capital. For related content, see Supply and Demand Likely to Push Down Steel ETFs.
Building Stocks: British builders CRH Plc. (CRH) and Wolseley (WOSCY) are each now Neutral from Underweight at JP Morgan.
Downgrades
Companhia Vale do Rio (RIO): Brazilian mining giant Companhia Vale do Rio is reduced to Sector Perform from Outperform at RBC Capital.
PPL Corp (PPL): Citigroup cuts PPL Corp to Hold from Buy.
CRH Plc. (CRH): The stock gets downgraded to Neutral from Outperform by BNP Paribas.
No positions in stocks mentioned.
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