AK Steel (AKS) (APKT) (SAVE) (SPLS) (PRGS) (REGN) Ratings, Price Targets

AK Steel (NYSE:AKS), Acme Packet (NASDAQ:APKT), Spirit Airlines (NASDAQ:SAVE), Staples (NASDAQ:SPLS), Progress Software (NASDAQ:PRGS) and Regeneron Pharmaceuticals (NASDAQ:REGN) ratings and price targets.

AK Steel (AKS) was downgraded by Morgan Stanley (NYSE:MS) from an "Overweight" rating to an "Eqaul Weight" rating.

Morgan Stanley initiated coverage on Acme Packet (APKT). They have an "Equal Weight" rating on the company.

Deutsche Bank (NYSE:DB) initiated coverage on Spirit Airlines (SAVE). They have a "Buy" rating on the company.

Staples (SPLS) was downgraded by Goldman Sachs (NYSE:GS) from a "Neutral" rating to a "Sell" rating.

Progress Software (PRGS) was upgraded by JMP Securities from a "Market Perform" rating to an "Outperform" rating.

Regeneron Pharmaceuticals (REGN) was upgraded by Bank of America (NYSE:BAC) from a "Neutral" rating to a "Buy" rating.

Staples (SPLS) (FOSL) (SPB) (FORR) (SYNT) (DPS) Get New Coverage

Staples, Inc. (NASDAQ: SPLS), Fossil (NASDAQ: FOSL), Spectrum Brands Inc. (NYSE: SPB), Forrester Research, Inc. (NASDAQ: FORR), Syntel, Inc. (NASDAQ: SYNT) and Dr. Pepper Snapple Group Inc. (NYSE: DPS) getting new coverage from analysts.

Morgan Stanley (NYSE:MS) initiated coverage on Staples, Inc. (SPLS). They placed an “Overweight” rating on the company.

Bank of America (NYSE:BAC) initiated coverage on Fossil (FOSL). They placed a “Buy” rating on the company.

Credit Suisse initiated coverage on Spectrum Brands Inc. (SPB). They placed an “outperform” rating and a price target of $35.00 on the company.

Northland Securities initiated coverage on Forrester Research, Inc. (FORR). They placed a “Market Perform” rating on the company.

Kaufman Brothers initiated coverage on Syntel, Inc. (SYNT). They placed a “Hold” rating and a price target of $52.00 on the company.

Deutsche Bank (NYSE:DB) initiated coverage on Dr. Pepper Snapple Group Inc. (DPS). They placed a “Hold” rating on the company.

Staples (SPLS) (PG) (JDSU) (IBM) (ANF) EPS Estimates Changed

Procter & Gamble (NYSE: PG), Staples, Inc. (NASDAQ: SPLS), JDS Uniphase Co. (NASDAQ: JDSU), IBM (NYSE: IBM) and Abercrombie & Fitch (NYSE: ANF) have EPS estimates adjusted by analysts.

Jefferies (NYSE:JEF) lowered its EPS estimates on Procter & Gamble (PG). They have a “Hold” rating and a price target of $69.00 on the company.

Jefferies boosted its EPS estimates on Staples, Inc. (SPLS). They have a “Hold” rating and a price target of $14.00 on the company.

Citigroup (NYSE:C) cut its EPS estimates on JDS Uniphase Co. (JDSU). They have a “Buy” rating and a price target of $14.50 on the company.

Credit Suisse (NYSE:CS) slashed its EPS estimates on IBM (IBM). They have a “Neutral” rating and a price target of $175.00 on the company.

Goldman Sachs (NYSE:GS) raised its EPS estimates on Abercrombie & Fitch (ANF). They have a “Buy” rating and a price target of $90.00 on the company.

Ratings on (NLCI) (OMX) (SMT) (SPLS) (STP) Downgraded

Ratings on shares of Nobel Learning Communities (NASDAQ: NLCI), Officemax Inc (NYSE: OMX), SMART Technologies Inc (NYSE: SMT), Staples, Inc. (NASDAQ: SPLS) and Suntech Power (NYSE: STP) were downgraded by analysts.

