Downgrades: Jefferies downgrades VCA Antech (WOOF 30.92) to Underperform from Buy and lowers their tgt to $25 from $35 saying they believe reduced consumer spending and rising unemployment levels will dampen WOOF's hospital and lab volumes in FY09. Given this expectation and barring any unforeseen near-term economic recovery, the firm expects WOOF shares to be under pressure.... SunTrust downgrades Armstrong World Industries (AWI 30.04) to Neutral from Buy, based on prospects for a a lower special dividend than discussed earlier in the year, the firm's lowered view of commercial construction spending in both U.S. and Europe for both new and renovation markets, expectations of continued losses in European flooring business in 2009, and their view that 2010 earnings will most likely be below '09 earnings. Miscellaneous: Jesup & Lamont initiates Tidewater (TDW 52.05) with a Buy and price target of $110 saying they fully expect, TDW to continue to grow through both accretive acquisitions and increased newbuild spending over the next few years... Morgan Stanley initiates Smith & Nephew (SNN 51.55) with an Equal-weight... Roth initiates Zumiez (ZUMZ 16.53) with a Hold and sets a $15 tgt, based on a challenging macro environment, tough comparisons and brand dilution... Roth initiates Clinical Data (CLDA 15.80) with a Buy and sets a $21 tgt, based on the efficacy of Viladozone that has been clinically demonstrated to be strongly correlated with the presence of a testable genetic marker and expect positive Ph. 3 results within the year... Baird initiates Cousins Properties (CUZ 23.50) with a Neutral and sets a $25 tgt, based on negative near-term fundamental outlooks for the office, retail, and residential development businesses, though positively offset by current valuation... Baird initiates Digital Realty Trust (DLR 44.40) with an Outperform and sets a $50 tgt, based on strong demand that lays the groundwork for a burgeoning industry, steady, robust FFO growth that drives a premium valuation, and a solid development pipeline which initiates growth.
Downgrades: Oppenheimer downgrades Total System Services (TSS 15.28) to Perform from Outperform, based on national and regional bank consolidation actions and fears, the associated risks to TSS's customer portfolio and the generally more difficult macro environment... Keefe, Bruyette downgrades NYMAGIC (NYM 27.37) to Underperform from Market Perform and raises their tgt to $20 from $15, based on valuation, pre-announced investment/Gustav losses and estimates of additional mark-to-market losses, weaker investment returns, and Ike losses... Baird downgrades Gentex (GNTX 15.19) to Neutral from Outperform and lowers their tgt to $16 from $18, following Q3 revenue growth guidance that was lowered to 5% year/year drop from 10% increase... Baird downgrades Littlefuse (LFUS 30.26) to Neutral from Outperform and lowers their tgt to $33 from $42, following lowered Q308 revenue and EPS guidance due to weakness in the automotive and electronic markets... Baird downgrades Fifth Third (FITB 9.11) to Neutral from Outperform and lowers their tgt to $12 from $16, as they believe the co's higher-risk loan book could result in the need for additional capital as the co deals with outsized credit costs in its construction and home builder loan portfolios... Deutsche Bank downgrades ChipMos Technologies (IMOS 1.70) to Hold from Buy.
Upgrades: Wachovia upgrades Landstar LSTR 42.30) to Outperform from Market Perform... Baird upgrades Emerson Electric (EMR 38.46) to Outperform from Neutral and maintains their $49 tgt, based on valuation and estimate EPS can remain above $3.00 through 2010, even in the event of a global recession, and see limited downside to shares at $38... Baird upgrades Baldor Electric (BEZ 26.29) to Outperform from Neutral and lowers their tgt to $33 from $35, based on valuation... Baird upgrades Airgas (ARG 44.35) to Outperform from Neutral and maintains their $68 tgt, based on valuation, growth and margin drivers that include additional price increases effective August 1, acquisition integration benefit plus additional cost savings, and structural positives including higher-margin gas and rent revenues that have never been negative y/y and 40% of revenues from higher-growth strategic product sales... Baird upgrades Wells Fargo (WFC 33.25) to Neutral from Underperform and raises their tgt to $35 from $25, as they believe WFC will likely be able to generate meaningful revenue growth, which should drive above-average revenue and earnings growth and enable the co to earn through the credit cycle... Piper Jaffray upgrades Intel (INTC 17.27) to Buy from Neutral... Friedman Billings upgrades Abercrombie & Fitch (ANF 35.74) to Outperform from Market Perform and lowers their tgt to $45 from $51, as they believe earnings are still at risk yet feel shares reflect a worse case scenario with regard to FY09 earnings, and that before, the co would see those type of estimates, management would certainly do something to right the business.