MDC (MDC) (LPX) (MNST) (CRNT) (CTRP) (DANOY) Downgraded

MDC Holdings (NYSE: MDC), Louisiana-Pacific (NYSE: LPX), Monster Beverage (NASDAQ: MNST), Ceragon Networks (NASDAQ: CRNT), Ctrip.com International (NASDAQ: CTRP) and Groupe Danone (NASDAQ: DANOY) were downgraded by analysts.

Louisiana-Pacific (LPX) was downgraded by Zacks Investment Research from a “Neutral” rating to an “Underperform” rating.

MDC Holdings (MDC) was downgraded by Zacks Investment Research from a “Neutral” rating to an “Underperform” rating.

Monster Beverage (MNST) was downgraded by Zacks Investment Research from an “Outperform” rating to a “Neutral” rating.

Ceragon Networks (CRNT) was downgraded by Zacks Investment Research from a “Neutral” rating to an “Underperform” rating.

Ctrip.com International (CTRP) was downgraded by Zacks Investment Research from a “Neutral” rating to an “Underperform” rating.

Groupe Danone (DANOY) was downgraded by BNP Paribas from a “Neutral” rating to an “Underperform” rating.

Suntech (STP) (LXK) (MDC) (MRVL) (TECD) Price Target Changed

Suntech Power (NYSE: STP), Lexmark International, Inc. (NYSE: LXK), MDC Holdings (NYSE: MDC), Marvell Technology Group (NASDAQ: MRVL) and Tech Data Corporation (NASDAQ: TECD) price target adjusted by analysts.

Lexmark International, Inc. (LXK) had its price target lowered by Barclays Capital from $36.00 to $31.00. They have an “Equal Weight” rating on the company.

MDC Holdings (MDC) had its price target lowered by Deutsche Bank (NYSE:DB) from $38.00 to $34.00. They have a “Buy” rating on the company.

Marvell Technology Group (MRVL) had its price target lowered by Deutsche Bank (NYSE:DB) from $22.00 to $18.00. They have a “Buy” rating on the company.

Suntech Power (STP) had its price target lowered by Collins Stewart from $7.50 to $5.50. They have a “Neutral” rating on the company.

Tech Data Corporation (TECD) had its price target lowered by Barclays Capital from $51.00 to $46.00. They have an “Equal Weight” rating on the company.

Nordstrom (JWN) (MAR) (MCD) (MDC) (NSC) Upgraded

Nordstrom, Inc. (NYSE: JWN), Marriott (NYSE: MAR), McDonald’s (NYSE: MCD), MDC Holdings (NYSE: MDC) and Norfolk Southern Corp. (NYSE: NSC) upgraded by analysts.

Nordstrom, Inc. (JWN) was upgraded by McAdams Wright Ragen from a “Hold” rating to a “Buy” rating. They have a price target of $50.00 on the company.

Marriott (MAR) was upgraded by Susquehanna from a “Neutral” rating to a “Positive” rating.

McDonald’s (MCD) was upgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Buy” rating. They have a price target of $96.00 on the company.

MDC Holdings (MDC) was upgraded by Raymond James (NYSE:RJF) from a “Market Perform” rating to an “Outperform” rating.

Norfolk Southern Corp. (NSC) was upgraded by Goldman Sachs from a “Sell” rating to a “Neutral” rating.

Kroger (KR) (HUBG) (JBHT) (KOG) (MDC) Upgraded

Kroger (NYSE: KR), Hub Group, Inc. (NASDAQ: HUBG), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Kodiak Oil & Gas Corp. (NYSE: KOG) and MDC Holdings (NYSE: MDC) upgraded by analysts.

Kroger (KR) was upgraded by Longbow Research from a “Neutral” rating to a “Buy” rating. They have a price target of $30.00 on the company.

Hub Group, Inc. (HUBG) was upgraded by Stifel Nicolaus from a “Hold” rating to a “Buy” rating. They have a price target of $40.00 on the company.

