Market Digest 4-12-10

 Arch Coal upgraded at Citi
ACI upgraded to Buy from Hold as met coal prices surge, Citigroup said. 

 Alberto-Culver upgraded at BMO
ACV was upgraded to Outperform, BMO Capital Markets said. Company should be able to resolve its supply-chain issues and the stock appears to be attractively valued.

 Actuant upgraded at Baird
ATU was upgraded from Neutral to Outperform, Robert Baird said. $27 price target. Company should see organic growth, given improved refinery utilization and stable vehicle markets.

 Best Buy upgraded at FBR
BBY was upgraded from Underperform to Market Perform, FBR Capital Markets said. $39 price target. RSH deal would make strategic sense.

 Berkshire Hathaway initiated at Barclays
BRK.B coverage initiated with an Equal Weight rating and $88 price target, Barclays said. 2010 and 2011 EPS estimates set at $3.34 and $3.47, respectively. 

 Continental Airlines upgraded at Stifel
CAL was upgraded from Hold to Buy, Stifel Nicolaus said. $27 price target. Company likely to bid for UAUA.

 Caterpillar upgraded at Baird
CAT was upgraded from Neutral to Outperform, Robert Baird said. $88 price target. Dealer channel destocking is over and the company faces easy near-term comparisons.

 Church & Dwight downgraded at UBS
CHD was downgraded from Buy to Neutral, UBS said. $70 price target. Valuation call, as the stock is already pricing in mid-teens earnings growth.

 Ciena upgraded at BofA/Merrill
CIEN upgraded to Buy from Underperform as there could be a substantial upside to earnings, Bank of America/Merrill Lynch said. Price target surged to $22 from $10. 

 Rockwell Collins upgraded at Morgan Stanley
COL was upgraded from Equal-weight to Overweight, Morgan Stanley said. $80 price target. Estimates also boosted, as the current aerospace cycle favors suppliers.

 Columbia Sportswear upgraded at BofA/Merrill
COLM upgraded to Buy from Underperform on improving US outlook, Bank of America/Merrill Lynch said. Price target surged to $65 from $35. 2010 EPS estimate improved to $2.20. 

 Deckers downgraded at Piper Jaffray
DECK downgraded at Piper Jaffray. Rating lowered to Neutral from Overweight. Rating raised to $144 from $124. Maintains 2010 EPS estimates of $9.58.

 Expedia upgraded at Piper Jaffray
EXPE upgraded at Piper Jaffray. Rating raised to Overweight from Neutral. Price target raised to $30 from $24. Maintains 2010 EPS estimates of $1.58.

 Fairchild Semiconductor upgraded at Baird
FCS was upgraded from Neutral to Outperform, Robert Baird said. $17 price target. Recent checks point to lead-time and price increases.

 Gap upgraded at Piper Jaffray
GPS upgraded at Piper Jaffray. Rating raised to Overweight from Neutral. Price target raised to $30 from $22. Maintains fiscal 2011 EPS estimates of $1.79.

 Goodrich upgraded at Morgan Stanley
GR was upgraded from Equal-weight to Overweight, Morgan Stanley said. $90 price target. Estimates also boosted, given a growing installed base.

 Heinz upgraded at Deutsche
HNZ was upgraded from Hold to Buy, Deutsche Bank said. Foodservice and EU markets are slowly improving. $51 price target.

 Ingersoll-Rand upgraded at Baird
IR was upgraded from Neutral to Outperform, Robert Baird said. $54 price target. Company should benefit from an improved macroeconomic outlook.

 Joy Global upgraded at Baird
JOYG was upgraded from Neutral to Outperform, Robert Baird said. $82 price target. New order booking are growing and prospect lists have also increased.

 LDK Solar upgraded at Barclays
LDK upgraded to Equal Weight from Underweight on positive near term wafer fundamentals, Barclays said. Price target increased to $7. 2010 and 2011 EPS estimates raised to 43 cents and 55 cents, respectively. 

 Louisiana-Pacific downgraded at UBS
LPX was downgraded from Neutral to Sell, UBS said. $10 price target. Recent wood price strength is likely not sustainable.

 Mirant upgraded at Deutsche
MIR was upgraded from Sell to Hold, Deutsche Bank said. $11 price target. RRI merger leaves the company fairly valued.

 Patriot Coal upgraded at Citi
PCX upgraded to Hold from Sell. Iron ore doubling, Citigroup said. 

 Parker Hannifin upgraded at Baird
PH was upgraded from Neutral to Outperform, Robert Baird said. $91 price target. Industrial production growth has increased and commercial vehicle markets have stabilized.

 Powerwave Technologies downgraded at Barclays
PWAV downgraded to Equal Weight from Overweight on valuation, Barclays said. Price target raised to $2 from $1.60. 2010 and 2011 EPS estimates lifted to 7 cents and 13 cents, respectively. 