Signal Hill downgraded Nobel Learning Communities (NLCI) to a “hold” rating.

Oppenheimer downgraded Officemax Inc (OMX) from an “outperform” rating to a “perform” rating. They have a price target of $9.50 on the company, down from $14.00.

Cowen downgraded SMART Technologies Inc (SMT) from an “outperform” rating to a “neutral” rating.

Piper Jaffray (NYSE:PJC) downgraded SMART Technologies Inc (SMT) from an “overweight” rating to a “neutral” rating.

Oppenheimer downgraded Staples, Inc. (SPLS) from an “outperform” rating to a “perform” rating. They have a price target of $19.00 on the company, down from $26.00.

Collins Stewart downgraded Suntech Power (STP) from a “buy” rating to a “neutral” rating. They have a price target of $8.00 on the company, down from $10.00.

Price Targets on (SMT) (SODA) (SPLS) (PETM) (ZEUS) Updated

Price targets on shares of SMART Technologies Inc (NYSE: SMT), Sodastream International (NASDAQ: SODA), Staples, Inc. (NASDAQ: SPLS), Petsmart Inc (NASDAQ: PETM) and Olympic Steel, Inc. (NASDAQ: ZEUS) were updated by analysts.

Deutsche Bank (NYSE:DB) cut their price target on SMART Technologies Inc (SMT) to $12.00.

JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Sodastream International (SODA) to $50.00.

Goldman Sachs (NYSE:GS) cut their price target on Staples, Inc. (SPLS) to $19.00. They have a “neutral” rating on the company.

Oppenheimer raised their price target on Petsmart Inc (PETM) from $41.00 to $42.00. They have a “perform” rating on the company.

Jefferies (NYSE:JEF) raised their price target on Olympic Steel, Inc. (ZEUS) to $32.00.

Price Targets on (SYK) (PETM) (SMT) (SODA) (SPLS) Updated

Price targets on shares of Stryker (NYSE: SYK), Petsmart Inc (NASDAQ: PETM), SMART Technologies Inc (NYSE: SMT), Sodastream International (NASDAQ: SODA) and Staples, Inc. (NASDAQ: SPLS) were updated by analysts.

Citigroup (NYSE:C) raised their price target on Stryker (SYK) from $64.00 to $68.00. They have a “hold” rating on the company.

JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Petsmart Inc (PETM) to $45.00.

RBC Capital cut their price target on SMART Technologies Inc (SMT) from $12.00 to $10.00. They have a “sector perform” rating on the company.

Oppenheimer raised their price target on Sodastream International (SODA) from $50.00 to $60.00. They have an “outperform” rating on the company.

Citigroup cut their price target on Staples, Inc. (SPLS) to $20.00.

Ratings on (NYX) (PRM) (HPQ) (REG) (SPLS) Downgraded

Ratings on shares of NYSE Euronext (NYSE: NYX), Primedia Inc (NYSE: PRM), Hewlett-Packard (NYSE: HPQ), Regency Centers (NYSE: REG) and Staples, Inc. (NASDAQ: SPLS) were downgraded by analysts.

Credit Agricole downgraded NYSE Euronext (NYX) to an “underperform” rating.

Gabelli downgraded Primedia Inc (PRM) to a “sell” rating.

Susquehanna downgraded Hewlett-Packard (HPQ) from a “positive” rating to a “neutral” rating.

Argus downgraded Regency Centers (REG) from a “buy” rating to a “hold” rating.

Citigroup (NYSE:C) downgraded Staples, Inc. (SPLS) from a “buy” rating to a “hold” rating.