J.B. Hunt Transport Services, Inc. (JBHT) was upgraded by Stifel Nicolaus from a “Hold” rating to a “Buy” rating. They have a price target of $52.00 on the company.

Kodiak Oil & Gas Corp. (KOG) was upgraded by Raymond James (NYSE:RJF) from a “Market Perform” rating to an “Outperform” rating. They have a price target of $7.00 on the company.

MDC Holdings (MDC) was upgraded by Wells Fargo & Co. (NYSE:WFC) from an “Underperform” rating to a “Market Perform” rating.

Price Targets on (JCP) (MCD) (MDC) (N) (NRGY) Updated

Analysts updated price targets on J.C. Penney Company, Inc. (NYSE: JCP), McDonald’s (NYSE: MCD), MDC Holdings (NYSE: MDC), NetSuite Inc. (NYSE: N) and Inergy (NASDAQ: NRGY).

Citigroup (NYSE:C) raised their price target on J.C. Penney Company, Inc. (JCP) from $49.00 to $51.00. They have a “buy” rating on the company.

BMO Capital Markets raised their price target on McDonald’s (NYSE: MCD) to $84.00. They have a “market perform” rating on the company.

Goldman Sachs (NYSE:GS) cut their price target on MDC Holdings (MDC) to $27.00. They have a “neutral” rating on the company.

Feltl & Co. raised their price target on NetSuite Inc. (N) from $35.00 to $40.00. They have a “buy” rating on the company.

RBC Capital cut their price target on Inergy (NASDAQ: NRGY) from $44.00 to $41.00. They have a “sector perform” rating on the company.

Builders (PHM) (DHI) (TOL) (MDC) (RYL) Continue to Struggle

Pulte Group Inc (NYSE:PHM), D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC) and The Ryland Group Inc (NYSE:RYL) were under pressure Tuesday as new building permits in the U.S. missed estimates by about 40,000, coming in at $550,000.

Housing starts were also a disaster, reaching 520,000, 60,000 below the projected 580,000.

A healthy home construction market is considered to be about 1.2 million homes per year. So far the rate for 2011 is an anemic 523,000 homes per year pace.

In April, new home construction dropped 10.6 percent from March, down 10.6 percent.

PulteGroup closed at $7.61 Tuesday, level with Monday's close. D.R. Horton closed at $11.46, dropping $0.21, or 1.80 percent.

Pulte (PHM) (DHI) (TOL) (MDC) (RYL) Pessimistic on Housing Market

According to the National Association of Home Builders, U.S. home builders like D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC), The Ryland Group Inc (NYSE:RYL) and Pulte Group Inc (NYSE:PHM) continue to have a negative outlook on the sector, giving it a 16 grade, with anything below 50 being considered negative.

Added to the usual factors of foreclosed homes, tighter lending standards and higher unemployment, was the return of higher gas prices, which all are weighing on the housing market.

The biggest factor appears to be those who own being concerned over their inability to sell their them at a good price, pressuring them to keep their homes rather than have to possibly pay out to make up the difference in the selling price and what they own on their homes, which in many cases have fallen in price below what they can get for them.

Homes of a strong spring season are fading away, as it hasn't worked out as builders have hoped, and there's little to indicate this will change any time soon.

Builders were trading mixed early in the session, with most of those listed above trading slightly in positive territory.

Price Targets on (RDA) (MDC) (NUAN) (PRIM) (PTRY) Updated

Price targets on shares of Rda Microelectronics Inc (NYSE: RDA), MDC Holdings (NYSE: MDC), Nuance Communications Inc. (NASDAQ: NUAN), Primoris Services Corp (NASDAQ: PRIM) and Pantry (NASDAQ: PTRY) were updated by analysts.

Credit Suisse (NYSE:CS) raised their price target on Rda Microelectronics Inc (RDA) from $17.00 to $18.00. They have an “outperform” rating on the company.

