Boeing (NYSE:BA) is in the news again today receiving downgrades from two investment banks. Oppenheimer downgraded the aircraft manufacturer from Perform to Underperform, and Morgan Stanley downgraded their rating from Overweight to Equal Weight. Both firms cited the recent test flight delay as reason for their downgrades. Oppenheimer lowered their 787 delivery estimates for 2010 from 30 aircraft delivered to 18 aircraft delivered; Morgan Stanley lowered both their 2009 and 2010 EPS estimates for Boeing and said they do not believe this will be the last setback for the 787.
Shares of Boeing traded lower this afternoon, falling a little more than one and a half percent on the downgrades.
Credit Suisse upgraded power tool manufacturer Black & Decker (NYSE:BDK) from Underperform to Neutral this morning on their belief that the bottom is in for earnings and margins in the sector. Analysts at the firm applauded the company's ability to lower inventory levels in the difficult economic enviornment. Furthermore, they expect the successful cost cutting measures to "mute the weak sales" in upcoming quarters.
Credit Suisse has set a 27 dollar price target for Black & Decker, but the market has taken the stock higher, pushing the share price to just under 29 dollars per share.
Alliance Data Systems (NYSE:ADS) was downgraded by JP Morgan from Overweight to Neutral today on the fear of rising charge-offs. Further pressuring earnings each quarter will be the reduced or eliminated share buybacks that the firm expects. With the downgrade, JP Morgan lowered their price target from 46 dollars per share to 44 dollars per share.
Shares of Alliance Data were trading close to even this afternoon, seemingly unaffected by the downgrade.
And copper and gold producer Freeport-McMoRan (NYSE:FCX) received a boost this morning when FBR upped their rating from Market Perform to Outperform on valuation and the long-term prospects for copper. Shares of FCX have fallen over twenty percent over the last two weeks as copper prices have weakened, but the firm sees China continuing to drive copper prices higher in the long term, as their demand outpaces their supply.
In afternoon trading, shares of Freeport-McMoRan climbed more than six and a half percent on the upgrade.
For MarketNewsVideo.com, I'm Michael Phillips.