Ratings on (TJX) (SPLS) (TSL) (URBN) (VSAT) Reiterated

Ratings on TJX Companies Inc (NYSE: TJX), Staples, Inc. (NASDAQ: SPLS), Trina Solar (NYSE: TSL), Urban Outfitters, Inc. (NASDAQ: URBN) and ViaSat (NASDAQ: VSAT) reiterated by analysts.

Morgan Stanley (NYSE:MS) reiterated an “equal weight” rating on TJX Companies Inc (TJX).

JPMorgan Chase & Co. (NYSE:JPM) reiterated an “overweight” rating on Staples, Inc. (SPLS).

BMC Equities Research reiterated a “buy” rating on Trina Solar (TSL). They have a price target of $32.00 on the company.

Wall Street Strategies reiterated a “sell” rating on Urban Outfitters, Inc. (URBN). They have a price target of $26.00 on the company.

Wunderlich reiterated a “hold” rating on ViaSat (VSAT). They have a price target of $43.00 on the company.

Ratings on (SCG) (SPLS) (SWKS) (TJX) (TRIT) Reiterated

Ratings on Scana Corporation (NYSE: SCG), Staples, Inc. (NASDAQ: SPLS), Skyworks Solutions, Inc. (NASDAQ: SWKS), TJX Companies Inc (NYSE: TJX) and Tri-Tech Holding, Inc. (NASDAQ: TRIT) reiterated by analysts.

Wunderlich reiterated a “buy” rating on Scana Corporation (SCG). They now have a price target of $44.00 on the company.

Deutsche Bank (NYSE:DB) reiterated a “buy” rating on Staples, Inc. (SPLS).

Oppenheimer reiterated an “outperform” rating on Skyworks Solutions, Inc. (SWKS).

Morgan Stanley (NYSE:MS) reiterated an “equal weight” rating on TJX Companies Inc (TJX).

Brean Murray reiterated a “buy” rating on Tri-Tech Holding, Inc. (TRIT).

Ratings on (SPLS) (SPWRA) (TNK) (TXN) Reiterated

Ratings on shares of Staples, Inc. (NASDAQ: SPLS), SunPower Co. (NASDAQ: SPWRA), Teekay Tankers Ltd. (NYSE: TNK) and Texas Instruments (NYSE: TXN) were reiterated by analysts.

Piper Jaffray reiterated a “neutral” rating on Staples, Inc. (SPLS). They have a price target of $23.00 on the company.

Wunderlich reiterated a “sell” rating on SunPower Co. (SPWRA). They have a price target of $16.00 on the company.

Dahlman Rose reiterated a “buy” rating on Teekay Tankers Ltd. (TNK). They now have a price target of $12.00 on the company.

Deutsche Bank (NYSE:DB) reiterated a “hold” rating on Texas Instruments (TXN). They have a price target of $35.00 on the company.

Ratings on (RADS) (SPLS) (SVNT) (TE) (TEF) (ZOLT) Downgraded

Analysts downgraded their ratings on Radiant Systems Inc (NASDAQ: RADS), Staples, Inc. (NASDAQ: SPLS), Savient Pharmaceuticals, Inc. (NASDAQ: SVNT), TECO Energy, Inc. (NYSE: TE), Telefonica SA (NYSE: TEF) and Zoltek Companies, Inc. (NASDAQ: ZOLT) today.

Sidoti downgraded Radiant Systems Inc (RADS) from a “buy” rating to a “neutral” rating.

Nomura downgraded Staples, Inc. (SPLS) from a “neutral” rating to a “reduce” rating.

Lazard Capital downgraded Savient Pharmaceuticals, Inc. (SVNT) from a “buy” rating to a “neutral” rating.

Bank of America (NYSE:BAC) downgraded shares of TECO Energy, Inc. (TE) from a “neutral” rating to an “underperform” rating.

Deutsche Bank (NYSE:DB) downgraded Telefonica SA (TEF) from a “buy” rating to a “hold” rating.

Craig Hallum downgraded Zoltek Companies, Inc. (ZOLT) from an “accumulate” rating to a “neutral” rating.

Staples To Sell (RIMM) (MMI) (DELL) Tablets

As a wave of competitors to Apple's (NASDAQ:AAPL) iPad 2 hit the market, Staples (NASDAQ:SPLS) announced they're going to offer a wide range of new tablets, including those from Research in Motion (NASDAQ:RIMM), Dell (NASDAQ:DELL), Samsung, Acer, Toshiba and Motorola Mobility (NYSE:MMI).

The office supply and electronic retailer said they're now taking pre-orders for a variety of tablets now available.

Staples said they have a goal of becoming a major player in the tablet market as the sector grows.

Major retailing competitors of the company like Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Office Depot (NYSE:ODP) and Radio Shack (NYSE:RSH) have already either committed to or are offering tablets too.

Target (TGT), Staples (SPLS) Call Options Rise

Target Corp. (NYSE:TGT) and Staples Inc. (NASDAQ:SPLS) have been the recipients of a growing amount of bullish call options, as traders are betting the retailers will come out of their duldrums by the fall season.

Steve Claussen, chief investment strategist at OptionsHouse LLC., said, "The trade is definitely super bullish. He hits a home run if the calls are at the money in October."

Longer-term options bulls also staked out Framingham, Mass.-based office-supply company Staples for a similar rebound. Volume in Staples options reached the highest level in two years as traders sought out bullish calls and sold bearish puts that convey the right to sell stock.

Both companies' shares have sagged of late. Staples, which missed fiscal fourth-quarter estimates Monday, is down more than 10% in 2011; Target shares have lost 14% this year.

Staples closed Friday at $20.43, down $0.62, or 2.95 percent. Target closed at $51.65, down $0.43, or 0.83 percent.




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Lowe’s (NYSE:LOW), Staples (Nasdaq:SPLS), OfficeMax (NYSE:OMX), Office Depot (NYSE:ODP), Should See Little Impact from Australian Floods

Commenting on their hardline retail universe with exposure to Australia, FBR Capital said they don't see much impact on Lowe’s (NYSE:LOW), Staples (Nasdaq:SPLS), OfficeMax (NYSE:OMX) or Office Depot (NYSE:ODP) at this time.

FBR noted, "We have received questions and there have been reports of a potential negative impact to the Australian GDP from floods in Queensland Australia. Within our hardline retail universe, four companies have what looks to be relatively insignificant exposure in Australia. Staples (Underperform) & OfficeMax (Market Perform) have the most exposure with 4% of total company sales in Australia. Office Depot’s (Outperform) exposure is extremely limited, via license/alliance. Lowe’s (Market Perform) is in the infancy stages of a joint venture in Australia which was created 8/24/09 with the first stores to open in FY2011, and therefore has no exposure. The flooding is centered around eastern Queensland, so not all of Australia is exposed. There have been some product delays in these areas, but they haven’t prolonged, based on our discussions with the companies. Australia is a higher margin market for Staples & OfficeMax. For Staples, as an example, Australia garners nearly double the company's international EBIT margins at 6% vs. total international EBIT margins of 3.2%. All in, the companies may have to speak to this during their quarterly earnings calls, related to their international divisions, however the impact is considered insignificant and isolated at this stage. We have no changes to estimates."

Lowe's closed Wednesday at $24.44, up $0.05, or 0.21 percent. Staples closed at $23.49, gaining $0.61, or 2.67 percent. OfficeMax ended the trading session at $17.91, up $0.70, or 4.07 percent. Office Depot closed trading at $5.87, the same as the session the day before.

PetSmart (Nasdaq:PETM), Lowe's (NYSE:LOW), Staples (Nasdaq:SPLS), Home Depot (NYSE:HD), Dick's (NYSE:DKS) Top Hardline Retail Picks of Barclays

The momentum for hardline retail stocks like the top picks of Barclays: PetSmart (Nasdaq:PETM), Lowe's (NYSE:LOW), Staples (Nasdaq:SPLS), Home Depot (NYSE:HD) and Dick's (NYSE:DKS) are expected to continue into 2011.