 Sanderson Farms upgraded at BMO
SAFM was upgraded from Market Perform to Outperform, BMO Capital Markets said. $70 price target. Company is spending on its Goldsboro plant, which will increase production by 30%.

 Sara Lee upgraded at Deutsche
SLE was upgraded from Hold to Buy, Deutsche Bank said. Company should benefit from better foodservice and EU sales. $16 price target.

 St. Jude upgraded at Goldman
STJ was upgraded to Neutral, Goldman Sachs said. Company should be able to take more market share from BSX. $45 price target.

 St. Jude upgraded at Jefferies
STJ was upgraded from Hold to Buy, Jefferies said. $49 price target. Competitive recall has improved the risk/reward.

 Texas Instruments upgraded at Credit Suisse
TXN upgraded to Outperform from Neutral as concern over contract leadtimes is overblown, Credit Suisse said. Price target improved to $32 from $24. 2010 and 2011 EPS estimates lifted to$2.41 and $2.56, respectively. 

 Under Armour upgraded at Piper Jaffray
UA upgraded at Piper Jaffray. Rating raised to Overweight from Neutral. Price target raised to $41 from $26. 2010 EPS estimates raised to $1.15 from $1.05.

 Weyerhaeuser downgraded at UBS
WY was downgraded from Buy to Neutral, UBS said. Valuation call.

 Arvin Meritor added to Conviction Buy List at Goldman

ARM was added to the Conviction Buy list, Goldman Sachs. EBITDA can grow through 20121, given higher truck demand in the U.S. and China.

 Boeing estimates, target upped at Morgan Stanley
Shares of BA now seen reaching $50, Morgan Stanley said. Estimates also increased, because of announced aircraft rate hikes. Underweight rating.

 Bristol-Myers numbers raised at Goldman
BMY estimates were upped through 2013, Goldman Sachs said. Sprycel sales could help drive growth. Neutral rating and new $27 price target.

 Boston Scientific estimates lowered at Goldman
BSX estimates were reduced through 2013, Goldman Sachs said. Company is expected to lose further market share. Sell rating and $6 price target.

 Caterpillar price target higher at BofA/Merrill
CAT price target jumped to $75 from $70 as a recent dealer survey suggests higher revenue, Bank of America/Merrill Lynch said. Estimates raised through 2012. Maintain Buy rating. 

 Chico's FAS estimates increased at FBR
CHS estimates were boosted through 2011, FBR Capital Markets said. Checks show that spring sales are strong. Outperform rating and $18 price target.

 Cummins estimates, target boosted at Goldman
Shares of CMI now seen reaching $75, according to Goldman Sachs. Estimates also raised, as the company should benefit from higher truck production. Buy rating.

 Walt Disney target boosted at Morgan Stanley
DIS target was increased to $42, Morgan Stanley said. Company can deliver 20% annual earnings growth, aided by ESPN pricing power. Overweight rating.

 Intel estimates boosted at Oppenheimer
INTC estimates were increased through 2011, Oppenheimer said. PC channel checks show healthy demand. Outperform rating.

 Kellogg price target raised at Barclays
K price target increased to $57 from $55 on solid earnings expectations, Barclays said. 2010 EPS estimate maintained at $3.57. Reiterate Overweight rating. 

 King Pharmaceuticals numbers cut at UBS
KG estimates were lowered through 2011, UBS said. Generic skelaxin will cut into near-term results. Buy rating and $13.50 price target.

 Medtronic estimates, target upped at Goldman
Shares of MDT now seen reaching $49, according to Goldman Sachs. Estimates also boosted, as the company can gain further market share from BSX. Market Perform rating.

 Constellation Brands estimates cut at UBS
STZ estimates were lowered through 2012, UBS said. Company lowered guidance, because of weaker sales. Buy rating and $18 price target.

 Constellation Brands numbers boosted at Goldman
STZ estimates were increased through 2012, Goldman Sachs said. Company is seeing a lower tax rate and will likely buyback stock. Neutral rating and new $17 price target.

 Tyson Foods estimates raised at Morgan Stanley
TSN estimaes were boosted through 2011, according to Morgan Stanley. Protein profitability continues to improve. Equal-weight rating.

 Time Warner price target boosted at Credit Suisse
TWX price target increased to $37 from $35 as ratings and ad trends are improving, Credit Suisse said. 2010 and 2011 EPS estimates set at $2.16 and $2.56, respectively. Maintain Outperform rating. 

 United Parcel numbers boosted at Goldman
Shares of UPS now seen reaching $77, Goldman Sachs said. Estimates were also raised, because of higher volume expectations. Buy rating.

 VF Corp. estimates, target boosted at UBS
Shares of VFC now seen reaching $92, according to UBS. Estimates also increased, as positive sales trends could drive above-consensus results. Buy rating.