Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Upgrades & Downgrades: Diebold Could Be Cash Machine for Investors


Wall Street ratings agencies set the tone for today's stock market.

Sunday, which was long where news went to die, is now anything but. Lehman Brothers famously perished on that day in 2008, igniting the financial calamity that ensued, and yesterday markets fell for a third session in four, 24 hours after the sort of day only Morrissey, the world's most morose Mancunian, could love. Over the weekend austerity talks in the Netherlands collapsed and France gave an election boost to one François Hollande. Perhaps, in light of the continent's beleaguered condition, they are only doing the sensible thing in deciding to go Dutch. Yet the prospect of someone who told a Socialist Party rally in Paris that "My enemy is the world of finance," controlling the corridors of power isn't exactly reassuring for investors. Surely far better, especially on the very day he was both born and died, to follow Will Shakespeare's wise words, namely, "Neither a borrower nor a lender be." Completing Sunday's tragic trifecta, that morning's breaking news on Wal-Mart's (WMT) alleged hanky-panky south of the border subsequently sent its shares south to the tune of 4.66%, making it the Dow's (^DJI) poorest performer. (This as the number of illegal Mexicans in America plummeted to a multi-decade low. Quoting the Bard again, sometimes, "The fault, dear Brutus, is not in our stars, but in ourselves.")

A big drop then for the Bentonville behemoth, but Hasbro (HAS), based in our smallest state of Rhode Island, fared even worse, with a 5.23% fall due to weak sales of "My Littlest Pet Shop." Not all babes in toyland suffered such anguish; an analyst upgrade of JAKKS Pacific (JAKK), maker of Dora the Explorer and much else, sent it up some 4.57%. Brinker International (EAT), famous for its Baby Back Ribs, rose 10.68% to hit its highest intra-day price in half a decade. Meanwhile an $11.9 billion baby deal between Nestlé (NSRGY) and Pfizer (PFE) dominated another manic Monday in acquisitions. Though both stocks ended down, one suspects the Swiss firm will have the last laugh, as Carmageddon + 9 months apparently = profits. And Ardea Biosciences (RDEA) surged 51.73% to top the Nasdaq (^IXIC) after being bought. Its experimental gout franchise is seen as especially lucrative. In Shakespeare's time the affliction was known as the "disease of kings" but our exploding obesity epidemic has made it much more prevalent across all income levels. Trickle down economics, indeed. Today in finance, April consumer confidence and March new home sales are each out at 10:00 a.m. Eastern. A torrid Tuesday for first-quarter earnings announcements features results from Hershey (HSY), International Game Technology (IGT), Janus Capital (JNS), McGraw-Hill (MHP), 3M (MMM), and Novartis (NVS).


Allison Transmission (ALSN): Shares are a Hold at KeyBanc Capital and an Equal Weight with Morgan Stanley. Robert W. Baird is more bullish, assigning an Outperform and $30 price target on a firm it says is a premier brand in the truck space, commanding dominant share, pricing strength, and a best-in-class margin profile.

Cabot Oil & Gas (COG): The stock, 2011′s only S&P 500 member to double, is begun with a Buy at Société Générale.

Caffeinated beverages: Peet's Coffee & Tea (PEET) is established at Outperform with Wedbush, which has a new Neutral on Teavana Holdings (TEA), a specialty retailer of loose-leaf teas.

Demandware (DWRE): The e-commerce company is a new Neutral at Goldman Sachs.

Elli Mae (ELLI): Shares are assigned an Overweight by Barclays.

F5 Networks (FFIV): Saying that a solid outlook is already adequately captured in the stock's valuation, Northland Securities starts the firm at Market Perform. Its objective is $134.

Fresenius Medical (FMS): The stock is a fresh Overweight at HSBC Securities.

Leapfrog (LF): LF is resumed with a Buy at Roth Capital, whose price target is $11.

LinkedIn (LNKD): Piper Jaffray picks up the stock at an Overweight.

M/A-Com Technology Solutions (MTSI): MTSI is initiated with an Overweight at Barclays.

Melco Crown Entertainment (MPEL): HSBC Securities has an Overweight on MPEL.

Nationstar Mortgage (NSM): Sterne Agee starts Buy rated coverage, assigning a price objective of $18.


Apartment Investment & Management (AIV): Keefe Bruyette gives the company an Outperform-from-Market Perform boost.

Auto parts: AutoZone (AZO) is upgraded to Overweight from Neutral at JPMorgan. Meanwhile O'Reilly Automotive (ORLY), recently trading at record highs, is upgraded to Neutral from Underweight at Morgan.

Brinker International (EAT): Shares of yesterday's high-flyer are today boosted by both Susquehanna (Neutral from Negative) and Sterne Agee (Neutral from Underperform).

Canadian National Railway (CNI): CNI is upgraded to Buy from Hold at Canaccord Genuity.

Michelin (MGDDY): The world's second-largest tire maker is upgraded to Overweight from Neutral at HSBC Securities.

Diebold (DBD): The largest US manufacturer of Automated Teller Machines is upgraded to Buy from Hold at Compass Point, which takes its target up to $45 ahead of Q1 2012 results. Catalysts include a heavy exposure to the strong ATM industry, which represents 75% of overall company revenue.

Deutsche Lufthansa (DLAKY): Shares are up in Europe this morning Credit Suisse upgraded the airline to Outperform from Neutral.

Fortinet (FTNT): The stock is now Buy from Neutral at Nomura.

Netflix (NFLX): Shares, slumping before the opening bell, are actually upgraded to Outperform from Sector Perform at Pacific Crest.

Rambus (RMBS): RMBS is raised to Overweight from Neutral at JPMorgan, sending the stock sharply higher in the pre-market.

Statoil ASA (STO): The Russian energy giant gets an unusual 180 degree Outperform-from-Underperform upgrade at Exane BNP Paribas.

True Religion Apparel (TRLG): Brean Murray takes TRLG to Buy from Hold.

Tyson Foods (TSN): BMO Capital increases the Arkansas outfit to Outperform from Market Perform.

Niska Gas Storage (NKA): NKA gets upgraded to Market Perform from Underperform with Wells Fargo.


AvalonBay Communities (AVB): AVB is downgraded to Market Perform from Outperform at Keefe Bruyette.

Big Lots (BIG): Shares are cut to Hold from Buy at Deutsche Bank following a first quarter profit warning.

Charles Schwab Corp (CSHW): The discount broker is downgraded to Hold from Buy at Stifel Nicolaus due to price concerns.

Chipotle Mexican Grill (CMG): Shares are now Neutral from Outperform at Credit Suisse.

Clearwire Corp (CLWR): Jefferies reduces its rating to Hold from Buy.

Cornerstone OnDemand (CSOD): Barclays cuts CSOD to Equal Weight from Overweight.

Great Wolf Resorts (WOLF): JMP Securities gives a Market Perform-from-Outperform downgrade to WOLF.

International cigarette stocks: British American Tobacco (BTI) and Imperial Tobacco (ITYBY) both get lowered to Neutral from Buy at Bank of America-Merrill Lynch. Each is trading down in London today.

Lan Airlines S.A. (LFL): The Latin airline is taken to Hold from Buy at Deutsche Bank.

Pep Boys (PBY): Shares are downgraded to Sell from Hold at Argus.

Roper Industries (ROP): ROP is reduced to Neutral from Outperform at Robert W. Baird, whose target is $105.

Riverview Bancorp (RVSB): The small cap stock is cut to Sell from Hold with Wunderlich.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos