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VIDEOUpgrades and Downgrades: Taxing Times for H&R Block
By
Justin Sharon
Sep 08, 2010 8:40 am
Wall Street ratings agencies set the tone for today's stock market.
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At least Richard Junior won’t now have to take any long term heat for hometown hero and Dow component Boeing (BA) falling 1.89% after it announced over 400 jobs will be lost to restructuring. Elsewhere spot silver stands at its highest level since March of ’08 but Sarah Palin would surely refudiate, so to speak, any talk of a recovery summer at Silver Spring’s own Discovery Communications (DISCA). Its stock fell 2.49% on a downgrade, so let’s hope the ex-governor’s upcoming employer can still afford to pay her over $1 million an episode. Today in economics, the Fed’s beige book is released at 2:00PM Eastern and July consumer credit follows an hour after. On the corporate front AeroVironment (AVAV), Ciena (CIEN), Collector’s Universe (CLCT), Men’s Warehouse (MW), Navistar (NAV), Pep Boys (PBY), Shuffle Master (SHFL), Smithfield Foods (SFD), Talbots (TLB), and United Natural Foods (UNFI) are all expected to announce earnings.
Initiations
Pier 1 Imports (PIR): The stock is picked up with a Buy at Sterne Agee, which assigns it a $10 price objective.
Illinois Tool Works (ITW): Sterne Agee also has new Neutral rated coverage and a $49 price target on Illinois Tool Works.
SolarWinds (SWI): Cowen & Company starts Neutral rated coverage on SolarWinds. Also read Renewable Auction Mechanism May Boost Solar ETFs.
LogMeIn (LOGM): The stock is launched at an Outperform, also at Cowen.
Darden Restaurants (DRI): DRI is begun with a Buy at Janney Montgomery Scott, which sets a $54 target price.
Aerospace and Defense Stocks: RBC Capital initiates the US Aerospace & Defense sector. Highlights include Outperforms on Boeing (BA) and General Dynamics (GD), with respective price objectives of $78 and $72. Honeywell (HON), Lockheed Martin (LMT), and Raytheon (RTN) are among the Sector Performs while Northrop Grumman (NOC) is assigned an Underperform.
Wipro (WIT): Indian outsourcer Wipro is a new Negative at Susquehanna.
Drillers: Wells Fargo initiates Diamond Offshore (DO) at Market Perform and has a new Outperform on Schlumberger (SLB).
Walter Energy (WLT): WLT is a new Neutral at Goldman Sachs.
Upgrades
CommScope (CTV): The stock gets a Buy-from-Neutral boost at UBS.
Costco (COST): COST gets raised to Buy from Neutral at Goldman, which also increases its price objective by $6 to $68.
Metro Bancorp (METR): METR is now Buy from Neutral with a $14 target at Janney Montgomery.
Phillips-Van Heusen (PVH): Piper Jaffray upgrades Phillips-Van Heusen to Overweight from Neutral.
MGM Resorts (MGM): Soleil Securities raises its recommendation on MGM Resorts to Buy from Hold.
Dell (DELL): DELL is increased to Buy from Outperform at Credit Agricole.
Downgrades
H&R Block (HRB): Saying a mortgage put-back overhang carries potential headline risk, Oppenheimer cuts H&R Block to Perform from Outperform.
Computer Stocks: Intel (INTC), Hewlett-Packard (HPQ), Western Digital (WDC), Teradyne (TER), and Varian Semiconductor (VSEA) are all now Neutral from Buy at UBS. Also read Why Merger Mania Is Bearish for PC Stocks.
Auto Suppliers: JP Morgan moves Magna International (MGA), Lear Corp (LEA), Harman International (HAR), Dana Holding (DAN), and BorgWarner (BWA), all to Neutral from Overweight. Sonic Automotive (SAH), Penske Automotive (PAH), KAR Auction Services (KAR), and Tenneco (TEN) are all also taken to Neutral from Overweight, also at JP Morgan.
Las Vegas Sands (LVS): LVS is lowered to Hold from Buy at Soleil.
Dick’s Sporting Goods (DKS): The retailer gets a Neutral-from-Buy downgrade at Goldman.
Viacom (VIA.B): The stock is downgraded to Hold from Buy by The Benchmark Company as a stalling economic recovery could hinder advertising and home entertainment sales.
Time Warner (TWX): TWX is also taken to Hold from Buy at Benchmark Company due to a belief they may report flat to down income in the September quarter.
No positions in stocks mentioned.
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