Barclays said, "Following two years of strong performance for many of the hardline retail stocks (including an average 28% increase in 2010 and a 56% increase in 2009), we think that the momentum will persist in 2011. Most of the subsectors in the universe should benefit from a combination of stable consumption growth, operating expense leverage, and share repurchases. These factors should deliver mid-teens EPS growth for the average hardline retailer. Thus, the combination of healthy earnings expansion and reasonable valuations make this group look attractive."

"Our top picks for the coming year are PetSmart, Staples, Home Depot, Lowe's and Dick's: We believe that these names are best positioned to benefit from company-specific drivers, along with significant leverage to an economic recovery. Conversely, we believe LifeTime Fitness (NYSE:LTM) and Advanced Auto (NYSE:AAP) offer the least attractive risk-reward at the current levels."

Outlook for Home Depot (NYSE:HD), Lowe's (NYSE:LOW)

FBR says their outlook for home improvement in 2011 is "constructive," but volatile housing metrics keep their from recommending Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) outright.

FBR said, "We are constructive on home improvement, with the group building off of trough trends set in 2009. Choppy housing metrics, such as Case-Shiller, mean that investors can stay selective; and this keeps us from recommending outright both stocks. We expect HD to continue to exhibit better business and share price momentum. Initiatives, such as "First Phone" (mobile handhelds), bode well for the continuation of better relative same-store sales trends for HD, in our view. The chain with higher comp momentum in the past has been afforded a premium P/E valuation. HD's current 2% premium NTM P/E, versus LOW's, looks too low, given its premium same-store sales trends, higher inventory turnover, and other superior operating metrics, such as sales and EBIT per square foot. In the short run, we anticipate that last week's winter storm activity in the Northeast will have a neutral impact on group sales trends—worst case, while a modest net benefit is possible, given storm preparation sales. We reiterate our Outperform rating on Home Depot and our Market Perform rating on Lowe's.

"EPS estimates. For 2010, for HD, we estimate EPS of $1.98, versus the Street estimate of $1.98 and guidance of $1.97 GAAP ($1.99 ex. charges). For 2011, we estimate EPS of $2.22; and this approximates the Street consensus of $2.24. This also compares with HD's guidance (including share repurchases) of 11% to 13% EPS growth over $1.97 GAAP for 2010 (implicit $2.13 to $2.23 for 2011E). For 2012, our EPS estimate for HD is $2.47 (up 11% YOY). For LOW, for 2010, we estimate EPS of $1.41, versus the Street at $1.41. We estimate EPS of $1.63 for 2011 (including an extra week's benefit in 2011), versus the Street consensus estimate of $1.64. LOW has not yet provided tangible EPS guidance for 2011E. For 2012, we estimate EPS for LOW of $1.77, which reflects an 11% YOY EPS growth rate, adjusted for the extra week."

They also gave their ratings for hardline retail:

"Outperform-rated stocks: Home Depot, Office Depot (NYSE:ODP), United Stationers (Nasdaq:USTR), and Radio Shack (NYSE:RSH); Underperform-rated stocks: Genuine Parts Company (NYSE:GPC), Tractor Supply (Nasdaq:TSCO), Staples (Nasdaq:SPLS), and Bed Bath & Beyond (Nasdaq:BBBY); Market Perform–rated stocks: Lowe's, Office Max (NYSE:OMX), Best Buy (NYSE:BBY), hhgregg (NYSE:HGG), O’Reilly Automotive (Nasdaq:ORLY), Auto Zone (NYSE:AZO), and Advance Auto Parts (NYSE:AAP)."

Home Depot was trading at $35.44, up $0.38, or 1.10 percent, as of 11:21 AM EST. Lowe's was trading at $25.30, up $0.22, or 0.88 percent.