Bank of America (NYSE:BAC) cut their price target on MDC Holdings (MDC) from $31.00 to $28.00.

Wedbush raised their price target on Nuance Communications Inc. (NUAN) from $17.00 to $17.50. They have an “underperform” rating on the company.

Wedbush raised their price target on Primoris Services Corp (PRIM) from $10.00 to $11.00. They have a “neutral” rating on the company.

Benchmark Co. raised their price target on Pantry (PTRY) from $20.00 to $24.50. They have a “buy” rating on the company.

Price Targets on (NUAN) (LRN) (LSTZA) (MDC) (NLSN) Updated

Price targets on shares of Nuance Communications Inc. (NASDAQ: NUAN), K12 Inc. (NYSE: LRN), Liberty Media Corp (NASDAQ: LSTZA), MDC Holdings (NYSE: MDC) and Nielsen Hldg (NASDAQ: NLSN) were updated by analysts.

Deutsche Bank (NYSE:DB) raised their price target on Nuance Communications Inc. (NUAN) from $24.00 to $26.00. They have a “buy” rating on the company.

Bank of America (NYSE:BAC) raised their price target on K12 Inc. (LRN) from $38.00 to $40.00. They have a “buy” rating on the company.

Deutsche Bank raised their price target on Liberty Media Corp (LSTZA) to $71.00. They have a “hold” rating on the company.

JPMorgan Chase & Co. (NYSE:JPM) cut their price target on MDC Holdings (MDC) from $29.00 to $28.50. They have an “underweight” rating on the company.

Morgan Stanley (NYSE:MS) raised their price target on Nielsen Hldg (NLSN) from $32.00 to $35.00. They have an “overweight” rating on the company.

Home Sales Push Pulte (PHM) (DHI) (TOL) (MDC) (RYL) Up

Shares of D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC), The Ryland Group Inc (NYSE:RYL) and Pulte Group Inc (NYSE:PHM) were all up today after reports new home sales rose 11.1 percent from February to March.

Investors shouldn't get too excited though, as sales are still far behind 2010's numbers, coming in at a seasonally adjusted 300,000. Year-over-year, sales are still down 21.9 percent.

Jon Ryding and Conrad DeQuadros of RDQ Economics said, “With the distortions of the homebuyers’ tax credit now well behind us, it appears (looking through the monthly volatility) that new home sales have settled in around 300,000 at an annual rate (the six-month average of sales has been between 291,000 and 313,000 since September 2010). The rebound in March to that 300,000 level suggests a weather-related bounce back from snowstorm-affected levels in February. For 2011 as a whole, we expect that sales (and housing starts) will continue to bounce around recent levels and, given the low share of housing construction in GDP, will have little impact on the overall growth story.”

PulteGroup was trading at $7.84, rising $0.06, or 0.84 percent, as of 1:20 PM EDT. Ryland Group was at $17.58, gaining $0.36, or 2.06 percent. M.D.C. Holdings, Inc. was trading at $28.28, up $0.54, or 1.95 percent. Toll Brothers was at $20.30, up $0.02, or 0.10 percent. D.R. Horton was at $12.16, jumping $0.18, or 1.46 percent.

Home Builders Toll (TOL) (DHI) (MDC) (RYL) (PHM) Close Up Even with Dismal Outlook

Oddly, investors chose to ignore warnings of a dismal year from home builders and pushed up shares of D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC), The Ryland Group Inc (NYSE:RYL) and Pulte Group Inc (NYSE:PHM) on Monday.

According to The National Association of Home Builders, sentiment for April dropped back to 16 after going up to 17 in March. A reading below 50 indicates a negative sentiment, to show how weak the outlook for 2011 is. It has been five years since the index has been above the 50 mark.

Various negative catalysts including high unemployment, tighter lending standards and bigger requirements for down-payments are keeping many people from buying homes. Also a record number of foreclosures are pushing down home prices, leaving potential buyers concerned that the market has yet to reach bottom.


The index gauging existing conditions dropped one point, to 16, while the recorded foot traffic of prospective buyers increased by a point, to 13. The estimate of single-family home sales over the next six months fell three points, to 23, declining to its lowest level since October.

Some of this is affected by regions and extent of weakness, but overall there's little to be excited about with the home builders.

PulteGroup closed at $7.84 on Monday, gaining $0.02, or 0.26 percent. The Ryland Group ended the session at $16.91, up $0.39, or 2.36 percent. M.D.C. Holdings Inc. closed at $27.26, rising $0.38, or 1.41 percent. Toll Brothers climbed to $20.58, closing at $0.46, increasing 2.29 percent. D.R. Horton ended the day at $11.67, up $0.14, or 1.21 percent.

JPMorgan (JPM) Recommends Newmont (NEM), (FCX), (MUSA), (STLD), Others

JPMorgan (NYSE:JPM), says Newmont Mining Corp. (NYSE:NEM), Metals USA Holdings Corp. (NYSE:MUSA), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Steel Dynamics Inc. (NASDAQ:STLD) are solid picks if an investor believes oil prices will remain high.

Also noted were Thompson Creek Metals Co. (NYSE:TC), DHT Holdings Inc. (NYSE:DHT), Amgen Inc. (NASDAQ:AMGN), Jabil Circuit Inc. (NYSE:JBL) and Gilead Sciences Inc. (NASDAQ:GILD) as having a lot of potential in a high oil price environment.

Thomas Lee, chief U.S. equity strategist at JPMorgan said there’s “downside risk” to the 2011 S&P 500 earnings-per-share estimate of $97.50, though not to the 1,425 year-end forecast.

Lee said every $20-a-barrel rise in the price of oil has an impact of $2.22 in earnings per share for the Standard & Poor’s 500 Index.

Stocks JPMorgan sees as those to avoid in this economic environment are Affymetrix Inc. (NASDAQ:AFFX), Standard Pacific Corp. (NYSE:SPF), MDC Holdings Inc. (NYSE:MDC) and Beazer Homes USA Inc. (NYSE:BZH).

KB Home (NYSE:KBH), Ryland Group (NYSE:RYL) and MDC Holdings (NYSE:MDC), Weyerhaeuser (NYSE:WY), PHLX (Nasdaq:HGX) Down as Homebuilding Remains Under Heavy Pressure

The market did little to inspire today, and the homebuilding sector continues to be punished, with KB Home (NYSE:KBH), Ryland Group (NYSE:RYL) and MDC Holdings (NYSE:MDC) and Weyerhaeuser (NYSE:WY) all down, and the PHLX housing index (Nasdaq:HGX) falling.

Rising oil prices and tumbling bank shares dragged Wall Street lower on Friday, with stocks surrendering the previous session's hefty gains.

Brent crude prices hovered near $116 a barrel as Libyan security forces began a violent crackdown on protesters in Tripoli and clashed with rebels near a major oil terminal.

Data earlier in the week had raised expectations about Friday's employment report, lifting stocks to their biggest gains in three months on Thursday. But after Friday's report showed February job gains roughly in line with expectations, investors quickly turned their focus to rising oil prices and Libyan unrest.

"The (market) battle is: has the economy turned in a permanent way, or are higher oil prices going to slow everything down," said Bernie McGinn, president at McGinn Investment Management in Alexandria, Virginia.

The Dow Jones industrial average (DJI:DJI) lost 147.66 points, or 1.20 percent, to 12,110.54. The Standard & Poor's 500 Index (SPX) fell 15.40 points, or 1.16 percent, to 1,315.57. The Nasdaq Composite Index (Nasdaq:IXIC) dropped 24.70 points, or 0.88 percent, to 2,774.04.




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